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Australian

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accc annual report2002–03

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© Commonwealth of Australia 2003

ISSN 1327-4767

ISBN 1 920702 29 6

This work is copyright. Apart from any use as permittedunder the Copyright Act 1968 no part may be reproduced byany process without written permission fromthe Australian Competition and Consumer Commission.Requests and inquiries concerning reproduction andrights should be addressed to the Director Publishing,Australian Competition and Consumer Commission,PO Box 1199, Dickson ACT 2602.

Produced by the ACCC Publishing Unit 09/02.

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about this reportThe structure of the report closely follows the outcome and outputstructure of the ACCC portfolio budget statement 2002–03.

outcome one

to enhance social and economic welfare of the Australian communityby fostering competitive, efficient, fair and informed Australian markets

the ACCC seeks to:

promote effective competition and informed markets

encourage fair trading and consumer protection

regulate infrastructure service markets and other marketswhere competition is restricted

In reporting performance information this structure is aligned with theoutput groups:

output 1.1.1 compliance with competition, fair trading and consumerprotection laws

output 1.1.2 competitive market structures and informed behaviour

In these chapters information is given on litigation and publicsettlements including court enforceable undertakings. This informationis included for information only and is not complete. More detail is givenin the ACCC Journal.

Summary resources tables for output groups are given on page 25.

Compliance with the requirements for annual reports of theDepartment of Prime Minister and Cabinet is shown on page 164.

To obtain copies contact the ACCC on 02 6243 1143.For more information contact thedirector of publishing on 02 6243 1148,visit the website www.accc.gov.au orview the annual report on www.accc.gov.au/fs-pubs.htm

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letter of transmittal iii

part one overview of the accc ................................................ 1review 3

who we are 9

what we do 10

the Dawson inquiry 15

outcome and output structure 18

part two performance ............................................................ 19achieving outcome one 20

output 1.1.1 ........................................................................ 26compliance with competition, fair trading andconsumer protection laws

the infocentre 35

where we did it 38

snapshots of litigation and administrative settlement 41

output 1.1.2 ........................................................................ 73competitive market structures andinformed behaviour

assessing mergers, asset sales and joint ventures 73

authorising anti-competitive conduct 76

regulating infrastructure service markets andother markets where competition is restricted 81

when we did it 101

part three management and accountability ..........................107

part four financial statements ..............................................117

appendixes ...........................................................1531. the law 154

2. freedom of information 156

3. publications 159

4. contacts 161

glossary and abbreviations ...................................163

compliance index ..................................................164

index .....................................................................165

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I want the ACCC to promote lawful,

vigorous, honest and fair competition

between all businesses, small and big.

If we can be successful in achieving this

objective, we will have contributed to

ensuring continued growth, stability

and international competitiveness of

the Australian economy.

Graeme SamuelChairman


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reviewThis has been a challenging yet rewarding year for the ACCC.

Along with our basic function business of fostering competitive, efficient, fair and informedAustralian markets, various government reviews had an impact on the ACCC. The Dawson,Wilkinson and Parer reviews were undertaken and the reports delivered to government. Dawsonreviewed the competition provisions of the Trade Practices Act; Wilkinson reviewed the healthand medical sectors in rural and regional Australia; and Parer reviewed the energy market. Therecommendations from these reviews will have a significant effect on the Act and theoperations of the ACCC as they are implemented by the government.

Dawson

The Dawson report provided a review of the competition provisions of the Trade Practices Act.The nature of the inquiry meant that many activities of the ACCC came under intense scrutiny,as did business and other sectors’ submissions on the ACCC’s accountability, transparencyand approach to publicity. The Treasurer released the government’s response in April this year,endorsing the report.

It recommended giving courts the option of sending to prison those involved in hard corecartels, and that maximum pecuniary penalties for such conduct be substantially increased—aposition which the government has accepted in principle, setting up a working party to furtherexamine the issue. The possibility of criminal sanctions and higher penalties to deter cartelbehaviour is a major step forward for Australian trade practices law.

The government has agreed with the Dawson report that, for assessing mergers, the section50 test and the public benefit test did not need to be changed. The government is intending tointroduce an additional formal clearance process for mergers and will allow companies toapply directly to the Australian Competition Tribunal for authorisation. The Act will be amendedto include a time limit of six months for the consideration of non-merger applications forauthorisation.

The Dawson Committee did not accept the ACCC’s proposal to change section 46 of the Act,dealing with misuse of market power, but acknowledged the extensive consideration given topossible amendments and supported the development of guidelines by the ACCC.

Rural and regional stakeholders and small business have welcomed the government’sendorsement of a notification process to allow collective bargaining by small businessesdealing with large businesses, as proposed by the ACCC. Such notification will give smallbusinesses immunity from the Act for such conduct when it is in the public interest.

The review also recommended a more effective consultative committee and a media code ofconduct for the ACCC. The ACCC welcomed the Dawson committee’s acknowledgment that itwas appropriate and cost effective to use the media to educate consumers and business abouttheir rights and obligations.

leniency

The ACCC’s leniency policy for hard core cartel participants came into force on 30 June 2003.The operation of the policy will be enhanced by criminal sanctions for hard core cartel conduct,as proposed by the Dawson review.

The offer is, report cartel conduct such as price fixing, bid rigging and/or market sharing to theACCC in return for a clear, transparent and certain offer of leniency. The policy applies only tothe first company or executive to come forward and cooperate with the ACCC. People whocoerced others to participate in cartels, or were clearly the cartel leader, are not eligible forleniency. Corporate lawbreakers should now think hard, but not for long, if they are engaging incartel activity.

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competition, misuse of market power and unconscionable conduct

The High Court made important rulings in a case alleging misuse of market power by BoralMasonry Limited and another alleging unconscionable conduct by CG Berbatis Holding Pty Ltd.In both the cases the victims of the alleged conduct were small businesses, and the ACCC wasunsuccessful. With the Boral judgment the ACCC has concerns about the application andeffectiveness of the misuse of market power provision. The ACCC has reviewed a number of itsinvestigations following the judgment and discontinued some of these. Further reviews willoccur as a number of other misuse of market power judgments are handed down by the courts,including appeal courts, in the coming year.

communicating

While the ACCC promotes effective competition in the market place by enforcement whennecessary, it also works hard to inform markets and market participants of their rights andobligations under the Act and to safeguard businesses from inadvertently breaching the law.Prevention, after all, is better than cure.

The ACCC undertook further initiatives this year to achieve voluntary compliance with the TradePractices Act, seeking innovative ways to inform markets, particularly in rural areas. Thecompeting fairly forums were once again an integral part of this strategy. This year theprogram took on a new look; a video production sent to 450 regional contacts for wider viewingand a hypothetical hosted by Geoffrey Robertson broadcast via satellite to regional andmetropolitan areas.

The ACCC circulated more than 800 000 printed publications many of which targetedbusinesses and relevant consultative committees, informing them of their rights andobligations, and provided guidance to industry bodies on issues including voluntary industrycodes of conduct, collective bargaining and franchising. . . . . We also communicated withbusinesses and consumers through voluntary codes, round tables, seminars on collectivebargaining, business and consumer forums, and monthly electronic newsletters.

The ACCC consulted with its small business advisory group, the newly established franchisingadvisory panel and the consumer consultative committee, which launched a campaign tobetter protect vulnerable and disadvantaged consumers.

The ACCC conducted and participated in seminars, round tables and information campaigns forspecific industry groups such as primary production, franchising, motor vehicle retailers, andsmash repair and insurance.

In running its program of seminars and consultation, as well as pursuing breaches of the Act,the ACCC relies extensively on its regional office network.

Most people’s initial contact with the ACCC is through the information centre. This year theinfocentre handled more than 60 000 inquiries and complaints, down from last year when theACCC was responsible for administering the new tax system price exploitation laws. Notably83 per cent of all callers were answered within 20 seconds. Beyond the infocentre other ACCCstaff deal directly with inquirers and in total it is conservatively estimated that staff answerednearly 90 000 business and consumer inquiries and complaints.

Wilkinson

The Wilkinson review of the impact of Part IV of the Trade Practices Act on recruitment andretention of medical practitioners in rural and regional Australia made comprehensiverecommendations to help medical practitioners and others in the health and medical sectorsbetter understand the implications of the Act generally. The ACCC will be consulting with theHealth Services Advisory Committee, being established by the Treasurer, to deliver outcomeson the recommendations of the review

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cooperating internationally

The ACCC liaised extensively with international government agencies, including coordinating aninternet sweep day for misleading travel claims by 87 agencies in 24 countries. This was thehighest participation to date in a sweep coordinated by us. Worldwide, 1269 suspiciouswebsites were identified.

In 2002–03 the presidency of the International Consumer Protection and Enforcement Network,a network of consumer protection enforcement agencies from over 30 countries, was held bythe ACCC. Two network meetings were hosted in Australia which focused on effective cross-border enforcement actions to benefit consumers around the world.

Productive working relationships with overseas enforcement counterparts are crucial to theACCC’s effective enforcement of Australian competition and consumer law in a globaleconomy.

enforcing the law

The ACCC much prefers compliance with the Trade Practices Act to chasing unlawful conductwith court action. Effective enforcement encourages compliance because individuals andcompanies know that the ACCC will take forceful action when a breach of the Act occurs.Enforcement stops anti-competitive activities, penalises the perpetrators and compensatesvictims. In total 48 cases were concluded this year; 30 public undertakings were accepted toremedy possible contraventions; 39 new cases were commenced, 10 of which were concludedduring the year, while 71 cases are continuing.

The ACCC’s investigation and litigation profile reflects particular concerns about all anti-competitive conduct, and about issues such as product safety, health and medical claims,retail price advertising and use of fine print, place of origin claims, unconscionable conduct,telephone and internet services, claims about contents of foods and beverages, and income-earning and business opportunities.

Outcomes from litigation and public undertakings included:

discouraging collusion, in cartels supplying electricity transformers following a finalpenalty hearing on one participant the total penalties are now $20 million with furtheraction still continuing against one alleged participant

reinforcing the seriousness of price fixing and market sharing with fines of $700 000imposed on compressor suppliers

halting an attempt to prevent bulk-billing and after-hours services in a medicalpractice, and stopping an agreement by obstetricians to boycott no-gap billingarrangements

pursuing companies who made incorrect headline price claims, revealing fictitiousclaims in was/now prices and challenging the use of fine print

checking on the accuracy of information provided to internet and mobile phone users

stopping spurious fitness, weight loss and miracle health claims. One internet healthpromoter was jailed for failure to comply with conditions of a one-month suspendedsentence.

Companies proceeded against include: Telstra, Allans Music Group, Australian SafewayStores, Dell Computer, Mitre 10, NRMA Health, Signature Security Group, Western DistrictHealth Fund, Wizard Mortgage, Crackerjack Productions, Sensis, Skybiz.Com, Will WritersGuild, Michigan Group, Daewoo Australia, Internet Registrations Australia, Info4pc.com,Internet Name Protection, Internet TV Australia, Virgin Mobile Australia and Woolworths.

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The ACCC received 89 175 inquiries and complaints from business and consumers concerningcompetition and consumer issues; over 40 000 complaints were identified as possiblebreaches of the Act, around 660 were identified for possible investigation; overall about 220matters were investigated in detail during the year (including matters continuing from previousyears); and the ACCC commenced proceedings in 39 matters.

assessing mergers

The ACCC finalised 191 mergers, asset sales and joint ventures. Of these it objected to ninebecause they were likely to substantially lessen competition, and two of these proceededfollowing enforceable undertakings being provided.

adjudicating

Australia is one of the few countries where businesses have the option of seeking immunityfrom legal proceedings through authorisation and notification processes from the regulatoryauthority for anti-competitive conduct on the grounds of public benefit. The ACCC made 41 finaldeterminations for 89 applications for authorisation (including gas, electricity, mergers andother authorisations) and decided 268 notifications, among other things, conditionallyauthorising entry restrictions imposed by the Royal Australasian College of Surgeons, andauthorising collective bargaining by New South Wales hotels for wagering services fromTAB Limited and broadcasting services from Sky Channel.

regulating

The ACCC promotes competition in network industries: electricity, gas, telecommunications,aviation and airports, waterfront and shipping, rail and post. Many of these industries rely onexpensive infrastructure that has monopoly characteristics and the job of the ACCC is to makesure that prices are fair and reasonable in non-competitive markets and services benefit theconsumer.

In regulating the electricity industry the ACCC issued its final decision on the revenue cap forVictoria’s electricity transmission services. Earnings of SPI PowerNet were capped at$271 million for the first year with savings for state consumers being nearly $150 million duringthe next five and a quarter years. In South Australia ElectraNet SA earnings were capped at$148 million for the first year, saving South Australian consumers $278 million over five years.

For the Moomba to Adelaide gas pipeline system, Epic Energy failed to submit a complyingaccess arrangement following the ACCC’s final decision. As a result, the ACCC drafted andapproved its own access arrangement, an instrument that sets out the terms and conditionsincluding the price for pipeline services. Similarly, in Victoria the ACCC drafted and approved itsown revised access arrangement for the GasNet transmission system. The ACCC approved theterms and conditions for transportation services proposed by Northern Territory Gas for theAmadeus Basin to Darwin pipeline after that company submitted a complying accessarrangement.

The scope of telecommunications services regulated by the ACCC continued to be refined withthe declaration of the line sharing service and the granting of two exemptions to the localcarriage service declaration. A guide to the resolution of access disputes was finalised.The two arbitrations relating to pay TV services were deferred during the year as the ACCCconsidered a content sharing agreement between Foxtel and Optus. Undertakings wereaccepted regarding these arrangements that satisfied the ACCC’s initial concerns that theywould have anti-competitive impacts. The ACCC indicated in accepting these undertakingsthat it continued to have concerns about competition in the pay TV industry more broadly.These concerns were detailed in a report to the Minister for Communications, InformationTechnology and the Arts on emerging market structures in the communications sector, whichrecommended a range of changes to current regulatory structures.

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The ACCC finalised an anti-competitive conduct investigation into Telstra’s agencyarrangements, accepted court enforceable undertakings from Vodafone regarding fastfoneprepaid services and produced the fair call advertising guide for telecommunicationsbusinesses. It also issued a record keeping rule to Telstra requiring it to provide the ACCC withquarterly reports in relation to bundled services. In the latter half of the year the ACCCcommenced implementation of a range of amendments to the telecommunications specificprovisions of the Trade Practices Act passed by the legislature in December 2002 includingissuing record keeping rules to Telstra for the initial accounting separation reports, draft modelterms and conditions for core services and a framework for the review of current declaredservices.

The ACCC opposed Airservices Australia’s proposal to increase prices for terminal navigationand aviation fire-fighting and rescue services. Annual regulatory reports for Melbourne,Brisbane and Perth airports showed that during the past five years, regulated charges fell byaround 20 per cent in real terms at the price-capped airports. Airports are now subject only toprices monitoring and are free to set charges as they see fit. In a good result for bothpassengers and airlines the quality of airport services was shown generally to have been good,suggesting that service quality was not sacrificed to reduce costs under the price caparrangements.

The ACCC did not object to Australia Post’s request to increase the price of the basic postagestamp, for the first time in 10 years, from 45 to 50 cents. The ACCC did object, though, toAustralia Post’s original plan to increase the prices for bulk pre-sort mail and some other mailcategories. Australia Post subsequently proposed a restructure of these prices which did notamount to an increase, to which the ACCC agreed.

To help consumers decide when the time is right to buy petrol, the ACCC provided informationon its website about the regular rise and fall patterns of retail petrol prices in the major capitalcities. Consumers can take advantage of this information to make significant savings by buyingpetrol at the bottom of the price cycle. For example, In Melbourne in 2002 the average increasefrom the bottom to the top of price cycles was around 6.7 cents per litre. By buying at thebottom of the price cycle instead of at the top, consumers there would have been able to savethemselves around $174 a year.

The ACCC checks on stevedoring revenues, costs and profits, which provide the governmentand the community information on waterfront reforms. The latest ACCC report indicated thataverage prices for container movements across wharves for all containers on averagedecreased to their lowest level since data has been available. Given the change in usage tolarger (40 foot) containers the collection of new revenue and container volume information hascommenced. Productivity measured by container movements increased significantly.

staffing

There have been significant arrivals and departures in the ranks of Commissioners.Jennifer McNeill and Ed Willett were appointed during the year, bringing the total number ofCommissioners to six. By year’s end both Allan Fels and Ross Jones left the organisation.Both made significant contributions to the work of the ACCC specifically and to Australia’scompetition policy in general. The ACCC wishes them both well in the latest phase of theirdistinguished careers. A tribute to the work of Allan Fels forms part of this annual report.

The total number of staff employed was 490, 50 less than this time last year. Staffing levelsreduced because of the winding up of ACCC’s role in overseeing the new tax system functionand a concerted effort to reshape staffing numbers within budget constraints while meetingpriorities and objectives. Eleven graduates were recruited. Of 26 graduates recruited last year,24 remained and have been promoted to permanent positions.

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funding

The ACCC received $62.5 million in funding for the year. This funding included $1 million forthe litigation reserve fund and $0.70 million additional funding to undertake increasedregulatory work involving Australia Post and to monitor medical indemnity insurance premiums.Total operating funds for the year were $61.5 million, down from operating funds of$73.4 million in the previous year. The net operating loss for the year was $10.2 million,principally due to legal expenses.

looking ahead

The ACCC is liaising with various departments on the government’s response to theoutstanding reviews and their implications. We have already reinvigorated the consultativecommittee, as recommended in the Dawson review. The ACCC has begun to implement theWilkinson review recommendations.

There is work to be done on implementing the new leniency policy which came into force atyear’s end. We will make widely known our offer of freedom from prosecution in return forrevealing illegal conduct and cooperating with the ACCC. Hard core cartels are the very worstviolations of competition law. Detecting, dismantling and deterring covert cartels that operatein Australia or affect our markets will continue to be one of our top priorities.

The ACCC will continue to encourage industry associations and businesses to considerimplementing voluntary codes of conduct as a way of improving the standard of businessconduct in areas not covered by the Trade Practices Act. The ACCC will provide officialendorsement of suitable codes—an endorsement hard to get, and easy to lose.

The purpose of competition law is to promote and protect competition in the interests ofconsumers. In enforcing the provisions of the Act, the ACCC will be mindful not to confuse theprotection of competition with the protection of individual competitors.

In addition to the competitive provisions of the Act, there are also provisions that seek toprotect smaller firms in dealing with larger enterprises. These provisions apply not to marketconduct but seek to establish a fair and equitable trading environment. In carrying out its dutiesas the independent regulator, the ACCC will take account of the interests of small business andtheir ability to trade with larger firms in a fair, if sometimes robust, environment.

The ACCC will continue to fairly and vigorously enforce the competition and fair tradingprovisions and act against those engaging in anti-competitive conduct.

The Commission acknowledges the commitment, dedication, energy and the high level ofprofessional expertise of ACCC staff in achieving our goals and contributing to the wellbeing ofthe community.

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who we are

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what we do

The Australian Competition and Consumer Commission is an independent statutory authority,set up in 1995 as part of the national competition policy reform program. It is the only nationalagency dealing with competition matters.

