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Post by dieseltojo on Jan 24, 2020 22:40:10 GMT 10
Add these two to your stay away from list. www.accc.gov.au/media-release/42-million-in-penalties-ordered-against-former-car-wash-franchisor-geowash-and-two-executives$4.2 million in penalties ordered against former car wash franchisor Geowash and two executives 24 January 2020 The Federal Court has ordered $4.2 million in penalties against former carwash and detailing franchisor Geowash Pty Ltd, its director Sanam Ali and its franchising manager Charles Cameron for breaches of the Australian Consumer Law. This included penalties of $1.045 million against Ms Ali and $656,000 against Mr Cameron. In February 2019, following action by the ACCC, the Court found Geowash made false or misleading representations and failed to act in good faith in relation to the sale and marketing of its franchises contravening the Franchising Code of Conduct. The Court also found that Geowash acted unconscionably towards franchisees through its charging practices for the establishment and fit-out of Geowash franchise sites. Geowash created the false impression that amounts charged to franchisees would go directly towards the establishment of their car wash site, when in fact large amounts were used to make commission payments to Ms Ali and Mr Cameron and for other Geowash expenses. “Franchisors are often in a position of power compared to their franchisees, and Geowash’s actions, including those of its executives, were very serious breaches of its obligations under the Code and the Australian Consumer Law,” ACCC Deputy Chair Mick Keogh said. “These significant penalties should send a clear and strong message to franchisors and franchise executives about the importance of complying with their obligations under the Franchising Code of Conduct and Australian Consumer Law.” The Court also ordered Ms Ali and Mr Cameron to pay $1 million as partial redress to franchisees for the losses they suffered as a result of Ms Ali and Mr Cameron’s conduct. Both individuals were also disqualified from managing corporations in Australia, with Ms Ali disqualified for five years and Mr Cameron for four years.
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Post by dieseltojo on Jan 31, 2020 11:44:18 GMT 10
www.accc.gov.au/media-release/penalties-for-allegedly-selling-or-advertising-recalled-cars-with-dangerous-takata-airbagsPenalties for allegedly selling or advertising recalled cars with dangerous Takata airbags 31 January 2020 Three corporations, Grays Ecommerce Group Limited (Grays), Berwick Motor Group Pty Ltd (BMG) and HG Innovations Pty Ltd (HG Innovations), have paid penalties totalling $63,000 after the ACCC issued infringement notices against each business for allegedly selling or advertising vehicles under active recall as part of the Takata compulsory recall of vehicles fitted with defective Takata airbags. BMG and HG Innovations have each paid a penalty of $12,600 after the ACCC issued each of them with one infringement notice for selling a vehicle under active recall. Selling vehicles under active recall is prohibited by the Takata Compulsory Recall Notice and the Australian Consumer Law. In the case of BMG, the ACCC had reasonable grounds to believe that BMG, through its agent Grays, sold a 2003 Nissan Pulsar vehicle which was under active recall and contained a high risk alpha airbag. The ACCC was particularly concerned about this alleged conduct, as Alpha airbags have a very high risk of rupture, which can cause serious injury or death. “All consumers should check if their vehicles are subject to the Takata Compulsory Recall. If your vehicle has an Alpha airbag, you must stop driving immediately and contact the vehicle manufacturer or your dealer,” ACCC Deputy Chair Delia Rickard said. The ACCC also had reasonable grounds to believe HG Innovations, through its agent Grays, supplied a 2005 BMW 3 vehicle which was under active recall. In addition, Grays has paid penalties totalling $37,800 after the ACCC issued three infringement notices to Grays. The ACCC had reasonable grounds to believe that Grays had made false or misleading representations by advertising three vehicles for sale that were under active recall: a 2003 Nissan Pulsar, a 2005 BMW 3 and a 2002 Honda Jazz.
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Post by dieseltojo on Feb 9, 2020 8:12:25 GMT 10
www.accc.gov.au/media-release/romance-scammers-move-to-new-apps-costing-aussies-more-than-286-millionRomance scammers move to new apps, costing Aussies more than $28.6 million Beyond traditional online dating websites, the highest losses were from romance scams originating on Instagram and Facebook. Conventional dating platforms, such as Tinder or Match.com, also had high losses. A new trend emerging in 2019 was scammers increasingly turning to apps like Google Hangouts, or online games such as Words with Friends and Scrabble to con their victims. “We’ve seen an increase in reports from people who did not originally seek an online relationship but have been caught up in a dating and romance scam,” ACCC Deputy Chair Delia Rickard said. “No longer are dating websites the only contact method for dating and romance scams, with an increasing number of reports coming from these emerging websites and apps.”
