‘PREPARE TO IMPROVE’
ANNUAL CONFERENCE
The Duxton Hotel
ACCC – ROLE, RESPONSIBILITY
& RESOURCES: Sam Di Scerni
The ACL in Practice:
An ACCC perspective
Sam Di Scerni
Regional Director, ACCC Perth
Financial Counsellors Association of WA
Tuesday 15 October 2013
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1.
The role of the ACCC in
administering the Competition
and Consumer Act
2.
Compliance and Enforcement
Policy
3.
The Australian Consumer Law
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Policy Objective
“…to enhance the welfare of Australians
through the promotion of competition
and fair trading and provision for
consumer protection.”
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ACCC Role
ensures compliance with the Act
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Public Education
Enforcement – investigations and litigation
Mergers
Authorisations
Economic Regulation and the Australian
Energy Regulator
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Compliance and Enforcement Policy
- Criteria
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Significant consumer/business detriment
Blatant disregard for the law
National significance/wide public concern
Pattern of non-compliance
Involves emerging market issue
Is industry wide
Capacity for worthwhile educative or
deterrent effect
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Compliance and Enforcement Policy
- Focus
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Consumer protection in Telcos and
Energy
Online trading competition and access
Carbon pricing
Credence claims, including Country of
Origin
Indigenous consumers
Concentrated markets – especially
supermarkets and fuel
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Competition and Consumer Act
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Part IV – Restrictive Trade Practices dealing
with competition in the market place.
Australian Consumer Law (Schedule 2):
Consumer Protection which ensures
consumers get accurate information so they
can make informed choices.
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Competition and Consumer Act
Part IV Penalties
Civil:
Pecuniary penalties of:
 Up to $10m; or
 Three times value of benefit; or
 10% of turnover (whichever is greatest!)
Criminal:
Imprisonment of up to 10 years for
individuals
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Australian Consumer Law
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New National Consumer Protection Law
replacing old TPA Part V, and Fair Trading
Acts
New best practice, unfair contract terms, and
consumer guarantee laws
New Enforcement Powers
Substantiation Notices
Infringement Notices
Public Warning Notices
New Remedies
Civil Pecuniary Penalties
Disqualification Orders
Non-party Consumer Redress
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Australian Consumer Law
Sales Practices Provisions
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Unsolicited supply – credit and debit cards
Unsolicited consumer agreements (door to
door and telemarketing)
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Lay-by agreements
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Proof of transaction
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Itemised Bills
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Pricing
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Australian Consumer Law
Unfair Contract Terms
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Standard Form Consumer Contracts (take it
or leave it) – telco’s, credit, travel, etc.
Three limbed test for unfairness:
- cause a significant imbalance in parties’
rights and obligations
- not reasonably necessary to protect
legitimate business interests of the party
- cause a detriment if applied or relied
upon
Generally includes those terms which allow a
party to make unilateral changes
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Australian Consumer Law
Consumer Guarantees
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Previously implied rights – had to pursue
through contract
Now a breach of ‘statute’ – much easier to
pursue (including by ACL Regulators)
Guarantees good title, acceptable quality, fit
for purpose and match description
Major Fault – consumer chooses refund,
replace or repair
Minor Fault – must give option to repair
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Australian Consumer Law
Remedies and Penalties
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Civil Pecuniary Penalties – up to $1.1m for
corporations and $220,000 for individuals
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Disqualification orders
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Non party redress
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Public Warning notices
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Australian Consumer Law
Remedies and Penalties
Infringement Notices (s134)
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Reasonable grounds to believe that a person has
contravened certain ACL Provisions
Penalty of $102,000 for listed corporations,
$10,200 for other bodies corporate, and $2,040
for individuals
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Can commence civil proceedings if not paid
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Payment not an admission of liability
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Australian Consumer Law
Remedies and Penalties
Substantiation Notices (s219)
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Issue where ACCC believes that there may be a
contravention of certain ACL Provisions
Investigative tool - Requires person to provide
information or documents that are capable of
substantiating or supporting claim
May issue infringement notice penalty of $3,300
for corporation or $660 for non-compliance
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Need assistance?
ACCC website at www.accc.gov.au
Contact InfoCentre on 1300 302 502?
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