ACCC cracking down on Trade Practices Compliance, reports Stephens Lawyers & Consultants

Stephens Lawyers & Consultants note that in recent months the ACCC has stepped up efforts to combat unfair business practices and ensure compliance with the Trade Practices Act 1974.

The franchise lawyers report that particular areas of focus have included component pricing and false, misleading or deceptive claims.

With regard to component pricing, laws established in section 53C of the Trade Practices Act require businesses that list the cost of goods or services in, or as a sum of, multiple component parts, to also provide consumers with a prominent, single, total price.

In this matter, the ACCC has turned its attention recently to the restaurant industry, with the Federal Court finding two restaurants in the breach of component pricing laws for failing to specifically stipulate Sunday or public holiday prices on their menus.

Both businesses are facing civil penalties of $13,200.

Sections 52 and 53 of the Trade Practices Act prohibit businesses from making false or misleading representations in the course of business.

Several recent cases in the Federal Court highlight significant breaches of these sections.

Stephens Lawyers & Consultants commercial law specialists note that:

• the Federal Court has held that Optus’ "Think Bigger" and "Supersonic" broadband internet promotions were misleading and deceptive, and breached the Trade Practices Act;
• nine traders face joint proceedings in the Federal Court for false and misleading claims about allergy treatments; and
• the ACCC has accepted LG Australia’s enforceable undertakings over misrepresenting refrigerator energy efficiency ratings.