ACCC new compliance and enforcement priorities for 2015

In a recent speech ACCC Chair Rod Sims announced cartel conduct in government procurement, truth in advertising, competition and consumer issues in the health sector and industry codes as new compliance and enforcement priorities for 2015 for the Australian Competition and Consumer Commission.

Cartel conduct, anti-competitive agreements and practices, and misuse of market power remain three of the ACCC’s four ongoing priorities alongside product safety.

Mr Sims emphasised the ACCC’s visible enforcement policy:

“We are very aware of the effect we can have. Just making contact with a company can change behaviour. At the other end of the spectrum, when cases are taken to court, the effect is often considerable. Not just the case law or precedent value, but the strong deterrence message that results from the imposition of penalties and other orders if the ACCC establishes a breach of the Competition and Consumer Act 2010 (the Act)….

we will be continuing to advocate for the courts to impose penalties of appropriate deterrent value in each case. Penalties should not be seen as simply a cost of doing business. They need to be at a level which achieves both specific and general deterrence.

Some companies think they have a lot to gain from breaching our competition and consumer law; they should have much to lose as well.”

Sectors for review may include emerging consumer issues in the online marketplace, including for example those associated with systemic market failures; the health sector; or on matters impacting vulnerable consumers such as older people and people who are newly arrived in Australia.

In the health sector Mr Sims identified both competition and consumer issues.

On the competition side, he referred to allegations about attempts to limit access to products, patients, procedures or facilities.

On the consumer side, he referred to allegations of unconscionable conduct and misleading and deceptive conduct by medical professionals.

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