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accc enforcement priorities 2020

These priorities provide focus to the ACCC’s enforcement and advocacy work, as well as develop solutions to deliver benefits for all consumers. The ACCC has highlighted the following areas as priorities for 2020: Competition and consumer issues in: the funeral services sector; the digital sector /Public Release. There are also complaints from consumers about misleading and deceptive practices in the sector. The $125 million penalty in the Volkswagen matter is the standout example, albeit now under appeal. Published: 25 February 2020. I have not, for example, discussed our work on communications and transport, and the huge amount of work we are doing on the Consumer Data Right. The full list of the ACCC’s 2020 enforcement priorities is available at: Compliance & Enforcement policy & priorities. The ACCC is focussing upon a variety of industries and behaviours this year, as summarised below. Put another way, while the profit motive underpinning market behaviour is a key driver of economic wealth, the pursuit of profit does not always promote the interests of Australian consumers. Under most circumstances, We support the prosecution of these matters. A CEDA audience allows a wider view of what the ACCC does. We are concerned that some franchise systems do not focus on running a viable system, to the benefit of both franchisees and franchisors. We take an evidence-based approach to our decision making. These include hidden fees, add-on services not included and misrepresentations about what will be covered. Deciding whether to commence court proceedings or oppose a merger involves judgements as in all things economic. The Australian Competition and Consumer Commission has released its Compliance and Enforcement Policy for 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. Facts that can be clearly proven one way or the other reduces this uncertainty, but cannot eliminate it. This is on the back of other court cases involving Jayco and Ford, with other enforcement proceedings involving Holden, Hyundai and Volkswagen. Competition and consumer issues in the funeral services sector have long provoked complaints from the public, governments and generated stories in the media. Under most circumstances, free and open markets work in favour of consumers and businesses of Australia. This requires detailed and often forensic investigation that sometimes has the public wondering why the ACCC is slow to act. The ACCC’s judgement calls on these issues see us as a strong enforcer. There will be a particular focus on educating consumers to understand their consumer rights, and empowering them to enforce them.”. The dramatic and sudden escalation of the summer bushfires led us into investigating, and seeking to stop, some of the appalling scams taking advantage of people’s generous charity donations. In particular, it will look at: 1. button battery safety: button batteries cause significant injury and even death if children swallow them. We will continue to work with the Government’s Franchising Taskforce to address some of the concerns. 1. We will also continue to focus on general small business and industry engagement in 2020. And the debate has just started on having Australia follow the US, the UK, Europe and others, and introduce a law against unfair practices by large businesses against consumers and small businesses, where significant detriment is involved. Yesterday, Rod Sims, Chair of the Australian Competition and Consumer Commission (ACCC) announced the ACCC's 2021 compliance and enforcement priorities in his address to the Committee for Economic Development Australia (CEDA) in Sydney.Many of the priorities build on those identified in 2020, but the continuing impact of COVID-19 is apparent in the prioritisation of … It is one of our key tools for detecting cartels. 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. What we do at the ACCC is driven by a fundamental belief in markets. We want to ensure the remainder of those vehicles are located and dealt with as required under our compulsory recall notice.”. There are allegations that some funeral operators inflate the price of services, and take advantage of consumers at a vulnerable time. The full list of the ACCC’s 2020 enforcement priorities is available at: Compliance & Enforcement policy & priorities. In December last year we instituted proceedings against Tasmanian Ports Corporations which has 99 per cent of the Tasmania’s freight moving through its ports. A new focus for the ACCC is on issues arising from the impact of COVID-19 on travel. What signal will a decision to intervene or not intervene send to the broader business community? This provides focus to our enforcement and advocacy work, and the basis for the best allocation of our resources in the upcoming year. Firms that ‘cut corners’ and supply unsafe products put the health of consumers at risk. into the practices of the digital platforms in 2021 and will pay particular attention to issues related to digital platform’s use of data, digital advertising technology services and apps to ensure that these are being us I cannot, of course, fail to mention the debate Australia needs to have about how concentrated an economy we want, and so how we approach assessments of the competition effects of mergers. ACCC’s 2020 priority areas. 