The Australian Competition and Consumer Commission (ACCC) has announced that its key priority for enforcement in 2019 will be large retailers selling high value electrical appliances and whitegoods such as refrigerators, computers and washing machines.
Addressing the Committee for Economic Development Australia (CEDA), the Chair of the ACCC, Rod Sims (pictured) said the Commission was concerned that many manufacturers and large retailers were not complying with consumer guarantee laws.
“Electrical and whitegoods products are the second most complained about industry after motor vehicles,” Ms Sims said.
“Last year we received nearly 9,000 contacts about electrical appliances and whitegoods, with three quarters of those relating to breakdowns or other quality issues.”
He said customer loyalty schemes would be another new priority with the ACCC closely examining the use of any personal data collected; whether consumers received the benefits promised; and the impact on competing firms and new entrants.
“These schemes include those in the airline, retail and hospitality sectors,” Mr Sims said.
“While these customer loyalty schemes are ubiquitous across many sectors, questions arise about whether consumers are being properly informed and receiving the benefits touted by many of these programs.”
Advertising practices on social media platforms and subscription services would also be under the spotlight, running concurrently with the ACCC’s Digital Platforms Inquiry.
“Social media platforms are used by the vast majority of Australian consumers,” Mr Sims said.
“We continue to hear about new advertising practices and subscription services that may be misleading consumers, particularly younger users,” he said.
“The ACCC will also continue to advocate for changes which benefit consumers.”
He said keeping laws in step with the dynamic market economy had been a vital part of recent ACCC advocacy, including much higher maximum penalties for corporations which breach the consumer law.”
The list of the ACCC’s 2019 enforcement priorities is available at this PS News link and Mr Sims’s speech to CEDA available at this link.
