Mackay Chapman September 2023 ACCC Update

In this month’s ACCC update:

• The ACCC has released draft guidance to prevent misleading environmental claims by businesses and to protect consumers from 'greenwashing';
• Authorisation has been granted for Qantas Airways Ltd and Emirates, along with their related entities such as Jetstar, to continue coordinating their passenger and cargo transport operations until 2028;
• Fans of the Matildas soccer team were being warned about scammers during the FIFA Women’s World Cup;
• The ACCC has released guidelines for compliance and enforcement related to the Gas Market Code; and
• The Federal Court has ruled that Dell Australia Pty Ltd must pay a $10 million penalty for providing false and misleading information. 

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‍ACCC publishes draft guidance to improve businesses' environmental claims

The ACCC has released draft guidance to prevent misleading environmental claims by businesses and to protect consumers from 'greenwashing'. This comes after an internet sweep revealed that 57% of reviewed businesses were making potentially misleading environmental statements.

The draft guidance provides eight principles for businesses to follow when making environmental claims. The goal is to promote honesty, transparency, and evidence-based claims, ensuring consumers are not misled. ACCC Chair Gina Cass-Gottlieb emphasised that businesses must offer accurate and trustworthy information, and if they cannot substantiate claims, they shouldn't make them.

The ACCC seeks feedback from businesses and consumers to gauge the effectiveness of the guidance and to identify any concerning claims. The consultation is open until September 15, 2023. The aim is to improve consumers' confidence in genuine environmental claims and to ensure accurate information is provided.

Find out more here.

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‍Qantas and Emirates to continue coordination on flights

The ACCC has granted authorisation for Qantas Airways Ltd and Emirates, along with their related entities such as Jetstar, to continue coordinating their passenger and cargo transport operations until 2028. This coordination encompasses routes between Australia and various regions, including the UK/Europe, New Zealand, Asia, the Middle East, and North Africa.

The ACCC believes that this ongoing coordination will benefit travellers by enhancing connectivity between a wide array of destinations and optimising opportunities for earning and redeeming loyalty rewards. Passengers travelling on routes where Qantas and Emirates offer overlapping services will enjoy increased flexibility in terms of flight times and travel choices.

Nonetheless, the ACCC has expressed concerns that the collaboration between Qantas and Emirates might impact competition on the Sydney to Christchurch route, given that Air New Zealand is the sole other airline operating on that route. To address this concern, the ACCC has imposed a condition requiring Qantas and Emirates to regularly provide updates on passenger revenue and operating costs. 

This information will allow the ACCC to monitor competition on this route over the next five years.

Read more here. 

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‍Scam alert - National Anti-Scam Centre warns of scams targeting Matildas fans

Fans of the Matildas soccer team were being warned about scammers during the FIFA Women’s World Cup. The National Anti-Scam Centre received reports of scams targeting Matildas fans on social media. Scammers were selling fake tickets and sharing links for fake live-streams of matches.

The Deputy Chair of the ACCC, Catriona Lowe, advised fans to be cautious, especially when buying last-minute tickets for big events like the World Cup. Scammers were responding to people looking for tickets, sometimes using hacked accounts, and providing fake proof of ticket ownership. They may have also made false claims of payment issues and asked for payments to be made again.

The ACCC has issued the following recommendations to protect yourself:

• Buy tickets only from authorised sellers to ensure they're legitimate;
• Check who the official ticket seller is for the event;
• Be cautious with websites starting with "http" or "https" - research the site; and
• Avoid clicking on suspicious links on social media for live-streams.

The ACCC also warns about a new scam involving fake live-stream links for sporting events. Scammers prompt users to enter credit card details to access streams but often steal the information without delivering content.

Read more about the scams here.

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‍Compliance guidelines for gas industry as new Gas Market Code takes effect

The ACCC has released guidelines for compliance and enforcement related to the Gas Market Code. This Code started on July 11 this year and offers a two-month adjustment period for the gas industry to adapt to its new rules. The ACCC will start enforcing the Code in mid-September 2023.

The Gas Market Code introduces regulations like a price cap of $12 per gigajoule and minimum obligations for transparent and fair negotiations between gas producers and users for supply agreements. The ACCC has the authority to enforce the Code's requirements with serious penalties for non-compliance.

There are three tiers of penalties for companies violating the Code, with the maximum penalty being up to $50 million or three times the obtained benefit's value, or 30% of the company's turnover during the misconduct period.

Gas industry participants are urged to report potential breaches of the Code to the ACCC. The Code also mandates gas producers to report specific information to the ACCC, and the commission will release information on record keeping and reporting requirements.

Read more about the new Gas Market Code here.

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‍$10m penalty for Dell Australia for misleading representations about discount prices of computer monitors

The Federal Court has ruled that Dell Australia Pty Ltd must pay a $10 million penalty for providing false and misleading information on its website regarding discounts for additional computer monitors.

The ACCC took legal action against Dell Australia, and the company admitted to deceiving customers about the prices of monitors that could be added to a purchase of a computer. The monitors were often displayed with higher "strikethrough" prices, implying significant savings when bundled with other products.

Dell Australia confessed to overstating the discounts, as the monitors were not generally sold at the strikethrough price during most of the relevant period. This resulted in consumers often paying more than they would for standalone monitors. Over 5,300 monitors were sold with exaggerated discounts.

The company also admitted to misleading consumers with various statements like "Total Savings," "Includes x% off," "Discounted Price," and "Get the best price for popular accessories when purchased with this product.

Dell Australia cooperated during the legal proceedings, admitting to the violations of consumer law and working jointly with the ACCC on penalties and other orders. The company had also begun offering refunds to some consumers before the court's orders were finalised.

Read more here.

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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.