The primary responsibility of the ACCC is to ensure that individuals and businesses comply withcompetition, fair trading and consumer protection laws, in particular the Trade Practices Act.

The ACCC applies these laws without fear or favour, helping to make sure that competition inthe market place is efficient and fair.

As an integral part of its work the ACCC:

promotes effective competition and informed markets

encourages fair trading and protects consumers

regulates infrastructure service markets and other markets wherecompetition is restricted

promote effective competition andinformed markets

prevent price fixing, market sharing, bid rigging and boycotts

prevent the misuse of market power, anti-competitive exclusivedealing and resale price maintenance

protect the interests of small business against anti-competitiveconduct and unfair trading

assess mergers, asset sales, joint ventures

allow anti-competitive conduct in the public interest

assess export agreements

ensure compliance by the professions

assess certification trade marks

improve compliance through education and information

maintain public and confidential information registers

encourage fair trading and protect consumers

prevent misleading and deceptive conduct and misrepresentation

ensure products comply with mandatory safety standards and bans

improve business and consumers’ understanding of their rights andobligations

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regulate infrastructure service marketsand other markets where competition is restricted

promote competition in the network industries:electricity, gas, telecommunications, aviation and airports,waterfront and shipping, rail, and post.

ensure access to wire networks

set revenue caps for the transmission network serviceproviders

authorise changes to the national electricity code

implement the national gas code

determine conditions of access to gas transmissionpipelines

arbitrate access disputes

maintain competitive and consumer safeguards acrossthe industry

determine which services should be regulated

arbitrate disputes between industry members

assess proposals for price increases for air traffic controlservices by Airservices Australia

monitor prices, quality of service and administer financialreporting requirements for major private airports

monitor stevedoring prices and administer liner cargoshipping arrangements

ensure access to interstate rail track

cap freight rail prices

approve changes to charges of postal services operatedexclusively by Australia Post

watch the prices of petrol, diesel and liquefiedpetroleum gas

check costs and premiums in the public liability andprofessional indemnity sectors of the insurance market

electricity

gas

telecommunications

aviation and airports

waterfront and shipping

rail

post

petrol prices

insurance

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what we don’t do

the ACCC does not:pursue issues such as general pricing levels, warranties and refunds thatcan be more effectively dealt with at local or state level

arbitrate disputes between individuals and the suppliers or acquirers ofgoods and services

handle misleading or deceptive conduct in financial transactions

advise whether a company is legitimate

disclose the number or nature of complaints received about a company toinquirers

give legal or professional advice or services of any sort

settle employment disputes

register business names

impose penalties—this is the province of the courts

the lawThe Trade Practices Act promotes competition and fair trading and provides for consumerprotection to enhance the welfare of all Australians.

The Prices Surveillance Act promotes competitive pricing and limited price rises. To securecompliance, the ACCC monitors price rises, costs and profits of any organisations, goods orservices when directed by the minister, assesses prices for companies placed undersurveillance by the federal government as well as conducting inquiries into pricing practices.The ACCC can informally monitor prices if it is concerned about specific markets.

effective competition and informed markets

parts of the Trade Practices Act deal with competition

IV anti-competitive conduct: price fixing, market sharing, boycotts, agreementssubstantially lessening competition, misuse of market power, exclusive dealing,resale price maintenance, mergers substantially lessening competition

XIA the competition code

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enforcement Anti-competitive conduct is dealt with only by the ACCC and is illegal for allbusinesses in Australia. The ACCC supports effective industry self regulation,codes of conduct and standards. It conducts merger and acquisition analysis.

To enforce the provisions of the Trade Practices Act the ACCC can seek:

declarations of contraventions

findings of facts

injunctions

damages

community service orders

probation orders

adverse publicity orders

corrective advertising, public notices and disclosure

For breaches of anti-competitive conduct:penalties of up to $10 million for companies and $500 000 for individuals.

fair trading and consumer protection

parts of the Trade Practices Act deal with fair trading and consumer protection

IVA unconscionable conduct in commercial and consumer transactions

IVB industry codes of conduct; the franchising code is a mandatory code prescribedunder part IVB

V unfair practices, misleading and deceptive conduct, pyramid selling, country oforigin representations, product safety and information, conditions and warranties inconsumer transactions

VA liability of manufacturers and importers for defective goods

VB & price exploitation concerning GSTXIAA

VC criminal conduct in fair trading and consumer protection

State legislation largely mirrors the fair trading provisions of the TradePractices Act.

To enforce the provisions of the Trade Practices Act the ACCC can seek:

declarations of contraventions

findings of facts

injunctions

damages

community service orders

probation orders

adverse publicity orders

corrective advertising, public notices and disclosure

For breaches of fair trading and consumer protection:fines of up to $1.1 million for companies and $220 000 for individuals.

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infrastructure service markets

parts of the Trade Practices Act deal with regulated industries

IIIA access to the services of essential national infrastructure facilities, such as accessto transmission wires networks, natural gas pipelines, rail tracks and airportfacilities

X establishes limited exemptions in relation to international liner cargo shipping

XIB anti-competitive conduct in telecommunications

XIC access to services for telecommunications

Regulatory functions of the ACCC include: authorisation of the nationalelectricity market rules (national electricity code) and gas supplyarrangements under Part VII, the regulation of transmission revenues forboth electricity and gas and administering access regimes under Part IIIA,services in telecommunications and airports, arbitration, audits and directmonitoring of prices.

regulation

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Solutions must be found to the problems identified beforecriminal sanctions are introduced for serious cartel behaviour.The problems are, importantly, the development of a satisfactorydefinition of serious cartel behaviour and a workable method ofcombining a clear and certain leniency policy with a criminalregime. Subject to this proviso, the committee recommends theintroduction of criminal sanctions for serious, or hard core,cartel behaviour, with penalties to include fines against anyconvicted corporation and imprisonment and fines, asappropriate, for implicated individuals.

The ACCC considers the recommendation that criminalsanctions be introduced for hard core cartel activities was amajor step forward for Australian trade practices law asAustralia will now join our many trading partners inrecognising that when individuals set out to deliberately andblatantly break the cartel laws (or anti-cartel laws), theyshould face criminal sanctions. The ACCC is confident thatremaining issues in relation to criminal sanctions will beclarified. A change to the law will benefit consumers, big andsmall business. Highly profitable cartels would become muchless attractive to potential law breakers.

The Act should be amended so that: the maximum pecuniarypenalty for corporations be raised to be the greater of $10 millionor three times the gain from the contravention or, where gaincannot be readily ascertained, 10 per cent of the turnover of thebody corporate and all of its interconnected bodies corporate(if any); the court be given the option to exclude an individualimplicated in a contravention from being a director of acorporation or being involved in its management; andcorporations be prohibited from indemnifying, directly orindirectly, officers, employees or agents against the impositionof a pecuniary penalty upon an officer, employee or agent.

The ACCC welcomes the recommendation that the maximumpenalty for corporations be raised in line with internationalpractice and was pleased that the court will be given theoption to exclude an implicated individual from being acorporation director or manager.

civil penalties

criminal penalties

report of the Dawson inquiryinto the Trade Practices Act

some key recommendations

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The ACCC should provide adequate reasons for its mergerdecisions (taking care to protect any confidentiality) in theinformal clearance process when requested to do so by theparties and in cases where it rejected a merger or acceptedundertakings. A voluntary formal clearance process should beintroduced, parallel to the existing informal clearance process,in relation to merger applications. Applications for theauthorisation of mergers should be made directly to theAustralian Competition Tribunal.

The ACCC welcomes the committee’s endorsement of thecurrent mergers test. The ACCC is assessing the implicationsof implementing the proposed clearance and mergerauthorisation recommendations.

A notification process is to be introduced for collectivebargaining by small businesses dealing with large businesswhere it is in the net public benefit. Immunity for sucharrangements would commence a short period after lodgment ofa notification. A transaction value approach is proposed torestrict the notification process to small businesses. It was alsorecommended that third parties be able to make a collectivebargaining notification on behalf of a group of small businesses.

The committee has largely adopted the ACCC’s suggestionsto address issues raised by small business in relation tocollective bargaining with big businesses. The ACCC’spreferred option was modelled on the existing notificationprocess whereby immunity from the competition provisionsof the Act is available—where it is in the public interest—through a more streamlined and cost-effective process.This has been endorsed by the committee.

No amendment should be made to section 46.....

While the committee did not endorse any change to themarket power provisions, there is in the ACCC’s viewongoing uncertainty about the effectiveness of this provisionfollowing the High Court’s judgment in the Boral case.Further consideration will be necessary on the effectiveness ofsection 46 when other judgments are made by the courts.

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A media code of conduct should be based on the followingprinciples: the public interest is served by the ACCCdisseminating information about the aims of the Act and theACCC’s activities in encouraging and enforcing compliance withit. This extends to information about proceedings instituted by it,but an objective and balanced approach is necessary to ensurefairness to individual parties; while it may be necessary for theACCC to confirm or deny the existence of an investigation inexceptional circumstances, the ACCC should decline tocomment on investigations; with the object of preservingprocedural fairness, commentary on the commencement ofcourt proceedings by the ACCC should only be by way of a formalmedia release confined to stating the facts; and reporting theoutcome of court proceedings should be accurate, balanced andconsistent with the sole objective of ensuring publicunderstanding of the court’s decision.

The ACCC welcomes the committee’s acknowledgment of theimportant and legitimate use of the media as an appropriateand cost-effective way to educate both business andconsumers about their rights and obligations. The media codebased on certain principles as recommended by the committeeis essentially consistent with the ACCC’s normal and preferredmedia policy.

The Act should be amended to establish a consultativecommittee to advise the ACCC on the administration of the Act.An associate commissioner should be appointed to the ACCC toreceive and respond to individual complaints about theadministration of the Act. The ACCC should review its servicecharter, in conjunction with the proposed consultativecommittee, in the light of the outcome of this review and therelevant recommendations of the Wilkinson Review.

The ACCC welcomes that the committee recognises the ACCCis a highly accountable and independent authority and thatthe recommendations confirm that the introduction of afurther oversight board, or inspector general, was neithernecessary nor appropriate. The ACCC notes the call for astronger consultative committee, welcomes the suggestionsand will move towards their implementation.

The committee also recommended substantive amendmentsto the third line forcing and exclusionary conduct provisions ofthe Act.

The ACCC has concerns that the proposed amendments tothe exclusionary conduct provisions will weaken theapplication of the Act to conduct such as market sharing andbid rigging.

per se prohibitions

full details of the Dawson review are available on:www.tpareview.treasury.gov.au/content/home.asp[ ]

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Australian Competition and Consumer Commission

to achieve outcome one through appropriate outputs the ACCC seeks to:

promote effective competition and informed markets

encourage fair trading and protect consumers

regulate infrastructure service markets and other markets wherecompetition is restricted

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achieving outcome one

enhancing social and economic welfare of theAustralian community by fostering competitive,efficient, fair and informed Australian markets

evaluation by results

measured against performance indicators defined in the ACCCportfolio budget statement 2002–03

output group 1.1.1

compliance with competition, fair trading and consumer protection laws andappropriate remedies when the law is not followed

respond quickly to allegations of breaches of competition, fair trading andconsumer protection legislation

received 89 175 inquiries and complaints from business andconsumers concerning competition and consumer issues,53 532 of these matters were recorded in the ACCC’s nationalcomplaints database

answered within 20 seconds more than 54 000 (83 per cent) of the65 349 telephone calls received by the infocentre

seek appropriate remedies when there is a breach of the law

concluded 48 cases this year, plus 30 public undertakings accepted;commenced 39 new cases, 10 of which were concluded this year;71 cases currently before the courts

announced a leniency policy to help detect and dismantle secretcartels with the subtle message to conspirators: confess yourcompany’s cartels to the ACCC now before your competitors reportyour company, and you personally

monitored performance of court orders and undertakings; took actionto ensure that remedies ordered in concluded litigation and agreed toin public settlements were honoured

took action to recover the debts in all litigation matters resulting injudgment debts not paid as ordered by the court, including assessingrespondents’ capacity to pay; no judgment debts were waived orwritten off

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enforce mandatory product safety and information standards

completed survey and complaint investigations that led to thewithdrawal from sale and/or recall of 39 different products

conducted at retail outlets across Australia 28 surveys for productssubject to safety standards and 41 surveys for banned goods;seven enforceable undertakings and one court-ordered injunctionresulted from product safety surveys

develop new consumer protection and investigative initiatives for e-commerce

evaluated and upgraded electronic investigation capabilities, includingassessment of practices of overseas regulators, monitoring of newsoftware products, training delivery in basic awareness to all ACCCinvestigators, training of e-commerce staff in forensics

contributed to: au Domain administration review of code of practicefor domain name licence sales, government review of spam, ongoingdevelopment of the econsumer.gov international consumer complaintfacility and streamlining data exchange between state and federalconsumer protection agencies

took successful court action against internet businesses for fair tradingcontraventions

liaise with and inform business and consumers about the law so that they can,in turn, inform their members and customers

held more than 650 meetings with small business and regionalconsumers, gave 238 presentations and participated in 25 conferencesand seminars, represented the ACCC at 64 international meetings

visited 190 rural and regional towns to contact businesses andconsumers, using direct satellite feeds for some educational programs

issue publications and media releases, speak to the public, conduct publicmeetings and conferences and use the latest technology to reach business andconsumers throughout Australia

produced 88 new publications; printed in total 800 000 copies ofpublications

issued 317 media releases; 111 speeches delivered by Commissioners

sent ACCC Consumer Express monthly email newsletter to1482 subscribers and ACCC Briefing bi-monthly email newsletter to1681 small businesses; emailed ACCC Infolink monthly one-pagerfor small businesses to more than 1000 subscribers; produced threeeditions of Retail Flash, a newsletter for retailers and distributed40 000 copies

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work with other competition, fair trading and consumer protection agencies inAustralia and overseas

worked with 87 agencies from 24 countries in evaluating thousands oftravel agency websites worldwide with 1269 suspected websitesidentified internationally for follow-up

hosted 49 delegations from 21 countries

Australia held presidency of the International Consumer Protectionand Enforcement Network; hosted meetings in Sydney in September2002 and Port Douglas in April 2003; participated in the InternationalCompetition Network

consulted with the European Commission and the Federal TradeCommission in the United States on the worldwide merger betweenPfizer and Pharmacia

received 160 requests for information from 41 countries and made153 requests to 32 countries, including on enforcement issues

conducted seven staff exchanges with Canada, New Zealand, ChineseTaipei, Hong Kong, the United Kingdom, Ireland and the United States

signed a tripartite arrangement with the Taiwan Fair Trade Commissionand New Zealand Commerce Commission and a bilateral cooperationarrangement with the Korean Fair Trade Commission

collect statutory fees and judgment debts

collected total revenues administered on behalf of the governmentincluding fines and costs, and authorisations fees totalled $7 912 000compared to $7 152 000 last year

output group 1.1.2

competitive market structures and informed behaviour

assess the competition effects of mergers, acquisitions and asset sales

examined 191 mergers, acquisitions and asset sales for theircompliance with section 50 of the Trade Practices Act; 182 were notopposed, nine were opposed, two were allowed to proceed after theacceptance of undertakings

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ensure that access regulation provides incentives for efficient businessinvestment and use of infrastructure

maintained transmission prices in real terms with substantial increasesin investment; more than $700 million in new investment over fiveyears in three revenue cap decisions, covering electricity transmissionnetworks in Victoria and South Australia; enabled service providers tomeet growing electricity demand and deliver improved reliability ofsupply

with three decisions, saved electricity customers in two states about$425 million in five years when compared to proposals submitted byservice providers

included in gas reference tariffs an incentive for providers toout-perform benchmarks, retaining profits from efficiency gains

included consideration of investment incentives intelecommunications in the decision to declare a line sharing service;undertook a major survey of telecommunications infrastructure, toestablish investment levels and trends in the sector

ensure that businesses using monopoly services pay prices that reflectefficient costs

ensured that reference tariffs for access to monopoly gas pipelineservices reflected efficient costs of providing the services with fouraccess arrangements and two revisions completed

accepted undertakings for content sharing agreement between Foxteland Optus

finalised an anti-competitive conduct investigation into Telstra’sagency arrangements

accepted court enforceable undertakings from Vodafone regardingfastfone prepaid services

completed major cost-based assessment of Australia Post, withincentives for future cost reductions put in place

opposed price increases for Airservices Australia

issued stevedoring monitoring report showing average companycosts continued to decline

adjudicate authorisations applications (where anti-competitive behaviour isclaimed to deliver public benefits)

made 41 final determinations for 89 applications for authorisation(including gas, electricity, mergers and other authorisations)

received 61 new applications for authorisation, 21 new applications forminor variation to an existing authorisation, 11 new applications torevoke an existing authorisation and grant a substitute authorisation,11 requests to revoke an existing authorisation, and 248 notificationsfor exclusive dealing

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develop industry specific codes of conduct

provided technical assistance in developing and reviewing of industryand consumer codes of conduct

publicise merger and authorisation decisions, arbitrations, undertakings andaccess arrangements and monitor activities and inquiry findings

issued 36 media releases on merger and authorisation decisions,18 on undertakings, seven on gas access arrangements and six oninquiries and reports

provided more detailed findings of all ACCC decisions on the ACCCwebsite and in six editions of the ACCC Journal; regulatory decisionsappeared in three issues of the utility regulators’ forum publication,Network

assist parliamentary inquiries and government agencies to develop policies andprocesses that are consistent with the competition, fair trading and consumerprotection laws

produced more than 80 submissions, papers and reports in responseto parliamentary and government requests

made submissions to reviews of 11 mandatory product safetystandards, nine Australian standards and three product safety bans

liaise with other regulators, business and consumer associations, speak to thepublic, participate in meetings and conferences, nationally and internationally

held 10 advisory group meetings with industry and consumerrepresentatives

conducted two round table discussions on the smash repair industry,one on retail tenancy and one on motor vehicle advertising

coordinated the initiative targeting vulnerable consumers with theconsumer consultative committee; established the franchiseconsultative panel to work on emerging issues

worked with network industry regulators through the regulatorsforum, energy committee and working groups, the natural gaspipelines advisory committee, the National Competition Council,Australian Communications Industry Forum, New Zealand CommerceCommission and the Commonwealth Department of Industry, Tourismand Resources

help overseas trading partners to develop and implement effective competitionregimes to benefit Australian industry

provided technical assistance to four countries: Vietnam, Fiji,Barbados and Zambia

participated in 11 conferences and forums concentrating on promotingfair market practices

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monitor prices to assess the impact of market conditions on price levels ofgoods and services

monitored prices formally and informally for petrol, diesel, liquefiedpetroleum gas, compact discs, books, computer software, bank feesand charges, aeronautical and aeronautical-related services, containerstevedoring, freight rates for international liner cargo, public liabilityand professional indemnity insurance, medical indemnity insurance;seven reports released

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outcome one

to enhance social and economic welfare of the Australian community by fostering competitive,efficient, fair and informed markets

output 1.1.2competitive market structures andinformed behaviour

output group 1.1

output 1.1.1compliance with competition, fairtrading and consumer protection laws

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$’000 $’000 $’000 $’000 $’000

2001–02 57 716 685 58 401 50 522 7879

2002–032002–032002–032002–032002–03 41 29041 29041 29041 29041 290 332332332332332 41 62241 62241 62241 62241 622 52 29352 29352 29352 29352 293 (10 671)(10 671)(10 671)(10 671)(10 671)

2003–04 41 067

2001–02 25 744 444 26 188 21 733 4455

2002–032002–032002–032002–032002–03 21 27021 27021 27021 27021 270 255255255255255 21 52521 52521 52521 52521 525 21 05721 05721 05721 05721 057 468468468468468

2003–04 25 550

2001–02 83 460 1129 84 589 72 295 12 294

2002–032002–032002–032002–032002–03 62 56062 56062 56062 56062 560 587587587587587 63 14763 14763 14763 14763 147 73 35073 35073 35073 35073 350 (10 203)(10 203)(10 203)(10 203)(10 203)

2003–04 66 527

budg

et

average staffing level 2001–02 478.2

2002–032002–032002–032002–032002–03 468.6468.6468.6468.6468.6

2003–04 465.0

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promoting effective competition and informedmarkets

encouraging fair trading and consumer protection

The primary responsibility of the ACCC is to serve the public interest by ensuring thatbusinesses, and the people behind them, are aware of and comply with the competition, faircompetition, faircompetition, faircompetition, faircompetition, fairtrading and consumer protection trading and consumer protection trading and consumer protection trading and consumer protection trading and consumer protection laws.

