Operating a deceptive lottery scam that defrauded consumers in over 200 countries of millions of dollars has cost David Stuky dearly.
In cooperation with the ACCC and agencies in New Zealand, the United States (US) and the United Kingdom (UK), the Canadian Competition Bureau has fined Mr Stuky a record AUD$2 million, given him a suspended sentence and prohibited him from mass marketing for 10 years. Although the conduct originated in Canada, it targeted only international consumers, so the bureau’s action is a victory for international cooperation to catch scammers.
Nigerian Government works with Australia to stop scams
The Nigerian Government and the Queensland Police have jointly established an online reporting system designed to prevent Nigerian internet scams trapping so many consumers. Under the new system consumers who think they may have been caught by a Nigerian scam will be to report it directly to Nigeria’s Economic and Financial Crimes Commission. The system will enable swift action and, hopefully, will lead to the arrest and prosecution of the scammers.
Chinese regulatory authorities have granted final approval for Japanese electronics manufacturer Toshiba to acquire Fujitsu’s hard drive business. Following an AUD$350 million deal, Fujitsu's hard disk drive-related business and functions will be transferred to the newly created Toshiba Storage Device Corporation. The new firm will take charge of HDD design and research and development.
The European Commission gave the go-ahead for the deal to proceed in May 2009.
Japan’s new consumer protection agency commences operation
The new Japanese Consumer Affairs Agency has officially begun operations. With nearly 200 staff, the agency has the power to gather information from consumers and to give instructions and recommendations to other ministries and agencies to better serve consumer interests. The agency will work in tandem with the newly created Consumer Commission.
In a case believed to represent the single largest counterfeiting conspiracy yet uncovered on the internet, between mid-2003 and early 2008 eBay customers were duped into buying millions of pounds' worth of fake golf clubs, clothing and accessories along with fake passes for airline lounges. Nearly every major golf brand had its products faked.
Conspirators based in Australia, Germany, Singapore, Thailand, the UK and the United States, Hong Kong and mainland China distributed goods from or to those and other countries.
UK OFT investigates alleged price fixing by major sports chains
The UK Office of Fair Trading is investigating allegations of price fixing by Sports Direct and JJB Sports. The two companies are Britain’s biggest sports chains and have more than 600 stores between them. As whistleblower, JJB Sports will receive immunity from any fine if the activity is found to have breached competition law.
Following one of the largest investigations into price fixing, the UK OFT has imposed fines on 103 construction firms for colluding with rivals on building contracts.
The OFT investigation found that between 2000 and 2006 the businesses had manipulated tender processes for nearly 200 building projects—including construction work on schools and hospitals—worth more than AUD$375 million.
After admitting involvement in cover pricing, 86 of the companies were given reduced penalties. Because of the effect of the global financial crisis on the construction industry, the guilty parties have been given up to three years to pay instead of the usual two months.
Google Inc. and groups of authors and publishers are currently modifying an AUD$145 million-settlement agreement to create a digitised book library.
Although the agreement was preliminarily approved in November 2008, it has been criticised by the US Department of Justice, among others. The DoJ criticisms of the proposed agreement are that it may not have given rights’ holders sufficient notice and that it may limit price competition and give Google too much marketplace control in the global digital distribution of books.
In a move that could both simplify and toughen standards for companies, the DoJ and Federal Trade Commission are proposing to update existing merger guidelines to bring them more into line with how the agencies currently review mergers. The review will also examine the existing guidelines to ensure that consumers are adequately protected from companies seeking to build up excessive market power. The DoJ and FTC will hold a series of workshops to explore possible changes to the merger guidelines. It is expected that the review will take 6 to 10 months.
