Federal Register of Legislation - Australian Government

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A Bill for an Act to amend the Trade Practices Act 1974 to reduce predatory pricing by requiring corporations to offer and supply products at consistent prices across adjacent markets, and for related purposes
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Registered 29 Jun 2009
Introduced Senate 24 Jun 2009

 

2008‑2009

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

Presented and read a first time

 

 

 

Trade Practices Amendment (Guaranteed Lowest Prices—Blacktown Amendment) Bill 2009

 

No.      , 2009

 

(Senators Xenophon and Joyce)

 

 

 

A Bill for an Act to amend the Trade Practices Act 1974 to reduce predatory pricing by requiring corporations to offer and supply products at consistent prices across adjacent markets, and for related purposes

  

  


Contents

1............ Short title............................................................................................ 1

2............ Commencement.................................................................................. 1

3............ Schedule(s).......................................................................................... 2

Schedule 1—Amendment of the Trade Practices Act 1974                            3

 


A Bill for an Act to amend the Trade Practices Act 1974 to reduce predatory pricing by requiring corporations to offer and supply products at consistent prices across adjacent markets, and for related purposes

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Trade Practices Amendment (Guaranteed Lowest Prices—Blacktown Amendment) Act 2009.

2  Commencement

                   This Act commences on the day after it receives the Royal Assent.

3  Schedule(s)

                   Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1Amendment of the Trade Practices Act 1974

  

1  After section 46B

Insert:

46C  Guaranteed Lowest Prices Rule

             (1)  A corporation must, at a retail outlet operated by the corporation or a related entity, supply or offer to supply a particular product to a consumer at a price being the lowest price the product is supplied or offered for supply at the same time at any retail outlet operated by the corporation or a related entity under the same trading name within a distance of 35 kilometres.

             (2)  The rule set out in subsection (1) is the Guaranteed Lowest Prices Rule.

             (3)  Subject to subsection (4), the following are to be disregarded for the purposes of subsection (1):

                     (a)  a price of a product supplied or offered for supply at a genuine factory, warehouse, or clearance outlet;

                     (b)  a price of a product marked down because the outlet is genuinely closing down;

                     (c)  a price of a product marked down because the product is imminently perishable;

                     (d)  a price of a product marked down because the product or its packaging is damaged;

                     (e)  a price of a product marked down because the product is to be permanently removed from the range of products supplied or offered for supply at the retail outlet;

                      (f)  a price of a product marked down because the product has deteriorated in value as a result of being on display in a retail outlet for a substantial period of time, having regard to the nature of the product.

             (4)  Where the corporation or a related entity operates more than one of the outlets referred to in paragraph (3)(a), the Guaranteed Lowest Prices Rule applies in relation to each of those outlets.

             (5)  Where a corporation or a related entity offers a discount, rebate, credit, allowance, or special deal to consumers in relation to a product or products to which the Guaranteed Lowest Prices Rule applies, it must, where the terms and conditions relating to discount, rebate, credit, or allowance or special deal are met, offer the same discount, rebate, credit, allowance, or special deal in relation to that product or those products at each retail outlet covered by the Guaranteed Lowest Prices Rule.

             (6)  Where a corporation or a related entity imposes a surcharge on consumers in relation to a product or products to which the Guaranteed Lowest Prices Rule applies, it must impose the surcharge in relation to that product or those products on the same terms and conditions at each retail outlet covered by the Guaranteed Lowest Prices Rule.

             (7)  Subsections (1), (4), (5) and (6) do not apply to a corporation where that corporation or a related entity operates five retail outlets or less in Australia under the same trading name.

             (8)  In this section:

price means the price at which the product is available for purchase by any member of the general public.

retail outlet operated by, in relation to a corporation or a related entity, means a physical establishment where products are offered for sale to the general public and where the corporation or a related entity sets the price at which the products are offered for sale.

trading name, in relation to a corporation or a related entity, means the name that the corporation or a related entity trades under or the name by which it is known to its suppliers or customers.