VVVVVoluntary complianceoluntary complianceoluntary complianceoluntary complianceoluntary compliance with the law, especially a corporate culture of compliance withinbusinesses, is strongly encouraged by the ACCC.

The ACCC communicatescommunicatescommunicatescommunicatescommunicates widely, to assist businesses understand and meet their legalobligations and to inform consumers about their rights. It publishes extensive general andtargeted information about the law and the ACCC’s role in securing compliance, liaises with adiverse range of interested parties, and provides information directly to the tens of thousandsof inquirers who contact the ACCC each year.

When businesses choose to act unlawfully, or fail to take adequate measures to ensurecompliance and do not remedy their conduct, the ACCC acts to stop serious consequences forconsumers by enforcing complianceenforcing complianceenforcing complianceenforcing complianceenforcing compliance with the law.

Businesses that break the law gain illegal advantage at the expense of all Australians. Theyhurt consumers directly and sabotage the dynamics of competition that benefit consumers.

Those who engage in anti-competitive conductanti-competitive conductanti-competitive conductanti-competitive conductanti-competitive conduct deprive consumers of better prices, qualityand choice in goods and services at the most fundamental level. Those who engage inmisleading or unconscionable conductmisleading or unconscionable conductmisleading or unconscionable conductmisleading or unconscionable conductmisleading or unconscionable conduct also cause loss and damage to consumers, directlyand by wrongly disadvantaging other businesses.

The Australian public—consumers and business—are the ACCC’s undercover investigatorsundercover investigatorsundercover investigatorsundercover investigatorsundercover investigators indetecting non-compliance with the law. With millions of consumers testing marketperformance and business engaging in transactions every day, and many thousands of thosereporting matters of real concern every year, the ACCC is very well assisted in identifyingconduct and issues which require its particular attention.

Many anti-competitive and deceptive practices are not readily detectable by marketparticipants and the ACCC makes inquiriesinquiriesinquiriesinquiriesinquiries and conducts research and analysis, to identifyobscured non-compliance and emerging issues.

The ACCC is unable to investigateinvestigateinvestigateinvestigateinvestigate all possible contraventions of the law that come to itsattention, and focuses on those that fall within its priorities. During the year the ACCC receivedmore than 40 000 complaints relevant to the Act, identified about 660 for possible investigation,investigated about 220 matters in detail and commenced proceedings in 39 matters.


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this year the ACCC

published 17 new compliance publications, 11 corporate publications,20 about competition, and 38 about fair trading and consumer protection

received more than 1 000 000 visits to its website for businesspublications

answered 89 175 inquiries and complaints and recorded 53 532 ofthose in the national database

printed and distributed 75 publications for business; produced videosand CDs on compliance issues, distributed 800 video copies and 150 CDs

conducted an education campaign to encourage best practice in all-inclusive pricing, focusing on the aviation, motor vehicle and travelindustries

provided technical assistance on voluntary industry codes of conduct

for rural and regional business and consumers, and small business

produced and distributed by video the November 2002 competingfairly forum to 450 regional contacts around Australia, who thenshowed it to businesses and consumers in their regions

satellite broadcast the May 2003 competing fairly forum, ahypothetical hosted by Geoffrey Robertson, to 18 towns throughoutregional Australia; delivered further video presentations of the forumto 20 communities

visited 190 rural and regional towns to reach businesses andconsumers

held round table meetings to discuss retail tenancy issues, motorvehicle product safety issues, motor vehicle advertising, and to bringinsurance companies and smash repairers together for discussions

produced country of origin compliance guide for the food andbeverage industry and the furnishings industry

updated the general country of origin compliance guide and thecomplementary health care industry guide

provided information on stands at 16 expos/field days

delivered seminars for dairy farmers on collective bargaining withprocessors

provided fruit and vegetable producers with information on how todeal with retailers, wholesalers and agents in the retail supply chain

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with other agencies in Australia

produced a national series of seminars on collective bargaining in thedairy industry with Agriculture Forestry Fisheries Australia and theAustralian Dairy Farmers Federation

produced a framework for delivering trade practices information toregional Australia with Department of Transport and Regional Services

developed a national Indigenous consumer protection strategy withstate offices of fair trading, Treasury and Aboriginal and Torres StraitIslander Services

with other agencies internationally

held the 2002–03 presidency of the International Consumer Protectionand Enforcement Network

participated in international educative program on open relay emailand Australian government review on spam to reduce spam emailworldwide, and contacted businesses on open ports that can be usedto relay spam

reviewed the code of practice for domain name licence sellers

enforcing for business and consumers


this year the ACCCreinforced the seriousness of price fixing and market sharing,concluding litigation against compressors suppliers and an electricitytransformers supplier with further action still to go against one allegedparticipant in transformers cartel

halted attempt to induce blocking of bulk-billing and after-hoursservices at medical practice, and stopped agreement by obstetriciansto boycott ‘no-gap’ billing

alleged in cases currently before the court

that commenced this year:

collusion in fire protection services, flour, demolition services,masonry products, salmon farming

boycotts by unions and businesses in retail liquor supply

misuse of market power and exclusive dealing in supply of medicalfluids, sports apparel and barge services

price maintenance in beauty products

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that commenced before this year:

collusion in electricity transformers, vitamins, medical services, scrapmetal auctions and waste paper collection

collusion and misuse of market power in rural newspapers and CDs

collusion and price maintenance in petrol

misuse of market power in domestic aviation

competition issues in copyrighting of computer games


product safety | detected unsafe jelly cup confectionary, mislabelledcosmetics, unsafe cots, vehicle jacks and sunglasses; after complaints,and 41 surveys for banned goods and 28 surveys conducted at retailoutlets around Australia: 39 different products withdrawn from saleand/or recalled; seven court enforceable undertakings; one courtinjunction resulted

health and medical | stopped spurious fitness and weight lossclaims, miracle health claims about anodised aluminium charms,protected the sick and vulnerable from extravagant cure and treatmentclaims, made sure a skin product was described correctly, found‘100%’ orange juice with sugar and preservatives

retail prices and fine print advertising | pursued companies whomade incorrect headline price claims such as ‘15 per cent offeverything’ or ‘store cost plus one dollar’, revealed fictitious claims in‘was/now’ prices in music retailer’s catalogue, confirmed thatcomputer company must include delivery charges in advertised price,clarified labelling of GST charges, obtained GST refunds for motorvehicle customers, alerted shoppers to wrong sale claims, ensuredconsumers did not lose their rights to refunds, dealt with fine print inadvertisements for health insurance

internet and phones | checked on accuracy of information providedto internet and mobile phone users, made Yellow Pages supplierhonour an offer to supply priority service for extra payment, lookedinto claim that some long distance telephone calls were free, stoppedprice misrepresentation for mobile phone users

place of origin | stopped the use of ‘made in Tasmania’ labels onChinese shirts, removed ‘Australian made’ packaging from Thai airfilters, corrected claims when all products represented as local beefdid not come from local stock, found ‘Tasmanian’ meat that wasn’t,required accurate description of Australian content in commercial roadsweepers

income-earning and business opportunities | stopped televisionproduction company taking advantage of job seekers, gave punters achance on horse-racing betting software, stamped out an Americanpyramid selling scheme, prevented illegal franchising of will writing,took action over orange juice machine businesses, made sure majoroverseas company played fair in selecting Australian agents,challenged an accountant who wasn’t, ensured mandatory franchisingcode of conduct was followed

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alleged in cases currently before the court

that commenced this year:

health and medical claims, safety of car jacks, telephone serviceprices, lawyers’ prices, fine print and bait advertising, place of origin,business opportunities, Aboriginal-style art, stock feed, tax benefits,pest control, and web jacking

that commenced before this year:

health and medical claims, health insurance advertising, safetyinformation, telephone services, bait advertising, unconscionableconduct, business opportunities, fruit juice content claims, debtcollection practices, real estate investment, pyramid and referralselling, unsolicited business services, retail leasing, and responsibilityof advertising agents for misleading advertisements

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concluded:

litigation commenced and concluded during 2002–03 1 9 10

litigation commenced before 2002–03 and concluded 7 31 3848

during 2002–03

continuing:

litigation commenced during 2002–03 and continuing 14 15 29

litigation commenced before 2002–03 and 14 28 4271

continuing

undertakings:

undertakings accepted during 2002–03 6 24 30 30

149

information, liaison and enforcement

The ACCC considers voluntary industry codesvoluntary industry codesvoluntary industry codesvoluntary industry codesvoluntary industry codes a central plank of the strategy to encourage fairtrading in Australia, and was involved with technical assistance or the review of more than20 industry and consumer codes.

Consumer networks were expanded and their effectiveness enhanced through the consumerconsumerconsumerconsumerconsumerconsultative committeeconsultative committeeconsultative committeeconsultative committeeconsultative committee and the campaign to protect vulnerable and disadvantagedconsumers. Members of the committee include the Aboriginal Coordinating Council, AustralianConsumers Association, Australian Federation of Disability Organisations, CommunicationsLaw Centre, Consumer Credit Legal Service (WA), Consumer Law Centre of Victoria,Consumers Federation of Australia, Consumers Health Forum of Australia, Country Women’sAssociation and Tasmanian Council of Social Services.

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The ACCC, with 87 agencies from 24 countries, evaluated thousands of travel agencytravel agencytravel agencytravel agencytravel agencywebsites websites websites websites websites worldwide on 11 February 2003. In Australia, Treasury and all state and territory fairtrading authorities participated. Almost 1269 websites were identified internationally aswarranting further examination, 193 in Australia. The most common problems were:insufficient information such as contact details, inclusions, currency; non-secure websiteinviting personal information and credit card payments; and quoting a total price that excludescompulsory or essential charges.

Two meetings of the International Consumer PInternational Consumer PInternational Consumer PInternational Consumer PInternational Consumer Protection and Enforcement Networkrotection and Enforcement Networkrotection and Enforcement Networkrotection and Enforcement Networkrotection and Enforcement Network werehosted in Australia by the ACCC concentrating on effective cross-bordercross-bordercross-bordercross-bordercross-border actions that wouldbenefit consumers around the world. In April Treasury hosted the OECD committee onconsumer policy and guidelines for protecting consumers from fraudulent and deceptiveguidelines for protecting consumers from fraudulent and deceptiveguidelines for protecting consumers from fraudulent and deceptiveguidelines for protecting consumers from fraudulent and deceptiveguidelines for protecting consumers from fraudulent and deceptivecommercial practicescommercial practicescommercial practicescommercial practicescommercial practices across bordersacross bordersacross bordersacross bordersacross borders were released on 17 June 2003. In August 2002 AsiaPacific Economic Cooperation ministers approved the principles on consumer protection inthe online environmentonline environmentonline environmentonline environmentonline environment to establish a framework of consumer protection across the region,allowing consumers to transact online between economies with greater confidence.

The ACCC is strongly focused on promoting and facilitating voluntary compliancevoluntary compliancevoluntary compliancevoluntary compliancevoluntary compliance with theTrade Practices Act. To achieve that aim the ACCC organised discussions with industryindustryindustryindustryindustrygroupsgroupsgroupsgroupsgroups including travel agents, airlines and motor vehicle dealers.

Through meetings of the small businesssmall businesssmall businesssmall businesssmall business advisory groupadvisory groupadvisory groupadvisory groupadvisory group and the newly formed franchisefranchisefranchisefranchisefranchiseconsultative panelconsultative panelconsultative panelconsultative panelconsultative panel the ACCC liaised with small business industry groups. This is a two wayprocess where the ACCC provides guidance on the law, and small business industry groupscan relay concerns to the ACCC.

The ACCC also hosted a roundtable with motor vehicle industrymotor vehicle industrymotor vehicle industrymotor vehicle industrymotor vehicle industry stakeholders to consider theissue of price representations in advertising claims.

Continued support was given for the franchising industryfranchising industryfranchising industryfranchising industryfranchising industry and enforcement of the mandatoryfranchising code of conduct which is prescribed under the Trade Practices Act.

At the second annual International Competition NetworkInternational Competition NetworkInternational Competition NetworkInternational Competition NetworkInternational Competition Network conference in June 2003 members,including the ACCC, adopted recommended practice proposals and presented reports toimprove merger review, competition advocacy, and capacity building throughout the world.

The Principles-based review of the law of negligence (the Ipp review) Principles-based review of the law of negligence (the Ipp review) Principles-based review of the law of negligence (the Ipp review) Principles-based review of the law of negligence (the Ipp review) Principles-based review of the law of negligence (the Ipp review) was announced on2 July 2002. The review panel was asked to review the law of negligence and its interactionwith the Trade Practices Act. The ACCC provided two submissions to the review.

Second insurance industry markSecond insurance industry markSecond insurance industry markSecond insurance industry markSecond insurance industry market pricing reviewet pricing reviewet pricing reviewet pricing reviewet pricing review, a parliamentary report to Senator Coonanreleased in September 2002 concluded that despite the effects of 11 September 2001 thecollapse of HIH and successive years of significant underwriting losses in the 1990s, theoutlook for the Australian general insurance industry for 2002–03 was positive.

Anti-competitive and other practices by health funds in relation to private healthAnti-competitive and other practices by health funds in relation to private healthAnti-competitive and other practices by health funds in relation to private healthAnti-competitive and other practices by health funds in relation to private healthAnti-competitive and other practices by health funds in relation to private healthinsurance, insurance, insurance, insurance, insurance, fourth report to the Australian Senate on practices that reduce the extent of healthcover for consumers and increase their out-of-pocket medical and other expenses.

GST reports, GST reports, GST reports, GST reports, GST reports, seventh and eighth reports to the Minister for Financial Services and Regulationabout the ACCC’s oversight of pricing responses to the introduction of the new tax system (GST).

Relative financial and corporate differences between friendly society dispensaries andRelative financial and corporate differences between friendly society dispensaries andRelative financial and corporate differences between friendly society dispensaries andRelative financial and corporate differences between friendly society dispensaries andRelative financial and corporate differences between friendly society dispensaries andpharmacistpharmacistpharmacistpharmacistpharmacist-----owned pharmaciesowned pharmaciesowned pharmaciesowned pharmaciesowned pharmacies report to the Treasurer, concluding that friendly societydispensaries did not have significant competitive advantages including as a result of theirincome tax treatment.

Grocery pricing inquiry report Grocery pricing inquiry report Grocery pricing inquiry report Grocery pricing inquiry report Grocery pricing inquiry report on wholesale prices paid to suppliers by the retail chains andthe independent wholesalers was delivered to the President of the Senate on 30 September 2002.

There were 71 enforcementenforcementenforcementenforcementenforcement matters before the courts at year’s end, and 39 proceedings werecommenced. Of the 119 matters before the court during the year, 48 were concluded. Ten ofthe concluded matters were commenced during the year. No judgment debts were written offor waived. Public undertakings to address apparent contraventions and provide appropriateremedial action were accepted in 30 matters (eight being associated with litigation matters).

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Additionally there were seven new appealsappealsappealsappealsappeals during the year: Medibank, Saatchi & Saatchi, JohnBevins, Medical Benefits Fund of Australia, Dell Computer, Rural Press and Sony (amicus curiae).

The ACCC issued 234 notices under its powers to compulsorily acquire informationcompulsorily acquire informationcompulsorily acquire informationcompulsorily acquire informationcompulsorily acquire information(section 155); 111 notices to provide information in writing (section 155(1)(a)), 113 notices toprovide documents (section 155(1)(b)) and 10 notices to appear in person (section 155 (1)(c)).

During the year the ACCC concluded its inquiries into anonymous allegations of collusionallegations of collusionallegations of collusionallegations of collusionallegations of collusionamong three major oil companies and associated petroleum distribution companies.In the investigation the ACCC exercised its powers to enter premises and inspect and copydocuments, and these attendances at premises were reported in the press.

The ACCC was strongly criticised by the companies and others. This criticismcriticismcriticismcriticismcriticism was directed atthe publicity generated, clouding clear justification for commencing the investigation and thecorrectness of the processes adopted. The ACCC has since reviewed its approach to thisinvestigation, as it does with any major investigation, and has learned from the experience.Its resolve to investigate allegations of cartel activity is unchanged.

Hard core cartelscartelscartelscartelscartels are among the most serious violations of the law. To increase detection andbreaking of collusive conduct such as market sharing, price fixing and bid rigging, the ACCCintroduced its leniency policyleniency policyleniency policyleniency policyleniency policy on 30 June 2003. In return for revealing such conduct andcooperating with the ACCC, cartel participants will receive a clear, transparent and certainoffer of leniency. Leniency is only available to the first company or executive to come forward,and is not available to persons who coerce others or to clear cartel leaders.

The ACCC’s prioritiesprioritiesprioritiesprioritiespriorities are reflected in matters it chooses to investigate and litigate. Recentenforcement history shows continuing issues with all forms of anti-competitive conduct, andspecific compliance issues affecting basic consumer purchases both large and small.

Compliance by the professionsprofessionsprofessionsprofessionsprofessions with the Trade Practices Act continues to be a priority forthe ACCC. The ACCC pursues information and liaison activities, while applying the Act to theprofessions in the same way as it does for all other sectors of the Australian economy.The ACCC remains focused on issues pertinent to all professions, including in the health andmedical sectors.

Other enforcement issues include:

product safetyproduct safetyproduct safetyproduct safetyproduct safety problems are often detected, and prompt withdrawal of offending productsposing significant risk is sought; unsubstantiated health and medical claims health and medical claims health and medical claims health and medical claims health and medical claims have strongpotential to take advantage of vulnerable consumers; misleading food and beverages food and beverages food and beverages food and beverages food and beverages claimsabout what ingredients are present or not present; misleading retail price advertising and theuse of fine printfine printfine printfine printfine print across a variety of sectors and including claims about discounts, savings,what goods or services are included in prices quoted, free products, and non-disclosure ofnecessary costs such as taxes; price advertising for telephone and internet servicestelephone and internet servicestelephone and internet servicestelephone and internet servicestelephone and internet services andmisleading conduct about domain name requirements; place of origin place of origin place of origin place of origin place of origin of goods; pyramidpyramidpyramidpyramidpyramid andandandandandreferral selling schemesreferral selling schemesreferral selling schemesreferral selling schemesreferral selling schemes, and unconscionable conduct unconscionable conduct unconscionable conduct unconscionable conduct unconscionable conduct towards business and consumers.

