The ACCC has instituted Federal Court proceedings against Techtronic Industries Australia Pty Limited (Techtronic), alleging it engaged in resale price maintenance in relation to the wholesale supply of Milwaukee brand power tools, hand tools and accessories, in breach of the Competition and Consumer Act.

Resale price maintenance (RPM) occurs when a supplier engages in conduct that prevents, or attempts to prevent, resellers of their goods or services from advertising or selling the goods or services below a specified minimum price.

The ACCC alleges that, between 2015 and 2021, Techtronic engaged in RPM conduct, including by entering into 96 agreements with independent dealers and buying groups that restricted the sale of Milwaukee products below a specified minimum price.

The commission also alleges that Techtronic enforced these agreements by issuing reminders, warnings and breach notices to dealers that advertised or sold Milwaukee products below the specified minimum price.

Additionally, it is alleged that Techtronic withheld supply from two of the dealers to enforce the restrictions on price discounting below the specified minimum price.

“Requiring retailers to charge at or above a minimum price for products in the way that we allege Techtronic has done, stifles retailers’ ability to compete on price, which ultimately hurts consumers. This is particularly so in industries where retailers would otherwise strongly compete on price, such as by offering price match guarantees to consumers,” ACCC deputy chair Mick Keogh says.

“We alleged that Techtronic’s actions meant Milwaukee power tool dealers could not sell the products at a discount below the specified minimum price, depriving consumers of the chance to benefit from lower prices driven by competition.”

The ACCC is seeking penalties, declarations, injunctions, a compliance program order, an order for corrective advertising and costs.