Digital disruption challenges ACCC

Challenges faced by the ACCC include fast-moving technologies and anticompetitive responses to those technologies, according to the chairman.

Rod Sims addressed the National Consumer Congress in Melbourne, where he drew attention to challenges such as regulating rogue online traders, sophisticated scam artists and new retail practices such as ‘subscription traps’ which can sometimes fall short of Australian consumer law.

“New technology has increased access to more products, services and information for consumers but with it come new challenges for consumer advocates and regulators,” Sims said.

“Consumer advocacy is essential to ensuring all consumers reap the benefits of a well-functioning market economy and ensuring that consumer protection moves with the times.”

The ACCC also indicated that in 2017 it will be moving beyond the ‘traditional’ areas of consumer guarantees, such as consumers’ well-known rights for a repair, replacement or refund when sold defective goods such as clothing, electrical items or household appliances.

“The ACCC will be looking at consumer guarantees for more complex products such as motor vehicles and the provision of services in industries such as telecommunications providers and airlines,” Sims said.

The regulator’s focus will include investigations and possible actions that test, for example, the extent to which consumers are being directed away from their consumer guarantee rights and remedies in favour of manufacturer warranties.

Sims said that even after five years since becoming ACCC chair, he remains puzzled as to why some large companies treat their customers so badly and with so little respect.

“We are often told that companies will only succeed by meeting customer needs. It is clear that some companies seek to deceive their consumers about these needs,” said Sims.

“This is why we take on so many high-profile cases — to act as a deterrent to others by showing that those who seek to mislead or mistreat their customers will be held to account.

“Companies also often enter public policy debates making only self-serving arguments. This is why it is vital that the ACCC and Australian consumer groups provide a counter view.”

Image credit: ©iStockphoto.com/Gawrav Sinha

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