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Post by dieseltojo on May 21, 2020 16:24:23 GMT 10
NBN speeds recover after COVID-19 demand 21 May 2020 NBN speeds and performance declined as Australians followed social distancing instructions to stay home due to COVID-19, but picked up following measures by NBN Co and streaming providers. The ACCC today released its first new monthly Measuring Broadband Australia report which tracks NBN network performance from February to April 2020.
The report shows a recovery in network performance, principally due to NBN Co’s move to offer retail service providers (RSPs) 40 per cent extra network capacity for free. Average download speeds on NBN Co’s 50 Mbps and 100 Mbps speed tiers had dropped by 14 per cent and 23 per cent, respectively, before this move.
“Broadband services have experienced unprecedented demand during the COVID-19 pandemic, as many people and small businesses have been working from home and making increased use of telehealth, online learning and other services,” ACCC Chair Rod Sims said.
“The most recent data from our Measuring Broadband Australia volunteers shows daytime NBN speeds have not been impacted by this additional demand, and evening speeds are mostly holding up well.” Measures adopted by streaming providers have also helped other online applications to perform well during the busy evening hours but led to a reduction in picture quality for viewers.
The ACCC’s own analysis shows average upload speeds performed to levels similar to pre-pandemic.
The ACCC also released its ninth regular Measuring Broadband Australia quarterly report, containing in-depth performance results from testing carried out in February 2020, before the COVID-19 related surge in demand. The report shows, for the first time, how different NBN plans perform in streaming popular video content from Netflix and YouTube.
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Post by dieseltojo on May 22, 2020 19:32:08 GMT 10
www.accc.gov.au/media-release/holden-commits-to-negotiate-in-good-faith-with-holden-dealersHolden commits to negotiate in good faith with Holden dealers 22 May 2020 General Motors Holden Australia NSC Pty Ltd (Holden) has committed to negotiate with its dealers in good faith about compensation for Holden’s withdrawal from the Australian market, as required under the Franchising Code of Conduct and Australian Consumer Law. The commitment follows pressure from the ACCC for Holden to agree to extend the deadline for acceptance of its compensation offer and to engage in good faith negotiations with dealers. The ACCC said it was preparing for court action had Holden not changed its position. The ACCC had received complaints that Holden was placing undue pressure on dealers by imposing an unnecessary deadline for acceptance of the proposed compensation package. This meant that dealers would have been forced to choose whether to accept the compensation offer before completing a dispute resolution process. The ACCC was concerned that this conduct may raise concerns under the good faith obligations of the Franchising Code of Conduct and the unconscionable conduct provisions of the Australian Consumer Law. “As franchisees, the dealers have less bargaining power than Holden. Holden was putting pressure on dealers to accept the compensation package by 31 May without giving a proper opportunity to negotiate and engage in a dispute resolution process. We believe this deadline was unnecessary and also unfair,” ACCC Chair Rod Sims said. Holden has proposed a transition package including compensation for the withdrawal of new vehicle sales, partial reimbursement for capital expenditure and a Holden Service Operations Agreement. Holden’s commitments do not cover the amount of compensation to be offered to dealers, but relates to a negotiation process in good faith.
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Post by dieseltojo on May 26, 2020 9:37:56 GMT 10
www.accc.gov.au/media-release/nbn-connections-pass-seven-million-as-network-capacity-jumpsNBN connections pass seven million as network capacity jumps 26 May 2020 More than seven million Australian consumers are now connected to the NBN after the activation of 455,000 new services in the three months to March 31. The connections were made as available NBN bandwidth per user jumped by 31 per cent during the March quarter, following NBN Co’s boost of the network capacity in response to the COVID-19 pandemic. The ACCC’s latest quarterly Wholesale Market Indicators Report, released today, shows total Connectivity Virtual Circuit (CVC) per user increased from 1.92Mbps to 2.52Mbps during the March quarter, after NBN Co temporarily provided retail service providers (RSPs) with up to 40 per cent extra capacity at no additional cost. “We were pleased to see NBN Co and RSPs work together to ensure Australians can stay connected during these unprecedented times,” ACCC Chair Rod Sims said. “Consumers have been downloading and uploading record amounts of data for online work, school and social activities, which has been essential in helping households get through this challenging situation.” The report shows smaller RSPs increased their collective share of the NBN wholesale market from 7.5 per cent to 8.1 per during the quarter. Leading this group, Aussie Broadband and Vodafone acquired 3 per cent and 1.9 per cent of wholesale services respectively.