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. “We have taken considerable, recent enforcement action in relation to electricity and telecommunications, and it appears this will continue,” said Mr Sims. We are working with the sector to improve this in a range of ways. 2020 looks will be another busy but exciting year for the ACCC. This is a concentrated sector with some players having significant market power. The Takata airbag recall is one of the most important, and by far the largest product safety project the ACCC has undertaken. ACCC's 2020 priority areas. But let’s recognise that enforcing our competition and consumer laws involves making decisions where outcomes are uncertain. The ACCC's enforcement priorities for 2020 are: Digital platforms: Unsurprisingly, addressing consumer and competition law concerns in relation to digital platforms is a continuing priority for the ACCC this year, following the release of the ACCC's report in mid-2019. Two relate to the financial sector, one is about the supply of aid for people with disability, another is our third roll-on roll-off shipping case. Last year we established the Button Batteries Taskforce to review whether industry actions to mitigate these risks were sufficient and to consider what regulatory options might be available. We also have investigations underway into secondary boycotts, activity aimed at damaging individual small businesses and unfair contract terms. Additionally there are allegations of unfair contract terms within funeral service and pre-paid funeral contracts. We are alive to both the potential negative effects of over enforcement, but also to the potential harm caused by under enforcement. This will also include the need for injunctions. We welcomed the Government’s introduction of a new mandatory Dairy industry code which was the key recommendation from our 2018 Dairy Inquiry. What are the risks and consequences of deterring legitimate market behaviour? The ACCC has matters before the courts involving motor vehicles manufacturers. Many consumers have limited or no experience with the sector until they need to arrange one. The construction sector is central to our economy, and it will continue to be a focus. But they are also influenced by the deep experience the ACCC has in seeing how markets work in practice and the consequences of the decisions we make. There is growing criticism about the lack of price transparency for funeral services and the difficulties consumers face in making an informed decision. “These priorities will complement our enduring priorities which include cartels, anti-competitive agreements and misuse of power,” said Mr Sims. Of course, the ACCC’s work is not limited to what I have mentioned today. The most recent cartel cases are a civil proceeding against Bluescope Limited and a criminal prosecution of a former Bluescope executive. This work will commence in 2020, with the current and anticipated falls in wholesale electricity prices likely to be a particular focus. “We also have a dedicated Commercial Construction Unit looking at conduct affecting competition and poor trading practises in the commercial construction sector, including secondary boycotts and other conduct impacting small businesses and large public and private projects,” said Mr Sims. A summary is also available at: 2020 Compliance and Enforcement Priorities. The ACCC will also enforce the Code where significant non-compliance issues arise. The overarching theme emerging from Chairman Rod Sims' comments is that, despite a number of well-publicised court defeats … The ACCC will investigate franchise industry practices that are impacting franchisees. The Australian Competition and Consumer Commission (‘ACCC’), the agency responsible for enforcement of competition, consumer and product safety laws in Australia has issued its 2020 Compliance and Enforcement Policy [i] . We now have a small number of active investigations in an early stage that have been reported to us anonymously by whistleblowers. The priorities document and the Chairman's speech issued each year offer the business community insight into the ACCC's regulatory goals for the year ahead.. The priority areas complement a set of enduring priorities, identified as ongoing behaviours that harm Australians. In the context of today’s topics these provide an evidence-based foundation for much of our enforcement and compliance work. The ACCC ad… In selecting this as a priority we are focusing on those products that make misleading claims about the health or nutritional content of foods, either on the product itself and/or in its associated marketing, and have capacity to cause substantial consumer detriment. We are now working very closely with our overseas counterparts on various theories of harm. Mr Sims said they would be: 1. looking at the sales practices of travel businesses when promoting forward-booking of services and products; 2. As Australia’s general infrastructure regulator we are also pointing out that we have no general regulatory regime for infrastructure monopolies that are not vertically integrated. Economics is in essence concerned with how we grow the 'pie', and how we divide the 'pie'. 2020 Compliance and Enforcement Priorities. The full list of the ACCC’s 2020 enforcement priorities is available at: Compliance & Enforcement policy & priorities. But the collection and analysis of evidence is the key to getting to the heart of what is going on. The ACCC will have a crucial role in monitoring conduct. 