Skins Compression Garments Pty Ltd (''Skins'') is the manufacturer of compression sports performance garments (“Skins products''), the supplier of Skins products to a distributor and retailers throughout Australia and a retailer of Skins products to the general public in Australia.
The ACCC instituted proceedings in the Federal Court in August 2007 against Skins, Jaimie Royston Fuller (“Fuller''), the sole director of Skins at all material times, and Christopher Thomas Warhurst (“Warhurst''), a representative of Skins’ agent in South Australia. The proceedings were finalised in December 2008 with the consent of the parties as follows:
1. Declarations that:
(a) in advertising Skins products in 2005, 2006 and 2007, Skins engaged in conduct that was misleading or deceptive, or likely to mislead or deceive, in contravention of section 52 of the Trade Practices Act 1974 by representing that:
i. Skins does not pay money for sports stars to wear Skins products; ii. Skins does not pay money for sports stars to endorse Skins products; iii. Sports stars always pay money for Skins products,
when the representations were false by reason of agreements Skins had entered into with sports stars or their representatives, clubs, teams or governing bodies;
(b) by reason of the conduct of Warhurst, Skins engaged in the practice of resale price maintenance in contravention of section 48 of the Act with a South Australian retailer of sporting goods;
(c) Warhurst was directly or indirectly knowingly concerned in, or party to, the conduct by Skins in contravention of section 48 of the Act.
2. Orders that Skins pay a pecuniary penalty in respect of its resale price maintenance conduct in the sum of $120,000 and that Warhurst pay a penalty in the sum of $14,000 in respect of his involvement in the conduct.
3. An order that Skins advise its current retailers, agents and/or distributors of its resale price maintenance conduct by letter.
4. Orders that Skins:
(a) cause a corrective advertisement to be broadcast on SBS and published in B & T Weekly; (b) publish a corrective notice on its website at www.skins.net.
5. An order that Skins pay the ACCC's costs of the proceedings.
6. Skins undertaking to the Court that it will not make the representations referred to in 1(a) above for a period of 3 years unless they are true.
7. Skins and Fuller each giving an undertaking to the ACCC pursuant to section 87B of the Act in relation to trade practices compliance training.
8. Warhurst giving an undertaking to the ACCC pursuant to section 87B of the Act that he will not in any way be concerned in, or a party to, Skins or any other corporation inducing or attempting to induce any person or corporation not to sell or advertise products for sale at a price less than a price specified by the supplier, and in relation to trade practices compliance training.