Mackay Chapman November 2023 ACCC Update
In this month’s ACCC update:
- The ACCC is considering granting authorisation for the Australian Banking Association Ltd and its member banks to engage in discussions aimed at developing an industry standard to prevent scams affecting individual and small business customers;
- The ACCC, alongside competition, consumer protection, and economic regulators from the Pacific, is launching a collaborative initiative named the Pacific Island Network of Competition Consumer and Economic Regulators (PINCCER); and
- Australian households urged to explore NBN broadband plan options following NBN Co's notification of wholesale price changes to retailers.
ACCC Proposes to Authorise Australian Banks to Collaborate on Development of industry Standards to Combat Scams
The ACCC is considering granting authorisation, with conditions, until June 30, 2024, for the Australian Banking Association Ltd (ABA) and its member banks to engage in discussions aimed at developing an industry standard to prevent scams affecting individual and small business customers.
This move is seen as facilitating the development of initiatives to prevent avoidable scam losses before the government's planned creation of a legislated industry-wide mandatory code of conduct. The ACCC emphasises the need to avoid collaboration that limits access to redress for consumers or businesses, and it has proposed reporting conditions to address this concern.
Interim authorisation with conditions has been in place since August 3, 2023, and will continue until the ACCC's final determination or until revocation. During this period, the ABA will provide regular reports to the ACCC on proposed initiatives and consult with customers and small business groups.
The ACCC invited submissions in response to the draft determination which were due by November 10, 2023, and will now move to make a final decision. More details about the application and submissions lodged is available on the ACCC's public register.
New International Network Formed to Promote Competitive Markets in the Pacific
The ACCC, alongside competition, consumer protection, and economic regulators from the Pacific, is launching a collaborative initiative named the Pacific Island Network of Competition Consumer and Economic Regulators (PINCCER).
National authorities from Australia, Cook Islands, Fiji, French Polynesia, Kiribati, New Caledonia, New Zealand, Papua New Guinea, Samoa, Solomon Islands, Tonga, and Vanuatu have laid the groundwork for PINCCER, focusing on information sharing, investigative techniques, and best practices.
ACCC Chair Gina Cass-Gottlieb sees PINCCER as an opportunity to enhance collective skills, fostering fairer markets for consumers and traders in the Pacific region. Given the common challenges faced by small island economies in terms of fair competition, pricing, and consumer protection, the ACCC aims to support the development of competition and consumer policy and law by sharing knowledge and experience.
The Pacific region, characterised by emerging economies, encounters various challenges in building regulatory expertise and resources. The ACCC is particularly committed to aiding agencies in overseeing markets and regulated sectors, especially those with newly established or developing regulatory frameworks.
The announcement of PINCCER follows a meeting between the Prime Ministers of Fiji and Australia in October 2023, where they highlighted the importance of regional unity. The ACCC sees PINCCER as a means to contribute to a strong and cooperative Pacific region, addressing shared challenges collaboratively.
NBN Retailers on Notice as Australians Urged to Shop Around for Deals
The ACCC is advising Australian households to explore NBN broadband plan options following NBN Co's notification of wholesale price changes to retailers. While some speed tiers will see initial reductions, others will increase.
The ACCC urges consumers to compare retailer prices, emphasising the variability in deals available. Retail service providers set actual retail prices, making it crucial for consumers to find the best value. ACCC Commissioner Anna Brakey encourages the use of Measuring Broadband Australia reports to assess retailers' speed claims and plan suitability for gaming and streaming.
Amidst cost of living pressures, retailers are expected to guide customers to NBN plans meeting their needs. Ms Brakey highlights the importance of clear information on plan suitability, expressing concern over advertising suggesting higher speed plans are necessary for simultaneous streaming. The ACCC accepted NBN Co's regulatory commitments, and while wholesale changes affect consumer offers, broadband providers determine individual plan changes.
The ACCC's ongoing Measuring Broadband Australia program monitors broadband providers' performance, providing consumers with independent information to aid purchasing decisions, including quarterly updates on NBN plan speeds' streaming capacity.
Record Penalty for Resale Price Maintenance Conduct by Power Tool Supplier Techtronic
Power tool supplier Techtronic has been ordered by the Federal Court to pay $15 million in fines for engaging in resale price maintenance (RPM) in Australia.
The penalties are the highest ever for RPM in Australia. Techtronic admitted to making agreements with retailers to restrict the sale of Milwaukee products below a specified minimum price between January 2016 and July 2021. They enforced these restrictions 29 times by issuing warnings or withholding supply.
The ACCC stressed that RPM is illegal as it harms price competition and can lead to higher prices for consumers.
Techtronic, the Australian subsidiary of a Hong Kong-based company, cooperated with the ACCC and will also have to post corrective notices, implement a compliance program, and cover part of the ACCC's costs.
Read more here.
The contents of this article do not constitute legal advice and it is not intended to be a substitute for legal advice and should not be relied upon as such. It is designed and intended as general information in summary form, current at the time of publication, for general informational purposes only. You should seek legal advice or other professional advice in relation to any particular legal matters you or your organisation may have.
