Arrests – Disturbances – Alice Springs

Source: Northern Territory Police and Fire Services

The Northern Territory Police Force has arrested two youths and one adult following disturbances across Alice Springs.

Around 12:05pm today the Joint Emergency Services Communication Centre received reports of armed persons causing disturbances at a petrol station and at a government building.

Police received a further report from the petrol station that the group armed with edged weapons fled the scene at speed in a vehicle.

The vehicle was later confirmed to have been linked to recent occurrences of armed persons engaging in violent conduct at an address on Bloomfield Street in Gillen.

The vehicle was located in a town camp near Flynn, a tyre deflation device was successfully deployed and police engaged in a short pursuit.

During the pursuit, a projectile was allegedly thrown from the vehicle towards a police vehicle, narrowly missing it, before the offending vehicle returned to the town camp.

Two male youths, aged 14 and 15, and a 23-year-old male were arrested.

No injuries were reported.

Investigations are ongoing to identify outstanding offenders and anyone with information including footage is urged to contact police on 131 444 or Crime Stoppers on 1800 333 000.

ACCC publishes submissions on proposed variation to future NBN regulation

Source: Australian Ministers for Regional Development

The ACCC has today published the submissions received about NBN Co’s proposed variation to its Special Access Undertaking.

The Special Access Undertaking is a key part of the regulation of the NBN. It sets the rules for broadband providers to access the NBN over the coming decades, which can include minimum service standards and wholesale price controls.

Submissions addressing the issues outlined in the ACCC’s consultation paper were received from NBN Co, various retail service providers and industry and consumer representatives.

“The ACCC is publishing all of the submissions promptly after receiving them so that stakeholders have transparency of the issues that have been raised for consideration, as we move quickly towards a draft decision in April on this important regulatory outcome,” ACCC Commissioner Anna Brakey said.

NBN Co has indicated in its submission that it is considering possible changes to its variation proposal to address issues that have been raised during the consultation period.

If this occurred and NBN Co decided to withdraw its current proposal, the ACCC would seek to efficiently accommodate any revised variation proposal, based on ongoing support and engagement from all stakeholders.

“The ACCC recognises the importance of getting the right regulatory setting in place for the NBN in a timely manner, and appreciates the constructive engagement of all parties in the process so far,” Ms Brakey said.

“We will notify parties of any updated timelines once NBN Co’s intentions become clear and it has provided all relevant information. We will consult with stakeholders on any potential further variation promptly, with a view to making a final decision as soon as practicable, while affording procedural fairness to all parties.”

The submissions received as part of the recent consultation on the proposed variation can be found at NBN Co SAU variation (November 2022).

Background

NBN Co’s services are taken to be declared under Part XIC of the Competition and Consumer Act (CCA), which enables the ACCC to regulate the terms and conditions of access, such as price, to apply where the terms of access cannot be agreed.

The CCA allows NBN Co to submit to the ACCC a variation to a Special Access Undertaking which is currently in operation. The ACCC must then decide whether to accept or reject the variation to the undertaking, in accordance with criteria set out in section 152CBD(2) of the CCA.

The CCA requires the ACCC to publish a proposed variation to an undertaking and invite and consider submissions on it.

The current undertaking provides a long-term regulatory framework for the supply of NBN Co’s services. It has been in place since 2013 and is scheduled to operate until 2040. However, the current undertaking only applies to a subset of network technologies, namely fibre-to-the-premises, fixed wireless and satellite. This accounts for approximately one quarter of NBN’s services assets. Extending the undertaking to cover the other technologies would bring the majority of NBN assets into this regulatory framework.

In March 2022, NBN Co proposed a variation to its undertaking following extensive pre-lodgement engagement with its customers and other stakeholders that the ACCC facilitated. NBN Co withdrew this proposal in July 2022.

Since that time the ACCC has helped to facilitate NBN Co’s consideration of a revised proposal, including by convening an additional industry forum in August 2022. NBN Co lodged its revised Special Access Undertaking variation in November 2022.

The ACCC must either accept or reject the variation to the undertaking. The ACCC must not accept a proposal to vary an undertaking unless it is satisfied that it meets the statutory criteria, which includes assessing whether certain aspects will promote the long-term interests of end users, and whether the terms and conditions are reasonable.

If accepted, the transition to the new pricing arrangements under the variation to the undertaking would commence by the later of 1 July 2023 or three months after acceptance.

