Supporting Small Business Groups

Small business

AUS | The ACCC has welcomed the introduction of legislation into Parliament, enabling designated consumer and small business groups to lodge complaints with the ACCC concerning significant and systemic market issues falling within the scope of the Competition and Consumer Act and the Australian Consumer Law.

Gina Cass-Gottlieb, ACCC Chair, highlighted that the proposed designated complaints function will underscore the importance of addressing key issues affecting consumers and small businesses. She emphasised the pivotal role of advocate organisations in identifying and bringing attention to emerging issues, noting that several successful compliance and enforcement actions have stemmed from referrals by such groups.

The scheme, part of the Fair Go for Consumers and Small Business Bill 2024, aligns with the government's election commitments and has undergone consultation by the Treasury. Similar frameworks are operational in the UK and Canada. Approved consumer and business advocacy groups will be empowered to submit complaints meeting specific criteria, with the ACCC mandated to assess and publicly respond to these complaints within 90 days, outlining any planned actions in response.

The ACCC anticipates commencing the scheme in July 2024. Past ACCC actions prompted by advocacy groups include penalties on Telstra for unconscionable conduct in Indigenous consumer contracts, undertakings from home tutoring software suppliers over unfair contract terms, and penalties against Megasave Couriers for misleading representations to franchisees. These cases illustrate the importance of referrals from advocacy groups in addressing market issues affecting consumers and small businesses.