Gemma runs a hair products store in Brisbane's West End. A good part of Gemma's revenue comes from the popular 'Silky-Sleek' hair line. It has an extremely loyal customer base who often buy other products when they come into the shop to purchase their hair products.

Earlier this year, 'Princess Hair' opened up down the road selling hair products at low prices. Princess Hair is a large national chain with a 30% share of the Australian hair products market.They have a history of opening shops near to existing small shops and driving them out of business through heavy discounting.

Princess Hair stock all of the Silky Sleek hair products and, for the last 3 months, have been selling these products for 35% below RRP and 10% below the price that Gemma pays for them wholesale (including delivery). Since they opened, Gemma has seen her sales of these products plummet and it is starting to make her worried about the survival of her business.

(a)

Advise Gemma as to her options for challenging Princess Hair's discounting under theCompetition and Consumer Act2010 (Cth).

Gemma has also contacted Jake, who distributes the Silky Sleek products, to discuss her concerns about Princess Hair's discounting. Jake is concerned about the effect this discounting might have on the perceived value of Silky Sleeks products and promises to contact Princess Hair to ask them to sell Silky Sleeks products at the Recommended Retail Price. He also plans to say that Princess Hair will no longer be supplied with Silky Sleek products if they continue to sell them below wholesale for extended periods of time.

(b)

Advise Jake as to whether either of these requests to Princess Hair would comply with his legal obligations under theCompetition and Consumer Act2010 (Cth).

Please refer to any relevant (sub)sections of theCompetition and Consumer Act2010 (Cth) and any relevant case law in your response.