Product Safety Pledge removes thousands of dangerous items from online marketplaces

Source: Australian Ministers for Regional Development

More than 15,000 potentially unsafe products were delisted by online marketplaces signed up to the ACCC’s Australian Product Safety Pledge last financial year, with 98 per cent of regulator-initiated take down requests actioned within 2 days.

Pledge signatories also used artificial intelligence, image recognition and automated scanning to prevent hundreds of thousands of unsafe products from being listed for sale in the first place.

“We are pleased to see that pledge signatories continue to use innovative techniques to detect and remove unsafe products from their platforms and prevent them being listed at all,” ACCC Deputy Chair Catriona Lowe said.

“We are encouraged to see signatories taking active steps to create a safer shopping experience for Australian consumers.”

“We urge other online marketplaces to put product safety first by signing up to the pledge,” Ms Lowe said.

The pledge is a voluntary initiative that commits signatories, currently AliExpress, Amazon Australia, Catch.com.au, eBay Australia and MyDeal.com.au, to actively improve product safety online well beyond the current legal requirements and report annually to the ACCC on their performance. 

The second annual report, released today, details how signatories performed against 12 product safety commitments and shows that innovative use of technology, combined with education and communication measures promoted seller compliance.

“Educating sellers about unsafe or recalled products and using automated systems to detect and block unsafe products before an item is listed helps keep unsafe products from ending up online,” Ms Lowe said.

“While platforms quickly removed unsafe products after we contacted them, we would like to see fewer unsafe and non-compliant products being listed in the first place.”

“If you’re selling goods online, it’s your responsibility to check the products are safe and comply with Australian product safety laws,” Ms Lowe said.

“Consumers need to be aware that banned, recalled, non-compliant and unsafe products continue to be available for sale online.”

A 2021 international online sweep by the Organisation for Economic Co-operation and Development (OECD) inspected 1196 banned and recalled products and found that 1044 products remained available to purchase online.

“Consider product safety when shopping online and try to read seller and product reviews about the product you’re purchasing.” Ms Lowe said.

Consumers are also encouraged to visit the Product Safety Australia website for tips about shopping safely online and information on mandatory safety requirements and recalled products.

Background

The Australian Product Safety Pledge is modelled on a similar successful initiative in the European Union, the EU pledge.

The Australian pledge was launched in November 2020, following years of engagement with the four original signatories (AliExpress, Amazon Australia, Catch.com.au and eBay Australia) on improving product safety. MyDeal.com.au signed up to the pledge in April 2021.

Pledge signatories commit to 12 product safety related actions and to reporting annually on their performance. By signing up to the pledge, businesses are acknowledging the importance of product safety and recognise that implementing preventative and corrective measures help create safer outcomes for Australian consumers.

The ACCC supports signatories on their efforts to comply with the pledge by maintaining and updating the Product Safety Australia website, facilitating regular meetings with signatories and sharing information on emerging product safety issues.

Adopting the pledge does not replace the need to ensure overall compliance with the Competition and Consumer Act, including the Australian Consumer Law (ACL) or other relevant legislation. It does not prevent the ACCC or other regulatory authorities from taking action against signatories for breaches of the legislation.

Online businesses facilitating marketplace services are encouraged to visit the pledge website for more information.

Full Federal Court dismisses ACCC appeal in NSW Ports case

Source: Australian Ministers for Regional Development

The Full Federal Court has dismissed an appeal by the ACCC in its proceedings against NSW Ports.

The ACCC’s proceedings were brought against NSW Ports Operations Hold Co Pty Ltd and its subsidiaries Port Botany Operations Pty Ltd and Port Kembla Operations Pty Ltd (together, NSW Ports). NSW Ports operates Port Botany and Port Kembla.

The ACCC had alleged that agreements entered into by NSW Ports at the time the State of NSW privatised the Ports of Botany and Kembla were anti-competitive.

The agreements, known as the Port Commitment Deeds, oblige the State of NSW to compensate the operators of Port Botany and Port Kembla if container traffic at the Port of Newcastle is above a minimal specified cap. The Port Commitment Deeds were entered into in 2013, for a term of 50 years.

Another 50-year deed, signed in May 2014 when the Port of Newcastle was privatised, requires the Port of Newcastle to reimburse the State of NSW for any compensation paid to operators of Port Botany and Port Kembla under the Botany and Kembla Port Commitment Deeds. This reimbursement would significantly increase the cost of moving a container at the Port of Newcastle.