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Post by dieseltojo on Feb 13, 2020 11:47:06 GMT 10
Federal Court allows TPG-Vodafone merger www.accc.gov.au/media-release/federal-court-allows-tpg-vodafone-merger13 February 2020 The Federal Court has declared a proposed merger between TPG Telecom (ASX: TPM) and Vodafone Hutchison Australia (ASX: HTA) would not substantially lessen competition. The ACCC opposed the merger last year because it considered that, in the absence of the merger, TPG was likely to continue to roll out its own mobile network and become an innovative and disruptive competitor in Australia’s concentrated mobile telecommunications market. TPG had already spent $1.26 billion on the spectrum needed to build a mobile network, has an extensive transmission network, as well as a large customer base, and well-established brands in TPG, iiNet and Internode. The ACCC also believes TPG has the ability and incentive to overcome technical and commercial challenges. “Australian consumers have lost a once-in-a-generation opportunity for stronger competition and cheaper mobile telecommunications services with this merger now allowed to proceed,” ACCC Chair Rod Sims said.
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Post by dieseltojo on Feb 15, 2020 6:50:47 GMT 10
www.accc.gov.au/media-release/concerns-about-bunnings%E2%80%99-adelaide-tools-deal14 February 2020 The ACCC has raised preliminary concerns that the proposed acquisition of Adelaide Tools and Oaklands Mower Centre by Bunnings may lessen competition in the market for tools and outdoor power equipment in Adelaide. Adelaide Tools specialises in the sale of tools and outdoor power equipment through a chain of five stores and at the Oaklands Mower Centre in Adelaide. Bunnings is the largest retailer of home improvement products in Australia and is also a major supplier of tools and outdoor power equipment to project builders, commercial tradespeople and construction firms. In Adelaide, Bunnings is the largest seller of tools and outdoor power equipment by a significant margin, with its sales split between consumer and trade customers. “Bunnings has a very powerful position in hardware, building supplies and home improvement. Since the exit of Woolworths’ Masters from the industry, Bunnings has grown rapidly and has become by far the leading player,” ACCC Chair Rod Sims said.
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Post by dieseltojo on Feb 25, 2020 16:50:01 GMT 10
www.accc.gov.au/media-release/accc-2020-compliance-and-enforcement-prioritiesACCC 2020 Compliance and Enforcement Priorities 25 February 2020 Funeral businesses using their significant market power to bundle services and block new entrants to the market or engaging in unconscionable conduct, have made the sector a key enforcement focus for the ACCC in 2020, said ACCC Chair Rod Sims in a speech to the annual Committee for Economic Development Australia (CEDA) today. “The sector has long provoked consumer complaints, not least because consumers engage with the funeral sector at a time when they are grieving, vulnerable and at a disadvantage,” said Mr Sims, who was announcing the ACCC’s Compliance and Enforcement priorities for 2020. Mr Sims said the annual list of priorities, ranging from implementation of the new Dairy Code to the enforcement of the Government’s new energy misconduct laws, provide focus to the ACCC’s enforcement and advocacy work. The Government’s commitment to funding the establishment of a permanent Digital Platforms Branch will ensure the ACCC’s continual scrutiny of the vital digital sector. “We have advanced investigations involving digital platforms allegedly misleading consumers about the collection and the use of their personal data, and we have important competition matters before us,” said Mr Sims. The pricing and selling practices of essential services, combined with the lack of transparency in their pricing, continue to be an area of concern for the ACCC, and have been retained as a priority in 2020.
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Post by dieseltojo on Feb 25, 2020 16:50:55 GMT 10
Mercedes-Benz failed to initiate a recall of some vehicles with faulty Takata airbags 25 February 2020
The ACCC has accepted a court-enforceable undertaking from Mercedes-Benz Australia/Pacific Pty Ltd (Mercedes-Benz), after Mercedes-Benz acknowledged it had failed to initiate a recall of certain C class and E class vehicles with faulty Takata airbags, due to spare parts availability, in accordance with the timeframe required under the Takata compulsory recall.
