Skins in court over alleged sales breach

ADELAIDE: Compression garment specialist Skins has been taken to the Federal Court in Adelaide over alleged breaches of the Trade Practices Act.

The Australian Competition and Consumer Commission (ACCC) initiated the proceedings over what it claimed was the brand's "deceptive conduct and resale price maintenance".

The ACCC case, set down for September 19 before Justice Besanko, concerned representations made by Skins in its print, radio and television advertisements in 2005 and 2006 and also on its website from at least June 2006.

Further action has been taken against Skins managing director Jaimie Fuller and the Australian Physiotherapy Association-endorsed brand's south Australian agent Christopher Warhurst. The pair has been accused of being parties to the alleged breaches.

Calls made to Skins were not returned at the time of press.
ACCC's chief concern is believed to centre around whether Skins paid money to elite sportspeople to wear Skins products, or to endorse Skins products and whether the products worn by elite sports people were always paid for with money.

The current identities listed on the brand's website as wearing the product include rugby league sides Wests Tigers and Roosters, Australian Rules Football teams St Kilda and Melbourne Football Club, national basketball side the Opals and individual sportsmen and women Nic Lamond (cycling), and Kylie Dick and Kate Seibold-Crosbie (athletics).

The ACCC also alleged that during the period July 2005 to 2006 Skins contravened the Trade Practices Act by "inducing and attempting to induce" an Adelaide-based sports good retailer not to advertise a 20 per cent discount off the brand's recommended retail price. It also alleges that in May 2006 Skins failed to supply an order of Skins products to the unnamed retailer because it had advertised the products at a 20 per cent discount off the recommended retail price.

As part of its action, ACCC sought penalties against Skins, Warhurst and Fuller as well as an order that a notice be published on Skins' websites and other publications outlining its alleged conduct.

No decision was available at the time of press.