The Full Court dismissed the ACCC’s appeal against the trial judge’s findings that NSW Ports had ‘derivative crown immunity’ and that the ACCC had not established that the purpose and likely effect of the compensation provisions was anti-competitive.

“We originally took this action because we were concerned that under the Port Commitment Deeds NSW Ports has an effective monopoly in container port services in NSW for 50 years,” ACCC Commissioner Liza Carver said.

“We appealed this case because we considered that the compensation provisions created a significant barrier to entry. The threat of new entry is an important part of the competitive process, and imposes a competitive discipline on existing businesses, including monopolies.”

At this stage the judgment has been made available only to the parties’ lawyers, on a restricted basis, pending resolution of confidentiality issues. Accordingly, the ACCC cannot yet discuss the reasons for the decision.

Since the appeal was heard, the NSW Parliament has passed legislation establishing a process for extinguishing the liability of the Port of Newcastle to reimburse the State for any compensation paid to the operators of Port Botany and Port Kembla. The Port of Newcastle (Extinguishment of Liability) Act 2022 (NSW) came into effect on 25 November 2022.

The passage of the legislation should facilitate competition between ports in NSW for the provision of container port services. 

Background

Crown immunity protects state governments from the operation of competition laws when they are not carrying on a business. When this immunity extends to parties that contract with state governments in certain limited circumstances, it is known as ‘derivative crown immunity’.

In December 2018, the ACCC instituted proceedings against NSW Ports. In 2019, NSW Ports made a cross claim against the State of New South Wales and the Port of Newcastle entities, joining them to the ACCC’s proceedings.

In June 2021, the Federal Court dismissed the ACCC proceedings against NSW Ports.

In July 2021, the ACCC lodged an appeal against the Federal Court’s decision to dismiss the ACCC’s proceedings against NSW Ports.

NSW Ports operates Port Botany and Port Kembla under 99-year leases from the State of NSW.

The compensation to be paid by the State of New South Wales under the Port Commitment Deeds to the operators of Port Botany and Port Kembla is equivalent to the wharfage fee the port operators would receive if they handled the containers.

Endeavour’s proposed acquisition of Beachfront Hotel in Darwin not opposed

Source: Australian Ministers for Regional Development

The ACCC will not oppose Endeavour Group Limited’s proposed acquisition of the Beachfront Hotel in Rapid Creek, just north of Darwin.

The Beachfront Hotel includes a hotel and an independent liquor store trading under the ‘Cellarbrations’ brand. Endeavour already operates a number of hotels and BWS stores in the local area.

“The ACCC looks closely at acquisitions that result in consolidation in local markets

and initially identified concerns with this proposed acquisition,” ACCC Acting Chair Mick Keogh said.

In relation to the supply of takeaway liquor in the local area around the Beachfront, the ACCC ultimately concluded that a sufficient variety of liquor stores would remain in the area post-acquisition.

“Consumers in the local area would continue to have access to two Coles’ Liquorlands and a variety of other liquor stores, operating under a range of banners including Cellarbrations, Thirsty Camel and Bottlemart,” Mr Keogh said.

Overall, three owners of large liquor stores and 11 independently owned small liquor stores would remain in the 5km area of the Beachfront hotel.

“The ACCC will continue to look closely at consolidation in local markets. It is important that local consumers benefit from competition between different stores with different promotions, pricing, ranges and service offerings,” Mr Keogh said.

The ACCC also considered the supply of on-premises services at the Beachfront Hotel but came to the view that Endeavour would continue to face competition from a number of alternative liquor, food and gaming providers after the acquisition.

The ACCC also concluded that the proposed acquisition is unlikely to materially affect the competitiveness of other independent liquor stores in Darwin.

In particular, the ACCC considers that removing the Beachfront Hotel liquor store from the Cellarbrations banner network, and removing it as a wholesale customer of Metcash-owned Australian Liquor Marketers (ALM), would not significantly impact the efficiency and competitiveness of other stores under the Cellarbrations banner, or those who are wholesale customers of ALM.

Background

Endeavour (ASX:EDV) is a major Australian alcoholic drinks retailer and hotel operator that operates a portfolio of brands including BWS, Dan Murphy’s, Jimmy Brings, Shorty’s Liquor and Langton’s.

