Australian chemical company admits engaging in Resale Price Maintenance

Chemical Formulators Pty Ltd (Chemform), a manufacturer and supplier of cleaning products to industries including food and beverage has acknowledged it engaged in Resale Price Maintenance (RPM), said the Australian Competition and Consumer Commission (ACCC).

The findings come after an investigation and Chemform admitting that it was likely to have engaged in RPM through a number of channels.

Resale price maintenance occurs when suppliers prevent, or attempt to prevent, independent retailers or distributors from advertising or selling products below a specified price.

Chemform products include cleaners for oven, frier, grill and hot plates and the beer and wine industry.

“This is a reminder that companies must ensure that they are aware of their obligations under the Competition and Consumer Act and serves as a warning that the ACCC pursues allegations of Resale Price Maintenance in any industry to ensure that there is a level playing field in the market,” said Rod Sims, ACCC chairman.