Woolworths admits detergent cartel
The supermarket giant has been given a record fine for being knowingly concerned in a detergent cartel.
Woolworths has this afternoon been ordered to pay a fine of $9 million after admitting to being knowingly concerned in a laundry detergent cartel.
The Federal Court ruling this afternoon follows April’s admission by Colgate Palmolive that it entered into understandings “which limited the supply, and controlled the price, of laundry detergents.”
It was flagged by The Australian earlier today.
The fine “reflects the objective seriousness of the contraventions,” Federal Court Justice Jayne Jagot said on handing down the penalty. It is the largest the Australian Competition and Consumer Commission, which brought the case, has obtained against a company for knowing involvement in anticompetitive conduct.
“This is a timely reminder that businesses must ensure that their competition law compliance programs educate their staff about the risks involved in communications or other conduct which facilitates an anti-competitive understanding between other businesses,” ACCC chairman Rod Sims said.
Woolworths was also ordered to update its trade practices compliance program.
“The proceedings have been settled with Woolworths making limited admissions in relation to one of the claims made by the ACCC,” the supermarket giant said in a statement.
“Woolworths acknowledges that the behaviour of one of its former buyers was not consistent with the high standards of competition law compliance we seek to achieve.
“...Since the issues leading to today’s court hearing occurred, now over seven years ago, Woolworths has reviewed and upgraded its compliance program and training and will continue to do so to help ensure that all employees comply with the company’s code of conduct.”
It comes after Colgate agreed to pay an $18 million fine in April.
A third participant, PZ Cussons, is maintaining its innocence and is continuing to fight the case.
Unilever originally went to the ACCC and was granted immunity after providing details of the agreements around the timing and price for ultra concentrated laundry detergents.
Woolworths was included in the action because it was alleged to have been involved in the discussion between the rival detergent makers.
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