Advice to Tasmanian small businesses: Know where you stand

Small business operators should know where they stand in dealing with other businesses and customers, Australian Competition and Consumer Commission, Deputy Chairman, Dr Michael Schaper, said today.

In meetings in Hobart with industry bodies and small business related agencies, including CPA Australia and Business & Employment, Dr Schaper said local advisors play a key role in helping small businesses understand their rights and obligations under the Trade Practices Act.

"New and established Tasmanian businesses can protect themselves and avoid unfair practices by finding out more about the Act," Dr Schaper said. "Getting in touch with your local business advisor or the ACCC is a good start.

"Right across Australia, many small operators are still unaware that it is illegal to enforce fixed prices, or make unsubstantiated green claims. When this happens, both small firms and consumers lose out.

"Small businesses in Tasmania also need to be alert to anti-competitive conduct and make sure decisions about price are made independently of competitors."

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

"For example, in the current economic climate, many people are considering buying into a franchise, since it can provide a proven business operating system and 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.

"New franchisees can save a lot of angst by contacting the ACCC to ensure they are fully informed before they sign up.

"If you suspect another firm is using unfair market power to your detriment, it is also a wise move to talk to your local business adviser, or to the ACCC directly," 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.

For media inquiries to the ACCC Deputy Chairman, Dr Michael Schaper, please call Mr Brent Rebecca, ACCC Media, on (02) 6243 1317 or Tasmanian Regional Director, Mr Peter Clemes, on (03) 6215 9333 or 0419 239 764.

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

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