The penalty was imposed by Justice Tracey of the Federal Court following proceedings instituted by the Australian Competition and Consumer Commission. Digital Products Group had earlier admitted to the court that in its dealings with a Melbourne based retailer it had breached section 48 of the Act by on two occasions attempting to induce and on 17 occasions inducing the retailer not to advertise certain Topfield digital set top boxes supplied by Digital Products Group at prices less than prices specified by the company, and using a statement of price that was likely to have been understood by the retailer as the price below which the retailer was not to advertise a certain Topfield digital set top box for sale. The contraventions took place between October 2003 and June 2005.
Digital Products Group's sole director, Mr Jai Kemp, admitted being knowingly concerned in 11 of the contraventions and was penalised $42 000. Digital Product Group's national sales manager, Mr Mark Dopson, admitted being knowingly concerned in nine of the contraventions and was penalised $17 500.