The ACCC has filed civil proceedings alleging a cartel involving Woolworths Limited
(ASX:WOW), Colgate-Palmolive, Unilever Australia, and PZ Cussons Australia that it says denied consumers the benefits of lower prices for laundry detergent.
The consumer watchdog is alleging Colgate, Cussons and Unilever entered into arrangements to stop supplying standard concentrate laundry detergents and only supply ultra concentrate from the first quarter of 2009.
The groups agreed to then sell ultra concentrates for the same price per wash as the equivalent standard concentrates and not pass on cost savings to consumers, the ACCC alleges.
The watchdog alleges the arrangements covered brands including Cold Power, Radiant and Omo and had a significant effect on competition.
The ACCC also alleges that Woolworths played a key role in organising the simultaneous transition to ultra concentrates and the introduction of an anti-competitive pricing strategy for the transition.
Woolworths reported a net profit of $2.26 billion in fiscal 2013.
