Resale price maintenance: ACCC v Chaste Corporation

There is no short of gullible investors. The ACCC is working overtime to protect them.

In ACCC v Chaste Corporation the Federal Court found the defendant company of resale price maintenance by entering into 70 Area
Management agreements Australia-wide with provisions that prevented
area mangers from selling the weight-loss TRIMit product at a discount

Area managers paid $40,000 each.

A $150,000 personal penalty each was imposed
on Mr Foster (who was in jail at the time) and Mr Webb, for being knowingly concerned in Chaste’s
resale price maintenance.

Mr Foster and Mr Webb were also found to be knowingly concerned in
Chaste’s misleading and deceptive representations about TRIMit, the
business opportunity that TRIMit represented for area managers; and
that the area managerships were not franchises.

Sean Cousins,
a barrister, legal advisor and one-time Chief Executive Officer for
Chaste, who admitted to the court that he knew the conduct was
unlawful, was penalised $100,000 for being knowingly concerned in
Chaste’s resale price maintenance conduct.

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