Endeavour also manages over 330 licensed hotels across Australia, through its subsidiary, ALH Hotels. Endeavour operates several liquor stores (including BWS Nightcliff and BWS Casuarina) and hotels (including Airport Tavern) near Beachfront Hotel.

The Beachfront Hotel is located in Rapid Creek, NT. It is currently owned by companies ultimately controlled by local businessperson Doug Sallis. It sits on a block of 7,500 sqm and includes a bistro offering on-site food and beverage, a public sports bar (with TAB), 20 gaming machines, and a drive-through liquor store. The liquor store has a trading area of approximately 270 sqm and currently operates under the Cellarbrations brand.

Court action for alleged tendering cartel at WA mining camps

Source: Australian Ministers for Regional Development

The ACCC has launched Federal Court proceedings against technology company Swift Networks Pty Ltd (Swift) for alleged bid rigging and price fixing when tendering to supply equipment and services to five Pilbara mining village sites.

The ACCC alleges that on five occasions in 2019, Swift made an agreement with a competitor, DXC Connect Pty Ltd and DXC Technology Australia Pty Ltd (together DXC), to rig bids and fix prices for the supply of technology infrastructure at mining camps in WA’s Pilbara region.

Technology infrastructure includes IT, communications, and audio-visual entertainment infrastructure and associated services for providing internet and media services such as free-to-air or subscription television to mining villages

The tenders were for projects located at Rio Tinto Limited’s Gudai-Darri, West Angelas and Yandicoogina, Western Turner Syncline, and Peninsula Palms sites, and at Fortescue Metals Group Limited’s Japal Village Iron Bridge site. For these five projects, it is alleged Swift and DXC agreed that one of them would submit a higher price than the other in response to a request for bids.

Since late 2017, Swift and DXC sometimes engaged each other as sub-contractors for projects involving the supply of Technology Instructure to mining sites in the Pilbara. However, in the case of the five projects, the ACCC alleges Swift and DXC acted beyond the scope of any sub-contracting relationship.

“Bid rigging and price fixing drive up prices for businesses and harms the economy, which is why cartel conduct is a serious breach of our competition laws,” ACCC Commissioner Liza Carver said.

“This case is a reminder to all businesses, large or small, that they must exercise caution when they are dealing with competitors to ensure that these discussions do not lead to anti-competitive arrangements, including cartel conduct.”

The ACCC is seeking declarations, penalties, costs and other orders.

Background

Swift is a specialist technology company delivering technology infrastructure, entertainment and communications to the mining and resources, aged care, and hospitality industries.

DXC is a global information technology services provider across a range of industries. It supplies “technology infrastructure” in the mining sector in Western Australia.

Notes to editors

Bid rigging, also known as collusive tendering, happens when suppliers discuss and agree among themselves who should win a tender, and at what price.

Price fixing happens when competitors agree on pricing instead of competing against each other.

More information about different types of cartel conduct can be found on the ACCC’s website at Cartels.

The ACCC investigates cartel conduct and can take civil cartel proceedings in the Federal Court or refer serious cartel conduct to the Commonwealth Director of Public Prosecutions (CDPP).

The ACCC works to detect cartels including through education programs, proactive intelligence gathering and data assessment and working with overseas counterparts to identify cartels that operate on a global level.

The ACCC also manages an immunity program that enables past or present cartel members to confess their actions and cooperate with investigations in exchange for immunity from civil cartel proceedings brought by the ACCC and criminal cartel charges laid by the CDPP.

Anyone who thinks they may be involved in cartel conduct is urged to call the ACCC Cartel Immunity Hotline on (02) 9230 3894. More information about the immunity process is available on the ACCC website at Cartels.

You can also report cartel conduct by using the anonymous cartel portal.

Public procurement officials who want to know more about detecting cartels are encouraged to contact the ACCC Cartel Outreach team at carteloutreach@accc.gov.au.

Competition and consumer issues in essential services, sustainability among 2023-24 compliance and enforcement priorities

Source: Australian Ministers for Regional Development

Consumer and competition issues in essential services, environmental claims and sustainability, financial services and other critical areas will be among the ACCC’s compliance and enforcement priorities during 2023-24, ACCC Chair Gina Cass-Gottlieb announced today.

