Mackay Chapman November 2024 ACCC Update

In this month’s ACCC update:

• Federal Court orders Qantas to pay $100m for misleading consumers;
• The ACCC welcomes additional retail sector enforcement funding;
• Interim authorisation granted to the ABA for cash-in-transit initiatives; and
• The ACCC welcomes the introduction of the merger reform bill.

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Federal Court Orders Qantas to Pay $100m for Misleading Consumers

The Federal Court has ordered Qantas to pay $100 million in penalties for misleading consumers by selling tickets for flights it had already decided to cancel and failing to promptly inform ticketholders. This case was brought by the ACCC.

Qantas admitted to violating the Australian Consumer Law and agreed that the penalties were necessary to deter future breaches. ACCC Chair Gina Cass-Gottlieb emphasised the significance of the judgment, stating it sends a clear message to businesses about the consequences of misleading customers.

In addition to the penalties, Qantas has committed to paying around $20 million to affected consumers who booked flights that were later cancelled. These payments will be made as part of a remediation program, with eligible passengers receiving $225 for domestic flights and $450 for international ones.

Qantas acknowledged its failures and has since updated its systems to prevent similar issues in the future. The ACCC has commended Qantas for its cooperation in resolving the case swiftly.

The ACCC encourages consumers to check their eligibility for payment through the Qantas Customer Remediation Program.

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ACCC Welcomes Additional Retail Sector Enforcement Funding

The ACCC has welcomed the Treasurer's announcement of $30 million over 3.5 years for investigations and enforcement in the supermarket and retail sector. 

Chair Gina Cass-Gottlieb highlighted that this funding will enhance the ACCC’s enforcement and compliance activities, crucial for protecting consumers and promoting fair trading. The funding will enable the ACCC to escalate investigations into misleading pricing, delivery claims, and misrepresentations of consumer rights.

The ACCC is currently conducting a 12-month inquiry into Australia’s supermarket sector, responding to rising consumer concerns over pricing and online delivery issues. This year, the ACCC has already secured over $85 million in penalties for various enforcement actions, alongside ongoing proceedings against major retailers.

As the ACCC marks the 50th anniversary of the Trade Practices Act, it remains committed to ensuring markets work effectively for consumers.

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Interim Authorisation Granted to the ABA for Cash-in-Transit Initiatives

The ACCC has granted interim authorisation with conditions for the Australian Banking Association’s (ABA) application concerning cash-in-transit initiatives and business continuity planning. This decision consolidates conduct currently authorised under two separate authorisations related to the cash-in-transit industry.

Further details on the application and the interim authorisation decision are available on the ACCC’s public register.

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ACCC Welcomes Introduction of Merger Reform Bill

The ACCC has expressed support for the Treasury Laws Amendment (Mergers and Acquisitions Reform) Bill 2024, recently introduced to Parliament. If passed, this legislation will equip the ACCC with tools to better identify and prevent anti-competitive mergers, marking a significant reform in Australia’s merger laws.

ACCC Chair Gina Cass-Gottlieb highlighted the importance of these reforms, stating they will enhance scrutiny of potentially harmful transactions and provide a clearer, more efficient process for businesses and the public. Currently, only a small fraction of the estimated 1,000 to 1,500 annual mergers are notified to the ACCC, with most assessments conducted confidentially.

The new regime aims for greater transparency, allowing the community to engage with the merger review process, and expects 80% of mergers to be cleared within 15 to 20 business days. The ACCC plans to adopt a risk-based approach, focusing resources on acquisitions likely to harm competition.

Pending legislative approval, the new regime will take effect on 1 January 2026, with voluntary adoption available from 1 July 2025. The ACCC will also consult on guidelines to assist stakeholders during the transition.

For more information, visit the ACCC's official website.

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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.