There are also on-going problems with income-earning opportunities generally, includingpurchases of small businessespurchases of small businessespurchases of small businessespurchases of small businessespurchases of small businesses.

To enhance the effectiveness and efficiency of investigations and litigation, the ACCC furtherimproved its ability to use information technologyinformation technologyinformation technologyinformation technologyinformation technology. Also, the ACCC successfully undertooknumerous enforcement activities involving businesses using information technology and theworldwide web to engage in possible breaches of the law, including securing court orders toassume control of a website. It engaged with providers of information technology and internetservices, and conducted a major analysis of an on-line joint venture.

Investigations and litigation continue to more frequently involve businesses located in othercountries, in both the competition and consumer areas. Formal and informal collaborationbetween the ACCC and its international enforcement counterpartsinternational enforcement counterpartsinternational enforcement counterpartsinternational enforcement counterpartsinternational enforcement counterparts has greatly assisted theACCC’s law enforcement in such circumstances.

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major litigation

As in 2001–02 much of the more significant litigation undertaken by the ACCC this yearconcerned anti-competitive conduct and was subject to court appeals.

The FFFFFederal Courtederal Courtederal Courtederal Courtederal Court dismissed the ACCC’s case alleging price fixing by major milk processorssupplying the Northern Territory. Notwithstanding the dismissal, the court stated that the ACCCwas justified in making its inquiries and bringing its action. The ACCC continues itsproceedings against: Qantas Airways (alleged misuse of market power in airline services);Baxter Healthcare (alleged misuse of market power and exclusive dealing in medical fluids);Liquorland and Woolworths (alleged restrictive arrangements for take-away liquor); Fila SportsOceania (alleged misuse of market power and exclusive dealing in sports apparel); and theAMWU, AWU and CEPU unions (alleged picket line boycott). The ACCC is also pursuing anumber of alleged price fixing and market sharing arrangements before the Federal Court.

Proceedings under appeal to the FFFFFull Full Full Full Full Federal Courtederal Courtederal Courtederal Courtederal Court were those against Australian SafewayStores (alleged misuse of market power, price fixing and market sharing in bread), UniversalMusic and Warner Music (alleged misuse of market power and exclusive dealing concerningparallel imports of CDs), NT Power Generation v Power and Water Authority (alleged misuse ofmarket power—ACCC intervening on the application of the Act to government energy contracts)and Stevens v Kabushiki Kaisha Sony Computer Entertainment (alleged circumvention ofCopyright Act concerning chipping of PlayStations—ACCC appearing as amicus curiae).

Cases under appeal to the High CourtHigh CourtHigh CourtHigh CourtHigh Court at the end of the year were Visy (alleged anti-competitive agreement concerning waste paper collection), Rural Press (alleged misuse ofmarket power and anti-competitive arrangements concerning newspapers) and South SydneyRugby League Football Club v News Ltd (alleged anti-competitive arrangement concerningfootball games entry; ACCC intervening).

During the year the ACCC was unsuccessful in four cases brought before the High Court butthe court clarified aspects of the Trade Practices Act important to the application of the law.

misuse of substantial market power

The BoralBoralBoralBoralBoral case, in which the ACCC alleged misuse of substantial marketpower, concerned price reductions out-bidding a new entrant in the concretemasonry sector in Victoria. The ACCC alleged that Boral had substantialmarket power and tried to use it to predatory price the new entrant out of themarket. The High Court found that Boral did not have substantial marketpower, that it was meeting customer demand in reducing prices to generatebusiness, and that out-bidding the new entrant was a legitimate competitiveresponse. Questions arise from the decision about what constitutessubstantial market power; this may become clearer as further proceedingsare decided by the courts.

unconscionable conduct

In the CG Berbatis HoldingsCG Berbatis HoldingsCG Berbatis HoldingsCG Berbatis HoldingsCG Berbatis Holdings case, the ACCC alleged unconscionableconduct had occurred in relation to a retail lease. The High Court found thatthe tenants were not under any special disadvantage and that it was notunfair for the landlords in the case to refuse to renew or extend acommercial property lease on condition that the tenants withdrewproceedings against the landlords in the Western Australian CommercialTenancy Tribunal. The tenants in the case had no pre-existing entitlement torenewal or extension of the lease. The proceedings turned on the traditionalequitable law against unconscionable conduct imported into the TradePractices Act. New provisions prohibiting unconscionable conduct have beenadded to the Act since the circumstances in this case arose. The extent towhich the decision affects the application of these new provisions willbecome clearer as the courts work through further cases.

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honouring advertised promises

In the Medibank PrivateMedibank PrivateMedibank PrivateMedibank PrivateMedibank Private case, the ACCC alleged misrepresentations aboutthe benefits of health insurance cover available from Medibank. The case iscontinuing. During the proceedings, Medibank successfully contestedwhether the ACCC could ask the courts to order that Medibank honour therepresentations it made to consumers. The High Court declined to grantspecial leave to appeal to the High Court on the ACCC’s case as currentlypleaded, whether Medibank could be required by the courts to honour itspromises. If the ACCC is unable to ask courts to order that businesses liveup to their advertised promises in appropriate cases, this will haveconsequences for businesses’ approach to how they induce consumers toshop with them and for affected consumers.

ACCC power to demand information

The Woolworths/Coles/DanielsWoolworths/Coles/DanielsWoolworths/Coles/DanielsWoolworths/Coles/DanielsWoolworths/Coles/Daniels cases concerned whether the ACCC’sstatutory power to demand information about suspected illegal conductcovered information subject to legal professional privilege. The High Courtruled that the ACCC could not compulsorily acquire legally privilegedinformation without the consent of the person holding the privilege.The High Court noted that communications between lawyers and clients forthe purpose of illegal activity or seeking to evade the law were not coveredby its decision. Where contraventions are aided by lawyers or sought to becloaked by claims of privilege, the ACCC can obtain relevant information.The decision nevertheless has implications for the ACCC’s ability to properlyinvestigate alleged illegal activity where information is withheld because ofclaims to legal privilege.

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the infocentre

The infocentre is the primary contact point for people telephoning or emailing the ACCC.Infocentre staff have a good working knowledge of the Trade Practices Act and other relatedlegislation and are able to advise consumers and businesses about their rights and obligations.The more serious allegations are passed directly to investigators for follow-up action.The information received from businesses and consumers is recorded in the ACCC complaintsdatabase. This information is available to all staff for the purpose of analysing complainttrends and identifying possible areas of further inquiry.

Last year significant issues including the collapse of One.Tel, HIH and Free2aiR led to higherhigherhigherhigherhighercall volumescall volumescall volumescall volumescall volumes. Last year’s figures also include 5000 calls on GST related matters which are notnow included in ACCC responsibilities. This year the spike in the retailing classification ofpharmaceutical, cosmetic and toiletry was due to the recall of Pan Pharmaceutical productsand, in particular, the rights of consumers to obtain refunds. A high volume of emailemailemailemailemailcomplaintscomplaintscomplaintscomplaintscomplaints last year stemmed from the consumer price indexation of HECS debts with3200 emails received on this issue alone.

infocentre telephone 1300 302 502 | internet www.accc.gov.au[ ]The infocentre received 69 compliments on the advice given.

Some examples are:

Your reply is thorough and so very informative; in fact it leaves me speechless andhas detracted my focus away from the issue of a refund. Leave aside the fact ofhaving a department that protects the consumer and handles such queries, theefficiency and thoroughness of your staff is astounding. Thank you so much.

Thank you very much for your very helpful and clear answers to my questions. That isexactly what I need to know. I hope to resolve the issue amicably with the trader butam grateful for your information and suggestions should I need to pursue them.Thanks again for your first class help.

I am very impressed with the detail and promptness of your response. Keep up theoutstanding work, I will follow the suggestions given.

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telephone callsreceived 65 349 87 078served 62 205 75 108abandoned 2910 7948engaged 69 2041voicemail 165 1981

email complaintsnumber of emails sent 8348 12 333answered by telephone response 4937 5675answered by return email 1843 4924sent elsewhere for response 398 431no response required 1170 1303

business information complaints or inquiriesabout a small business 9575 8870from a small business 7843 9009about a franchise matter 1390 1279about an online trader/e-commerce 2926 2327

escalated for investigation 1537 1690

flagged for future review 1746 2684

top ten industries for complaintstelecommunication services 4247 6798domestic appliance retailing 3117 3065business services generally 2536 2123retailing generally 2055 1412automotive fuel retailing 1836 1964car retailing 1008 931banks 966 1102services to finance and investment 902 905general insurance 825 1342pharmaceutical cosmetic and toiletry retailing 815 343

this year the ACCC infocentrereceived 65 349 telephone calls; 62 205 served, 2910 callers advisedto visit website, 69 put off by engaged signal because of large amountof calls, 165 voicemail calls

responded to 83 per cent of calls in less than 20 seconds

entered 53 532 matters on to complaints database

received 8348 email complaints

sent out 15 187 publications to callers

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top 10 breaches of the Trade Practices Actpredominantly fair trading and consumer protectionpart V and VBmisleading or deceptive conduct 9601 11 106retail warranties 4848 2805price misrepresentation 1657 1881warranties, rights misrepresentation 713 639performance misrepresentation 525 808accepting payment non supply 461 616goods and services tax 469 1756

predominantly effective competition and informed marketspart IVexclusive dealing 698 731misuse of market power 830 572agreements lessening competition 713 475

publications sent to callersWarranties and refunds 4860 2624Merchant pricing for credit card payments 4827 0Franchisees guide 1312 1682Small business and the Trade Practices Act 1279 629News for business—fresh fruit and vegetables and the TPA 1024 0Are you being harassed about debts 286 298Country of origin claims 183 130Care labelling 158 136Cosmetics and toiletries—ingredient labelling 151 119Refusal to deal 137 135

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last year 137 1333 954 959 467 294 92 81 7 4324this year 174 1502 1062 1023 541 399 114 60 23 4898







Aus

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geographic location of inquiries and complaints

part IV

part V

part VB

part IVA/B

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where we did it

The ACCC investigates matters throughout Australia,via its regional and national offices.[ ]

concluded casesconcluded casesconcluded casesconcluded casesconcluded cases

Crackerjack Productions

Dell Computer

Signature Security Group

Michael Kotowicz

Woolworths

Top Snack Foods

Crowded Planet

continuing casescontinuing casescontinuing casescontinuing casescontinuing cases

Commonwealth Bank ofAustralia

Fila Sports Oceania

Giraffe World

Global Pre Paid & In-TouchNetworks

Advanced Medical Institute

Arnold’s Ribs and Pizzas

Australian Biologics

Various Scrap Metal Dealers

FFE Building Services & others

Liquorland (Australia),Woolworths Ltd

Warner Music Australia

Universal Music Australia

Visy Paper


Boral Ltd

SIP Australia

Karmy

Mitre 10

Rod Turner Consulting

Sensis/Pacific Access

Telstra

Wizard Mortgage

Australian Safeway Stores


AMWU, AWU & CEPU

Dermalogica

David Francis

Berri

Cadbury Schweppes

Billbusters

BMW (Australia)

National Telecoms Group

Harvey Norman Holdings

Pacific Dunlop

Leahy Petroleum

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Internet TV Australia

Michigan Group

Redmond Holdings

Solutions Software International

Daniels Corporation

IMB Group

Daewoo Australia

Buyers Group


Eurong Beach Resort

Australian Icon Products

Black on White

Danoz Direct

Dataline.net.au

Kwik Fix International

Oceana

Westfield

World Netsafe


Skybiz.Com Inc

Virgin Mobile Australia

Wesfil (Australia) Pty Ltd

CG Berbatis Holdings

Trans Oriental Import and Export


Econovite

Thorn Australia

Emerald Ocean

Esanda

Greenstar Co-operative

IT&T AG

Lux

Mayne Group

Midland Brick, BristileOperations

Info4pc.com


Pauls Ltd & others

Voyages Hotels and Resorts

Woolworths, Arnhem Club


Chaste Corporation

Rhonwood Ltd


Internet Registrations Australia

Transformation 2012

A K Freund

Mark Leyden, Stephen Robson& Paul Khoo

Western District Health Fund

NRMA Health

Internet Name Protection

Purple Harmony Plates

NT Power


South Sydney Rugby League,News Ltd

Morgan Buckley

Richard Chen

Baxter Healthcare

Saatchi & Saatchi Australia

John Bevins

F Hoffmann-La Roche & others

Bray & F Hoffmann-La Roche

Medical Benefits Fund ofAustralia

Medibank Private

ABB Power Transformers

ABB Distribution Transformers

Kabushiki Kaisha SonyComputer Entertainment

George Weston

Qantas Airways

Perth

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Allans Music Group Pty Ltd

Collagen Aesthetics

Dodo Internet


FFE Building Services & others

McMahon Services Pty Ltd &others

Synergy in Business

South Australian OliveCorporation

Pest Free Australia

4WD Systems

Rural Press


Commercial and GeneralPublications

Tamar Knitting Mills

Will Writers Guild


Tasmanian Salmonid GrowersAssociation, Tassal

continuing casecontinuing casecontinuing casecontinuing casecontinuing case

Multigroup DistributionServices

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promoting effective competition and informed markets

encouraging fair trading and protecting consumers

The following information provides a brief summary of enforcement activity undertaken bythe ACCC during the year. More information is available on the ACCC website www.accc.gov.au,in the ACCC Journal or by contacting the ACCC infocentre on 1300 302 502. The information isgrouped:

1. litigation commenced and concluded during 2002–03

2. litigation commenced during 2002–03 and continuing

3. litigation commenced before 2002–03 and concluded during 2002–03

4. undertakings accepted during 2002–03

5. litigation commenced before 2002–03 and continuing


part IV anti-competitive conduct: price fixing, market sharing, boycotts, agreementssubstantially lessening competition, misuse of market power, exclusive dealing,resale price maintenance, mergers and acquisitions substantially lesseningcompetition

part XIA the competition code


part IVA unconscionable conduct in commercial and consumer transactions

part IVB industry codes of conduct; the franchising code is a mandatory code prescribedunder part IVB

part V unfair practices, misleading and deceptive conduct, pyramid selling, country oforigin representations, product safety and information, conditions and warrantiesin consumer transactions

part VA liability of manufacturers and importers for defective goods

parts VB price exploitation concerning GSTand XIAA

part VC criminal conduct in fair trading and consumer protection

snapshots of litigation andadministrative settlements

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1. litigation commenced and concludedduring 2002–03


medical servicesmedical servicesmedical servicesmedical servicesmedical servicesAK Freund Pty Ltd, Abraham Freund

alleged alleged alleged alleged alleged | 3 December 2002 | lessening competition, primary boycott | attempt to induce aboycott of bulk-billing and after-hours services at Berwick Springs Medical Centre

Justice SundbergFederal Court Melbourne5 March 2003

orders by consent: declarations; undertakings to the court;agreed costs

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significance significance significance significance significance | peer pressure to boycott bulk billing and restrict trading hours is a serious breach

weight lossweight lossweight lossweight lossweight lossDavid Francis

allegedallegedallegedallegedalleged | 31 October 2002 | contempt of court | failed to comply with orders prohibitingunsubstantiated claims for products represented as being able to assist in weight loss

Justice RyanFederal Court Melbourne17 February 2003

fined $9000 for contempt of court, and costs

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significance significance significance significance significance | parties who do not obey court orders are pursued

internetinternetinternetinternetinternetDodo Internet Pty Ltd

allegedallegedallegedallegedalleged | 17 September 2002 | misleading, deceptive and unconscionable conduct |misrepresented dial-in telephone numbers provided unlimited internet access at local callcosts, failed to check dial-in numbers, refused to deal with complaints, relied on unlawfulexclusion clause

Justice MansfieldFederal Court Adelaide6 February 2003

orders by consent: found conduct misleading, deceptive andunconscionable, injunctions, customer compensation for long-distance charges, implementation of trade practices complianceprogram

resu

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significance significance significance significance significance | accuracy of advertising for internet access

internetinternetinternetinternetinternetInternet Registrations Australia Pty Ltd

alleged alleged alleged alleged alleged | 13 September 2002 | misleading or deceptive conduct, accepting payment withoutintending or being able to supply, unsolicited services, misrepresentations | about registeringand renewing internet domain names, claimed pre-existing relationship or prior dealing, authorityto register or renew consumers’ domain names, and ability to register com.au domain names

Justice FinnFederal Court Canberra29 November 2002

orders by consent declarations, injunctions, costs, implementationof trade practices compliance program; court enforceableundertakings for corrective notices and refundsre

sult

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significance significance significance significance significance | correction and compensation for misleading claims re internet services

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rights to refundsrights to refundsrights to refundsrights to refundsrights to refundsKarmy Pty Ltd trading at Schots Restoration Emporium

alleged alleged alleged alleged alleged | 22 April 2003 | misleading or deceptive conduct, misrepresentation of right orremedy | misrepresented that consumers are not entitled to refunds on sale items if goodsare faulty, that such refunds would be at the company’s discretion

Justice NorthFederal Court Melbourne21 May 2003

orders by consent: declarations, injunctions, correctiveadvertising, implementation of trade practices complianceprogram and costsre

sult

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significance significance significance significance significance | misrepresentation of consumers’ trade practices rights contravenes the Act

pre-paid telephone cardspre-paid telephone cardspre-paid telephone cardspre-paid telephone cardspre-paid telephone cardsTelstra Corporation Limited

alleged alleged alleged alleged alleged | 24 October 2002 | misleading or deceptive conduct | re pre-paid long distance‘say g’day’ calling cards, accessing the long distance service phone number was ‘free’ or was‘a free call from fixed phones’, whereas the call cost was 53 cents per minute

Justice RyanFederal Court Melbourne15 November 2002

orders by consent to stop making misleading claims re callingcard costs; ACCC accepted court enforceable undertakings fromTelstra to waive the 53 cents per minute charge until correctedcards, vouchers and promotional materials were distributed toretailers; and to review compliance procedures

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significance significance significance significance significance | free means free

mini cup jellymini cup jellymini cup jellymini cup jellymini cup jellyTrans Oriental Import and Export Pty Ltd

alleged alleged alleged alleged alleged | 10 December 2002 | misrepresentations and supply of banned product |supplied mini-cup jellies containing the ingredient konjac, a choking hazard

Justice CarrFederal Court Perth14 May 2003

by consent found misleading conduct and supply of bannedgoods; injunctions; corrective notices; trade practicescompliance program and costsre

sult

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significance significance significance significance significance | product safety issue addressed

internet health curesinternet health curesinternet health curesinternet health curesinternet health curesTransformation 2012 Pty Ltd

alleged alleged alleged alleged alleged | 11 September 2002 | misleading or deceptive conduct | marketed products oninternet claiming they could treat or cure a wide range of diseases and illnesses

