KL Sports and Gym situated in the Perth central business district are one of the leading wholesale suppliers of cycling and sporting products. Between June and September 2020, KL Sports and Gym Managing Director, Lance Lewis approached a number of dealers and advised that their dealer agreements would now contain terms which would prohibit the dealers from the advertising or promoting the products of certain selected KL Sports and Gym brands less than the recommended retail price. KL Sports and Gym specified the applicable RRP for each product on its website, to which dealers have access and also maintained a master price list of RRPs, which is provided to dealers on request. Lance explained that this was in order to protect the quality of their products. KL Sports and Gym also advised all dealers that there will no longer be automatic warranties on the AFX200 bike and the new Ginarallo Dogma X bike. The dealers were also instructed to use images of sporting greats like Robbie McEwen and Stuart O'Grady next to the bikes.

In early October 2021, CycleSports, a new south wales company announced that it would be opening a store in Fremantle and that the company was currently in the process of bidding for a facility that is vacant. KL Sports and Gym, together with four other leading wholesale suppliers of cycling, fitness and sporting goods get into an understanding to outbid CycleSports in getting the vacant facility. Lance proposed that they would help him get the facility. This is on condition that KL Sports and Gym acquires 40 percent of BLT shares. Marc thinks this could be a good way of expanding BLT.

QUESTION: Identify and explain the legal issues and breach of the relevant provisions of the Australian Consumer Law and Competition and Consumer Act.