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Post by dieseltojo on May 28, 2020 14:40:30 GMT 10
www.accc.gov.au/media-release/gsk-and-novartis-to-pay-45-million-in-penalties-over-voltaren-osteo-gel-claimsGSK and Novartis to pay $4.5 million in penalties over Voltaren Osteo Gel claims 28 May 2020 The Federal Court has ordered that the makers of pain relief product Voltaren Osteo Gel pay $4.5 million in penalties for breaches of the Australian Consumer Law. In May 2019 the Federal Court accepted admissions by Novartis Consumer Health Australasia Pty Ltd (Novartis) and GlaxoSmithKline Consumer Healthcare Australia Pty Ltd (GSK) that they made false or misleading representations in the marketing of Voltaren Osteo Gel and Voltaren Emulgel pain relief products. From January 2012 to March 2017, Novartis and then GSK marketed Osteo Gel as being specifically formulated and more effective than Emulgel in treating osteoarthritis related pain and inflammation even though both had the same active ingredients. Osteo Gel was often sold at a higher price than Emulgel and the gels were often displayed next to each other at pharmacies and grocery stores. “Novartis and GSK’s claims, which made Osteo Gel seem more effective than Emulgel, were unacceptable,” ACCC Commissioner Sarah Court said. “Voltaren Osteo Gel and Voltaren Emulgel were essentially the same gel and were equally effective in treating osteoarthritis symptoms.” “Novartis and GSK’s claims were particularly concerning because they set recommended retail prices for Osteo Gel above that of Emulgel, by up to 16%, and consumers were potentially misled into paying more for an identical product believing it was more effective,” Ms Court said.
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Post by dieseltojo on Jun 1, 2020 14:39:29 GMT 10
www.accc.gov.au/media-release/investigation-into-qantas%E2%80%99s-stake-in-alliance-airlines-continuesInvestigation into Qantas’s stake in Alliance Airlines continues 1 June 2020 The ACCC is continuing to investigate Qantas Airways’ (Qantas) (ASX:QAN) acquisition of a 19.9 per cent stake in Alliance Aviation (Alliance) (ASX:AQZ) during these uncertain times in the aviation industry. Qantas acquired a 19.9 per cent interest in Alliance last year, becoming Alliance’s single biggest shareholder. On 1 August 2019, the ACCC issued a statement of issues, which set out the ACCC’s competition concerns with the minority stake. The ACCC is providing this update in response to queries by various stakeholders. The Australian aviation industry is in a state of major upheaval and now, more than ever, we are concerned that competition by smaller airlines is not hindered. We will continue to seek information from market participants to gauge any impacts on competition arising from Qantas’s stake in Alliance. Alliance is an important and close competitor to Qantas, particularly in regional markets and for fly-in fly-out services for mining customers. Alliance, through a codeshare arrangement with Virgin, is also Qantas’s only competitor on passenger routes between Brisbane and the important regional centres of Bundaberg and Gladstone. “Qantas’s decision to complete the acquisition of the 19.9 per cent stake in Alliance without first seeking ACCC clearance means this is an enforcement investigation rather than a standard merger review,” ACCC Chair Rod Sims said.
