SBD/Issue 57/Sponsorships, Advertising & Marketing

Fila Facing Fine In Oz For Abuse Of Power At Retail

In Australian Federal Court on December 15, Fila "could face a fine of up to [US$7.3M] for breaching the Trade Practices Act after withdrawing its defence in its Federal Court battle" with the Australian Competition & Consumer Commission (ACCC), according to Michael McGuire of THE MERCURY. The ACCC alleges that while Fila marketed jerseys and apparel of Australian Rules Football teams, the company "abused its market power and engaged in exclusive dealing" by "demand[ing] that retailers not stock AFL-branded product made by its competitors." McGuire noted that former Fila exec David Carney "has not withdrawn his defence and will continue fighting the ACCC" (THE MERCURY, 12/2).

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