Australian Competition and Consumer Commission - Consumer Confidence

Consumer Confidence

The ACCC is regarded by some Australian business people as necessary but often ineffective, echoing the critics of American anti-trust laws, while Australian consumers generally hold the ACCC in high regard. Whilst it is acknowledged that the ACCC is required to help safeguard consumer rights, there has been occasional criticism of the organisation as being "all-talk-no-action". This criticism is most likely due to the inherent difficulty in obtaining sufficient evidence to prove breaches of the restrictive trade practices provisions of the Competition and Consumer Act.

Recently the ACCC has exercised its authority in a number of retail areas, including fining retailer Target for false advertising and Woolworths (including some Safeway branded supermarkets in Victoria, Australia) for anti-competitive liquor deals. In 2008 the ACCC published findings of its inquiry into the competitiveness of retail prices for groceries in Australia. The report found that the Australian supermarket sector is "workably competitive", but price competition is limited by barriers to entry and a lack of incentive for the two major players, Coles and Woolworths, to compete on price. The report also noted that Coles and Woolworths engage in deliberate strategies designed to ensure they maintain exclusive access to prime sites such as shopping centres to prevent centre managers leasing space to competing supermarkets. In September 2009 the ACCC reached agreement with Coles and Woolworths to phase out restrictive lease agreements. The ACCC has enforced the law against producers of quack devices with medical claims like Power Balance.