A report of the Australian Competition and Consumer Commission’s activities



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ACCCount

A report of the Australian Competition and Consumer Commission’s activities

1 October to 31 December 2015



Australian Competition and Consumer Commission

23 Marcus Clarke Street, Canberra, Australian Capital Territory 2601

© Commonwealth of Australia 2016

ISBN 978-1-921973-73-4

This work is copyright. Apart from any use permitted by the Copyright Act 1968, no part may be reproduced without prior written permission from the Commonwealth, available through the Australian Competition and Consumer Commission. Requests and inquiries concerning reproduction and rights should be addressed to the Director Publishing, Australian Competition and Consumer Commission, GPO Box 3131, Canberra ACT 2601 or by email to publishing.unit@accc.gov.au.

www.accc.gov.au
Contents


ACCCount 1

Overview 4

1.The Australian Competition and Consumer Commission (ACCC) works to enhance the welfare of Australians by promoting competition and fair trading. In doing so the ACCC protects consumers from unfair business practices and unsafe products whilst regulating national infrastructure and other markets with limited competition or natural monopoly characteristics. This was achieved by engaging in a broad range of activities across the economy in the October to December 2015 quarter. 4

2.Strong enforcement outcomes were attained in the December quarter. The ACCC accepted undertakings from Informed Sources Australia Pty Ltd and 5 petrol retailers following alleged contraventions of the Competition and Consumer Act 2010 (Cth) (CCA) in the exchange of fuel pricing information. As part of this matter an undertaking was also accepted from Eureka Australia Petroleum Pty Ltd, trading as Coles Express. 4

3.The ACCC received payment for 18 infringement notices, including penalties totalling $32,400 paid by the manufacturer and distributor of Uncle Tobys Oats – Cereal Partners Australia Pty Ltd (Cereal Partners). The ACCC issued the notices having reasonable grounds that Cereal Partners made false or misleading representations about the protein content of certain oat products in contravention of the Australian Consumer Law (ACL) provisions. 4

4.The ACCC instituted proceedings in the Federal Court against Woolworths Ltd (Woolworths) alleging that Woolworths had acted unconscionably in dealings with a large number of suppliers as part of a scheme approved by senior management called ‘Mind the Gap’. The ACCC alleges that the scheme sought to reduce an expected significant half year gross profit shortfall by placing payment pressure on certain suppliers. 4

5.The ACCC announced that it would not oppose the proposed acquisition of BG Group PLC by Royal Dutch Shell PLC as it was not satisfied that these companies were likely to be meaningful competitors in the domestic market for gas. Also announced was the decision not to oppose the transaction between Foxtel Management Pty Ltd and Ten Network Holdings Ltd. 4

6.The ACCC granted an authorisation to the Australian Retail Credit Association and current and future signatories of the Principles of Reciprocity and Data Exchange for five years. 4

7.The ACCC is continuing to monitor the recall of faulty Samsung washing machines that have caused electrical fires, and also refreshed a communications campaign on the national Infinity electrical cable recall. Hoverboards have emerged as a safety hazard and the ACCC is working with state and territory electrical regulators to identify faulty and dangerous hoverboards and recall them from sale where appropriate. 4

8.The ACCC released a market study report on the Darwin petrol market, finding that the increase in retail petrol margins in Darwin has imposed a significant cost on motorists. 4

9.The ACCC released its 2013-14 report on the private health insurance industry with a focus on the transparency and accuracy of information provided to consumers by providers. 4

10.The Royal Commission into Trade Union Governance and Corruption issued its final report which contains recommendations that various amendments be made to the secondary boycott provisions of the CCA as well as establishing a building and construction industry regulator to work alongside the ACCC in relation to enforcement action. 4

11.Maintain and promote competition 6

12.Outcomes to address harm to consumers and businesses resulting from anti-competitive conduct 6

13.Proceedings 6

14.Undertakings accepted and administrative resolutions 9

15.S87B Undertakings 9

16.Investigations 10

17.Agriculture Enforcement and Engagement Unit (AEEU) 11

18.Assess mergers to prevent structural changes that substantially lessen competition 12

19.Significant merger decisions 13

20.Merger review consultation 15

21.Make decisions on authorisation, notification and certification trademark applications in the public interest 16

22.Authorisations 16

23.Notifications 18

24.Certification trademarks 20

25.Assist the Australian Competition Tribunal 21

26.Protect consumers and support fair trading 22

27.Outcomes to address harm to consumers and small businesses resulting from non-compliance with the Australia Consumer Law 22

28.Proceedings 22

29.Infringement notices 30

30.Undertakings accepted and administrative resolutions 32

31.Enhance the effectiveness of the ACCC’s compliance and enforcement initiatives through partnerships 37

32.Consumer Consultative Committee 37

33.Australasian Consumer Fraud Taskforce 37

34.Ruby Hutchison Memorial Lecture & National Consumer Congress 37

35.Empower consumers by increasing their awareness of their rights under the ACL 37

36.Scams 37

37.Support a vibrant small business sector 38

38.Franchising Consultative Committee 39

39.Small Business & Franchising Consultative Committee 39

40.Identify and address the risk of serious injury and death from safety hazards in consumer products 40

41.Product safety recalls 40

42.Emerging hazards 41

43.Compliance campaigns 43

44.Revocation of the mandatory safety standard for motorcycle helmets 43

45.Infrastructure regulation 45

46.Telecommunications 45

47.Final decision on primary price terms for the fixed line services FAD 45

48.Superfast broadband access service (SBAS) declaration inquiry 46

49.Pilot Broadband Performance Monitoring and Reporting Program 48

50.ACCC’s preliminary view on Long Term Revenue Constraint Methodology 48

51.ACCC’s second submission to Bureau of Communications Research (BCR) consultation paper on NBN non-commercial services funding options 49

52.Fuel price monitoring 49

53.Petrol market studies 51

54.Australia Post 52

55.Bulk wheat port terminal services 52

56.Mandatory Code 52

57.Container stevedoring monitoring 53

58.Annual monitoring report 53

59.Water 54

60.ACCC draft advice on water charge rules 54

61.ACCC accredits IPART 54

62.Multi-sector engagement 55

63.Market studies and research 56

64.Advocacy and legislative and legal developments 57

65.International collaboration 61

66.Competition focus 61

67.Consumer Protection focus 62

68.Infrastructure regulation focus 62

Appendices 63

69.A Complaints and inquiries 63

71.B Enforcement outcomes & matters in court 65

73.C Use of compulsory information gathering powers 72

74.D Major speeches 73





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