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Many investigations have come out of inquiries; for example, such as the Gas Inquiry which saw action ending with BHP and Esso required to separately market their gas. Our outreach work with consumer groups, including many Indigenous communities, is an important way in which we seek to help consumers and prevent misconduct from occurring. The purpose of the Act is to enhance the welfare of Australians by: 1. Each year the ACCC reviews its compliance and enforcement priorities. The fear of reprisal and unwillingness of complainants or whistleblowers to come forward is, however, a fundamental problem we must overcome. The ACCC is focussing upon a variety of industries and behaviours this year, as summarised below. As I always say, the dominant criticism of the ACCC from consumers and small business is that we do not do enough. We have a number of important cases we want to bring before the courts which we think will highlight some of the significant problems in the sector. The work of that Taskforce is being prioritised in the first half of this year and we will soon release a Draft Recommendation outlining proposed regulatory options available under the ACL to address the hazard of these batteries for public comment. At least 64 children have died globally, and hundreds of children suspected of swallowing button batteries have ended up in hospital emergency rooms. This is where we need to make difficult choices about where we target our work. Every five years or so we review the operation of our cartel immunity and cooperation policy. The Australian Competition and Consumer Commission has released its Compliance and Enforcement Policy for 2020. Not least because many consumers engage with the funeral sector at a time when they are grieving, vulnerable and thereby at a disadvantage. ACCC 2020 Compliance and Enforcement Priorities 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 … The unique circumstances of 2020 have meant that the ACCC has unfinished business from some of its priorities last year and have therefore rolled over some of the 2020 priorities into 2021. Ongoing Focus on Fighting Cartels and Other Anti-Competitive Conduct Thank you again to CEDA for the opportunity to launch the ACCC 2020 Compliance and Enforcement priorities. Indeed, we are taking enforcement and other actions against our major telecommunications companies more often than is consistent with a well-functioning market. Options being considered include requirements for secure battery compartments on products containing button batteries, child resistant packaging and warnings. ACCC's 2020 priorities: Digital economy, construction, electricity and food suppliers all under the microscope By Kirsten Webb, Mihkel Wilding, Anchal Kapur and Damiano Fritz Australian businesses should endeavour to take a proactive approach to engaging with the ACCC’s concerns, ensure that they have robust compliance programs and obtain legal … The ACCC will investigate franchise industry practices that are impacting franchisees. As outlined in the final report of our 2019 Digital Platforms Inquiry, the ACCC has concerns about consumers being misled over the collection and the use of their personal data, as well as a range of important competition issues, some also linked to data. 2020 Priorities Competition and consumer issues in the funeral services sector Competition and consumer issues relating to digital platforms Each year, the ACCC publishes its compliance and enforcement priorities, based on an assessment of both existing and emerging issues which impact consumers and industry competition. A summary is also available at: 2020 Compliance and Enforcement Priorities. Many of the ACCC's enforcement priorities for 2020 have a consumer law enforcement focus, including in particular: 1. Unchallenged economic rents, of course, favour those who be… There is already one matter before the Court. Franchises. Over the last year, we’ve received 25 000 reports from consumers who want help trying to resolve a dispute involving a motor vehicle or white goods; these two are the most complained about sectors to the ACCC. Mr Sims also outlined the ACCC’s other enforcement priorities for 2020. We also support a case against the CFMEU in the commercial construction sector. They can cause significant injuries if swallowed by children, and have already caused two deaths in Australia in the past six years. The ACCC is focussing upon a variety of industries andbehaviours this year, as summarised below. Thank you again to CEDA for the opportunity to launch the ACCC 2020 Compliance and Enforcement priorities. This article outlines some of the key priorities. The ACCC is also conducting inquiries into Northern Australian Insurance and the Murray Darling Basin Water Markets, and they may also raise enforcement issues. There are advanced Government processes underway to consider laws covering unfair contract terms and a national safety provision, which we are contributing to. Button batteries, also known as coin cell batteries, are flat, round, single cell batteries, used in personal and household products, such as children’s toys, hearing aids, lights, watches, remote controls, digital thermometers and bathroom scales. A review of the Code’s role, impact and operation will take place after 12 months. Fundamentally — and this is a key point — rather than risk chilling investment or innovation, our enforcement action is more likely to focus corporate behaviour on actions that