Australian Postal Corporation and Star Track Express Pty Limited (Australia Post Group)

The Australian Competition and Consumer Commission (ACCC) has accepted a court enforceable undertaking from the Australian Postal Corporation (Australia Post) and Star Track Express Pty Limited (StarTrack) (together, Australia Post Group) to resolve concerns about misleading or deceptive conduct and false or misleading representations in connection with its failure to accept claims for compensation under the consumer guarantee provisions of the Australian Consumer Law (ACL).

From 26 October 2018 to 31 October 2022, in respect of articles lost or damaged in transit due to a possible failure to comply with the consumer guarantees, Australia Post Group failed to accept some compensation requests and provided incorrect advice that no compensation was payable, or that no compensation was payable except in certain circumstances.

The conduct commenced when an amendment to the ACL took effect that narrowed the scope of the transport exemption in section 63(1) of the ACL.

Persons who were potentially affected by the conduct are:

• business contract customers of Australia Post;
• business contract customers of StarTrack; and
• receivers of articles delivered by StarTrack.

Australia Post Group has admitted that its conduct is likely to have contravened sections 18, 29(1)(m), 29(1)(n) and 34 of the ACL.

In response to the ACCC’s concerns, Australia Post Group has provided the ACCC with a section 87B undertaking that it will:

• implement a remediation program to provide compensation to potentially affected Australia Post and StarTrack business contract customers and to receivers of articles delivered by StarTrack; and
• establish and implement a compliance program designed to minimise the risk of future breaches of the ACL.

Australia Post Group has identified around 10,500 business contract customers who were affected by the conduct. Australia Post Group expects to pay around $2.9 million in compensation to affected customers.

Some business contract customers will automatically receive compensation. Other business contract customers, along with a number of StarTrack receivers (fewer than 1,000) have been identified by Australia Post Group as potentially affected by the conduct and will be contacted and invited to make claims for compensation.

Australia Post Group reported the conduct to the ACCC and has cooperated with the ACCC to resolve its concerns.