Colgate-Palmolive fined $18 million for dirty detergent deal
Colgate-Palmolive has been fined $18 million over an illegal deal to control the price and supply of laundry detergents.
The company was fined for colluding with its competitors and ripping off Australian consumers, while New Zealand customers were passed on savings.
In a deal with competitor Unilever Australia, Colgate stopped selling laundry concentrate in 2009 and started selling ultra concentrate, the company has admitted after a legal battle with the consumer watchdog.
Ultra concentrate is cheaper to produce, store and transport, but the savings were never passed on to customers.
At the time, Colgate produced the Cold Power, Omo and Radiant products. It has since sold its laundry detergent business.
Tom Godfrey, a spokesman for Choice, told 7 News:
"They have been engaged in dirty tricks, you and I pay a lot more than we should and for this laundry detergent.
"They colluded to make sure the price stayed high and didn't hand on those savings to consumers.
"It's a dirty trick, they shouldn't have done it."
Australian Competition and Consumer Commission chairman Rod Simms said the resulting fine was one of the largest ever issued for a breach of competition rules.
"By ordering these substantial penalties, the court has recognised the seriousness of this conduct, which affected the supply and pricing of laundry detergents, a consumer staple," Mr Sims said.
Colgate's former sales director Paul Ansell also admitted to sharing sensitive market information, including the timing of price increases, with Unilever executives.
Mr Ansell has been disqualified from managing corporations for seven years and a ordered to pay $75,000 towards the ACCC's legal fees.
Unilever was granted immunity in the case after it came forward with information on the conduct.
Woolworths and Cussons were also allegedly involved in the practice and are due to appear in court in June.