benefit consumers rather than harming them. Evidence gathering in the misuse of market power investigations can be difficult. We understand that. We also saw the Courts impose some important penalties and provide consumer relief in a number of other cases. “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. These include: 1. Not surprisingly, the ACCC’s other enforcement priorities for 2021 will focus on a number of sectors impacted by the COVID-19 pandemic, including the travel and aviation sectors, together with sectors that were slated to be a focus for the ACCC in 2020 (prior to the ACCC’s pivot in March last year due to the emerging pandemic), including funeral businesses. The ACCC’s enforcement priorities for 2020 are: Digital platforms: Unsurprisingly, addressing consumer and competition law concerns in relation to digital platforms is a continuing priority for the ACCC this year, following the release of the ACCC’s report in mid-2019. Our current compliance and enforcement priorities are listed below. The ACCC continued to take forward a number of important cartel cases and currently there are five criminal cartel cases before the courts. The priority areas complement a set of Misleading claims about health or nutritional benefits harms consumers as it often results in paying a higher price for products, without receiving any benefits from them. The Australian Competition and Consumer Commission has releasedits Compliance and Enforcement Policyfor 2020. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. Australia’s competition and consumer laws are essential to a market economy being successful; one that works in the interests of Australian consumers. While this is the case, the consequences of intervening (or not intervening) are uncertain. This is my 9th such speech, and all hosted by CEDA, which is much appreciated. These batteries are used in personal and household products, such as children’s toys, hearing aids, lights, watches, remote controls, digital thermometers and bathroom scales. “These priorities will complement our enduring priorities which include cartels, anti-competitive agreements and misuse of power,” said Mr Sims. Honest and accurate claims about food products is important. There is also much going on under the heading of competition and consumer advocacy. The ACCC’s priorities are consistent with their update on 31 August 2020 (see previous KWM InCompetition blog post here). I will have more to say on this later this week. As I have already stressed, these judgements are informed by evidence. We have already seen the Court order Heinz to pay penalties totalling $2.25 million for making a misleading health claim about products for young children. In particular, we are disturbed about the poor selling practices in remote Indigenous communities. ACCC’s 2020 priority areas. Many of the ACCC's enforcement priorities for 2020 have a consumer law enforcement focus, including in particular: However, enforcement cases alone will not address the many issues which have been identified in the franchising sector. At the most basic, for example, when we remind consumers that they can save a lot of money by regularly shopping around for new home loans and electricity supply as new customers clearly pay less than loyal customers. It’s not just about court outcomes. What is the likely harm if we do not intervene? PDF (624.92 KB) Listen to PDF. While the new priorities take into account the impact of COVID-19, it is clear that the ACCC continues to focus its attention on the various competition and consumer protection matters it has taken to court, as well as potential … The priority areas complement a set of enduring priorities, identified as ongoing behaviours that harm Australians. The Australian Competition and Consumer Commission has released its Compliance and Enforcement Policy for 2020. Enforcement cases will be progressed for significant breaches of the small business protection provisions of the Competition and Consumer Act. We are also concerned about the potential impact of collusive behaviour on public procurement, and we are working on a plan to enhance our capacity to detect this. 05 Mar 2020. The pricing and selling practices of essential services continues to be an area of concern for the ACCC, and has been retained as a priority in 2020. We strongly encourage whistleblowers to come forward. The growing community attention to health-related issues such as obesity has been paralleled by rising mistrust of claims by many food producers of purported health or nutritional benefits. During 2020 we plan to institute at least four new competition cases. There are similar concerns regarding misleading and deceptive selling practices of goods and services in the telco sector. The ACCC is an independent statutory government authority serving the public interest. We have also been working with the Department of Infrastructure, Transport, Regional Development and Communications to assist the transitioning of full responsibility for motor vehicle safety from 1 July 2021, when the Department gains compulsory recall powers for motor vehicles. Firms with market power have the ability and incentive to ‘give less and charge more’, and to engage in behaviour that restricts competition. Following the report’s release, the Federal Government has now funded the establishment of a permanent Digital Platforms Branch at the ACCC to ensure proactive scrutiny of the sector. The growing community attention to