Justice FinnFederal Court CanberraFebruary 2003

orders by consent: declarations; permanent injunctions;implementation of trade practices compliance program;corrective notice on website; court enforceable undertakings toprovide refunds

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significance significance significance significance significance | unsubstantiated treatment claims can affect vulnerable people with illness

tourismtourismtourismtourismtourismVoyages Hotels and Resorts Pty Ltd

alleged alleged alleged alleged alleged | 19 July 2002 | misleading or deceptive conduct | claimed exclusive right toconduct tours to Yulara Pulka, that traditional Aboriginal owners would meet tour groups andreceive a significant amount of the tour price

Justice MansfieldFederal Court Darwin28 April 2003

by consent found misleading conduct; costs; court enforceableundertakings not to promote tours without consent of Aboriginalpeople; trade practices compliance programre

sult

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significance significance significance significance significance | businesses making claims to have a permit or agreement in place withAboriginal people

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air filtersair filtersair filtersair filtersair filtersWesfil (Australia) Pty Ltd

allegedallegedallegedallegedalleged | 12 July 2002 | misleading or deceptive conduct, place of origin | attached labelsbearing the claim ‘made in Australia’ on packaging of car air filters; filters marked as made inThailand

Justice LeeFederal Court Perth16 August 2002

by consent found misleading conduct as to country of origin ofsome automotive air filters; injunctions; corrective notices;refunds; trade practices compliance programre

sult

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significance significance significance significance significance | country of origin packaging

2. litigation commenced during 2002–03 andcontinuing


unionsunionsunionsunionsunionsAutomotive, Food, Metals, Engineering, Printing and Kindred Industries Union (AMWU),the Australian Workers’ Union (AWU) and the Communications, Electrical, Electronic,Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU)

alleged alleged alleged alleged alleged | secondary boycott | maintained a picket at the entrance to the construction site ofthe Patricia Baleen gas plant near Orbost preventing construction workers and vehiclesdelivering materials from entering

Justice GrayFederal Court Melbourne16 May 2003

proceedings commenced seeking declarations, injunctions,penalties, implement compliance program, public notice injournals detailing the ordersst

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medical fluidsmedical fluidsmedical fluidsmedical fluidsmedical fluidsBaxter Healthcare Pty Ltd

allegedallegedallegedallegedalleged | misuse of market power, exclusive dealing | entered into long-term, exclusive,bundled contracts of between three and five years to be the sole or primary supplier of largevolume parenteral fluids, parenteral nutrition fluids, irrigating solutions and peritoneal dialysisproducts

Justice WhitlamFederal Court Sydney1 November 2002

proceedings commenced seeking findings of fact, declarations,injunctions, penalties and review of trade practices complianceprogramst

atu

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beauty productsbeauty productsbeauty productsbeauty productsbeauty productsDermalogica Pty Ltd

alleged alleged alleged alleged alleged | resale price maintenance | requested two retailers to stop discounting via theinternet; web guidelines stated that violation of the company’s policy could result in accounttermination and legal action

Justice GoldbergFederal Court Melbourne21 November 2002

proceedings commenced seeking declarations, injunctions,penalty, findings of fact and costs

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barge servicesbarge servicesbarge servicesbarge servicesbarge servicesEurong Beach Resort Limited and others

allegedallegedallegedallegedalleged | misuse of market power, price fixing, market sharing, exclusive dealing, harassmentand coercion | predatory pricing by barge operator at southern tip of Fraser Island to damageor eliminate new competitor

Justice KiefelFederal Court Brisbane5 September 2002

proceedings commenced seeking declarations, injunctions,penalties, adverse publicity orders, implementation of tradepractices compliance programst

atu

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fire protectionfire protectionfire protectionfire protectionfire protectionFFE Building Services Ltd, Tyco Australia Pty Ltd, Australian Fire Services Pty Ltd, andAustralian Fire Services (SA) Pty Ltd, On-Line Fire Protection Pty Ltd and others

alleged alleged alleged alleged alleged | agreements lessening competition, exclusionary provision, price fixing |companies in South Australia installing fire sprinklers, alarms, and other systems made anti-competitive agreement

Justice MansfieldFederal Court Adelaide23 April 2003

proceedings commenced seeking injunctions, declarations,penalties and costs

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fire protectionfire protectionfire protectionfire protectionfire protectionFFE Building Services Ltd, Tyco Australia Pty Ltd and others

alleged alleged alleged alleged alleged | price fixing, market sharing and misleading conduct | New South Wales fireprotection industry tenders for the provision of fire protection services

Justice WilcoxFederal Court Sydney5 September 2002

proceedings commenced seeking injunctions, declarations,penalties and costs; 6 August 2003 directions hearing

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sports apparelsports apparelsports apparelsports apparelsports apparelFila Sports Oceania Pty Ltd and others

alleged alleged alleged alleged alleged | 5 September 2002 | misuse of market power, exclusive dealing | imposedselective distribution policy; withdrawal of supply of Fila AFL-licensed apparel from retailerswho did not agree to adopt policy; directors of Fila involved in the formulation andimplementation of the policy

Justice HeereyFederal Court Melbourne5 August 2003

directions hearing 16 December 2003

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wheaten flourwheaten flourwheaten flourwheaten flourwheaten flourGeorge Weston Foods Limited

alleged alleged alleged alleged alleged | price fixing | company and divisional chief executive telephone calls to seniorrepresentatives of competitor to induce an increase in the wholesale price of wheaten flour(used in baking most bread)

Justice GylesFederal Court Sydney5 December 2002

proceedings commenced seeking declarations, penalties,injunctions and costs; directions hearing on 10 July 2003

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ann

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02–0

346

two

perf

orm

ance

liquor retailingliquor retailingliquor retailingliquor retailingliquor retailingLiquorland (Australia) Pty Ltd and Woolworths Limited

alleged alleged alleged alleged alleged | anti-competitive agreements, primary boycotts | restrictive agreements withoperators of licensed premises for the purpose of substantially lessening competition inpackaged takeaway liquor markets

Justice AllsopFederal Court Sydney30 June 2003

proceedings commenced seeking declarations, injunctions,penalties, trade practices compliance programs, costs

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demolition and asbestos removaldemolition and asbestos removaldemolition and asbestos removaldemolition and asbestos removaldemolition and asbestos removalMcMahon Services Pty Ltd, SA Demolition & Salvage Pty Ltd and DCD Enterprises Pty Ltd

allegedallegedallegedallegedalleged | price fixing | in relation to tender for demolition and removal of asbestos atDefence site in South Australia

Justice SelwayFederal Court Adelaide24 January 2003

proceedings commenced seeking declarations, penalties,injunctions, findings of fact, implementation of trade practicescompliance program and costsst

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bricksbricksbricksbricksbricksMidland Brick Company Pty Ltd and Bristile Operations Pty Ltd

alleged alleged alleged alleged alleged | price fixing | supply of bricks to builders

Justice LeeFederal Court Perth30 June 2003

proceedings commenced seeking declarations, injunctions,penalties and costs

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rugby leaguerugby leaguerugby leaguerugby leaguerugby leagueSouth Sydney District Rugby League Football Club, News Limited

Justices Gleeson CJ,McHugh, Gummon,Kirby and CallinanHigh Court of AustraliaAugust 2002

ACCC granted leave to intervene in the High Court appeal from adecision of the Full Federal Court concerning the exclusion ofSouth Sydney team from the premier competition; Southsalleged before the Federal Court that the term of the partnershipagreement between News Ltd and the Australian Rugby League,that restricted the competition to 14 teams, was an exclusionaryprovision in breach of the Trade Practices Act; judgment reserved

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salmon farmingsalmon farmingsalmon farmingsalmon farmingsalmon farmingTasmanian Salmonid Growers Association, Tassal Ltd

alleged alleged alleged alleged alleged | price fixing, exclusionary conduct | Atlantic salmon farmers in Tasmania agreed torestrict production, to avoid oversupply and price fall

Justice HeereyFederal Court Hobart24 April 2003

proceedings commenced seeking declarations, injunctions,penalties, findings of fact, implementation of trade practicescompliance program, costsst

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takeaway liquor retailingtakeaway liquor retailingtakeaway liquor retailingtakeaway liquor retailingtakeaway liquor retailingWoolworths (South Australia) Pty Ltd, The Arnhem Club Inc, Rhonwood Pty Ltd

allegedallegedallegedallegedalleged | December 2002 | price fixing | of certain alcohol products in Nhulunbuy

Justice MansfieldFederal Court Darwin30 May 2003

ordered injunctions against Woolworths and The Arnhem Cluband costs; noted court enforceable undertakings that $150 000be paid by each of them to an alcohol prevention program inNhulunbuy; proceedings against Rhonwood Pty Ltd trading asThe Walkabout Tavern are continuing

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2002

–03

two

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medical servicesmedical servicesmedical servicesmedical servicesmedical servicesAustralian Biologics Testing Services Pty Ltd

allegedallegedallegedallegedalleged | 30 June 2003 | misleading and deceptive conduct | no reasonable grounds forstatements about thermography, live blood analysis and the Bolans clot retraction test

Justice MooreFederal Court Sydney17 July 2003

next directions 20 November 2003

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Aboriginal artAboriginal artAboriginal artAboriginal artAboriginal artAustralian Icon Products Pty Ltd

allegedallegedallegedallegedalleged | 19 March 2003 | misleading or deceptive conduct | represented that some of itshand painted Aboriginal-style souvenirs were ‘authentic’, ‘certified authentic’ and/or ‘AustralianAboriginal art’, when most artists were not Aboriginal

Justice CooperFederal Court Brisbane4 April 2003

interim orders by consent for corrective notices and restrainingdescription as ‘Aboriginal art’ or ‘authentic’ unless painted orcarved by a person of Aboriginal descent; ACCC seeking summaryjudgment

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car jackscar jackscar jackscar jackscar jacksBMW (Australia) Limited

alleged alleged alleged alleged alleged | 28 October 2002 | failure to comply with mandatory safety standard | supply ofvehicle jacks and owner manuals

Justice MarshallFederal Court Melbourne20 May 2003

judgment reserved

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bankingbankingbankingbankingbankingCommonwealth Bank of Australia

alleged alleged alleged alleged alleged | 25 September 2002 | misleading or deceptive conduct | home loan campaignadvertised no establishment fee; fine print disclaimer that conditions apply; applicant had tohold three bank products to qualify

Justice ContiFederal Court Sydney12 June 2003

judgment reserved

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weight lossweight lossweight lossweight lossweight lossDavid Francis

alleged alleged alleged alleged alleged | misleading or deceptive conduct, misrepresentations | unsubstantiated claims forproducts represented as being able to assist in weight loss

Justice GrayFederal Court Melbourne6 May 2003

hearing of application for final orders consented to by parties;judgment reserved

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ann

ual r

epor

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02–0

348

two

perf

orm

ance

stock feedstock feedstock feedstock feedstock feedEconovite

alleged alleged alleged alleged alleged | misleading and deceptive conduct, misrepresentations | stock feed supplementsand mineral supplement do not contain ingredients listed on the label

Justice FrenchFederal Court Perth27 June 2003

proceedings commenced

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pre-paid telephone cardspre-paid telephone cardspre-paid telephone cardspre-paid telephone cardspre-paid telephone cardsGlobal Pre Paid Communications Pty Ltd and In-Touch Networks Pty Ltd

alleged alleged alleged alleged alleged | misleading and deceptive conduct, misrepresentations | about profitability andrisk; sale of phone card vending machine distributorships; projected profitability, location,support and maintenance of vending machines

Justice GylesFederal Court Sydney19 March 2003

proceedings commenced seeking injunctions and other orders;representative action taken on behalf of customers claiminglossesst

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softwaresoftwaresoftwaresoftwaresoftwareHarvey Norman Holdings Pty Ltd

alleged alleged alleged alleged alleged | misleading or deceptive conduct, bait advertising | national advertising of GST-related software package when quantities of bonus software were insufficient; statements incatalogue misled consumers on eligibility for taxation benefits on digital cameras

Justice RyanFederal Court Melbourne7 November 2002

commenced proceedings against three companies in the HarveyNorman group and 15 franchisees seeking declarations,injunctions, corrective public notice, findings of fact andindependent audit of trade practices compliance

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legal serviceslegal serviceslegal serviceslegal serviceslegal servicesMorgan Buckley Pty Ltd and another

allegedallegedallegedallegedalleged | misleading or deceptive conduct, misrepresentations | issuing tax invoices forlegal fees to a client that implied the invoices had been calculated according to retaineragreement; resulted in client being overcharged

Justice MansfieldFederal Court Darwin26 June 2003

proceedings commenced seeking declarations, injunctions,implementation of trade practices compliance program,independent audit of tax invoices, refunds, public notice, costsst

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free telecommunications servicesfree telecommunications servicesfree telecommunications servicesfree telecommunications servicesfree telecommunications servicesNational Telecoms Group Pty Ltd

alleged alleged alleged alleged alleged | misleading or deceptive conduct, misrepresentations | customers would pay nomore, or pay only marginally more, than they were currently paying for their telephony services;would receive a free phone system; call rates would be the same or cheaper than existingprovider

Justice WeinbergFederal Court Melbourne12 February 2003

commenced proceedings seeking declarations, injunctions,implementation of trade practices compliance program, eductionand training programs, corrective notices and costsst

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–03

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Sydney Opera HouseSydney Opera HouseSydney Opera HouseSydney Opera HouseSydney Opera House bookingsbookingsbookingsbookingsbookingsRichard Chen

alleged alleged alleged alleged alleged | misleading or deceptive conduct | web jacking; website mirrored Sydney OperaHouse official website; consumers from Europe purchased tickets through the imitation site,credit cards charged, overcharged or no tickets

Justice SackvilleFederal Court Sydney3 October 2002

proceedings commenced seeking to have offending sites removed,interim court orders to this effect; temporary orders prohibitMr Chen from creating, operating or maintaining similar sitesst

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olivesolivesolivesolivesolivesThe South Australian Olive Corporation Pty Ltd, Inglewood Olive Processors Limited

allegedallegedallegedallegedalleged | misleading or deceptive conduct, misrepresentations | Viva brand olive oilrepresented in television and magazine advertising and on labels as Australian when itcomprised up to 50 per cent imported olive oil

Justice FinnFederal Court Adelaide17 October 2002

proceedings commenced seeking declarations, injunctions,corrective notices and implementation of trade practicescompliance programst

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small business trainingsmall business trainingsmall business trainingsmall business trainingsmall business trainingSynergy in Business Pty Ltd (in liquidation) and others

alleged alleged alleged alleged alleged | contravention of industry code | small business training and developmentfranchise system; contract purported to exclude the licence arrangement from beingcharacterised as a franchise; claims about future profits

Justice StoneFederal Court Sydney22 July 2002

proceedings commenced seeking declarations that businesswas a franchising operation; findings as to misrepresentations,injunctions, refunds, cooling off rights and costsst

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renting household goodsrenting household goodsrenting household goodsrenting household goodsrenting household goodsThorn Australia Pty Ltd trading as Radio Rentals

alleged alleged alleged alleged alleged | misleading or deceptive conduct, misrepresentations about conditions, failure todisclose full cash price | advertised a ‘rent two get one free’ deal and failed to adequatelydisclose full cash price payable and full terms and conditions

Justice FrenchFederal Court Perth23 May 2003

proceedings commenced seeking declarations, injunctions,corrective notices, trade practices compliance program, costs

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pest eradicationpest eradicationpest eradicationpest eradicationpest eradicationPest Free Australia Pty Ltd

alleged alleged alleged alleged alleged | misleading or deceptive conduct, misrepresentations | plug in pest free electronicdevice does not work as claimed; no reasonable basis for making the claims

Justice EmmettFederal Court Sydney14 November 2002

commenced proceedings seeking declarations, correctivenotices, injunctions, refunds, removal of the products from saleand costsst

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350

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ance

3. litigation commenced before 2002–03 andconcluded during 2002–03


supermarketssupermarketssupermarketssupermarketssupermarketsAustralian Safeway Stores Pty Ltd

alleged alleged alleged alleged alleged | 9 February 1999 | price fixing, market sharing, misuse of market power | refusedto buy premium-branded bread from plant bakers if the baker had supplied generic or secondarybranded bread to independent retailers who sold the bread cheaply; price fixing and marketsharing arrangement with George Weston Foods Ltd in the Preston area

Justices Heerey,Sackville and Emmett(dissenting)Full Federal CourtMelbourne30 June 2003

Safeway misused its market power in four of nine incidentspleaded, and engaged in price fixing at Preston Market; orders tobe made; overturning Federal Court judgment of 21 December2001 dismissing the case

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significance significance significance significance significance | serious anti-competitive conduct by major supplier

concreteconcreteconcreteconcreteconcreteBoral Ltd and Boral Masonry Ltd (formerly Boral Besser Masonry Ltd)

alleged alleged alleged alleged alleged | 6 March 1998 | misuse of market power | reduced prices of concrete masonryproducts below manufacturing costs to drive a new entrant out of the market and to deterother businesses from entering

Justices Gleeson CJ,Gaudron, McHugh,Gummow, Hayne, Callinanand Kirby (dissenting)High Court of Australia7 February 2003

by a 6–1 majority, found Boral Masonry did not have substantialmarket power, and overturned the unanimous decision of theFull Federal Courtre

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significance significance significance significance significance | High Court clarification as to what constitutes substantial market power

obstetriciansobstetriciansobstetriciansobstetriciansobstetriciansMark Leyden, Stephen Robson and Paul Khoo

alleged alleged alleged alleged alleged | 17 April 2002 | boycott | specialists providing private in-hospital obstetricsservices in Rockhampton agreed to boycott ‘no-gap’ billing arrangements offered by a numberof private health insurance funds

Justice KiefelFederal Court Brisbane31 October 2002

orders by consent, injunctions and contribution towards costs;$97 000 refunds for patients; Dr Robson refunded patients; courtenforceable undertakings accepted from Drs Khoo and Leyden tomake refunds to patients

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significance significance significance significance significance | application of Act to health professionals boycotting no-gap billing

electricityelectricityelectricityelectricityelectricityNT Power Generation Pty Ltd v Power and Water Authority

private actionprivate actionprivate actionprivate actionprivate action | alleging misuse of market power | ACCC intervened in Full Federal Courtproceedings heard in August 2001 on issue of derivative Crown immunity

Justices Lee, Bransonand FinkelsteinFull Federal Court Darwin2 October 2002

2–1 majority that derivative Crown immunity applied

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significance significance significance significance significance | Act did not apply to dealings between businesses and the Crown

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milkmilkmilkmilkmilkPauls Ltd, Malanda Dairyfoods Ltd, Australia Cooperative Foods Ltd and others

alleged alleged alleged alleged alleged | 21 August 2001 | price fixing | agreed prices for milk products

Justice O’LoughlinFederal Court Darwin19 December 2002

ACCC application dismissed

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significance significance significance significance significance | no case to answer though court found ACCC justified in making inquiries andtaking action

compressorscompressorscompressorscompressorscompressorsSIP Australia Pty Ltd, director Filippo Ippaso, Baker Bros (Aust) Pty Ltd

alleged alleged alleged alleged alleged | 23 April 1999 | primary boycott, price fixing and resale price maintenance | forsupply of compressors

