MILDURA-based Country Care Group won a landmark case against the ACCC this week.
In the Federal Court on Wednesday, following a 12-week trial, a jury unanimously rejected all eight charges against Country Care Group Pty Ltd, chief executive Robert Hogan and former business development manager Cameron Harrison.
The criminal cartel charges related to alleged price-fixing and bid-rigging for assisted technology products such as beds, wheelchairs and walking frames produced by Country Care Group for the aged-care and rehabilitation industry.
The charges were laid following an investigation by the Australian Competition and Consumer Commission (ACCC), which claimed the alleged offending occurred between May 2014 and May 2016 and related to a cartel, which is when businesses make a deal to act together instead of competing against one another.
The prosecuting agency was the Commonwealth Director of Public Prosecutions (CDPP).
In a statement, Mr Hogan said he and the group had maintained their innocence throughout court proceedings and slammed the ACCC’s investigation of the matter.
“While I am naturally pleased with (Wednesday’s) outcome, it should never have come to this point,” Mr Hogan said.
“This trial exposed the ACCC’s deeply flawed processes in investigating cartel allegations, particularly with respect to the ACCC’s approach to immunity witnesses.”
ACCC chair Rod Simms said he respected the verdict but stood by the actions taken by the commission.
“We were concerned this alleged conduct had the potential to increase prices paid by consumers for rehabilitative and assistive technology products, which are essential for the health, wellbeing and dignity of people with disabilities or who are undergoing rehabilitation or are in aged care,” Mr Simms said.
“It also had the potential to increase prices paid by governments for these essential products.
“Cartel conduct cheats consumers and other businesses and restricts healthy economic growth.”
The case was the first contested criminal prosecution under the criminal cartel provisions of the Competition and Consumer Act, and the first to proceed to trial by jury.
Mr Hogan said the win would benefit businesses across the country.
“This is more than just a win for Country Care Group and me, it’s a win for all mum and dad-style businesses around Australia, who are the lifeblood of this country,” he said.
“The ACCC and the CDPP need to be held to account for the significant failures in their investigation and approach to these criminal proceedings.
“It is a disgrace, but for us it’s finally time to move on.”