The ACCC alleges that, between June and November 2018, Mercedes-Benz failed to initiate vehicle recalls for all affected vehicles fitted with faulty Takata airbags, despite being required to under its Recall Initiation Schedule. The ACCC was concerned that this may have contravened the Australian Consumer Law and exposed consumers driving the vehicles to serious safety hazards. The cars are fitted with dangerous Takata airbags and many of the vehicles affected should have been prioritised for urgent replacement due to their age, exposure to heat and humidity, or location of the airbag inflator. In the undertaking accepted by the ACCC, Mercedes-Benz has acknowledged the ACCC’s concerns.
“Mercedes-Benz failed to comply with its obligations to initiate recalls under the Takata compulsory recall, potentially putting the lives of drivers and passengers at risk, and failed to inform anyone of the delay,” ACCC Deputy Chair Delia Rickard said. “Industry participants must comply with their responsibilities under the Takata compulsory recall. Failure to do so may contravene the Australian Consumer Law.”
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Post by dieseltojo on Feb 28, 2020 14:37:13 GMT 10
May be of interest to welders. www.accc.gov.au/media-release/proposal-to-set-minimum-prices-on-welding-equipment-raises-competition-concernsProposal to set minimum prices on welding equipment raises competition concerns 28 February 2020 The ACCC plans to revoke a resale price maintenance (RPM) notification lodged by welding equipment manufacturer Weldclass, which wanted to prevent retailers from selling welding and plasma cutting machines at a discounted price. Tamworth, NSW-based Weldclass lodged the RPM notification with the ACCC on 4 October 2019, after releasing a new range of machines to the Australian market, branded WeldForce and CutForce, in March 2019. In a draft notice issued today, the ACCC proposes to revoke Weldclass’ RPM notification because any public benefit would not outweigh the detriments that are likely to result from reduced price competition on the welding machines. “After considering Weldclass’ position, we do not consider that the proposed conduct would result in a net public benefit,” ACCC Commissioner Stephen Ridgeway said. “Allowing Weldclass to set minimum retail prices would mean that retailers could no longeroffer consumers discounts on the Weldclass products and consumers would therefore pay higher prices. It is also likely to reduce competitive pressure for other welding machines with the result consumers would pay higher prices for these machines also.” “We are also concerned that retailers will stop selling other brands of machines, further reducing competition between brands,” Mr Ridgeway said.
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Post by dieseltojo on Mar 2, 2020 11:35:35 GMT 10
www.accc.gov.au/media-release/private-health-insurance-premiums-rise-despite-growing-exclusionsPrivate health insurance premiums rise despite growing exclusions 2 March 2020 For the first time, the majority of hospital treatment policies held by Australians now contain exclusions, the latest ACCC annual report into the private health insurance industry has found. More than 57 per cent of policies held by Australians contain exclusions, up from about 44 per cent in the previous year. “Many people may not be aware their policies may have exclusions and don’t realise they would not be covered at all for treatment as a private patient for those conditions,” ACCC Deputy Chair Delia Rickard said. “We’ve been working with private health insurers about how they can better communicate such detrimental policy changes to consumers.” “Insurers need to make sure these changes are communicated clearly, prominently and in a timely manner, to avoid misleading consumers,” Ms Rickard said. The report found that, while the rate of increase in average annual premiums has slowed over the past five years, average premiums have increased by more than inflation and wage growth over the year, while consumers continue to drop out of private health insurance.
