The Australian Competition and Consumer Commission has accepted a court-enforceable undertaking from JB Hi-Fi regarding the entertainment retailer’s arrangement with a small retailer in Ballarat to close its store.
JB Hi-Fi had initially approached the small retailer, called (I Can’t Get No) Satisfaction Pty Ltd, to buy its business but ultimately decided the premises were too small and made an agreement with the small retailer to restrict its trade.
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The ACCC was concerned that by JB Hi Fi requiring Satisfaction to stop trading, it may have contravened section 45 of the Trade Practices Act 1974, which prohibits making of contracts, arrangements or understandings that restrict dealings or affect competition.