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


In July 2015 the Government announced its intention to change Australia’s country of origin labelling laws with a view to a new system being in place by mid-2016



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In July 2015 the Government announced its intention to change Australia’s country of origin labelling laws with a view to a new system being in place by mid-2016.

On 4 December 2015 the Department of Industry, Innovation and Science released a Consultation RIS outlining proposed changes to Australia’s country of origin labelling laws. The consultation period ended on 29 January 2016.

The proposed laws would reshape the obligations of traders, requiring most food to display the proportion of local content through an information standard under the ACL. It would also amend the current “safe harbour” defences to all goods in relation to misleading or deceptive place of origin claims.


Excessive Card Surcharges

The Financial System Inquiry recommended that merchants be prevented from over-surcharging customers paying with debit and credit cards.

During the period the ACCC engaged with Treasury on proposed legislation to ban excessive surcharging for card payments. On 3 December 2015 a Bill was introduced into Parliament that proposes to amend the CCA to ban excessive surcharges and provide the ACCC with additional powers to gather information and issue infringement notices in enforcing the ban on excessive surcharges. Broadly, a surcharge will be excessive where it exceeds the costs that the merchant faces for using that payment method.

The ACCC engaged with the Reserve Bank of Australia on its accompanying draft standard that sets out the costs that can be included by the merchant as part of their costs of acceptance. The draft standard was released for public consultation on 3 December 2015 and submissions are due on 3 February 2016.


Extending unfair contract term protections to small business

The Treasury Legislation Amendment (Small Business and Unfair Contract Terms) Bill received Royal Assent on 12 November 2015.

It extends the current protection afforded to consumers against unfair contract terms in standard form contracts to small businesses.

The protections will come into effect following a 12-month transition period and the ACCC will be engaging with industry and producing guidance materials to assist compliance with the new laws.


Free range eggs

On 5 October 2015 Treasury released a consultation RIS canvassing options for free range hen egg labelling including a National Information Standard, noting Commonwealth, State and Territory Consumer Affairs Ministers would vote on the need for any new law in February 2016.

On 6 October 2015 the ACCC released enforcement guidance setting out how the ACCC will enforce the misleading conduct provisions of the ACL in regards to free range egg claims in the intervening period.

The ACCC met with industry and consumer representatives during this period to explain its approach to enforcement of the law in relation to free range eggs.

In December the ACCC participated alongside Treasury in a roundtable with industry participants and other stakeholders. The roundtable covered submissions to the RIS process and the components of a potential information standard on free range eggs.


Horticulture Code of Conduct Review

The Horticulture Code is a mandatory industry code under section 51AE of the CCA and is enforced by the ACCC. The Code was established in 2007 to provide clarity to and transparency of transactions between growers and wholesalers of fresh fruit and vegetables. The Government initiated an independent review of the Horticulture Code (the Review) in June 2015.

The Review is being undertaken by Mr Mark Napper and Mr Alan Wein.

The ACCC made a submission to the Review, making a number of recommendations to improve the efficacy of the Code. For more information about the Review see http://www.agriculture.gov.au/ag-farm-food/hort-policy/code-of-conduct.

Oilcode

The Department of Industry Innovation and Science is conducting a review of the Competition and Consumer (Industry Codes–Oilcode) Regulation 2006 (Oilcode). The Oilcode is scheduled for sunsetting on 1 April 2017 which requires a review of the legislative instrument to determine if it remains fit for purpose before it can be remade, rolled-over or repealed.

The Oilcode review Options Paper was released on 9 September 2015 and on 13 October 2015 the ACCC provided a submission. The ACCC recommended the fuel re-selling provisions be harmonised with the updated Franchising Code of Conduct, the current Terminal Gate Pricing arrangements be retained and the Dispute Resolution Advisor be consolidated with other industry code mediation advisory services in Australia.

The submissions to the Options Paper will inform the Department’s development of the Oilcode review final report. For more information see http://www.industry.gov.au/Energy/EnergySecurity/fuels/conventional/Pages/OilcodeReview.aspx.


Trade Union Royal Commission

On 28 December 2015 The Royal Commission into Trade Union Governance and Corruption issued its final report (the Report). The Report recommends various amendments be made to the secondary boycott provisions in the CCA as well as establishing a building and construction industry regulator to work alongside the ACCC to investigate and enforce breaches of the secondary boycott provisions in the CCA. The final report can be accessed at https://www.tradeunionroyalcommission.gov.au/reports/Pages/Final-Report.aspx.


Commonwealth Intervention and High Court Appeal

In December 2015 the High Court held that the principles in Barbaro v The Queen (Barbaro) do not apply to the Director, Fair Work Building Industry Inspectorate (DFWBII) v CFMEU & Anor matter and by extension to all civil penalty proceedings.

This decision means that parties to civil penalty proceedings, including the ACCC, are permitted to make submissions on the range or amount of penalty to be imposed by the Court; agreed or otherwise. The High Court has affirmed that specialised regulators such as the ACCC can make submissions to the Court regarding penalties, including terms and quantum in civil penalty proceedings.



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