Small business and consumer protection, including and increased role in product safety, have been a major focus of the Australian Competition and Consumer Commission in 1997-98, according to its annual report, tabled today.
The report said consumer protection work included action on:
- Australia Post for alleged misleading and deceptive conduct in relation to a bill-paying promotion (resulting in enforceable undertakings);
- GIO Australia Limited and GIO General General Limited for alleged misleading claims on companies' website and in brochures (resulting in enforceable undertakings); and
- Nissan Motor Co. (Australia) Pty Ltd and an advertising agent for misleading advertising (enforceable undertakings and $2,000 for purchasers who may have been misled).
The ACCC's work in the area of small business had been stepped up further with action taken on behalf of franchisees in the Ice Creameries of Australia Pty Ltd matter (before court), various 'small business registers'; and tenants of Farrington Fayre shopping centres.
The ACCC had created a special small business program and is launching a series of guides and information seminars aimed at this sector.
In the product safety/liability area, the ACCC was successful in prosecuting Glendale Chemical Products Ltd, the manufacturer and supplier of Glendale caustic soda, for injuries and damage suffered by a consumer. An appeal by Glendale was recently unsuccessful.
The increasing globalisation of commerce and developments in information technology continued to pose new enforcement problems, especially in terms of the proliferation of new and frequently complex products and new avenues for marketing and promotion.
In the new environment of borderless markets international links are increasingly important for the exchange of information on emerging issues and to mount effective action against offending conduct that crosses national boundaries, the report said.
The report said almost half of the restrictive trade practices issues investigated involved anti-competitive agreements or exclusionary provisions, including primary and secondary boycotts.
In total 22 restrictive trade practices matters were litigated or were proceeding through litigation. Just over a quarter of restrictive trade practices investigations involved a small business, either as a complainant or target of a complaint.
Among the litigation highlighted in the report are:
- J McPhee and Son (Australia) Pty Ltd, and four executives, for price fixing in the freight industry, which resulted on a penalty of $4 million (currently under appeal) for the company
- Pacific Dunlop subsidiaries and an executive, for price fixing and market sharing in the Queensland foam market, which resulted in a $2 million penalties and costs Excel Concrete Pty Ltd, for price fixing and market rigging in a Brisbane concrete cartel, which resulted in a $500,000 penalty for the company, and
- WD & HO Wills (Australia) Ltd, for an attempted price fix of the price of cigarettes, which resulted in penalties of $250,000.
The ACCC instituted two proceedings alleging misuse of market power: against Boral Limited and Boral Besser Masonry Limited and also against Simsmetal and two individuals.
Major mergers examined by the ACCC included Boral/Allgas in Queensland, Foxtel and Australis Media and Pepisco and The Smiths Snackfood Company.
The ACCC received 61 applications for authorisation in 1997/98 including the National Electricity Market Code and the Electricity Access Code.
It has played a major role in the telecommunications arena and issued several Competition Notices alleging anti-competitive conduct.