Vic: ACCC issues Video Ezy with GST price exploitation notice

AAP General News (Australia)
04-11-2000
Vic: ACCC issues Video Ezy with GST price exploitation notice

MELBOURNE, April 11 AAP - Video Ezy Australasia Pty Ltd has become the first body to
be issued a GST price exploitation notice by Australia's top competition watchdog.

The Australian Competition and Consumer Commission (ACCC) today said Video Ezy had,
through many of its corporately-owned stores Australia-wide, charged an unreasonably high
price for certain new release hire videos.

ACCC Chairman Allan Fels said it had unlawfully sought to anticipate the GST in its
prices, even though the tax was not due until July 1.

The price exploitation notice was prima facie evidence that price exploitation had
occurred and could be used later in court action, Professor Fels said.

"Corporations found by the Court to have engaged in price exploitation risk penalties
of up to $10 million," Prof Fels said.

"Individuals, including individual executives involved in corporate decisions, face
penalties of up to $500,000," he said.

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