nn recently opened a floral art business on the Gold Coast. One night at a bar, over drinks with friends, Ann is introduced to Ian who works for a florist, 'Special Designs', that is also based on the Gold Coast. Ian asks her which area of the Gold Coast she plans to do business in, and she shrugs and says, 'Anywhere I can.'

Ian raises his eyebrows, and then changes the subject.

A few days later, Ian contacts Ann to see if she'd like join him and some colleagues for lunch. She readily agrees.

Over lunch, Ian introduces Ann to Gabby, the Director of Special Designs, Scott, a junior member of 'Forever Floral', and Annette, the Director of 'Roses and More'.

As the meal continues, David says to Gabby, 'So, Ann here is planning to do business all over the Gold Coast.'

'Oh, is she now?' replies Gabby, smiling smugly. 'I think we might need to chat, Ann.'

Gabby proceeds to explain to Ann that there is an established practice on the Gold Coast under which they each only provide floral services to specific geographic areas. She assures Ann that this means they can basically charge what they want and that 'everyone benefits'. She then tells her the specific geographic area that she suggests Ann sticks to.

Ann nods in response. She feels confused, but also flattered to be included in this arrangement.

The following day, she comes to you for advice.

(a)

Advise Ann as to whether she would risk breaching theCompetition and Consumer Act2010 (Cth) if she were to participate in Gabby's arrangement.

(b)

If the ACCC were to take an interest in this arrangement, what kind of powers do they have available to investigate it further.

(c)

If the ACCC were to find that Special Designs, Forever Floral, Roses and More and Gabby were in breach of theCompetition and Consumer Act2010 (Cth), what kind of remedies or penalties might they seek?

Please refer to specific sections of theCompetition and Consumer Act2010 (Cth) or the Australian Consumer Law (ACL) and any relevant case law in your response.