Black and White Cabs of Brisbane will face the Federal Court, Melbourne after the Australian Competition and Consumer Commission (ACCC) instituted legal proceedings against the company.
The ACCC will alleges that Black and White Cabs Pty Ltd engaged in “third line forcing” conduct that contravened the Trade Practices Act 1974. Third line forcing is a type of “exclusive dealing” prohibited under the Trade Practices Act 1974 where one person trading with another imposes restrictions on who, what where or whom the other person can deal with.
Black and White Cabs is a Brisbane based taxi network that provides services to taxi operators and owners. In 2009 Black and White Cabs is alleged by the ACCC to have included a clause in some operating agreements which required the taxi operators who sub-let a licence through Black and White Cabs to exclusively use the Cabcharge Eftpos System for processing electronic payments. This is what is deemed as “third line forcing” which involves the supply of goods or services (in this case, taxi network services) on the condition that the taxi operator buys goods or services from a particular third party (in this case, Cabcharge).
The ACCC alleges that Black and White Cabs engaged in third line forcing conduct and contravened section 47(1) of the Trade Practices Act 1974.
The ACCC is seeking:
- a declaration that Black and White Cabs contravened the Trade Practices Act 1974
- an injunction to restrain Black and White Cabs from engaging in third line forcing conduct in the future
- court order that Black and White Cabs send letters to all its affiliated taxi operators regarding the conduct
- the implementation of a trade practices compliance and training program
- penalties, and
- ACCC costs.
The matter has been filed in the Federal Court’s Fast Track List and is listed for a scheduling conference in Melbourne on 22 September 2010 at 11 a.m.
