Our role is to ensure compliance with the Oilcode and the Competition and Consumer Act 2010 (the Act) by informing downstream petroleum industry participants of their rights and obligations under law and by enforcing the law if necessary.
The Department of Resources, Energy and Tourism (RET) provides policy advice and support to the Australian Government on downstream petroleum industry matters. Further information on RET's role is available on RET's website.
The Oilcode is a mandatory code under the Act and as such as the force of law. When problems associated with the code arise, we will usually recommend mediation as the first and best option. However, if it is obvious that the supplier has not been diligent in complying with the code or by using its superior bargaining power to disadvantage a retailer, we may decide to take action on your behalf.
We have received complaints from suppliers and retailers about possible breaches of the Oilcode since the code came into effect on 1 March 2007. The information obtained from individual complainants is recorded on our complaints database and may be used to establish a pattern of behaviour by a particular industry participant or by a particular part of an industry.
We may give priority to matters of complaint that:
show a blatant disregard for the law
will cause significant public detriment
provide outcomes that will have educational or deterrent effects
include unconscionable conduct against small business
will clarify the reach and meaning of the Act.
We are likely to direct disputes to the DRA at first instance. However, if an industry participant has blatantly disregarded the Oilcode or the Act, we may take immediate action.
We can only examine matters that fall within the scope of the Act. We have received complaints about fuel re-selling agreements and other arrangements which do not fall under the Oilcode which can often be resolved using the dispute resolution procedures provided under the Oilcode.
We also receive complaints concerning issues which are not related to the Act. These complainants may be referred to the appropriate Government or industry organisation. However, if the complaint does involve a potential breach of the code and/or the Act, a three stage investigation process may be commenced.
What is our investigation process for Oilcode matters?
Our investigation process can be divided into three broad categories:
1. Initial investigation
A preliminary assessment of the complaint is made and may include an initial interview with the complainant to verify general information including, for example, contact details and the name of the trader. If the complaint is assessed as substantive it is progressed to the next stage.
However, in some instances the matter may be best addressed through dispute resolution. We generally recommend that the parties use the dispute resolution procedure set out in the Oilcode as a first step where this might reasonably facilitate an outcome acceptable to both parties.
2. Initial investigation
The matter is then escalated to an ACCC enforcement officer where further information and substantiation of the allegations is generally sought from the complainant and the other party. This may be through conducting interviews, obtaining and examining documents pertaining to the alleged conduct and carefully applying the law to the known facts.
3. In-depth investigation
Additional evidence is collected and the matter is reviewed and analysed by senior enforcement staff. If the allegations can be substantiated by reliable evidence, the matter will generally be referred to the ACCC’s Enforcement Committee for consideration.
The Committee is responsible for deciding upon the most appropriate course of action, having regard to the impact that the action may have on the ongoing business relationship, the national market, relief available to affected persons and the value of precedent. The Committee may elect to pursue the matter through litigation or resolve it by an administrative settlement.