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Post by dieseltojo on Mar 11, 2020 15:53:50 GMT 10
www.accc.gov.au/media-release/bar-group-pays-penalty-for-alleged-misleading-advertisingBAR Group pays penalty for alleged misleading advertising 11 March 2020 B.A.R Group Pty Ltd (BAR Group) has paid a penalty of $12,600 after the ACCC issued an infringement notice for allegedly misleading consumers about the running power of a portable generator. In September 2019, BAR Group advertised on its website that its 123 G8100-HELT portable generator was capable of achieving a running power of 6 kW. The ACCC alleges that BAR Group’s representation was false or misleading, in breach of the Australian Consumer Law. “We were concerned that the generator was only capable of achieving a running power of 6 kW for a short time and not continuously for several hours,” ACCC Commissioner Sarah Court said. “Businesses must ensure that they do not overstate the performance features of goods or services that they are selling.” “Consumers rely on running power claims when selecting an appropriate generator and if those claims are not correct they may purchase a specific model only to find it is not capable of generating the required power output,” Ms Court said. “Generators can be in high demand following natural disasters such as bushfires, and overstated claims could also disadvantage suppliers who are correctly advertising the performance characteristics of their portable generators.” The ACCC will now engage with the industry to remind businesses that power claims must be accurate,
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Post by dieseltojo on Mar 16, 2020 11:29:44 GMT 10
www.accc.gov.au/media-release/australian-motorists-must-benefit-from-any-sustained-crude-oil-price-fallAustralian motorists must benefit from any sustained crude oil price fall 16 March 2020 The ACCC will closely monitor retail petrol price movements in Australia in the coming weeks to determine if the recent falls in international crude oil and refined petrol prices are flowing through to consumers. This follows a decline in the price of crude oil and refined petrol since early January 2020 and, in particular, sharp falls in crude oil prices last week. Changes in international refined petrol prices usually take between one and two weeks to be reflected in retail petrol prices in the larger capital cities, and longer in the smaller capital cities and in regional areas. There are also regular price cycles in the larger cities, which means that the underlying decrease in prices due to decreasing international prices may not be apparent in the short term. Weekly average crude oil prices decreased by around US 14 dollars per barrel (or around 20 per cent) in the first two months of 2020 to around US 55 dollars per barrel. International refined petrol prices fell by a similar amount. In February 2020 monthly average retail petrol prices in the five largest cities, namely Adelaide, Brisbane, Melbourne, Perth and Sydney, were 141.1 cents per litre (cpl), which was around 8.2 cpl lower than in December 2019.
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Post by dieseltojo on Mar 18, 2020 10:39:05 GMT 10
Trave advice re virus. www.accc.gov.au/media-release/advice-on-event-and-travel-cancellations-due-to-covid-1918 March 2020 The ACCC has issued advice for consumers and businesses on their rights and obligations if events, flights or travel services are cancelled due to the coronavirus pandemic (COVID-19), or if people wish to cancel their travel plans. If events, flights or other travel services such as cruises are cancelled, the ACCC expects refunds or other remedy such as a credit note or voucher will be offered in most circumstances. However, if the event, flight or travel service is cancelled due to government restrictions, consumer rights under the consumer guarantees may be impacted. In these situations consumers may be entitled to a refund under the terms and conditions of their ticket, or potentially may make a claim under a travel insurance policy. “Given the exceptional circumstances, the ACCC encourages all businesses to treat consumers fairly and compassionately,” ACCC Chair Rod Sims said. “We welcome the decisions by many businesses who are already offering refunds to all ticketholders, and expect other event and travel businesses to also offer remedies to all affected consumers when events or travel services are cancelled.” If a consumer chooses not to attend an event that is still going ahead or travel domestically due to coronavirus concerns, this may be treated as a ‘change of mind’. The same applies to hotel room bookings. Consumers’ rights to refunds in these circumstances will depend on the terms and conditions and any cancellation policy adopted by the business. “Consumers in all situations should contact businesses directly to request a refund or other remedy such as a credit note or voucher,” Mr Sims said. “Failure by any business to honour its cancellations or refunds policy may constitute misleading conduct under the Australian Consumer Law.”
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Post by dieseltojo on Mar 24, 2020 7:38:28 GMT 10
www.accc.gov.au/media-release/supermarkets-to-work-together-to-ensure-grocery-supplySupermarkets to work together to ensure grocery supply 24 March 2020 Supermarket operators will be able to coordinate immediately to ensure consumers have reliable and fair access to groceries during the COVID-19 pandemic following the ACCC’s granting of interim authorisation. The interim authorisation will allow supermarkets to coordinate with each other when working with manufacturers, suppliers, and transport and logistics providers. The purpose of this is to ensure the supply and the fair and equitable distribution of fresh food, groceries, and other household items to Australian consumers, including those who are vulnerable or live in rural and remote areas. The authorisation allows a range of coordinated activities but does not allow supermarkets to agree on retail prices for products. “Australia’s supermarkets have experienced unprecedented demand for groceries in recent weeks, both in store and online, which has led to shortages of some products and disruption to delivery services,” ACCC Chair Rod Sims said. “This is essentially due to unnecessary panic buying, and the logistics challenge this presents, rather than an underlying supply problem.” “We recognise and appreciate that individual supermarket chains have already taken a number of important steps to mitigate the many issues caused by panic buying. We believe allowing these businesses to work together to discuss further solutions is appropriate and necessary at this time,” Mr Sims said.
