In the media
A new rule will give customers time to switch power
companies before planned price increases
Electricity and gas customers will receive at least five
days notice of price increases so they can consider switching to
other providers, under changes to national energy rules. The rule
change builds on measures already introduced to crack down on price
gouging by energy retailers (27 September 2018).
More...
Leading Australian hearing clinic pays penalties for
misleading customers
Australian Hearing Services has paid penalties totalling
$37,800 after the ACCC issued three infringement notices alleging
the Australian Government owned corporation engaged in false or
misleading conduct in connection with the supply of hearing
services to consumers (28 September 2018).
More...
Fear for independent service stations as thousands sign
up for nationwide fuel station boycott amid spike in petrol
prices
More than 50,000 social media users have signed up to
boycott service and fuel stations across the country on 26 October
2018 to protest high fuel prices. CommSec economist Ryan Felsman
attributed the price increases to the global price of crude oil,
which has risen to above $80 a barrel, but also to what he
describes as evidence of 'price gouging' behaviour among
local retailers (26 September 2018).
More...
Fitness First pays penalty for excessive
surcharging
Fitness First Australia Pty Ltd has paid a penalty of
$12,600 after the ACCC issued an infringement notice for an alleged
breach of the excessive payment surcharge provisions of the
Competition and Consumer Act 2010. ACCC Deputy Chair Mick
Keogh said "Businesses charging excessive payment surcharges,
intentionally or not, do so at the risk of breaching the
Competition and Consumer Act (26 September 2018).
More...
ACCC commences market study into wine grape
industry
The wine grape industry will be the focus of a new ACCC
market study. The study will examine competition, contracting
practices, transparency, and risk allocation issues in the wine
grape supply chain (25 September 2018).
More...
Australian regulator cracks down on misleading digital
coin offerings
Australia's corporate watchdog said it was stepping up
scrutiny on "misleading" initial coin offerings
(ICOs) targeted at retail investors while adding
it has already acted against several such proposals (20 September
2018).
More...
AAMI could have been fined $7m over dodgy ads, got away
with paying just $43k
The banking royal commission hears Suncorp's AAMI made
a "commercial assessment" to settle a potential $7.2
million ASIC legal claim over misleading advertising for just
$43,200, despite maintaining there was nothing wrong with the ads
(20 September 2018).
More...
Full Court upholds appeal by Unique College
The Full Federal Court has upheld an appeal by Unique
International College Pty Ltd (Unique) and
dismissed a cross appeal by the ACCC and the Commonwealth (on
behalf of the Department of Education and Training). The Full Court
found that Unique did not engage in a system of unconscionable
conduct regarding the enrolments of vulnerable consumers into
diploma courses (19 September 2018).
More...
Processors warned not to mislead dairy farmers about
milk prices
The ACCC has warned dairy processors not to mislead
farmers about milk prices, following reports of processors blaming
their private-label milk contracts with supermarkets for the low
prices offered to farmers. A key finding of the ACCC's Dairy
Inquiry was that almost all contracts for the supply of private
label milk allow processors to pass-through movements in farm gate
prices to supermarkets (18 September 2018).
More...
More...
ASIC sues Terry McMaster and Dover for their deceptive
'client protection' policy
The corporate regulator has sued scandal-plagued Dover
Financial Advisers and its director, Terry McMaster, for engaging
in misleading and deceptive conduct (17 September 2018).
More...
Effective airport regulation needed
Given that some of the second-tier airports such as
Adelaide and Canberra potentially hold significant market power,
the current inquiry provides an opportunity for the Productivity
Commission to consider whether other major airports should be
subject to similar types of regulatory oversight as the four
monitored airports. The ACCC has also been formally directed by the
Australian Government to monitor prices, costs, profits and quality
of service of both aeronautical and car parking activities (17
September 2018).
More...
Telcos put on notice over 'unlimited data'
mobile deals
Telcos are being warned they face fines of millions of
dollars for misleading advertising promoting 'unlimited
data' mobile plans. Australia's consumer watchdog, the
ACCC, issued the warning, saying penalties for contraventions
increased on 1 September to the greater of $10 million, three times
the value of the benefit received, or where the benefit cannot be
calculated, 10 per cent of the annual turnover in the preceding 12
months (17 September 2018).
More...
More...
In practice and courts
ACCC submission to the Productivity Commission's
Inquiry into the economic regulation of airports
On 17 September 2018, the ACCC provided a submission to
the Productivity Commission in response to the issues paper in
relation to its inquiry into the economic regulation of airports.
More...
Wine grapes – a market study by the ACCC: issues
paper
Australian Competition and Consumer Commission: 26
September 2018
This issues paper will assist interested parties in making
submissions to the ACCC's wine grape market study. The paper
outlines the issues that the ACCC plans to explore during the
market study, based on our previous consultation with the industry,
issues raised during various inquiries, and the results of the
recent grower survey. More...