Justice GoldbergFederal Court Melbourne16 April 2003

penalised SIP $580 000 and director Filippo Ippaso $120 000;unable to mitigate the amount of the penalty because of lack ofcooperation with ACCCre

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significance significance significance significance significance | court will take cooperation with ACCC into account when determining penalties

statutory demands for informationstatutory demands for informationstatutory demands for informationstatutory demands for informationstatutory demands for informationThe Daniels Corporation International Pty Ltd and Meerkin and Apel, Woolworths Limited,Coles Myer Ltd and Liquorland (Australia) Pty Ltd

alleged alleged alleged alleged alleged | 12 October 2001 | privilege claimed over information sought by statutory demandby ACCC |

Justices Gaudron,McHugh, Gummow,Kirby, Hayne and CallinanHigh Court of Australia7 November 2002

unanimously held that section 155 does not abrogate legalprofessional privilege, overturning unanimous decision of FullFederal Courtre

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significance significance significance significance significance | implications for conduct of ACCC investigations

musical instrumentsmusical instrumentsmusical instrumentsmusical instrumentsmusical instrumentsAllans Music Group Pty Ltd

alleged alleged alleged alleged alleged | 2 May 2002 | misrepresentations about price | national retailer of musicalinstruments advertised inflated pre-sale ‘was’ prices in Christmas catalogue to create falsesense of savings when compared with ‘now’ prices

Justice TamberlinFederal Court Adelaide13 December 2002

following guilty plea to nine counts, convicted and fined $80 000plus costs; nine other counts withdrawn

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significance significance significance significance significance | clarified application of the law to the commonly used retail marketing tool ofwas/now pricing


electronic muscle stimulationelectronic muscle stimulationelectronic muscle stimulationelectronic muscle stimulationelectronic muscle stimulationThe Buyers Group Pty Ltd

allegedallegedallegedallegedalleged | 27 July 2001 | misleading or deceptive conduct, misrepresentations |TV advertorials promoting electronic Feminique Slimming muscle stimulation machine

Justice CooperFederal Court Brisbane8 April 2003

by consent: declarations that representations were misleadingor deceptive; corrective notices to be broadcast; by agreementbetween parties: $1.2 million available for refundsre

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significance significance significance significance significance | advertorials are subject to the Act

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ann

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02–0

352

two

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ance

shopping centre leasesshopping centre leasesshopping centre leasesshopping centre leasesshopping centre leasesCG Berbatis Holdings Pty Ltd trading as Farrington Fayre Shopping Centre

alleged alleged alleged alleged alleged | 28 September 2000 | unconscionable conduct in relation to leasing arrangements |landlords stipulated that, as condition of lease renewal or extension, tenants withdraw an actionon charges and outgoings against the landlords from the West Australian Commercial Tribunal

High Court of Australia9 April 2003

dismissed appeal by ACCC to restore a trial judge’s finding thatsome shopping centre landlords had acted unconscionably

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significance significance significance significance significance | High Court clarification of what constitutes commercial unconscionable conduct

cosmetic productscosmetic productscosmetic productscosmetic productscosmetic productsCollagen Aesthetics Australia Pty Ltd

alleged alleged alleged alleged alleged | 27 May 2002 | misleading or deceptive conduct, composition, performance |magazine advertisements for Collagen and Hylagenesis products represented they were saferthan competitors’ products, painless and natural

Justice FinnFederal Court Adelaide11 April 2003

by consent declared false representations and misleadingconduct; injunctions; corrective notices

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significance significance significance significance significance | significance misleading advertising for cosmetic products

business advertisingbusiness advertisingbusiness advertisingbusiness advertisingbusiness advertisingCommercial and General Publications Pty Ltd

allegedallegedallegedallegedalleged | 28 September 2001 | accepting payment without intending or being able to supplyas ordered | for advertising in a proposed Returned Services League publication

Justice HeereyFederal Court Hobart1 November 2002

found company would not be able to supply the advertising;imposed fine of $5000 on director; defendants were acquitted oncharges of demanding payment for unsolicited advertisingre

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significance significance significance significance significance | protecting small businesses from publishers accepting payment foradvertising not supplied

reality televisionreality televisionreality televisionreality televisionreality televisionCrackerjack Productions Pty Ltd and others

alleged alleged alleged alleged alleged | 13 May 2002 | misleading conduct; misrepresenting availability of employment |placed job advertisements in newspapers to lure potential subjects for a reality televisionshow shown on Ten network

Justice LindgrenFederal Court Sydney30 August 2002

by consent: television production company, producer andNetwork Ten be restrained from engaging in similar conduct;company send letters of acknowledgment and apology toaffected job seekers; trade practices compliance program

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significance significance significance significance significance | taking unfair advantage of vulnerable job seekers, especially in rural areas

excavatorsexcavatorsexcavatorsexcavatorsexcavatorsDaewoo Australia Pty Ltd, Mr Eui Hwan Kang and Daewoo Heavy Industries and MachineryLimited

allegedallegedallegedallegedalleged | 17 December 2001 | misleading, deceptive and unconscionable conduct |manufacturer and importer of heavy earthmoving equipment engaging Queensland dealer ofexcavators and wheel loaders in Australia

Justice WilcoxFederal Court Sydney6 December 2002

declared that Daewoo Australia engaged in misleading ordeceptive conduct; former manager involved in some of theconduct; granted by consent five year injunctions against eachrespondent; ordered compliance programs/training and costs

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significance significance significance significance significance | clarifies the circumstances in which breaches of contract may be unconscionable

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oral contraceptivesoral contraceptivesoral contraceptivesoral contraceptivesoral contraceptivesDavid Zero Population Growth Hughes trading as Crowded Planet

alleged alleged alleged alleged alleged | misleading or deceptive conduct | false representations about the supply of oralcontraceptives on the internet, nondisclosure of significant health risks; court found for ACCC,respondent sought leave to appeal

Justice AllsopFederal Court SydneyAugust 2002

leave to appeal denied

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significance significance significance significance significance | health risk posed by illegal supply of prescription medicine

computer deliverycomputer deliverycomputer deliverycomputer deliverycomputer deliveryDell Computer Pty Ltd

alleged alleged alleged alleged alleged | 7 December 2001 | misrepresentations about price | advertisements did notdisclose the compulsory nature of delivery charges; earlier advertisements did not clearlyindicate amount of the delivery charge

Justices Branson, Stoneand EmmettFull Federal Court Sydney20 December 2002

declared that advertisements published before November 2001were misleading and deceptive as to price; previous decision on2 July 2002 and appealed by ACCC had found generally misleadingand deceptive; ordered injunctions and corrective notices

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significance significance significance significance significance | advertisers need to be upfront about additional costs

polo shirtspolo shirtspolo shirtspolo shirtspolo shirtsGIA Pty Ltd trading as Tamar Knitting Mills

alleged alleged alleged alleged alleged | 28 September 2001 | misrepresentations, place of origin | removed originalmade in China collar label, substituted Tamar collar label, attached swing tag falselyrepresenting that the polo shirt was Tasmanian or was made in Tasmania

Justice HeereyFederal Court Hobart23 October 2002

found guilty and fined $50 000, former director fined $4000 forbeing knowingly concerned; fined company $5000 and director$1000 for providing false and misleading information to the ACCCre

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significance significance significance significance significance | where place of origin of products is stated it must be accurate

rubgy club andrubgy club andrubgy club andrubgy club andrubgy club and investment policiesinvestment policiesinvestment policiesinvestment policiesinvestment policiesIMB Group Pty Ltd, Logan Lions Ltd and others

allegedallegedallegedallegedalleged | 3 June 1996 | third line forcing, misleading or deceptive conduct | financialplanning, property development, sale of investment policies with funds accrued over the life ofthe policies used to fund the development of major sporting club facility

Justices Emmett,Kiefel and CooperFull Federal CourtBrisbane20 February 2003

dismissed the appeal points on misleading conduct alleged, andother findings made by the primary judge; no contraveningconduct found on appealre

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significance significance significance significance significance | membership of the sporting club was contingent on consumers signing up foran investment policy with particular insurance company

computerscomputerscomputerscomputerscomputersInfo4pc.com Pty Ltd

alleged alleged alleged alleged alleged | 22 January 2001 | contempt of court |

Justice NicholsonFederal Court Perth31 July 2002

company guilty of continuing to advertise computers on itswebsite contrary to court orders; fined $2000, substantive casecontinuingre

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significance significance significance significance significance | pursued contempt of court case

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internetinternetinternetinternetinternetInternet Name Protection Pty Ltd trading as Internet Name Group

alleged alleged alleged alleged alleged | 17 April 2002 | misleading or deceptive conduct, approval or affiliation, unsolicitedservices | sent unsolicited invoices to businesses around Australia seeking payment forregistration and renewal of domain names

Justice RyanFederal Court Melbourne11 October 2002

orders by consent: injunctions restraining the company fromengaging in misleading or deceptive conduct concerning internetdomain names; declarations; trade practices compliance programre

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significance significance significance significance significance | ensuring domain name service providers do not mislead net users

internet accessinternet accessinternet accessinternet accessinternet accessInternet TV Australia Pty Ltd trading as Free2airR

alleged alleged alleged alleged alleged | 7 May 2002 | misleading, deceptive and unconscionable conduct, harassment andcoercion | represented that: internet access services included free internet access time, one-off set-up subscribing fee; no ongoing fees and charges other than for downloads in excess ofmonthly specified amount

Justice SpenderFederal Court Brisbane21 November 2002

declarations by consent

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significance significance significance significance significance | contract terms should be disclosed before customers enter contracts

golfgolfgolfgolfgolfMichael Kotowicz, Universal Sports Challenge Limited

alleged alleged alleged alleged alleged | 3 April 2001 | misleading and deceptive conduct | Shark Golf Challenge 2000promotion included a final overseas tournament, but no overseas tournament offered to finalists;former chief executive knew of conduct; by consent, company found to have contravened the Act

Justice EmmettFederal Court Sydney23 October 2002

Michael Kotowicz, the former chief executive officer of UniversalSports Challenge Limited, was not knowingly concerned in themisleading and deceptive conductre

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significance significance significance significance significance | clarified obligations of promoters of competitions to supply prizes offered toconsumers

orange juice businessorange juice businessorange juice businessorange juice businessorange juice businessMichigan Group Pty Ltd, Queensland Juice Co. and others

alleged alleged alleged alleged alleged | 18 December 2000 | misleading or deceptive conduct | for average investment of$15 000 per machine, investors would benefit from agreements to site the machines,including with Franklins and Coles; future income; time in which investment could berecovered; number of orange juice bottles that could be sold

Justice DowsettFederal Court Brisbane4 February 2003

declarations investors were misled and deceived; no arrangementsexisted to site the machines; injunction of companies frommaking misleading representations about dispensing machinesre

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significance significance significance significance significance | protecting people seeking legitimate investment opportunities

discount pricesdiscount pricesdiscount pricesdiscount pricesdiscount pricesMitre 10 Australia Limited

alleged alleged alleged alleged alleged | 24 September 2001 | misleading or deceptive conduct, price of goods | ’15 percent off everything’ advertising campaign failed to disclose adequately that not everything wasreduced by 15 per cent

Justice SundbergFederal Court Melbourne23 April 2003

by consent company gave undertakings that it would not, for twoyears, advertise goods at a discounted price when no discountappliesre

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significance significance significance significance significance | companies to take care with headline claims

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55ac

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2002

–03

two

perf

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health insurancehealth insurancehealth insurancehealth insurancehealth insuranceNRMA Health Pty Ltd

allegedallegedallegedallegedalleged | 6 November 2001 | misleading or deceptive conduct | advertised that it would notcost a pregnant woman anything to have a baby if insured with NRMA Health Pty Ltd; significantproportion of members required to pay an excess or co-payment; fine print disclaimers inadequate

Justice JacobsonFederal Court Sydney3 July 2002

by consent: declarations; information to affected consumers;waiver of the 12 month waiting period for pregnancy relatedservices; refunds of excesses or co-payments; injunctions andreview of trade practices compliance program

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significance significance significance significance significance | refunds for consumers; confirmation that fine print may be misleading

internet health curesinternet health curesinternet health curesinternet health curesinternet health curesPurple Harmony Plates Pty Ltd and others

allegedallegedallegedallegedalleged | 9 August 2001 | misleading or deceptive conduct | contempt of court; failed toimplement court orders related to unsubstantiated health claims for products promoted on theinternet

Justice GoldbergFederal Court Melbourne6 February 2003

internet trader jailed following his failure to comply withconditions of his suspended sentence for contempt; domainname transferred to ACCCre

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significance significance significance significance significance | disobedience of court orders will be pursued; court dealt with overseasdomain name

furniturefurniturefurniturefurniturefurnitureRedmond Holdings, Toowoomba Furniture and Electrical (Furnelect)

alleged alleged alleged alleged alleged | 16 January 2002 | misleading or deceptive conduct, price of goods | advertisingcampaign for furniture at ‘store cost plus $1’; prices calculated by adding about 60 per cent tothe prices paid by the stores, plus one dollar

Justice KiefelFederal Court Brisbane18 February 2003

fine print disclaimer displayed not effective; ordered injunctionfor three years; trade practices compliance training

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significance significance significance significance significance | all cost-based representations used advertising must be accurate

accountantsaccountantsaccountantsaccountantsaccountantsRod Turner Consulting Pty Ltd

allegedallegedallegedallegedalleged | 3 July 2000 | misleading or deceptive conduct | claimed to be charteredaccountant; misrepresentation GST payable on residential rent and water rates

Justice KennyFederal Court Melbourne2 October 2002

by consent declarations; injunctions; costs; attendance at tradepractices compliance seminar

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significance significance significance significance significance | misrepresentations of the effect of the GST on prices, misleading conduct onprofessional qualifications

yellow pagesyellow pagesyellow pagesyellow pagesyellow pagesSensis Pty Ltd (formerly Pacific Access Pty Ltd)

alleged alleged alleged alleged alleged | 14 December 2001 | misleading or deceptive conduct about price | Yellow Pagesconnect service offered priority advertising to out-of-area listings for an extra fee, prioritypaying advertisers were referred to consumers even when a relevant business existed in thelocation specified

Justice MerkelFull Federal CourtMelbourne20 December 2002

declarations; order to amend manual to ask whether the callerwants a business located in the area specified

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significance significance significance significance significance | consumers not being provided with the service they paid for

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ann

ual r

epor

t 20

02–0

356

two

perf

orm

ance

snack foodssnack foodssnack foodssnack foodssnack foodsTop Snack Foods Pty Ltd

allegedallegedallegedallegedalleged | 27 September 1996 | misleading and deceptive conduct for business opportunity |liability found; ACCC seeking access to funds of liquidated company to compensate franchisees

High Court of Australia5 November 2002

refused application for special leave to appeal decision of NewSouth Wales Court of Appeal that funds should be madeavailable to franchiseesre

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significance significance significance significance significance | franchisees entitled to obtain damages from franchisor

mobile phonesmobile phonesmobile phonesmobile phonesmobile phonesVirgin Mobile Australia Pty Ltd

alleged alleged alleged alleged alleged | 6 May 2002 | misleading or deceptive conduct, price of goods or services |failed to state the full cash price of mobile phones in national advertisements for dial high clubmobile phone packages

Justice FrenchFederal Court Perth11 December 2002

consent declarations; injunctions; public notices in the pressand on website; write to relevant subscribers; communityservice order; compliance program; costsre

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significance significance significance significance significance | accuracy of mobile phone package offers

security servicessecurity servicessecurity servicessecurity servicessecurity servicesSignature Security Group Pty Ltd

alleged alleged alleged alleged alleged | 19 March 2001 | misleading and deceptive conduct, price of goods or services |advertising price without including GST, or without specifying the amount of GST, claiming tohave specific authority to advertise in this manner; breaching section 87B undertaking

Justice StoneFederal Court Sydney29 April 2003

breached Act by advertising without GST or merely as +GST; hadmisrepresented existence of arrangement allowing it toadvertise on this basis and had breached section 87Bundertaking; injunctions and declarations made

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significance significance significance significance significance | suppliers need to make clear extra charges, including GST, and the amount ofthose charges; failure to honour undertakings will be pursued

pyramid sellingpyramid sellingpyramid sellingpyramid sellingpyramid sellingSkybiz.Com Inc.

alleged alleged alleged alleged alleged | 18 September 2001 | pyramid selling | United States company promoted Skybiz2000 home-based business using pyramid selling scheme; participants paid US$100 for awebsite to take part

Justice LeeFederal Court Perth26 September 2002

declared the company was pyramid selling; restrained companyfrom repeating the conduct; company consented to orders whichincluded disclosure to Australian participantsre

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significance significance significance significance significance | pitfalls of joining pyramid selling scheme

horse racing softwarehorse racing softwarehorse racing softwarehorse racing softwarehorse racing softwareSolutions Software International Pty Ltd, Robert James Price and others

allegedallegedallegedallegedalleged | 29 June 2001 | misleading, deceptive and unconscionable conduct, performance,benefits, price of services | software claimed to predict horse-race place-getters with highaccuracy; 70–95 per cent success rate

Justice DowsettFederal Court Brisbane3 September 2002

declarations; waiver as condition of being refunded wasunconscionable; permanent injunctions by consent; correctivenotices; compliance training; costs; community service (courtenforceable undertaking accepted by ACCC from William GreigMillar noted by court)

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significance significance significance significance significance | promoters of gambling programs not to mislead or deceive consumers

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57ac

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2002

–03

two

perf

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ance

health insurancehealth insurancehealth insurancehealth insurancehealth insuranceWestern District Health Fund Ltd

alleged alleged alleged alleged alleged | 25 January 2002 | misleading and deceptive conduct | advertising stating ‘alloperations covered’, ‘no excesses or co-payments’, ‘there’s nothing hidden or complicated’;qualifying fine print inadequate

Justice MooreFederal Court Sydney16 October 2002

consent orders: offer to refund expenses and costs to memberschoosing to leave fund; corrective statement; injunction; tradepractices compliance programre

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significance significance significance significance significance | refunding consumers misled on the extent of coverage of healthinsurance products

willswillswillswillswillsWill Writers Guild Pty Ltd

allegedallegedallegedallegedalleged | 26 September 2001 | misleading representation about business activities |misrepresented right to undertake a will writing business that could not be legally operatedunder state and territory law

Justice HeereyFederal Court Hobart7 February 2003

found the company and director guilty; imposed permanentinjunctions; fined the company $35 000 and the director $70 000;ordered payment of $230 000 in compensation to fivefranchisees; costs

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significance significance significance significance significance | franchisees exposed to possible criminal sanctions had to abandon theirbusinesses

mortgagesmortgagesmortgagesmortgagesmortgagesWizard Mortgage Corporation Limited

allegedallegedallegedallegedalleged | 7 February 2002 | misleading or deceptive conduct | misleading features ofWizard’s ‘rate breaker’ 5.64 per cent home loan products interest rate advertised on television

Justice MerkelFederal Court Melbourne25 October 2002

order to restrain company for 18 months from publishingadvertisements for housing loans with features the loans do nothavere