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Post by dieseltojo on Jun 5, 2020 18:53:17 GMT 10
Sony to pay $3.5 million penalty for misrepresenting PlayStation gamers’ rights www.accc.gov.au/media-release/sony-to-pay-35-million-penalty-for-misrepresenting-playstation-gamers%E2%80%99-rights5 June 2020 The Federal Court has ordered Sony Interactive Entertainment Network Europe Limited (Sony Europe) to pay $3.5 million in penalties for making false and misleading representations on its website and in dealings with Australian consumers about their Australian Consumer Law (ACL) rights. Sony Europe made misleading representations to four consumers who believed they had purchased faulty PlayStation games. This occurred when Sony’s customer service representatives told them over the phone Sony Europe was not required to refund the game once it had been downloaded, or if 14 days had passed since it was purchased. “Consumer guarantee rights do not expire after a digital product has been downloaded and certainly do not disappear after 14 days or any other arbitrary date claimed by a game store or developer,” ACCC Chair Rod Sims said. The Court also declared Sony Europe breached the ACL by telling one of the four consumers it did not have to provide a refund unless the game developer authorised it, and by telling a fifth consumer that Sony Europe could provide a refund using virtual PlayStation currency instead of money. “What Sony told these consumers was false and does not reflect the consumer guarantee rights afforded to Australian consumers under the Australian Consumer Law,” Mr Sims said.
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Post by dieseltojo on Jun 12, 2020 6:59:12 GMT 10
Quantum Housing to pay $700,000 in penalties for misleading property owners www.accc.gov.au/media-release/quantum-housing-to-pay-700000-in-penalties-for-misleading-property-owners11 June 2020 The Federal Court has ordered Quantum Housing Group Pty Ltd to pay $700,000 in penalties for making false or misleading representations relating to the National Rental Affordability Scheme (NRAS). Between February 2017 and July 2018, Quantum sent a series of misleading letters and emails to at least 450 investors who had rental dwellings participating in the NRAS scheme, and pressured them to terminate their arrangements with their existing property managers and instead use property managers approved or recommended by Quantum. Quantum failed to tell investors that it had commercial links with the property managers it recommended.
Quantum also told some investors that their existing property manager had not properly managed their property’s compliance with the NRAS, when this was not true.
“This conduct was blatant, planned and deliberate in an effort to trick investors into switching from their preferred property managers,” ACCC Chair Rod Sims said.
Quantum admitted that it falsely represented that property managers must meet accreditation guidelines issued by Quantum, and that investors who failed to appoint an approved property manager were in default of their agreement with Quantum and risked losing their NRAS incentives.
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Post by dieseltojo on Jun 15, 2020 20:15:56 GMT 10
www.accc.gov.au/media-release/appeal-on-kleenex-flushable-wipes-claim-dismissedAppeal on Kleenex flushable wipes claim dismissed 15 June 2020 The Full Federal Court has dismissed an appeal by the ACCC and found that Kimberly-Clark Australia Pty Ltd (Kimberly-Clark) did not make false and misleading claims that its Kleenex Cottonelle toilet wipes were flushable.
The ACCC alleged that by labelling these products as “flushable”, consumers would believe the Kleenex wipes products had similar characteristics to toilet paper and would break up or disintegrate in a similar timeframe.
The ACCC relied on evidence from Australian water authorities that face significant problems when non-suitable products are flushed down the toilet as they contribute to blockages in household and municipal sewerage systems, known as “fatbergs”.
In 2019 the trial judge dismissed the ACCC’s case, ruling that to prove its case against Kimberly-Clark, the ACCC was required to prove that the Kleenex Wipes had in fact caused or contributed to real harm in particular instances. “We brought these proceedings because we were concerned that consumers were being misled about the very nature of the product they were buying, and because of increasing problems reported by Australian water authorities as a result of non-suitable products like wipes being flushed down the toilet,” ACCC Chair Rod Sims said. On appeal, the ACCC argued that the trial judge had made an error by requiring actual harm, and had failed to consider the ACCC’s evidence as a whole when deciding whether the flushable representation was false or misleading.