Retail and wholesale petrol market shares in
Australia
Australian Competition and Consumer Commission: 25
September 2018
The ACCC produces quarterly petrol monitoring reports focusing on
price movements in the capital cities and over 190 regional
locations across Australia. It also produces industry reports that
focus on particular aspects of consumer interest in the fuel
market. More...
Prescription for poverty: drug companies as tax dodgers,
price gougers, and influence peddlers
Mark Fried; Oxfam International: 18 September 2018
Pharmaceutical companies behind some of Australia's best-known
brands avoided an estimated $215 million a year in tax in Australia
over a three year period - almost four times the $63 million
actually paid, according to this report. More...
Cases
Australian Competition and Consumer Commission v
Cornerstone Investment Aust Pty Ltd (in liq) (No 4)
[2018] FCA 1408
CONSUMER LAW – Alleged contraventions of ss 18 and
29 of the Australian Consumer Law – misleading or deceptive
conduct in trade or commerce – false or misleading
representations about goods or services – where respondent
provided online vocational education services, engaging recruiters
to market its services direct to consumers – whether
recruiters made misleading or deceptive representations to specific
consumers, including by silence – various representations
that respondent's courses and laptops given as inducements to
enrol were free, or that no liability was incurred until a
consumer's income exceeded a threshold, or that
respondent's courses were specifically for Aboriginals in
contravention of ss 18 and 29 – attribution of
recruiters' conduct to respondent.
CONSUMER LAW – Alleged contraventions of ss 74, 76, 78 and 79
of the Australian Consumer Law – whether respondent, and
respondent by its recruiters, contravened unsolicited consumer
agreement provisions regarding specific consumers –
disclosing purpose and identity – requirement to leave
premises upon request – requirement to inform consumer of
termination period – requirement to give documentation of
agreement to consumer – contraventions found.
CONSUMER LAW – Alleged contraventions of s 21 of the
Australian Consumer Law – unconscionable conduct in trade or
commerce in connection with supply of goods or services –
whether respondent's marketing and enrolment system
unconscionable – marketing and enrolment system
unconscionable where insufficient training given to recruiters,
consumers induced to enrol, unsolicited consumer agreements made
without safeguards, minimal verification of consumers' literacy
and numeracy, and targeted at disadvantaged consumers –
whether recruiters acted unconscionably regarding specific
consumers – recruiters acted unconscionably where they
variously contravened ss 18 and 29 and the unsolicited consumer
agreement provisions, manipulated or pressured consumers to enrol
and assist in the enrolment of others within their communities,
forged documents, enrolled consumers in multiple courses, and/or
failed to assess consumers' suitability to enrol –
attribution of recruiters' conduct to respondent.
Australian Consumer Law (contained in Sch 2 to the Competition
and Consumer Act 2010 (Cth)) ss 18, 21, 22, 29, 69, 70, 74,
75, 76, 78, 79, 82
Turner v MyBudget Pty Limited
[2018] FCA 1407
CONTRACT – Proper construction of interest provision
in consumer contract – whether it authorises respondent to
take and use interest earned on client funds for its own purposes
– whether breach of trust or breach of fiduciary duty –
held contract authorises respondent's actions and no
breach.
CONSUMER LAW – Australian Consumer Law s 24(1) –
meaning of an unfair term – relevant considerations –
whether a term is unfair if it authorised respondent to take and
use interest earned on client funds for its own purposes –
discussion of matters relevant to establish an unfair term
including meaning of a "significant imbalance in the
parties' rights and obligations arising under the
contract" – held no unfair term.
REPRESENTATIVE PROCEEDING – Orders made under s 33ZB of
Federal Court of Australia Act 1976 (Cth) binding group
members who have not opted out.
Unique International College Pty Ltd v Australian
Competition and Consumer Commission [2018]
FCAFC 155
CONSUMER LAW – Alleged contraventions of s 21 of the
Australian Consumer Law – provision of online vocational
educational courses covered by the VET FEE-HELP scheme –
whether appellant engaged in unconscionable system of conduct or
pattern of behaviour – unconscionability as a
characterisation related to human conduct by reference to
conscience – conscience as reflected in the statute –
insufficient evidence to found conclusion of an unconscionable
system or pattern of behaviour.
Australian Securities and Investments Commission Act 2001
(Cth), s 12CB
Competition and Consumer Act 2010 (Cth) sch 2, Australian
Consumer Law, ss 21, 22
Evidence Act 1995 (Cth), ss 97, 98, 140; Trade
Practices Act 1974 (Cth); Competition and Consumer Regulations
2010 (Cth), reg 81(1)(c)
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.
