NT small business urged to stay alert to unfair practices

Small businesses in the Northern Territory can protect themselves and steer clear of unfair trade practices by getting to know their rights and responsibilities.

In Darwin* today, Australian Competition and Consumer Commission, Deputy Chairman, Dr Michael Schaper, said small business people can only benefit by getting up to speed on their rights and responsibilities under the Trade Practices Act.

"Right across Australia, many small operators are still unaware that it is illegal to enforce fixed prices, offer goods for sale that are in fact unavailable or operate cartels. When this happens, both small firms and consumers can be the unwitting victims.

"There are currently more than 13,000 firms operating in the Territory, and this number continues to grow."

Dr Schaper said new businesses were especially vulnerable, since many first-time entrants had little knowledge of the Act.

"In the current economic climate, many people are considering buying into a franchise, since it can provide a proven business operating system and a lower risk than starting a new business from scratch.

"The ACCC administers the national Franchising Code of Conduct, which provides important protection for new franchisees, and a mechanism to sort out disputes which might emerge.

"So it's clearly in the best interests of new franchisees to contact us to ensure they are fully informed before they sign up."

"Talking to your local business adviser, or to the ACCC directly, can be a smart move, especially if you suspect that another firm is using unfair market power to your detriment," Dr Schaper said.

"Between 2005-2008, the ACCC recovered almost $2.7 million on behalf of small businesses and consumers across the country."

The ACCC operates a Small Business Helpline on 1300 302 021 and a dedicated section on its website which includes a small business resource centre. This is available in the For Business section at www.accc.gov.au.

For media inquiries to the ACCC Deputy Chairman, Dr Michael Schaper, please call Ms Lin Enright, ACCC Media, on (02) 6243 1108 or 0414 613 520 or NT Regional Director, Mr Derek Farrell, on (08) 8946 9610.

For general inquiries on small business, please call 1300 302 021.

To receive information on issues of interest to you, please go to www.accc.gov.au, click Media Centre, news releases and enter your email address under Notify me.

*Dr Schaper is in Darwin as part of the ACCC sponsorship of October Business month. He will be available to speak with small business operators at the ACCC stand, 'meet the buyers Expo', Darwin Convention Centre on Tuesday 28 October between 12 and 1 p.m.