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 you do choose to make a claim about the impact, you need to make sure it is right.
Your business and your employees and agents must not make claims that are, or are likely to be, false, misleading or deceptive. 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 a consumer.
Similarly, your suppliers must not make claims to you that are false, misleading or deceptive.
This is not new – the message is simple: make a representation, make sure it is right.
If you are going to make a claim about the impact of a carbon price on your goods and services, be accurate and truthful and always be ready to substantiate your claims.
If you make a claim about the impact of a carbon price make sure your claim:
is accurate and does not mislead consumers (whether individuals or other businesses)
can be substantiated
is based on reasonable grounds if it contains a prediction about price increases connected to the impact of a carbon price
What is the ACCC’s role in relation to carbon price claims?
A key part of the ACCC’s role is to provide guidance to assist business to understand their rights and responsibilities under the Competition and Consumer Act 2010 (the Act) when making claims about the carbon price.
The ACCC invites business and industry association views on the Guide, to ensure the Guide and any further guidance addresses key issues for business. Comments can be emailed to CarbonGuide@accc.gov.au or posted to Carbon Guide Consultation, ACCC, GPO Box 520 Melbourne VIC 3001.
The ACCC will work with businesses to inform them about their responsibilities when making claims about the impact of a carbon price on their goods or services.
It will also raise awareness with consumers about how the Australian Consumer Law applies to carbon price claims.
The ACCC will make it a priority to investigate complaints about businesses making false, misleading or deceptive claims concerning the impact of a carbon price.
The ACCC’s enforcement powers
Under the 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 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.
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 consumers, go to Carbon price claims: your rights.
For more information about your rights and responsibilities when making representations about the price impact of the carbon price, go to the FAQs.
