News Summary
Golf Imports Pty Ltd, an Australian supplier of golf equipment, has admitted to engaging in illegal resale price maintenance (RPM) by enforcing minimum advertising prices among retailers. The company, which sells popular brands like Callaway, has provided a court-enforceable undertaking to the ACCC to cease this unlawful practice. The ACCC’s actions emphasize its commitment to ensuring price competition and protecting consumers from inflated prices. Golf Imports will also undertake a comprehensive compliance program for the next three years.
Canberra, Australia
Golf Imports Pty Ltd, a prominent Australian importer and wholesaler of golf equipment, has formally admitted to engaging in resale price maintenance (RPM) and has provided a court-enforceable undertaking to the Australian Competition and Consumer Commission (ACCC). This admission comes after the company prohibited retailers from advertising its products below specified minimum prices, a practice considered illegal under Australian competition law.
Supplier Admits Pricing Restrictions
The company, which supplies popular brands such as Callaway to major golf retailers including Drummond Golf, GolfBox, and Golf World, was found to have included restrictive clauses in its Online Policy and Supply Agreement. These clauses, in effect between April 2022 and July 2025, sought to prevent retailers from advertising goods below prices set by Golf Imports. The agreement further stipulated that non-compliance could lead to the suspension or termination of a retailer’s ability to advertise or sell the supplied products.
Golf Imports is also the exclusive Australian distributor for brands like Izzo Golf, Infiniti Golf, and Golf Pride. The ACCC emphasized that such practices undermine price competition, potentially leading to higher prices for consumers, especially during periods of increased cost-of-living pressure.
Legal Ramifications and Undertakings
Under Australian competition law, specifically the Competition and Consumer Act 2010 (CCA), resale price maintenance is strictly prohibited. It is considered a “per se” breach, meaning it is illegal regardless of whether it significantly lessens competition in the market. The law prevents suppliers from imposing minimum resale prices on retailers, though they are permitted to issue recommended retail prices (RRPs) provided it is clearly communicated that these are non-binding recommendations.
In response to the ACCC’s concerns, Golf Imports has ceased using the documents containing the illegal clauses and has updated its Online Policy and Supply Agreement. The company has committed to advising its retailers of these changes and will refrain from reintroducing similar clauses or engaging in resale price maintenance in the future. Furthermore, Golf Imports will establish a comprehensive competition and consumer law compliance program to ensure ongoing adherence to legal standards. This court-enforceable undertaking will be in effect for a period of three years.
Broader Context of Resale Price Maintenance
The ACCC consistently monitors and takes action against businesses engaging in resale price maintenance. This case highlights the regulator’s continued focus on ensuring fair market practices and protecting consumers from inflated prices. Previous cases include Techtronic Industries Australia, a supplier of Milwaukee tools, which was ordered to pay penalties totalling $15 million in December 2023 for engaging in similar RPM conduct. That case involved restricting the sale of products below a specified minimum price across numerous supply agreements. The ACCC views the ability of retailers to set their own prices as a fundamental aspect of a competitive market economy.
The legal framework against resale price maintenance is designed to prevent suppliers from dictating prices at the retail level, which could otherwise stifle competition among retailers and lead to consumers paying more for goods and services. The ACCC has reiterated its commitment to taking enforcement action, including court proceedings, against any supplier attempting to engage in this unlawful practice.
Frequently Asked Questions
- What is resale price maintenance?
- Resale price maintenance (RPM) occurs when a supplier prevents a business, such as an independent retailer or distributor, from advertising or selling products below a specified minimum price. This practice is illegal under Australian competition law.
- Which golf equipment supplier admitted to resale price maintenance?
- Golf Imports Pty Ltd, an Australian importer and wholesaler of golf equipment, admitted to engaging in resale price maintenance.
- What was the period during which Golf Imports Pty Ltd engaged in resale price maintenance?
- Golf Imports Pty Ltd engaged in resale price maintenance between April 2022 and July 2025.
- What are the consequences for Golf Imports Pty Ltd?
- Golf Imports Pty Ltd has provided a court-enforceable undertaking to the ACCC, ceased using documents with illegal clauses, updated its Online Policy and Supply Agreement, committed to not reintroducing similar clauses, and will implement a competition and consumer law compliance program.
- What is the significance of the ACCC’s action against resale price maintenance?
- The ACCC’s action against resale price maintenance aims to protect price competition and prevent higher prices for consumers, especially given increased cost-of-living pressures. It underscores the illegality of suppliers dictating minimum resale prices.
Key Features of the Resale Price Maintenance Case
| Feature | Details | Scope of Fact |
|---|---|---|
| Supplier Involved | Golf Imports Pty Ltd | Nationwide (Australia) |
| Nature of Admission | Engaging in resale price maintenance | Nationwide (Australia) |
| Regulatory Body | Australian Competition and Consumer Commission (ACCC) | Nationwide (Australia) |
| Period of Conduct | April 2022 to July 2025 | Nationwide (Australia) |
| Prohibited Practice | Preventing retailers from advertising products below specified minimum prices via clauses in agreements. | Nationwide (Australia) |
| Brands Supplied | Callaway, Izzo Golf, Infiniti Golf, Golf Pride (among others) | Nationwide (Australia) |
| Legal Framework | Competition and Consumer Act 2010 (CCA) | Nationwide (Australia) |
| Remedial Actions | Court-enforceable undertaking, removal of restrictive clauses, update of policies, implementation of compliance program. | Nationwide (Australia) |
| Undertaking Duration | 3 years | Nationwide (Australia) |