“We sought clarification from the Full Federal Court on whether proof of actual harm is required to establish that a claim is misleading,” Mr Sims said. “But we are pleased that our court action has brought attention to this issue, and has made consumers aware that flushing wipes can cause significant blockages to plumbing and sewerage systems, damage to equipment and environmental harm and imposes significant cost of removing fatbergs on water authorities.”
In its judgment, the Full Federal Court recognised this concern, noting that “Blockages and fatbergs pose what has become an increasing problem for households and municipal waste water authorities. One response would be to introduce legislation or standards governing the characteristics of what can and what cannot be marketed or sold as ‘flushable’.”
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Post by dieseltojo on Jun 16, 2020 16:30:14 GMT 10
www.accc.gov.au/media-release/easier-comparisons-now-available-for-foreign-currency-conversionsEasier comparisons now available for foreign currency conversions 16 June 2020
People who use foreign currency conversion (FX) services now have greater access to accurate online calculators to help compare prices, but the ACCC says greater transparency is still needed at a time when many Australians are sending money to family and friends overseas.
The ACCC’s Foreign currency exchange services inquiry report, released in September last year, found many Australian consumers were paying too much for FX services. ACCC Chair Rod Sims noted at the time that, “shopping around could save Australian consumers hundreds of millions of dollars each year”. The report found that for just two currencies, US dollars and UK pounds, individual consumers who used the big four banks to send international money transfers (IMTs) could have collectively saved about AUD150 million in 2017-18 if they had instead used a lower priced IMT supplier.
One of the major issues the report identified was that many of the online calculators available to consumers to calculate foreign currency conversions did not include the full price of FX transactions, including fees. Further, some suppliers did not even make an online calculator available to consumers looking to find price information.
Following the ACCC’s intervention and subsequent review this year, more than half of the 26 prominent online FX suppliers reviewed now have an online calculator on their website or improved their existing calculator. This will make it easier for consumers looking to compare the total price of FX services from different suppliers.
“We’re very encouraged that many foreign currency suppliers have already made improvements to their online calculators and websites to make it easier for consumers to shop around when comparing the cost of converting foreign currency,” Mr Sims said.
“It is even more important during the COVID-19 pandemic, and at a time of growing unemployment globally, that consumers are able to easily compare fees and other charges when converting currency and sending it to family or friends overseas.”
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Post by dieseltojo on Jun 17, 2020 19:18:44 GMT 10
www.accc.gov.au/media-release/lime-e-scooters-undertakes-to-address-concerns-about-safety-misrepresentationsLime e-scooters undertakes to address concerns about safety misrepresentations 17 June 2020
The ACCC has accepted a court-enforceable undertaking from e-scooter rental company Lime Network Pty Ltd (Lime) to address the ACCC’s concerns regarding misrepresentations about the safety of its Generation 2 (Gen 2) model of e scooters and to comply with its product safety reporting obligations.
The ACCC considers Lime misrepresented to consumers that its Gen 2 e-scooters were safe to use when in fact it did not disclose to consumers a safety issue it was aware of. In certain circumstances, Lime’s Gen 2 e-scooters would apply excessive brake force, or locking, occurring on the front wheel, causing it to stop suddenly. Serious injuries suffered by consumers as a result included broken bones, damaged teeth, cuts and abrasions.
“Misrepresenting the safety of a product can have very serious consequences,” ACCC Commissioner Sarah Court said.
“Businesses must disclose known issues so that consumers can take extra precautions if they still choose to use the products.” The ACCC was also concerned that Lime failed to comply with mandatory injury reporting requirements on at least 50 occasions for injuries arising from Gen 2 e-scooters in Australia and outside Australia.