Unveiling the ACCC’s annual compliance and enforcement priorities at a Committee for Economic Development Australia (CEDA) event in Sydney, Ms Cass-Gottlieb also listed as a focus competition and pricing issues in gas markets including compliance with the recently-applied price cap order.

“Our priorities must and do reflect the issues impacting the Australian economy, consumers and businesses in Australia,” Ms Cass-Gottlieb said.

“The present key issues of cost of living pressures, the price of essential services including energy and telecommunications, the integrity of environmental and sustainability claims, ever increasing losses to scams, consumer and fair trading harms from manipulative marketing practices in the digital economy and the always high risk to markets, business rivals and consumers from anti-competitive conduct, strongly feature in our priorities.”

The ACCC’s focus on environmental claims and sustainability was broadening beyond consumer and fair trading issues to include competition law and product safety considerations, Ms Cass-Gottlieb said.

“We’ve established a new internal taskforce focused on sustainability that will build our expertise, inform and coordinate our efforts across the agency,” she said.

“In particular the taskforce will examine and seek to influence a range of issues where environmental and sustainability issues intersect with the application of competition and consumer law, including product safety.”

Ms Cass-Gottlieb said the ACCC would again focus on the energy and telecommunication sectors in its work addressing consumer and competition issues in essential services and noted the ACCC had secured significant outcomes in this area during the past year.

“Misleading sales representations in relation to the price, features or benefits of essential services prevent consumers making informed purchasing decisions,” Ms Cass-Gottlieb said.

“It’s particularly important that consumers and businesses can make informed decisions about what services are right for them in relation to price and the quality of the services when they are struggling with shrinking household budgets.”

Ms Cass-Gottlieb said the ACCC’s work in the energy sector would account for a substantial share of the agency’s compliance and enforcement efforts in the year ahead.

Manipulative and deceptive practices in connection with digital services would continue to be a key priority for the ACCC, Ms Cass-Gottlieb said, noting that the results of a recent sweep of social media influencers not disclosing commercial relationships including paid promotions would inform the ACCC’s ongoing compliance and education initiatives and enforcement investigations.

The introduction of new laws prohibiting unfair contract terms that include a new penalty regime later this year would be an important change for consumers and small business and would also play an important role in the ACCC’s enforcement priorities, Ms Cass-Gottlieb said.

“Businesses need to understand their responsibilities under these new laws, or they could find themselves subject to severe penalties,” Ms Cass-Gottlieb said.

“We will be working to ensure that consumers and small businesses, including franchisees, enjoy the full benefit of these strengthened laws.”

Ms Cass-Gottlieb said that scams continued to wreak tremendous personal and financial damage on consumers and the Australian economy.

“Our Scamwatch service will continue to support government agencies and industry participants in the disruption of scams,” Ms Cass-Gottlieb said.

“We are also lending our expertise and support to prepare the establishment of the Government’s National Anti-Scams Centre.”

Ensuring we all get the benefit of competition in the financial services sector will remain a priority for the ACCC in the coming year.

“We have already commenced our inquiry into retail deposit markets, looking at how banks set interest rates for deposit products,” Ms Cass-Gottlieb said.

Ms Cass-Gottlieb confirmed the ACCC would maintain its enduring compliance and enforcement priorities, which target conduct so detrimental to consumer welfare and the competitive process that the ACCC would always regard them as a priority.

They included conduct impacting First Nations consumers, cartel conduct and anti-competitive conduct more broadly.

“Our focus on issues impacting First Nations consumers has now become integral to the larger remit of the ACCC’s work as we identify the disproportionate impact of conduct such as scams and misleading advertising and sales practices on their communities,” Ms Cass-Gottlieb said.

“Our inquiries into the insurance sector, childcare and mobile regional infrastructure allow us to look at the challenges faced by First Nations people in accessing and acquiring key services.”

The ACCC will announce its annual product safety priorities at the National Consumer Congress later in the year.

More information including the full list of the ACCC’s 2023-24 enforcement priorities is available at Compliance and enforcement policy and priorities

A transcript of the speech is available at www.accc.gov.au/media/speeches

Residential broadband market flattens as smaller telcos gain wholesale market share

Source: Australian Ministers for Regional Development

The number of residential NBN services declined for the first time in the December 2022 quarter, by 0.1 per cent – or almost 9,000 – to approximately 8.73 million, the ACCC’s latest NBN Wholesale Market Indicators Report reveals.