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significance significance significance significance significance | businesses to provide consumers with accurate price information

beefbeefbeefbeefbeefWoolworths Ltd

alleged alleged alleged alleged alleged | 30 October 2001 | misleading conduct, place of origin | advertisements, ‘beefingup the local economy’, misled consumers that all beef sold in regional supermarkets at Armidale,Gunnedah, Inverell, Moree, Muswellbrook, Narrabri, Scone, Tamworth, was from local cattle

Justice LindgrenFederal Court Sydney20 August 2002

declared company had engaged in misleading or deceptiveconduct and had made false or misleading representations inrelation to the origin of cattle; no orders made for injunctions orcorrective notices

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significance significance significance significance significance | use of the word all means nothing less than all; promotions aimed atencouraging support for local economies need to include accurate information

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ann

ual r

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02–0

358

two

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orm

ance

obstetricianobstetricianobstetricianobstetricianobstetricianPaul Pong Tiah Khoo and PT Khoo Pty Ltd

alleged alleged alleged alleged alleged | 17 April 2002 | boycott | specialist who provide private in-hospital obstetricsservices in Rockhampton agreed to boycott ‘no-gap’ billing arrangements offered by a numberof private health insurance funds

Brisbane31 October 2002

consent orders; injunctions and contribution towards costs;$97 000 refunds for patients; ACCC accepted court enforceableundertakings from Dr Khoo to make refunds to patientsre

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significance significance significance significance significance | application of Act to health professionals

4. undertakings accepted during 2002–03


lotterylotterylotterylotterylotteryGolden Casket Lottery Corporation Limited

allegedallegedallegedallegedalleged | misuse of market power | rejected a Brisbane suburban newsagency’s applicationfor an online betting licence


court enforceable undertakings; high level of cooperation fromcompany; review, and if necessary amend, agency selectioncriteria; continue to make selection criteria publicly available;develop a public complaints-handling process; upgrade tradepractices compliance program

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significance significance significance significance significance | government-owned business and exclusive distribution system

medical servicesmedical servicesmedical servicesmedical servicesmedical servicesHunter Area Health Service

allegedallegedallegedallegedalleged | exclusive dealing | regarding radiology services

Sydney30 July 2002

court enforceable undertakings; policy of referring requests forradiology services to Hunter Area Health Service radiologists notto be reinstituted for seven years without notice to ACCC;radiologists and doctors to be informed

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significance significance significance significance significance | freedom of choice in medical services

obstetricianobstetricianobstetricianobstetricianobstetricianMark Andrew Phillip Leyden

alleged alleged alleged alleged alleged | 17 April 2002 | boycott | specialist who provide private in-hospital obstetricsservices in Rockhampton agreed to boycott ‘no-gap’ billing arrangements offered by a numberof private health insurance funds


consent orders; injunctions and contribution towards costs;$97 000 refunds for patients; ACCC accepted court enforceableundertakings from Dr Leyden to make refunds to patientsre

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significance significance significance significance significance | application of Act to health professionals

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59ac

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2002

–03

two

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ance

mediamediamediamediamediaQueensland Newspapers Pty Ltd

alleged alleged alleged alleged alleged | misuse of market power | internet businesses could not advertise in classifiedsections, including in The Courier Mail

Brisbane5 December 2002

court enforceable undertakings to establish a new classifiedadvertisement category in general classifieds, and place in lift-outs where display advertising can be includedre

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significance significance significance significance significance | allowing advertisements containing urls or website addresses in classifiedadvertising

takeaway liquor retailingtakeaway liquor retailingtakeaway liquor retailingtakeaway liquor retailingtakeaway liquor retailingWoolworths (South Australia) Pty Ltd, The Arnhem Club Inc

allegedallegedallegedallegedalleged | price fixing | of certain alcohol products in Nhulunbuy

Darwin30 May 2003

ordered injunctions against Woolworths and The Arnhem Cluband costs; court noted court enforceable undertakings acceptedby ACCC that $150 000 be paid by each of them to an alcoholprevention program in Nhulunbuy; proceedings against RhonwoodPty Ltd trading as The Walkabout Tavern are continuing

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significance significance significance significance significance | financial contribution made to address social issues


mobile phonesmobile phonesmobile phonesmobile phonesmobile phonesAlliance WA Pty Ltd

alleged alleged alleged alleged alleged | misleading or deceptive conduct, misrepresented price | advertisementsmisrepresented the total cost of mobile phone and call package

PerthJanuary 2003

court enforceable undertakings not to engage in similar conductin future; offer refunds to subscribers who were misled;implement a trade practices compliance programre

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significance significance significance significance significance | total prices should be shown

vehicle Jacksvehicle Jacksvehicle Jacksvehicle Jacksvehicle JacksAudi Australia

alleged alleged alleged alleged alleged | contravention of product safety standards | vehicle jacks supplied with new Audimotor vehicles failed to comply with the jack warning labelling and safe usage instructions

Melbourne15 April 2003

court enforceable undertakings to remedy failure to meet themandatory product safety standard for vehicle jacks

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significance significance significance significance significance | product safety addressed

mobile phonesmobile phonesmobile phonesmobile phonesmobile phonesB Digital

allegedallegedallegedallegedalleged | misleading or deceptive conduct, misrepresented price | advertisements failed tostate the full cash price of the mobile phone package; consumers had to commit to two plansand incur a minimum liability of $528 to obtain two free phones and $200 free calls

PerthMarch 2003

court enforceable undertakings not to engage in similar conductin future; publish corrective notices; improve its trade practicescompliance programre

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significance significance significance significance significance | total price should be stated; free means free

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ann

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02–0

360

two

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vehicle jacksvehicle jacksvehicle jacksvehicle jacksvehicle jacksDaewoo Automotive

alleged alleged alleged alleged alleged | contravention of product safety standards | vehicle jacks supplied with new Daewoomotor vehicles failed to comply with the jack warning labelling and safe usage instructions



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meatmeatmeatmeatmeatBerties Pty Ltd

alleged alleged alleged alleged alleged | misleading or deceptive conduct, place of origin | signs in retail butcheriesmisrepresented prime meat cuts as being Tasmanian when the meat came from other states

HobartFebruary 2003

court enforceable undertakings not to engage in similar conductin future; implement trade practices compliance measures

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significance significance significance significance significance | place of origin should be accurately stated

duty freeduty freeduty freeduty freeduty freeCity International Duty Free Pty Ltd, Downtown Duty Free Pty Ltd and Nuance GroupAustralia Pty Ltd

allegedallegedallegedallegedalleged | misleading and deceptive conduct | advertising consumers could get specifiedsavings when the products had not been advertised at the higher price for a reasonable timebefore the sale; certain products were exclusive to particular stores

Sydney29 November 2002

court enforceable undertakings to cease making furthermisleading and deceptive representations; published correctivenotices and in-store notices; offered full refunds andimplemented a trade practices compliance program

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significance significance significance significance significance | price reductions must be real

traveltraveltraveltraveltravelContiki Holidays (Australia) Pty Ltd

allegedallegedallegedallegedalleged | misleading or deceptive conduct | representations to provide safe environmentwhere customers’ personal safety and security would never be compromised

Brisbane28 November 2002

court enforceable undertakings, without admitting liability, inresponse to the Swiss canyoning disaster; company to reformquality assurance systems; compliance programre

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significance significance significance significance significance | travellers’ safety protected

sunglassessunglassessunglassessunglassessunglassesCreative Brands Pty Ltd

allegedallegedallegedallegedalleged | product safety standards contravention | sunglasses did not comply withtransmittance requirements for fashion spectacles or display warning for those with colourdefective vision

Perth26 May 2003

court enforceable undertakings to advise retailers to withdrawglasses; provide refunds to people who return glasses; productrecall notices; trade practices compliance programre

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two

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ance

vehicle leasesvehicle leasesvehicle leasesvehicle leasesvehicle leasesFord Credit Australia Limited

allegedallegedallegedallegedalleged | misleading or deceptive conduct | concern that some of the company’s leaseagreements did not allow Ford Credit to pass on GST to its lessees

August 2002 voluntary undertakings; company to credit 256 non-businessconsumers about $430 000 in GST through refunds and reducedrental payments on leases; business customers, who were notentitled to full input tax credits, to receive GST refunds andreduced rental payments on their leases

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significance significance significance significance significance | pricing must be accurate

real estatereal estatereal estatereal estatereal estateGolden Way Realty

allegedallegedallegedallegedalleged | false or misleading representations about the price of services | suburbanAdelaide real estate agency failed to clearly disclose to property vendors that GST wasapplicable on quoted commission or fee

Adelaide9 August 2002

court enforceable undertakings; agreed to reinstate theequivalent of the GST liability to affected customers; implementtrade practices compliance training programre

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significance significance significance significance significance | pricing must be accurate

washing machineswashing machineswashing machineswashing machineswashing machinesHaier Australia Pty Ltd

alleged alleged alleged alleged alleged | misleading labelling of performance characteristics | energy rating and capacityclaims on washing machines; tested at claimed capacity machines failed soil removal, waterextraction and energy consumption tests; tester noted very little movement of clothes duringthe wash and rinse cycles; some sections of the test load failed to get wet

Melbourne24 March 2003

court enforceable undertakings; trade practices complianceprogram; all Haier Electrical Australia whitegoods to be testedat a National Association of Testing Authorities Australiaaccredited, or equivalent, testing laboratory

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significance significance significance significance significance | environmental impact is important to consumers

internetinternetinternetinternetinternetInternet Registrations Australia Pty Ltd

alleged alleged alleged alleged alleged | 13 September 2002 | misleading or deceptive conduct, accepting payment withoutintending or being able to supply, unsolicited services | misrepresentations about registeringand renewing internet domain names; claimed pre-existing relationship or prior dealing, authorityto register or renew consumers’ domain names, and ability to register .com.au domain names

Canberra29 November 2002

orders by consent: declarations, injunctions, costs, trade practicescompliance program; court enforceable undertakings for publicationof corrective notices and refunds accepted 28 November 2002re

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significance significance significance significance significance | correction and compensation for misleading claims

sunglassessunglassessunglassessunglassessunglassesJM Australia Pty Ltd

allegedallegedallegedallegedalleged | product safety standards | sunglasses incorrectly labelled as fashion spectaclesand did not carry a warning stating that the glasses were not suitable for driving

Perth26 May 2003

court enforceable undertakings to advise retailers to withdrawglasses; provide refunds; place product recall notices; tradepractices compliance programre

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ann

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02–0

362

two

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orm

ance

vehicle jacksvehicle jacksvehicle jacksvehicle jacksvehicle jacksProton Cars Australia Pty Limited

alleged alleged alleged alleged alleged | contravention of product safety standards | vehicle jacks supplied with new Protonmotor vehicles failed to comply with the jack warning labelling and safe usage instructions



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baby cotbaby cotbaby cotbaby cotbaby cotLane Wrigley Pty Ltd

alleged alleged alleged alleged alleged | product safety standard | noncompliance imported children’s cots not deep enoughto minimise the risk of a child climbing or falling out of it; protrusions and hazardous openings

Melbourne3 October 2002

court enforceable undertakings to implement a trade practicescompliance program

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commercial road sweeperscommercial road sweeperscommercial road sweeperscommercial road sweeperscommercial road sweepersMacDonald Johnston Engineering Company Pty Ltd

alleged alleged alleged alleged alleged | misleading or deceptive conduct | misrepresentations about Australian content ofcommercial road sweepers

Brisbane28 August 2002

court enforceable undertakings; company agreed: not toadvertise or make other misleading representations about theorigin or level of Australian content of its products; implementtrade practices compliance program

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significance significance significance significance significance | country of origin claims must be accurate

fruit juice labellingfruit juice labellingfruit juice labellingfruit juice labellingfruit juice labellingOutback Juice Company Pty Ltd

alleged alleged alleged alleged alleged | misleading or deceptive conduct | fruit juice labels stating fruit juice productswere 100 per cent and 100 per cent fresh when sugar, sweetening products and preservativeswere added

Brisbane26 May 2003

court enforceable undertakings that company will not engage inconduct that is misleading and deceptive; falsely represent thatjuice products are of a particular quality, grade or composition;implement trade practices compliance program if companyrecommences operations

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significance significance significance significance significance | 100 per cent means 100 per cent

skin creamskin creamskin creamskin creamskin creamPrivate Formula International Pty Ltd

allegedallegedallegedallegedalleged | product information standard | noncompliance incorrectly labelled productremained on sale at retail outlets; attempts to have retailers amend labelling not successful

Perth10 December 2002

court enforceable undertakings to re-label the cosmetic products;stop distribution of product which does not meet the mandatorystandard; re-label all old stock; corrective notices; trade practicescompliance program

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significance significance significance significance significance | product information standard met

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two

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washing machineswashing machineswashing machineswashing machineswashing machinesRetravision Pty Ltd

alleged alleged alleged alleged alleged | misleading labelling of performance characteristics | energy rating claims andcapacity on washing machines; tested at claimed capacity machines failed soil removal, waterextraction and energy consumption tests; tester noted very little movement of clothes duringthe wash and rinse cycles; some sections of the test load failed to get wet

Melbourne24 March 2003

court enforceable undertakings to cause to provide full refunds toconsumers, and trade practices compliance program

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significance significance significance significance significance | environmental impact is important to consumers

pre-paid telephone cardspre-paid telephone cardspre-paid telephone cardspre-paid telephone cardspre-paid telephone cardsTelstra Corporation Limited

alleged alleged alleged alleged alleged | 24 October 2002 | misleading or deceptive conduct | re pre-paid long distance‘say g’day’ calling cards, accessing the long distance service phone number was ‘free’ or was‘a free call from fixed phones’, whereas the call cost 53 cents per minute

Melbourne15 November 2002

orders by consent to stop making misleading claims re callingcard costs court enforceable undertakings from Telstra to waivethe 53 cents per minute charge until corrected cards, vouchersand promotional materials were distributed to retailers; and toreview compliance procedures

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significance significance significance significance significance | free means free

internet health curesinternet health curesinternet health curesinternet health curesinternet health curesTransformation 2012 Pty Ltd

allegedallegedallegedallegedalleged | 11 September 2002 | misleading or deceptive conduct | marketed products oninternet claiming they could treat or cure a wide range of diseases and illnesses

CanberraFebruary 2003

by consent found misrepresentation; permanent injunctions;implementation of trade practices compliance program;corrective notice; court enforceable undertakings to providerefunds accepted 19 December 2002

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significance significance significance significance significance | unsubstantiated claims affecting vulnerable people with illness

mobile phonesmobile phonesmobile phonesmobile phonesmobile phonesVodafone Network Pty Ltd

alleged alleged alleged alleged alleged | misleading or deceptive conduct | misled about a cut in the expiry period forFastFone pre-paid call credits

Sydney4 October 2002

court enforceable undertakings: refunds to some pre-paid mobiletelephone customers; full disclosure of contract conditions; creditcustomers the number of call credits that were lost; supply newstarter pack to customers whose service has been de-activated;not misrepresent the expiry period of pre-paid call credits; placecorrective notices; trade practices compliance program

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significance significance significance significance significance | conditions to be clearly stated

tourismtourismtourismtourismtourismVoyages Hotels and Resorts Pty Ltd

allegedallegedallegedallegedalleged | 19 July 2002 | misleading or deceptive conduct | claimed exclusive right toconduct tours to Yulara Pulka, that traditional Aboriginal owners would meet tour groups andreceive a significant amount of the tour price

Darwin28 April 2003

by consent found misleading conduct; costs; court enforceableundertakings not to promote tours without consent of Aboriginalpeople; trade practices compliance programre

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significance significance significance significance significance | businesses making claims to have a permit or agreement in place withAboriginal people

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ann

ual r

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02–0

364

two

perf

orm

ance

medical practitionersmedical practitionersmedical practitionersmedical practitionersmedical practitionersAustralian Medical Association (Western Australia) and Mayne Group Ltd and others

allegedallegedallegedallegedalleged | price fixing, conduct substantially lessening competition | collectively negotiatingand agreeing the rates at which visiting doctors would supply medical services for the care ofpublic patients at the Joondalup Health Campus, Perth

Justice CarrFederal Court Perth17 March 2003

judgment reserved

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scrap metalscrap metalscrap metalscrap metalscrap metalBM Faulkner Pty Ltd and others

alleged alleged alleged alleged alleged | anti-competitive agreements | between competing scrap metal merchants on howthey would bid at scrap metal auctions

Federal Court SydneyAugust 2003

directions hearing

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us

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horse-racing softwarehorse-racing softwarehorse-racing softwarehorse-racing softwarehorse-racing softwareWilliam Greig Millar (Solutions Software International Pty Ltd)

allegedallegedallegedallegedalleged | 29 June 2001 | misleading, deceptive and unconscionable conduct, performance,benefits, price of services | software claimed to predict horse-race place-getters with highaccuracy; 70–95 per cent success rate

Brisbane3 September 2002

declarations; permanent injunctions by consent; compliancetraining; community service (court enforceable undertakingaccepted by ACCC from William Greig Millar noted by court)re

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significance significance significance significance significance | promoters of gambling programs not to mislead or deceive consumers

5. litigation commenced before 2002–03 andcontinuing


Justice EmmettFederal Court Melbourne15 April 2003

ABB contesting liability; Alstom ordered to pay $1.5 millionpenalty; Wilson Transformer $2.5 million;AW Tyree Transformers $3.5 million; 14 February 2003Full Federal Court reduced Schneider Electric’s penalty from$7 million to $5.5 million; proceedings against ABB continue

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electricity powerelectricity powerelectricity powerelectricity powerelectricity power transformers transformers transformers transformers transformersABB Transmission and Distribution Limited, Alstom Australia Limited, Wilson TransformerCompany

alleged alleged alleged alleged alleged | market sharing and price fixing | in power transformers

Justice EmmettFederal Court Melbourne15 April 2003

ABB contesting liability; Alstom ordered to pay $5.5 millionpenalty; Wilson Transformer $1.5 million; proceedings againstABB continuingst

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electricity distributionelectricity distributionelectricity distributionelectricity distributionelectricity distribution transformers transformers transformers transformers transformersABB Transmission and Distribution Limited, Alstom Australia Limited, Wilson TransformerCompany, Schneider (Electric) Australia Pty Ltd and others

alleged alleged alleged alleged alleged | 10 November 2000 | market sharing and price fixing | in distribution transformers

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vitaminsvitaminsvitaminsvitaminsvitaminsBray v. F Hoffmann-La Roche and others

Justice MerkelPrivate action MelbourneFebruary 2003

concerning vitamins cartel: Full Federal Court hearing; ACCCgranted leave to intervene; ACCC made submissions about extra-territorial application of the Act; heard, judgment reservedst

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vitamin Cvitamin Cvitamin Cvitamin Cvitamin CF Hoffmann-La Roche, BASF Aktiengesellschaft and Takeda Chemical Industries

allegedallegedallegedallegedalleged | 23 August 2001 | price fixing and market sharing | global price-fixingarrangement on human vitamin C; allocated global market shares

Justice MerkelFederal Court Melbourne24 November 2002

obtained leave to serve the proceedings on some of therespondents located in Switzerland, Germany and Hong Kong

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PlayStationPlayStationPlayStationPlayStationPlayStationKabushiki Kaisha Sony Computer Entertainment

alleged alleged alleged alleged alleged | anti-circumvention Copyright Act | modification of region coding in PlayStationconsoles (chipping), allows consumers to use imported games and legitimate backup copies

