On 7 March 2024, the ACCC announced its enforcement priorities for this year. The ACCC indicated its priorities are shaped by the key challenges facing the economy – particularly due to the rising cost of living and its impact of anti-competitive conduct and violations of the Australian Consumer Law (ACL) on the unsuspecting consumer.
Although the ACCC maintains a wider concern for anti-competitive arrangements and cartel conduct across various sectors, its primary attention in the upcoming year is directed towards competition and consumer matters within:
- the supermarket industry; and
- essential services like electricity and financial services.
The key points taken from the ACCC’s 2024-25 enforcement priorities include:
1. Unfair contract terms – following the introduction of substantial penalties to the unfair contract terms regime in late 2023, the ACCC will focus on investigating and taking enforcement action in this area. The ACCC has previously indicated that unilateral variation rights and penalties for cancellation, will be given key attention. Accordingly, it is critical that businesses review and amend their standard form consumer and small business contracts for compliance with the unfair contracts regime.
2. Consumer Guarantees – the ACCC highlighted its focus on improving industry compliance with “consumer guarantees” with a focus on consumer electronics and also targeting misconduct by retailers in connection with delivery timeframes.
3. The rising costs of living continues – the ACCC’s attention is primarily drawn to consumers, especially those who are vulnerable to the impacts of anti-competitive behaviour particularly with the ongoing rise in price for essential goods and services, including housing, food, groceries, energy prices, and financial services.
4. Supermarkets and aviation industries under spotlight – the ACCC will give priority to promote competition, ensuring fair trading practices, protecting consumers, and addressing pricing concerns within the supermarket and aviation industry. The ACCC Chair mentioned the ongoing twelve month inquiry into competition within the supermarket and grocery industry. Further, the ACCC has been actively investigating claims of deceptive conduct in supermarket advertising.
5. Environmental claims and sustainability – as Australia continues to progress towards a net zero economy, the ACCC remains vigilant in its efforts to monitor and enforce compliance. The ACCC plans to release additional guidance this year, focusing on assessing the public’s benefits related to the energy transition and advancements in sustainability within the existing authorisation framework.
6. Telecommunications, electricity, gas and financial services industries – the ACCC will continue its enforcement priorities through:
- proposals made for improving transparency and clarity in retail deposit products and other financial products as a result of the Retail Deposits Inquiry;
- overseeing and enforcing misleading conduct in energy and telecommunication industries, especially concerning on pricing and product claims; and
- enforcing new gas market regulations and continue to review compliance with the cap on wholesale prices.
7. Digital economy – the ACCC will maintain its emphasis on safeguarding consumers in the digital marketplace. Specifically, it has identified the video game sector, as a key area of concern, particularly with respect to in-app purchases. Further, the ACCC is examining various aspects of influencer marketing, online review and price comparison tools from both competition and consumer law perspectives.
Forecasting the year ahead, the ACCC will maintain its focus on wider consumer law concerns, including unfair contract terms, consumer guarantees, and safety issues related to products intended for young children. The ACCC emphasised its concern regarding business compliance to consumer guarantee responsibilities, suggesting that financial penalties for consumer guarantee provisions, would encourage compliance and offer an extra layer of protection to consumers.
What does this mean for you?
In light of the changes to the ACL and the ACCC’s priorities for 2024-2025, we recommend you:
- if not already completed since November 2023, review all standard form contracts with consumers or small businesses for compliance with the new unfair contract terms regime;
- ensure any environmental claims you make are consistent with the ACCC’s key areas of focus; and
- check refund, return, and repair policies and ensure your employees understand how to apply consumer guarantees appropriately.
More information
If you have any questions or would like further information regarding this article, please contact:
Justin Hill
Principal
M: 0418 578 701
E: justinhill@pageseager.com.au
Deborah Edo
Senior Associate
M: 0426 061 556
E: dedo@pageseager.com.au
Published: 20 March 2024