The report looks at the wholesale market for NBN services, in which retail service providers purchase access for supply to consumers and businesses.

The top three providers, Telstra, TPG and Optus, collectively experienced a decrease of almost 95,000 services, to 6.8 million. This reduced their market shares slightly to 42.4 per cent, 22.4 per cent and 13.1 per cent respectively.

Conversely, the report found that Vocus and other smaller providers gained approximately 86,000 services, to 1.9 million, making up the remaining 22.1 per cent of the market.

This was a trend throughout 2022, where NBN services acquired by the four largest providers – Telstra, TPG, Optus and Vocus – decreased by over 227,000 services annually while other smaller providers gained almost 363,000 services.

“This shift from the larger providers to smaller ones is helping to enable greater competition within the sector,” ACCC Commissioner Anna Brakey said. 

The report also found that while the 50 Mbps speed tier remains the most popular, accounting for almost 53 per cent of residential services, it decreased by more than 131,000 services (1.4 percentage points) during the quarter.

There was a large increase in the second-most popular 100 Mbps tier, with almost 190,000 new services (2.2 percentage points), making it account for over 13 per cent of all services.

This quarter also saw decreases in the 250 Mbps and 12 Mbps tier services, approximately 54,000 and 28,000 (0.6 and 0.3 percentage points) respectively, to 1.3 per cent and 8.8 per cent of residential NBN services.

“We continue to see consumers choosing higher speed products, but we urge them to carefully assess their needs before rushing into a decision to upgrade to a more expensive plan,” Ms Brakey said.

“Less expensive 25 Mbps speed plans allow households to access most online applications, including high-definition streaming applications, with retailers generally recommending their 100 Mbps speed tiers for households of at least 5 or 6 occupants, or those that have special requirements.”

Currently there are 19 broadband providers accessing NBN directly at all 121 points of interconnection (POIs), compared to 13 in the December 2021 quarter. The POIs are the physical locations where providers can connect to the NBN.

“This growing presence of broadband providers across NBN’s points of interconnection means improved competition and greater choices for consumers in more areas,” Ms Brakey said.

The quarterly average bandwidth that NBN supplied to consumers through retail providers increased by 1.6 per cent to 2.97 Mbps per user.

Further information, including time series data, is available on the ACCC website at NBN Wholesale Market Indicators Report.

Background

The ACCC’s NBN Wholesale Market Indicators Report contains information on NBN Co’s provision of wholesale services to retail service providers. It does not report on the services supplied by retail service providers to end users. Retail service information is available via the ACCC’s Internet Activity record keeping rule report.

Retail service providers use NBN Co’s wholesale access service to supply retail services to their own customers or, alternatively, to supply a wholesale service to another (usually smaller) retail service provider.

Most small retail service providers do not directly connect with NBN Co, instead reselling services that they buy from larger providers such as Telstra, TPG and Optus.

Interim authorisation granted to Jetstar’s Asian brands

Source: Australian Ministers for Regional Development

The ACCC has granted interim authorisation to Qantas Airways Ltd (ASX:QAN) and Jetstar Airways Pty Ltd for the continued coordination of two Jetstar Asian-based joint ventures and, in certain circumstances between Jetstar Japan and Japan Airlines.

At the same time, the ACCC issued a draft determination proposing to grant final authorisation to the arrangements for a period of 5 years rather than the 10 years applied for and is inviting submissions in response.

Qantas and Jetstar Airways wish to continue coordinating with each other and the Jetstar joint ventures Jetstar Asia and Jetstar Japan. Jetstar is also seeking to coordinate with its shareholding airlines including Qantas and Japan Airlines on passenger and cargo services within Asia in certain circumstances.

The ACCC has previously authorised this coordination in 2013 and 2018.

“The continued coordination of the Jetstar branded airlines allows them to operate as a single fully integrated organisation on matters such as flight scheduling, sales and marketing, and pricing,” ACCC Commissioner Anna Brakey said.

“The ACCC considers that the coordination is likely to result in public benefits by providing consumers with a wider choice of products, enhanced services, and more convenient flight times.”

“This conduct is likely to result in little, if any, lessening of competition,” Ms Brakey said.

The proposed re-authorisation does not allow coordination between Qantas and Japan Airlines.

The ACCC is now seeking submissions in response to the draft determination and interim authorisation decision by 17 March 2023, before making its final decision.

