An updated guide to unconscionable conduct law was launched today by Australian Competition and Consumer Commission Chairman, Mr Graeme Samuel.
Addressing the ACCC's Small Business Advisory Group* in Canberra, Mr Samuel said the guide was part of a suite of educative material about the unconscionable conduct law.
"The Guide adds to the existing education campaign which includes the Competing Fairly Forum video special on unconscionable conduct law, regular presentations to small business groups by the ACCC's rural outreach and small business managers and a forthcoming 'simple English' guide for businesspeople."
"Unconscionable conduct law is not static. Since its strengthening several years ago it has been developed and refined by private and ACCC litigation in the courts and the guide reflects this."
"Small businesses make an important contribution to the Australian economy and the ACCC is keen to ensure that they are not the target of anti-competitive conduct."
The Trade Practices Act 1974 encourages vigorous competition between firms and a robust approach to business dealings. The unconscionable conduct provisions do not try to stop businesses from advancing their legitimate commercial interests, particularly when negotiating with other businesses. The law does not apply when one party has merely driving a hard bargain, nor does it require one business to put the interests of another party ahead of its own."
"There are, however, limits on how far businesses can go", Mr Samuel said. "If a big business oversteps that line, that business will draw the ACCC's attention. Big business must be aware of its responsibilities and, to use an analogy, should remember that if you squeeze an orange too hard, all you get are the pips".
The guide contains recent interpretations of the unconscionable conduct law and provides guidance on how the law applies in dealings with business and consumers.
"Businesses need to keep up to date on their legal responsibilities and tailor their trade practices law compliance programs accordingly".
The guide costs $10 (post paid) and is available from ACCC offices in all capital cities and Townsville or from the ACCC publishing unit on 02 6243 1143. It is also available, free, from the ACCC website.
*The Small Business Advisory Group is one of the key consultative committees which advices the ACCC on trade practices issues relevant to small business.