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Post by dieseltojo on Mar 25, 2020 15:12:57 GMT 10
Cooperation to aid supply of COVID-19 medical equipment 25 March 2020 Medical technology companies will be allowed to work together to coordinate the supply and potential manufacture in Australia of ventilators, testing kits, personal protective equipment and other medical equipment needed to deal with the COVID-19 pandemic. The ACCC has granted interim authorisation to the Medical Technology Association of Australia (the MTAA) to allow its members and other groups, such as suppliers or distributors of medical equipment, to share information between each other, co-ordinate orders and supply requests, prioritise requests, and jointly tender to supply COVID-19 medical equipment. “Our decision will help companies urgently address potential shortages or other constraints on the supply of crucial medical equipment,” ACCC Chair Rod Sims said. “This supports government efforts to ensure governments and health services are able to provide a coordinated response to the pandemic.” The interim authorisation allows MTAA members and others to coordinate the manufacture and supply of equipment, and exchange information so that potential supply shortages can be addressed more quickly. It will also allow them to keep Federal Government, State and Territory Governments and relevant health agencies up to date on supply issues. “Medical technology companies will now be able to roll out a coordinated plan for supplies of medical equipment nation-wide, which is likely to be crucial in assisting Australia’s response to COVID-19,” Mr Sims said. The ACCC granted interim authorisation on Wednesday morning after receiving the application on Tuesday, and will now seek feedback on interim authorisation, as well as the application for final authorisation for a period of 12 months. More information, including the ACCC’s statement of reasons, is available at Medical Technology Association of Australia Limited. www.accc.gov.au/media-release/cooperation-to-aid-supply-of-covid-19-medical-equipment
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Post by dieseltojo on Mar 27, 2020 16:54:21 GMT 10
ACCC response to COVID-19 pandemic
www.accc.gov.au/media-release/accc-response-to-covid-19-pandemic27 March 2020
The ACCC is highly conscious of the impact COVID-19 is having on Australian consumers and businesses, and has adjusted the focus of its regulatory activities accordingly. Most businesses are facing severe disruption, particularly small businesses, and the future is uncertain for many. The ACCC will factor these circumstances into its consideration of competition matters in the short term to assist businesses to remain viable in the long term.
Maintaining competition in the long term will be critical to benefit both consumers and the economy. A competitive economy will be vital to Australia’s future, so as much as is possible, the ACCC wants to ensure any changes to the competitive landscape now are temporary and that the ACCC is ready to play its role in supporting competition as the economy recovers. While our 2020 Compliance and Enforcement Priorities remain in place, we will re-focus our efforts to those priorities of most relevance to competition and consumer issues arising from the impact of COVID-19.
This includes enhancing the ACCC’s efforts to address any behaviour by businesses which seek to exploit the crisis either to unduly enhance their commercial position or harm consumers. Advice for businesses and consumers relating to consumer guarantees is available at accc.gov.au. The ACCC will update its website with advice as new issues emerge and in response to consumer enquiries via our website, Infocentre, and social media channels.
The ACCC has established an internal COVID-19 Taskforce which is already communicating directly with businesses to educate them about their obligations in relation to cancellations, refunds and suspension of services as a result of COVID-19.
We will also continue to raise awareness of COVID-19 scams, particularly as scammers adapt old methods to prey on new fears at a time when large parts of the community are already feeling vulnerable.
‘Price gouging’ for essential products is a significant public concern at this time and the ACCC will prioritise its activities in relation to this conduct. While price gouging is generally not illegal, if a business makes misleading claims about the reason for price increases, it will be breaching the Australian Consumer Law.
It is also possible that extreme price gouging for essential products may amount to unconscionable conduct.
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