Further details about the application and how to make a submission are available on the ACCC’s public register at  Qantas Airways Limited & Jetstar Airways Pty Ltd.

The Qantas Group has established the Jetstar Asia and Jetstar Japan joint ventures because in some international jurisdictions the regulatory environment makes it difficult for airlines to wholly or majority own airlines outside their own country.

Notes to editors

ACCC authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act (CCA).

Section 91 of the CCA allows the ACCC to grant interim authorisation when it considers it is appropriate. This allows the parties to engage in the proposed conduct while the ACCC is considering the merits of the substantive application.

The ACCC may review a decision on interim authorisation at any time, including in response to feedback raised following interim authorisation.

Broadly, the ACCC may grant authorisation when it is satisfied that the likely public benefit from the conduct outweighs any likely public detriment.

ACCC ‘greenwashing’ internet sweep unearths widespread concerning claims

Source: Australian Ministers for Regional Development

The ACCC will be investigating a number of businesses for potential ‘greenwashing’, following an internet sweep which found more than half of the businesses reviewed made concerning claims about their environmental or sustainability practices.

Of the 247 businesses reviewed during the sweep, 57 per cent were identified as having made concerning claims about their environmental credentials. The cosmetic, clothing and footwear and food and drink sectors were found to have the highest proportion of concerning claims among the industries targeted in the operation. Other sectors examined also had a significant proportion of concerning claims.

“Our sweep indicates a significant proportion of businesses are making vague or unclear environmental claims. This warrants further scrutiny,” ACCC Deputy Chair Catriona Lowe said.

“Consumers are now, more than ever, making purchasing decisions on environmental grounds. Unfortunately, it appears that rather than making legitimate changes to their practices and procedures, some businesses are relying on false or misleading claims. This conduct harms not only consumers, but also those businesses taking genuine steps to implement more sustainable practices.”

“Businesses using broad claims like ‘environmentally friendly’, ‘green’, or ‘sustainable’ are obliged to back up these claims through reliable scientific reports, transparent supply chain information, reputable third-party certification or other forms of evidence.”

“Where we have concerns, we will be asking businesses to substantiate their claims,” Ms Lowe said.

“Already, we have several active investigations underway across the packaging, consumer goods, food manufacturing and medical devices sectors for alleged misleading environmental claims and these may grow, as we continue to conduct more targeted assessments into businesses and claims identified through the sweep. We will take enforcement action where it is appropriate to do so as it is critical that consumer trust in green claims is not undermined.”

The ACCC will also conduct a range of education activities with businesses, including updating economy-wide guidance material, in addition to targeted guidance for specific sectors.

“The sweep has helped inform our forthcoming guidance about what steps businesses need to take to improve the integrity of their environmental claims,” Ms Lowe said.

“We want to see businesses taking steps to ensure that environmental claims are accurate as well as meaningful for consumers. Our sweep has shown that claims are most useful where they are relevant, clear, reliable and transparent.”

“We will engage directly with businesses and industry associations to improve compliance with the Australian Consumer Law.”

“Importantly, we encourage businesses to come forward if they become aware they have made false or misleading marketing claims. Businesses who cooperate and advise of any issues with their operations, will be considered more favourably than those who wait for the ACCC to unearth these problems,” Lowe said.

The ACCC encourages consumers and businesses to contact the ACCC to report any potentially misleading environmental or sustainability claims. Report a consumer issue.

Background

The ACCC conducted an internet sweep to identify misleading environmental and sustainability marketing claims in October/November 2022.

Sweepers reviewed 247 company websites across a range of targeted sectors including energy, vehicles, household products and appliances, food and drink packaging, cosmetics, clothing and footwear.

Each year, the ACCC announces a list of compliance and enforcement priorities. These priorities outline the areas of focus for the ACCC’s compliance and enforcement activities for the following year.

As part of the 2022-23 Compliance and Enforcement Priorities, the ACCC is prioritising consumer and fair-trading issues in relation to environmental and sustainability claims.

Under the Competition and Consumer Act 2010, the ACCC can use powers under s155 of the Act to obtain information, documents and evidence in relation to matters which may constitute a contravention of the Act. The ACCC can also issue substantiation notices requiring a person or business to give information and/or produce documents that could be capable of substantiating or supporting a claim or representation made by the person or business.