Federal Court hands Techtronic record penalty for resale price maintenance conduct

The news: The Federal Court has ordered Techtronic to pay penalties of $15 million, after the power tool supplier admitted to engaging in resale price maintenance conduct.

The numbers: Between January 2016 and July 2021, Techtronic entered into 97 agreements with retailers and dealers that restricted the sale of Milwaukee products below a specified minimum price. Techtronic, which is the Australian subsidiary of Hong Kong based Techtronic Industries Co Ltd, also admitted it enforced restrictive provisions in its contracts 29 times between December 2016 and May 2020, including by issuing warnings to dealers that offered to sell, or sold, Milwaukee branded products below the specified minimum price, or by withholding supply from two dealers.

The context: Resale price maintenance occurs when a supplier of goods specifies a minimum price below which a reseller must not supply, offer to supply, advertise, or display those goods for sale. Techtronic's total penalties are the highest imposed for resale price maintenance in Australia.

What they said: ACCC Deputy Chair Mick Keogh said: “The ACCC submitted to the Court that this level of penalty was appropriate given the seriousness, duration and extent of Techtronic’s conduct. It sends a strong signal to deter others from engaging in RPM, and should serve as a warning for all other businesses.”