Client Update: Criminal cartel legislation receives Royal Assent
30 June 2009
In brief: The Trade Practices Amendment (Cartel Conduct and Other Measures) Act 2009 (Cth) has received Royal Assent, with most of the operative provisions of the Act commencing on 24 July 2009. Partner Wendy Peter (view CV) and Lawyer Alexander Gelis report.
Criminal cartel legislation
Having passed through both houses of Parliament earlier this month, the Trade Practices Amendment (Cartel Conduct and Other Measures) Act 2009 (Cth) (the Cartel Act) received Royal Assent on 26 June 2009. The majority of the operative provisions will come into effect on 24 July 2009, amending the Trade Practices Act 1974 (Cth) (the TPA).
From 24 July 2009, making or giving effect to a cartel provision in a contract, arrangement or understanding with a competitor may be a criminal offence which exposes corporations to significant fines and individuals involved to jail sentences of up to 10 years. For a summary of the new provisions introduced by the Cartel Act, see our Focus: Criminal cartel legislation passed by Parliament.
The new criminal and civil cartel offences contained in the Cartel Act extend to a corporation giving effect to a cartel provision, even if that provision is in an arrangement made before the Cartel Act came into effect. For this reason, companies should urgently review ongoing contractual arrangements with competitors or potential competitors, especially joint venture arrangements which relied on the previous joint venture defences in the TPA.
Now is also the time to ensure that compliance training is up to date and that all employees are aware of their obligations under the TPA, especially the new provisions creating cartel offences. Please contact us if you require training or advice in relation to the new cartel offences.
Published 30 June 2009
For further information, please contact:
- Wendy PeterPartner,
Melbourne
Ph: +61 3 9613 8953
Wendy.Peter@aar.com.au - David BrewsterPartner,
Melbourne
Ph: +61 3 9613 8707
David.Brewster@aar.com.au - Ted HillPartner,
Melbourne
Ph: +61 3 9613 8588
Ted.Hill@aar.com.au - Fiona CrosbiePartner,
Sydney
Ph: +61 2 9230 4383
Fiona.Crosbie@aar.com.au - Carolyn OddiePartner,
Sydney
Ph: +61 2 9230 4203
Carolyn.Oddie@aar.com.au - Jacqueline DownesPartner,
Sydney
Ph: +61 2 9230 4850
Jacqueline.Downes@aar.com.au - Peter JamesPartner,
Brisbane
Ph: +61 7 3334 3360
Peter.James@aar.com.au