health-related issues has led the ACCC to take a more active role in preventing deceptive conduct in the marketing of food products. ACCC’s 2020 priority areas. It is clear from the high number of complaints received about this sector that consumers are still having problems enforcing their right to a consumer guarantee for these products. The most difficult part of this recall, dealing with those that have not yet complied, is upon us. ACCC's 2020 priority areas; 2020 priorities – further details; What else for the 2020? The Dairy Industry Code of Conduct came into effect on 1 January 2020. The ACCC is one the strongest voices advocating for a market economy and market-based solutions to issues. By selecting this as a priority, we aim to improve our understanding of the market and undertake targeted action. We want to ensure the remainder of those vehicles are located and dealt with as required under our compulsory recall notice. Consumer law enforcement. “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. These priorities highlight the areas in which Indeed, the recent Parliamentary inquiry into the franchising sector highlighted a number of practices of concern impacting franchisees. Cartel behaviour, anticompetitive mergers or conduct, and misleading and deceptive conduct do great harm to consumers and the economy. We are also assisting the Department on other significant airbag recalls not covered by the compulsory recall notice. taking appropriate enforcement action. We also accepted an enforceable undertaking from a number of roofing contractors for engaging in a concerted practice. And even now, the ACCC and other consumer law regulators are needing to respond to scams, as well as consumer guarantee queries, associated with the Coronavirus. Mr Sims also spoke about the progress of the Takata airbag recall with 2.6 million of the 3 million affected vehicles now repaired. Mr Sims also outlined the ACCC’s other enforcement priorities for 2020. The ACCC remains concerned that many franchisees cannot freely operate their business because of the prevalence of some questionable industry practices. In October last year when we launched the revised cartel immunity and cooperation policy we also opened a new anonymous hotline for whistleblowers. We have a dedicated Commercial Construction Unit looking at conduct affecting competition and poor trading practices in the commercial construction sector, including conduct impacting small businesses and large public and private projects. This also marked our first announcement of an enforcement outcome using this new provision. This article outlines some of the key priorities. An enduring priority for the ACCC is addressing consumer protection issues impacting vulnerable and disadvantaged consumers. Franchises. Many here today may disagree with our judgement calls. We are concerned some business either confuse consumers or deliberately make misleading claims to gain an advantage in the market over suppliers who make honest claims about their products. The ACCC does not directly target economic growth or inequality, but our work has important implications for both. New challenges also keep coming from the most unexpected sources, often without warning. Will the market ‘self-correct’ if we don’t intervene, and how long might that take? “The most difficult part of this recall, dealing with those that have not yet complied, is upon us. “We will continue to implement education initiatives to empower both franchisees and franchisors to effectively resolve disputes, and take strong enforcement action for significant breaches of the small business protection provisions of the CCA and the Franchising Code.”. I hope this introduction sets the scene for discussing the ACCC 2020 Compliance and Enforcement Priorities. When choosing which product to buy consumers focus on claims about origin, manufacturing processes and nutritional representations. According to the Media Release, the ACCC considers some forms of conduct “so detrimental to consumer welfare and the competitive process that the ACCC will always regard them as a priority”. The misleading and deceptive selling practices of essential services, combined with the lack of transparency in their pricing, can have a detrimental impact on consumers and small businesses. Are we applying our discretion to intervene consistently? In 2021, the ACCC will continue to prioritise compliance with product safety regulations and try to ensure products do not pose serious harm to consumers. Last year I stood in front of this audience and said that I was confident that we would have a section 46 misuse of market power case before the courts in 2019. It is proving to be quite useful. Digital platforms As outlined in the final report of its 2019 Digital Platforms Inquiry, the ACCC has concerns about consumers being misled over the collection and the use of their personal data, as well as a range of important competition issues. The recent parliamentary inquiry into the franchising sector shone a light on a number of practices in the sector, in particular the enforcement of the Franchising Code of Conduct. It’s vital that we devote considerable resources to these issues given their dominance in all our lives and their effect on economic activity. The ACCC has had a significant focus on the small business sector for many years, including the enforcement of the Franchising Code of Conduct.

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