ACCC powers extend even to cyberspace

A tangled web is being woven by retailers who first practice to mislead or deceive.

The latest issue of the ACCC Journal details recent initiatives taken by the ACCC to save Internet shoppers from getting trapped in the world wide web.

In the wake of the ACCC's Internet sweep, several recent enforcement actions serve as a timely reminder that the same laws apply to trading over the Internet as in the 'real' world.

The journal contains details of the ACCC's case against World Netsafe, who promoted a pyramid selling scheme online. All pyramid or referral selling schemes are illegal, and this one made misleading claims about income potential to subscribers.

You can also read about David 'Zero Population Growth' Hughes, who sold oral contraceptives on his 'Crowded Planet' website. Not only is it illegal to sell schedule 4 drugs without a prescription, but Mr Hughes posted claims on his website that the ACCC endorsed his operations.

It is not just emerging businesses falling foul of the Trade Practices Act. The ACCC prevented the Optus@Home cable Internet service from promoting its service as 'unlimited' when Internet use was, in fact, subject to restrictions.

The ACCC's recent enforcement actions in cyberspace are part of an increasingly international approach to consumer protection. The latest ACCC Journal provides valuable insights into the consumer protection initiatives of overseas agencies.

The Internet is not the only area where new technology presents new issues for the ACCC to examine.

The emergence of genetically modified foods has serious implications under the Trade Practices Act, including the existence of labelling, and accuracy of claims made about the GM status of foods.

GM food also raises concerns about product liability issues, and corporate regulatory schemes to ensure industry standards and testing. Issue 31 of the ACCC Journal contains an in-depth discussion about possible issues facing GM food producers, how regulations might be enforced and how businesses can minimise risks to themselves and consumers. The ACCC Journal also contains information on other areas of enforcement, as well as regulatory issues, and crucial developments in mergers and competition policy.

Issue 31 of the ACCC Journal is the first edition to be soon available in electronic format. You can place your order for the ACCC Journal as a CD, or as an electronic document to post on your company's Intranet.

The ACCC Journal will of course continue to be published in hard copy form. For information on subscriptions in any of these formats please contact Robert Booth on (02) 6243 1143 or email robert.booth@accc.gov.au