ACCC redefines penalties

The Australian Competition and Consumer Commission's annual report for 2013-14 was released yesterday. It shows the agency was involved in 53 proceedings relating to consumer protection enforcement and increased competition enforcement, securing over A$12 million in penalties and other remedies during the year.

The ACCC's report (of 300-plus pages) highlighted what it sees as its notable achievements, including strong court judgments, significant penalties and major regulatory decisions for the year.

At the end of June 2014, the ACCC had seven cases alleging cartel conduct before the courts.

The ACCC has taken court action against cartel conduct operating in the market for ball bearings used in motor vehicles and industrial applications. The Federal Court ordered the privately owned NSK Australia and Koyo Australia to pay $3 million and $2 million respectively.

The compliance and enforcement policy for 2014 prioritises protecting vulnerable consumers, including ensuring indigenous Australians enjoy the same protections as non-indigenous Australians.

In April 2014, Startel Communication Co was ordered, by consent, to pay $320,000 for misleading consumers about their rights under the ACL when cold calling consumers.

The investigation was initiated by a complaint made during an ACCC outreach visit to a remote indigenous community.