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Post by dieseltojo on Jun 17, 2020 19:20:47 GMT 10
www.accc.gov.au/media-release/caravanning-queensland%E2%80%99s-proposed-%E2%80%98loyalty-program%E2%80%99-raises-competition-concernsCaravanning Queensland’s proposed ‘loyalty program’ raises competition concerns 17 June 2020
The ACCC proposes not to allow plans by Caravan Trade and Industries Association of Queensland (Caravanning Queensland) to offer a ‘loyalty program’ to its members. Under the program, Caravanning Queensland would offer discounted fees to exhibit at its own caravanning trade shows on the condition that members do not take part in competing events.
The ACCC intends to revoke an exclusive dealing notification lodged by Caravanning Queensland about the ‘loyalty program’ because it raises serious competition concerns. “We disagree with Caravanning Queensland’s claim that this is simply a loyalty program for its members,” ACCC Commissioner Stephen Ridgeway said.
“Loyalty programs should reward members for purchasing more of your products or services, rather than linking the reward to an agreement not to purchase your competitors’ products or services.” In a draft notice issued today, the ACCC proposes to revoke Caravanning Queensland’s notification because it is satisfied that the proposed ‘loyalty program’ has the purpose and effect of substantially lessening competition in the supply of caravanning exhibition event services in the South East Queensland region.
The ACCC is also satisfied that the likely benefit will not outweigh the likely detriment to the public from the conduct. Caravanning Queensland has a substantial membership base comprising more than 85 per cent of caravan manufacturers and is the organiser of major caravanning exhibition events in Brisbane and the surrounding region, including the must-attend Brisbane Supershow event for caravanning retailers.
“As a result, smaller caravanning event organisers or possible new entrants are unlikely to be able to match the deep discounts to persuade members to give up their Caravanning Queensland discount.” “Additionally, consumers are likely to have fewer opportunities, or have to travel much further, to attend caravanning exhibition events where they can easily compare features and prices of a broad range of recreational vehicles, and track down special deals,” Mr Ridgeway said.
Caravanning Queensland and interested parties can comment on the draft notice before the ACCC makes a final decision. Submissions are due by 10 July 2020.
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Post by dieseltojo on Jun 19, 2020 10:26:12 GMT 10
www.accc.gov.au/media-release/qantas-offers-refunds-for-flight-cancellationsQantas offers refunds for flight cancellations 19 June 2020 The ACCC says it is pleased Qantas has begun contacting its customers to tell them they are entitled to a refund for domestic or international flights cancelled or suspended due to COVID-19 travel restrictions. The ACCC’s COVID-19 Taskforce raised concerns with the airline after receiving hundreds of complaints from passengers whose flights were suspended or cancelled due to travel restrictions, but who were given credits by Qantas instead of the refunds they were entitled to. Qantas’ terms and conditions state that customers with fares booked on any of its domestic and international flights are entitled to have their fare refunded if Qantas makes a significant change to their flight, and Qantas cannot offer another booking which is acceptable to the customer. The ACCC was concerned that Qantas’ communications to customers between 17 March 2020 and 31 May 2020 did not adequately inform them of their right to receive a refund. In some cases, the ACCC considers Qantas’ emails may have encouraged these customers to cancel bookings themselves in order to receive a credit when many would have been eligible for a refund. “We want to ensure that customers are aware that when Qantas suspends or cancels flights due to travel restrictions and fails to provide them with an acceptable alternative flight, they are entitled to a refund,” ACCC Chair Rod Sims said. This decision by Qantas to send a new email to customers in recent days to “remind” customers about their right to a refund follows weeks of pressure from the ACCC, but the ACCC says even the most recent communication is not particularly clear.
