ACCC joined consumer protection agencies from around the world in mid September on a global search of the internet looking for online traders making unrealistic, exaggerated or false claims. Sweep Day, organised under the banner of the International Consumer Protection and Enforcement Network, is designed to identify online traders sending out what appears to be false and/or misleading messages. ICPEN is a network of government agencies from over 36 countries involved in the enforcement of fair trading laws and other consumer protection activities. These authorities will examine the results of the search and contact any suspicious traders and ask them to verify and substantiate their claims.
FTC targets misleading ‘cancer cure’ websites
The United States Federal Trade Commission (FTC) has taken legal action against 11 companies making unsubstantiated claims on cancer cures. It follows the Operation False Cures initiative that commenced last year and continues with the development of information on how to identify and report internet sites selling unsubstantiated cancer cures. This action on false or misleading claims online was extended to the ICPEN Sweep Day in September.
US mortgage companies caught out by Federal Trade Commission
Bear Stearns, LLC and EMC Mortgage Corporation have agreed to pay A$35m to settle Federal Trade Commission (FTC) charges which alleged the companies misrepresented the amounts borrowers owed, charged unauthorised fees—such as late fees, property inspection fees, and loan modification fees—and engaged in unlawful and abusive collection practices. Under the proposed settlement they will stop the alleged illegal practices and institute a data integrity program to ensure the accuracy and completeness of consumers’ loan information.
Milk contamination in China
The head of China's General Administration of Quality Supervision, Inspection and Quarantine, Li Changjiang, has resigned after the industrial chemical melamine, blamed for kidney stones and kidney failure in babies, was found in infant formula and other milk products. China's product safety system was overhauled only a year ago with new regulations and procedures in an attempt to restore consumer confidence and preserve export markets after a string of recalls and warnings abroad over tainted toothpaste, faulty tyres and other goods. The melamine contamination has lead to the recall of many products and has damaged the reputation of many Chinese manufacturers as well as the product safety authority.
United Kingdom Office of Fair Trading lists top scams
The UK Office of Fair Trading has announced the results of its 'Scamnesty' campaign which shows the scale of mass-marketed scam mailings targeting UK residents. Every year three million people in the UK lose money to mass marketed scams they receive by mail, email, text or over the phone. The nationwide campaign revealed that the top five mass-marketed scam mailings in the country are: deceptive sweepstakes; misleading prize draws; fake clairvoyants/psychics; bogus foreign lotteries; and 'miracle' health cures.
Singapore announces changes to leniency program
Singapore's Competition Commission has announced new incentives to encourage whistleblowers to report price-fixing and bid-rigging activities. The commission is proposing to introduce a 'Marker' system and 'Leniency Plus' system to the leniency program in an attempt to improve the effectiveness of its enforcement action against cartels. Singapore’s competition law is relatively new, with their first cartel fine being imposed on several pest control companies in January 2008 following a tip off and subsequent dawn raids.
New Zealand amendments passed
The Commerce Amendment Bill, which rewrites the price control provisions of the Commerce Act 1986, has passed through parliament. The bill amends the price control provisions applying to sectors not faced with competition, such as electricity lines, gas pipelines and airports. The bill also enables appeals to the High Court on final implementation decisions by the New Zealand Commerce Commission.
Global shipping exemptions attacked
The Global Shippers Forum—which includes representatives from the United States, Asia, Canada, Australia and Africa—has launched a campaign against antitrust exemptions which exist for liner conferences. The GSF want the exemptions repealed, particularly in China and India, to remove the pricing agreements and to improve competition. The GSF cited the upcoming removal of the liner conference exemptions which exist under European Union laws as a positive move for competition in the liner shipping industry.
