ACCC nets $3.6 million in penalties in first year of new consumer laws
Over $3.6 million in penalties has been secured by the Australian Competition and Consumer Commission under new consumer laws introduced just over 12 months ago.
Speaking today at the Consumers 2011 conference in Sydney, Chairman Graeme Samuel said the ACCC was quick to use the new powers made available under the Australian Consumer Law (ACL).
"Until a year ago the ACCC's ability to penalise a great deal of dishonest conduct amounted to not much more than a slap on the wrist," Mr Samuel said. "Now the punishments can better match the crime and we can respond in a more timely way."
Powers and penalties under the ACL include infringements notices for less serious offences that attract penalties of $6,600 for corporations and $1,320 for individuals.
"These powers avoid the necessity to take court action and achieve faster outcomes in the interests of consumers," Mr Samuel said.
The ACCC has issued more than 50 infringement notices since they became available from April last year and has received payment of fines totalling more than $300,000.
This includes 27 notices against SingTel Optus Pty Ltd totalling $178,200 for what the ACCC considers was false and misleading conduct in the promotion of mobile phone plans.
For more serious matters where court action has been necessary the ACCC been able to pursue penalties of up to $1.1 million for corporations and $220,000 for individuals that became available under the ACL.
The highest penalty received to date was $2.7 million award by the Federal Court against two overseas companies, Yellow Page Marketing BV and Yellow Publishing Limited for sending thousands of misleading faxes and invoices to businesses in an attempt to obtain subscriptions to their online business directories.
Mr Samuel said that while the laws had been in place for just over a year the courts have shown a willingness to order the penalties available under the ACL.
"As greater use is made of the new powers and penalties they will become a deterrent to others thereby increasing compliance with the law," he said.