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Post by dieseltojo on Jun 22, 2020 14:09:11 GMT 10
www.accc.gov.au/media-release/scams-cost-australians-over-630-millionScams cost Australians over $630 million 22 June 2020 Australians lost over $634 million to scams in 2019, according to the latest figures in the ACCC’s Targeting Scams report released today. There were more than 353,000 combined reports to Scamwatch, other government agencies and the big four banks last year. “Unfortunately it is another year with devastatingly high losses, and scammers are constantly finding new ways to defraud Australians,” ACCC Deputy Chair Delia Rickard said. “This year we have included data from the big four banks which gives a more complete picture of how much people are losing to scams.” Business email compromise scams accounted for the highest losses in 2019, with the Australian business community, and some individuals losing $132 million. This was followed by investment scams at $126 million, and dating and romance scams at $83 million. Over the last 10 years of Targeting Scams reports, Scamwatch has received almost one million reports of scams. "When we combine Scamwatch reports with partner data, we see that Australians have reported losing $2.5 billion over that time, which is astonishing,” Ms Rickard said. “We know these numbers still vastly understate losses as around one third of people don’t report scam losses to anyone and in the past far fewer scam reports to other agencies have been captured.” “Some of these scams can last for months, or even years, and can leave victims financially and emotionally devastated.”
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Post by dieseltojo on Jun 23, 2020 11:22:40 GMT 10
www.accc.gov.au/media-release/dodo-and-iprimus-in-court-for-alleged-misleading-broadband-speed-claimsDodo and iPrimus in court for alleged misleading broadband speed claims 23 June 2020 The ACCC has instituted Federal Court proceedings against Dodo Services Pty Ltd (Dodo) and Primus Telecommunications Services Pty Ltd (iPrimus), both owned by Vocus Group (Vocus), alleging they made false or misleading claims about the NBN broadband speeds their customers could achieve during busy evening hours.
The ACCC alleges that, between March 2018 and April 2019, Dodo and iPrimus made false or misleading claims on their websites about the speeds consumers could expect if they signed up to their NBN broadband services.
“We believe many of Dodo and iPrimus’ NBN customers would have been unable to regularly receive the advertised speeds during the busy evening period of between 7pm–11pm,” ACCC Chair Rod Sims said.
“The ACCC will argue that Dodo and iPrimus used a fundamentally flawed testing methodology, developed by Vocus, which was not a reasonable basis for their advertising claims about certain typical evening speeds.”
“It is alleged that the testing methodology determined the ‘typical evening speed’ claims by using only the daily 75 fastest speeds observed across Vocus’ entire network in the busy period, excluding slower speeds where a connection was more likely to be impacted by congestion.”
“Consumers need reliable broadband speed information in order to decide which provider to get an NBN service from. How broadband speeds hold up during busy evening periods is a critical issue for many consumers, and all service providers must have a reasonable basis for the broadband speed claims that they make,” Mr Sims said.
Since February 2019, the ACCC’s Measuring Broadband Australia (MBA) Program has shown Dodo and iPrimus’ broadband speeds have consistently performed towards the lower end of the nine NBN providers measured and reported on. The ACCC is seeking declarations, penalties and costs.
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Post by dieseltojo on Jun 23, 2020 11:24:38 GMT 10
www.accc.gov.au/media-release/business-email-compromise-scams-cost-australians-132-millionBusiness email compromise scams cost Australians $132 million 23 June 2020 Business email compromise scams caused the highest losses across all scam types in 2019 costing businesses $132 million, according to the ACCC’s Targeting Scams report. “These combined losses from the ACCC, other government agencies and the big four banks show how financially harmful these scams can be,” ACCC Deputy Chair Mick Keogh said.
“Scammers intercept legitimate invoices and change the details to include fraudulent payment information. The recipient will pay the invoice as normal and not realise they have been scammed.” “Another technique used by scammers is to impersonate the CEO of a company and request staff transfer funds to them for a variety of reasons, such as to purchase gift cards as a surprise for other staff.”
Scamwatch alone received almost 6,000 reports from businesses last year with $5.3 million in reported losses. False billing was the most commonly reported type of scam which includes business email compromise scams.
Other scams reported by businesses include online shopping scams where the business attempts to buy equipment online and the product never arrives. “It is important for businesses and their staff to know that these scams are out there so they can learn how to avoid them,” Mr Keogh said.
Small and micro businesses reported more scams than medium and large-sized businesses
. The average loss was $11,000, but some businesses lost up to $200,000.
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