The Australian Government has introduced a carbon price that will apply from 1 July 2012. Under the scheme, a carbon price will apply to certain greenhouse emissions, with some large businesses being required to purchase carbon credits.
The Australian Consumer Law protects Australians against misleading claims made in relation to goods or services. In particular, these laws prohibit businesses making false, misleading or deceptive claims attributing any increase in the price of goods and services to the introduction of a carbon price.
The ACCC’s role does not include setting or restricting price increases related to the impacts of a carbon price. However, if a business chooses to make a claim about the impact, they need to make sure it is right.
What can you expect from claims about the impact of a carbon price?
Businesses must not mislead when making claims about the impact of a carbon price on the price of goods and services they supply to you. Whether a claim is made in TV or radio advertising, in a catalogue, on a label or website or is made in person, including over the phone or in an email, a business must not mislead you.
What is the ACCC’s role in relation to carbon price claims?
The ACCC will work with businesses and consumers to raise awareness of how the Australian Consumer Law applies to carbon price claims.
The ACCC will also make it a priority to investigate complaints of businesses making false, misleading or deceptive statements that attribute price increases to a carbon price.
The ACCC’s enforcement powers
Under the new Australian Consumer Law the ACCC has a variety of powers that will be used to investigate the accuracy of claims about the impact of a carbon price. For instance, by issuing a substantiation notice the ACCC can require a business to provide information to support any claim it makes about the impact of a carbon price.
The ACCC may seek court-imposed penalties of up to $1.1 million for serious breaches. It can also issue infringement notices if it considers a representation is false or misleading. Infringement notice penalties are $1,320 for individuals, $66,000 for public companies and $6,600 for other companies.
If you think you’ve been misled
If you believe you have been misled by a claim concerning the impact of a carbon price on any goods or services you have purchased, you can email a complaint through the ACCC website or call the Infocentre on 1300 302 502.
For more information
The ACCC will release more information for consumers, business and industry on carbon price claims in the near future. For more information for business, go to Carbon price claims: be accurate.
For more information on what to do if you are concerned about a claim made by a business about the price impact of the carbon price, go to the FAQs.
