ACCC v Woolworths - ACCC v Coles - Business Implications - Special Suppliers Club - Law Assessment Answer

Assessment Task:

ACCC v Woolworths - ACCC v Coles Law Assessment Answer

Instructions:

You are a solicitor working in a commercial law firm. Your client is the owner of a large chain of Australian toy stores, Kiddos R Us. The legal compliance officer at Kiddos R Us, Milly Rand, has asked you for advice on the legal implications of two recent Federal Court judgments: Australian Competition and Consumer Commission v Woolworths Limited [2016] FCA 1472 and Australian Competition and Consumer Commission v Coles Supermarkets Australia Pty Ltd [2014] FCA 1405.

As context for this advice, Munchkins R Us recently established a new ‘Special Suppliers Club’ and has invited all of its suppliers to join this club for a monthly fee of $200. Members of the ‘Special Suppliers Club’ will be provided with ‘member benefits’ consisting of a monthly e-newsletter and an annual Christmas party. In addition, these suppliers have been informed that after the introduction of the club, products from ‘non-member suppliers’ will no longer be promoted or displayed in high traffic areas of stores. 

Ms Rand has specifically asked you to advise Kiddos R Us as to whether its Special Suppliers Club complies with the ACL in light of these judgments (ACCC v Woolworths; ACCC v Coles).

Question

Critical analysis of the legal issues raised by ACCC v Woolworths; ACCC v Coles and their implications for business