Justice SackvilleFederal Court Sydney26 July 2002

ACCC heard as amicus curiae; court found chipping was not acopyright circumvention device; February 2003 ACCC heard asamicus in Full Federal Court appeal, judgment reservedst

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petrolpetrolpetrolpetrolpetrolLeahy Petroleum Pty Ltd and others

alleged alleged alleged alleged alleged | price fixing | of petrol in the Ballarat area under the Swift, Apco, Mobil, BP, Shelland Ampol/Caltex brands as part of price-fixing arrangement between distributors and retailers

Justice GoldbergFederal Court Melbourne21 May 2002

commenced proceedings seeking declarations; injunctions;findings of fact; implementation of a trade practices complianceprogram, penalties and costsst

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petrol supplypetrol supplypetrol supplypetrol supplypetrol supplyLeahy Petroleum Pty Ltd

alleged alleged alleged alleged alleged | resale price maintenance | on Buangor service station owner

Justice GoldbergFederal Court Melbourne21 May 2002

proceedings commenced seeking injunctions; declarations;findings of fact; implementation of a trade practices complianceprogram; penalties and costsst

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airlinesairlinesairlinesairlinesairlinesQantas Airways Limited

alleged alleged alleged alleged alleged | misuse of market power | increasing capacity and reducing fares on Brisbane–Adelaide route in response to the entry of Virgin Blue Airlines Pty Ltd on the route

Justice GylesFederal Court Sydney7 May 2002

proceedings commenced seeking declarations, injunctions,findings of fact, compliance program, penalties and costs

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parts and accessories franchisesparts and accessories franchisesparts and accessories franchisesparts and accessories franchisesparts and accessories franchises4WD Systems Pty Ltd and others

alleged alleged alleged alleged alleged | misleading, deceptive and unconscionable conduct by franchisor | of accessoriesfor four wheel drive autos; cost of franchise, supply of stock, training, distribution rights andexclusivity of stock

Justice SelwayFederal Court Adelaide4 April 2003

trial commenced, proceedings continuing

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mediamediamediamediamediaRural Press Limited and others

allegedallegedallegedallegedalleged | 1 March 2001 | misuse of market power and anti-competitive arrangement |misuse of market power by Rural Press and subsidiary, Bridge Printing Office Pty Ltd, resultingin anti-competitive agreement between them and Waikerie Printing House to withdrawThe River News regional newspaper from the Mannum area of South Australia

Justice MansfieldFederal Court Adelaide16 July 2002

found misuse of market power and anti-competitive agreement;penalties $600 000 for the Rural Press respondents; 16 July 2002on appeal Full Federal Court found anti-competitive agreement tosubstantially lessen competition; no misuse of market power;and no arrangement with Waikerie Printing that contained anexclusionary provision; application made on 13 August 2002 toHigh Court for special leave to appeal, granted on 11 April 2003

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CDsCDsCDsCDsCDsUniversal Music Australia Pty Ltd and others

alleged alleged alleged alleged alleged | misuse of market power and exclusive dealing | threatened to and actuallywithdrew trading benefits from CD retailers stocking parallel imports

Full Federal CourtSydney6 March 2002

imposed $450 000 penalty for misuse of market power andexclusive dealing; appeal to Full Federal Court heard November2002; judgment reservedst

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recyclable waste paperrecyclable waste paperrecyclable waste paperrecyclable waste paperrecyclable waste paperVisy Paper Pty Ltd

alleged alleged alleged alleged alleged | market sharing | attempt to induce Northern Pacific Paper into a market sharingagreement for recyclable waste paper collection

Justices Gleeson,McHugh, Gummow,Kirby, Hayne andCallinanHigh Court of Australia3 December 2002

hearing; judgment reserved

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CDsCDsCDsCDsCDsWarner Music Australia Pty Ltd and others

alleged alleged alleged alleged alleged | misuse of market power and exclusive dealing | threatened to and actuallywithdrew trading benefits from CD retailers stocking parallel imports

Justices Wilcox, Frenchand GylesFull Federal Court Sydney6 March 2002

imposed $450 000 penalty for misuse of market power andexclusive dealing; appeal to Full Federal Court heard November2002; judgment reservedst

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medical claimsmedical claimsmedical claimsmedical claimsmedical claimsAdvanced Medical Institute Pty Ltd and others

allegedallegedallegedallegedalleged | false, misleading and deceptive conduct | misrepresentations of impotence anderectile dysfunction treatments

Justice WhitlamFederal Court Sydney22 April 2002

hearing set for 1 December 2003

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franchisefranchisefranchisefranchisefranchiseArnold’s Ribs and Pizza Australia Pty Ltd

alleged alleged alleged alleged alleged | misleading, deceptive and unconscionable conduct | misrepresentations aboutearnings by franchisees; unconscionable conduct concerning terms and conditions imposedunder franchise agreements

Justice ContiFederal Court Sydney22 April 2002

next date to be fixed

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fruit drinksfruit drinksfruit drinksfruit drinksfruit drinksBerri Limited

allegedallegedallegedallegedalleged | 13 August 2001 | misleading and deceptive conduct | fruit drinks and juiceslabelled as made in Australia from Australian and imported juices depending on seasonalavailability; did not contain sufficient Australian juice and Australian content; not dependent onseasonal availability

Justice GrayFederal Court Melbourne28 June 2003

awaiting a trial date

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telephone billstelephone billstelephone billstelephone billstelephone billsBillbusters Pty Limited and another

allegedallegedallegedallegedalleged | 23 November 1998 | misrepresentations about telephone bill-paying services |in claiming methods of reviewing and checking Telstra telephone accounts

Justice KennyFederal Court Melbourne8 May 2003

granted summary judgment declaring that Miles Kendrick-Smithwas knowingly concerned in misrepresentation; injunctionrestraining director from representing that he performs auditservices on Telstra accounts or invoices; 29 May 2003Mr Kendrick-Smith filed a notice of appeal

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nannies trainingnannies trainingnannies trainingnannies trainingnannies trainingBlack on White Pty Ltd, trading as Australian Early Childhood College

allegedallegedallegedallegedalleged | 1 August 1997 | misleading, deceptive and unconscionable conduct | in relationto the accreditation of courses and enforcement of enrolment contracts in child care andrelated training courses

Justice SpenderFederal Court Brisbane10 October 2002

found the company had engaged in misleading, deceptive andunconscionable conduct; the manager was knowingly concernedin misleading and unconscionable conduct and his son wasknowingly concerned in the company’s accreditationmisrepresentations; both ordered to compensate consumers;and on 10 October 2002 hearing resulted in the redirection ofearnings of manager’s son

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internet service providerinternet service providerinternet service providerinternet service providerinternet service providerDataline.net.au Pty Ltd

allegedallegedallegedallegedalleged | 21 December 2001 | misleading, deceptive and unconscionable conduct,misrepresentations, resale price maintenance, undue harassment | supply of internet relatedservices to small businesses and consumers

Justice KeifelFederal Court Brisbane9 May 2003

ordered parties attend mediation

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muscle stimulationmuscle stimulationmuscle stimulationmuscle stimulationmuscle stimulationEmerald Ocean Distributors Pty Ltd, Slendertone Health and Beauty Pty Ltd

allegedallegedallegedallegedalleged | 19 July 2000 | misleading or deceptive conduct, misrepresentation | health andcosmetic benefits of an electronic muscle stimulation product

Justice NicholsonFederal Court PerthJune 2003

trial part completed

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fruit drinksfruit drinksfruit drinksfruit drinksfruit drinksCadbury Schweppes Pty Limited

alleged alleged alleged alleged alleged | 22 March 2002 | false misleading and deceptive conduct | labelling of bananamango and apple kiwi fruit flavoured cordial which did not contain the banana, mango and kiwifruits

Justice GrayFederal Court Melbourne19 June 2003

case heard; judgment reserved

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weight lossweight lossweight lossweight lossweight lossChaste Corporation Pty Ltd, Peter Foster and others

alleged alleged alleged alleged alleged | 26 November 2001 | resale price maintenance, misleading, deceptive andunconscionable conduct, franchising code of conduct, misrepresentations | profitability ofarea manager distributorships and efficacy of weight loss product TRIMit; respondentsdisregarded managers’ reasonable commercial expectations and long-term viability of Chaste

Justice SpenderFederal Court Brisbane3 February 2003

unsuccessful in seeking pre-trial orders stopping Mr Foster fromleaving Australia and requiring him to deliver his passport to theFederal Court; ruled prima facie case against Chaste Corporationand Mr Foster; proceedings continue

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electronic muscle stimulationelectronic muscle stimulationelectronic muscle stimulationelectronic muscle stimulationelectronic muscle stimulationDanoz Direct Pty Ltd

allegedallegedallegedallegedalleged | 3 May 2002 | misleading and deceptive conduct, misrepresentations | aboutcapabilities of Abtronic device as a brilliant training and toning tool capable of causing weightloss

Justice DowsettFederal Court Brisbane2 April 2003

judgment reserved; seeking declarations; injunctions; refundsfor consumers; corrective notices; trade practices complianceprogramst

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financefinancefinancefinancefinanceEsanda Finance Corporation Ltd, Nationwide Mercantile Services

alleged alleged alleged alleged alleged | 12 April 2001 | harassment and coercion, unconscionable conduct | debtcollectors used physical force, coercion, undue harassment, and unconscionable conduct inrepossessing a motor vehicle

Justice LeeFederal Court Perth21 July 2003

trial to take place

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negative ion matnegative ion matnegative ion matnegative ion matnegative ion matGiraffe World Australia (in liquidation)

allegedallegedallegedallegedalleged | June 1998 | misleading and deceptive representations, pyramid selling | matsclaimed to have particular health benefits, promotion of a pyramid selling scheme and referralselling

representative action to obtain compensation for participants onfoot, adjourned

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us Justice Lindgren

Federal Court Sydney15 February 2000

worms pyramid sellingworms pyramid sellingworms pyramid sellingworms pyramid sellingworms pyramid sellingGreenstar Cooperative Ltd, Bio Enviro Plan Pty Ltd, Buyplus Commodities Brokers Pty Ltd,Greenstar Management Pty Ltd and directors

allegedallegedallegedallegedalleged | 5 June 2001 | misleading or deceptive conduct, misrepresentations, acceptingpayment without intending to supply | promotion of a scheme involving a transaction card andearthworm farming program, as basis for enticing members to join pyramid and referral sellingscheme

Justice NicholsonFederal Court Perth10 June 2003

hearing for final orders to take place

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computerscomputerscomputerscomputerscomputersInfo4pc.com Pty Ltd

allegedallegedallegedallegedalleged | 22 January 2001 | misleading and deceptive conduct, bait advertising, acceptingpayment not intending to supply | computers valued at $1899 offered for $499 in exchange forcompleting monthly questionnaire for 2 years; supply not intended

Justice NicholsonFederal Court Perth2 April 2003

proceedings continuing

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facsimilefacsimilefacsimilefacsimilefacsimileIT&T AG

allegedallegedallegedallegedalleged | 28 March 2002 | misleading and deceptive conduct, unsolicited directory entry |mailed unsolicited documents from Switzerland to Australian businesses demanding paymentfor entries in an international fax directory

Justice NicholsonFederal Court Perth30 June 2003

judgment reserved on method of service of future documents

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vacuum cleanersvacuum cleanersvacuum cleanersvacuum cleanersvacuum cleanersLux Pty Ltd

allegedallegedallegedallegedalleged | 27 July 2001 | unconscionable conduct, undue harassment or coercion | sellingvacuum cleaner to intellectually impaired couple

Justice NicholsonFederal Court Perth7 April 2003

trial to continue

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health insurancehealth insurancehealth insurancehealth insurancehealth insuranceMedibank Private

allegedallegedallegedallegedalleged | October 2000 | misleading or deceptive conduct | advertised no rate increase for2000; failed to properly disclose that rates would increase for PackagePlus products; thenoffered consumers switching from other funds ‘any waiting periods waived’ and ‘get 30 daysfree’; fine print provided that only the two-month general waiting period and the six-monthoptical waiting period were waived

Justice RyanFederal Court Melbourne25 March 2003

seeking orders including waiver of waiting periods; provision of30 days free health insurance; and refunds or credits forPackagePlus purchasers; March 2002 Medibank’s application forcertain remedial orders to be struck out was refused; September2002 Full Federal Court upheld Medibank’s appeal; 20 June 2003ACCC application for special leave to appeal to the High Courtrefused; proceedings continue

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health insurancehealth insurancehealth insurancehealth insurancehealth insuranceMedical Benefits Fund of Australia Limited (MBF)

alleged alleged alleged alleged alleged | 8 February 2001 | misleading or deceptive conduct | print and televisionadvertisements containing pregnancy-related images with fine print that the 12-month waitingperiod for pregnancy related services would not be waived

Federal Court SydneyOctober 2002

ordered declarations; injunctions; publication broadcast ofcorrective notices and costs; appeal by MBF to Full Federal Courtheard 12 May 2003; judgment reservedst

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sadvertisingadvertisingadvertisingadvertisingadvertising

John Bevins Pty Ltd

alleged alleged alleged alleged alleged | February 2001 | misleading or deceptive conduct | advertising agency knowinglyconcerned in misrepresentations of Medical Benefits Fund of Australia Limited

Justices Moore,Mansfield, Stone,Full Federal Court SydneyOctober 2002

ordered declarations and costs; appeal by Bevins to Full FederalCourt heard on 12 May 2003, judgment reserved

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car paintcar paintcar paintcar paintcar paintKwik Fix International Pty Ltd and others

allegedallegedallegedallegedalleged | 24 April 2002 | misleading, deceptive and unconscionable conduct, breaches offranchising code of conduct | concerning franchising of mobile repairs services for car paint,plastic and interiors

Justice KeifelFederal Court Brisbane24 April 2003

directions hearing; seeking declarations; injunctions;compliance training; compensation; costs

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freightfreightfreightfreightfreightMultigroup Distribution Services

allegedallegedallegedallegedalleged | 11 July 2001 | misleading and deceptive conduct | Parker Freight Express misledabout the provision of a freight transport contract in North Queensland

Justice SpenderFederal Court Brisbane18 February 2003

direction hearing; seeking declarations, injunctions, finding offact, damages, costs

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gold coast propertygold coast propertygold coast propertygold coast propertygold coast propertyOceana Commercial Pty Ltd, Commonwealth Bank of Australia and others

allegedallegedallegedallegedalleged | 14 November 2001 | misleading, deceptive and unconscionable conduct | two-tier marketing on the Gold Coast; purchase price of property includes a substantial undisclosedmarketing fee; unconscionable conduct by bank approached to finance purchase

Justice KiefelFederal Court Brisbane10 March 2003

seeking findings of fact; injunctions; implementation of tradepractices compliance program

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latex gloveslatex gloveslatex gloveslatex gloveslatex glovesPacific Dunlop Ltd

allegedallegedallegedallegedalleged | 21 January 2000 | misleading and deceptive conduct | packaging of Ansell latexgloves did not warn that latex could cause serious allergic reactions

Justice NorthFederal Court Melbourne

seeking declaration and injunction; 26 September 2003directions hearing

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advertisingadvertisingadvertisingadvertisingadvertisingSaatchi & Saatchi Australia Pty Ltd

allegedallegedallegedallegedalleged | November 2001 | misleading or deceptive conduct | advertising agency engaged inmisleading or deceptive conduct in preparing advertisements for NRMA Health Pty Ltd;October 2002 case dismissed

Justices Moore,Mansfield and StoneFull Federal CourtSydney13 May 2003

ACCC appeal against decision of Federal Court heard; judgmentreserved

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shopping centre leaseshopping centre leaseshopping centre leaseshopping centre leaseshopping centre leaseWestfield Shopping Centre Management Co. (Queensland) Pty Ltd and others

alleged alleged alleged alleged alleged | 29 October 2001 | misleading, deceptive and unconscionable conduct |misrepresentation in leasing negotiations; refusal to finalise settlement regarding misleadingand deceptive conduct unless conditions were met including an undertaking from ACCC tocease investigations into the matter

Justice KiefelFederal Court BrisbaneFebruary 2003

notice of motion filed to refer issue of damages to mediation;hearing of motion set for 30 July 2003

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willswillswillswillswillsWill Writers Guild Pty Ltd

allegedallegedallegedallegedalleged | 27 March 2001 | contravention of industry code, misrepresentations | contravenedmandatory franchising code; misrepresented right to undertake a will writing business thatunder state and territory law could not be legally operated

Justice MarshallFederal Court Hobart2 May 2003

by consent judgment against company and director; permanentinjunction; costs; compensation claim for remaining franchiseeto be determinedst

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international attm card schemeinternational attm card schemeinternational attm card schemeinternational attm card schemeinternational attm card schemeWorld Netsafe Pty Ltd and another

alleged alleged alleged alleged alleged | contempt of court | promotion and marketing of illegal international pyramid andreferral selling scheme; breaches of substantive court orders

Justice SpenderFederal Court Brisbane6 March 2003

contempt findings made concerning website and lack ofprovision of information to the ACCC; judgment reserved onpenalty and costsst

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The above list does not provide complete details and is not a legal document. It is intended forinformation only. Details of cases are given in the ACCC Journal.

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02 03outp

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assessing mergers, asset sales and joint ventures

The Trade Practices Act prohibits mergers, acquisitions and joint ventureswhich would substantially lessen competition and prevents businessesaccumulating market power that could lead to anti-competitive conduct.The test applied by the ACCC rests on recognition of the link between marketstructure and resulting market power, and the need to be able to respond topotential threats from the exercise of market power.

this year the ACCCfinalised 191 mergers, asset sales and joint ventures;27 in less than 2 weeks, 45 in less than 3 weeks,76 in less than 6 weeks; 182 not opposed

those approved included:

Australian Cement Holdings and Queensland Cement merger

Coles Myer acquisition of Theo’s Liquor

Grainco Australia and GrainCorp merger

Incitec and Pivot merger

Insurance Australia Group acquisition of Aviva CGU Insurance

Pfizer Pty Ltd and Pharmacia Corporation merger

Hoyts, Greater Union and Village Roadshow acquisition of Val Morgan

those opposed included:

Farm Pride Foods and Pace Farms joint venture

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mergers and joint ventures

number of mergers by industry

this year last year

total 191 237not opposed 182 228opposed 9 5resolved through undertakings (2) (4)

finance/banking/insurance 33 36energy 21 12food industry/produce 18 24manufacturing 18 33health 13 25mining/forestry 19 24communications 13 29transport 6 21computer 32 5other 18 28TOTAL 191 237

Mergers, acquisitions and asset salesMergers, acquisitions and asset salesMergers, acquisitions and asset salesMergers, acquisitions and asset salesMergers, acquisitions and asset sales were assessed for their compliance with section 50 ofthe Trade Practices Act. In total 191 matters were examined—of the nine that were opposed,two were allowed to proceed after the acceptance of undertakings to address anti-competitivedetriment. Merger activity is becoming increasingly globalglobalglobalglobalglobal in nature and the ACCC worked withoverseas competition authorities, particularly through its active participation in theInternational Competition NetworkInternational Competition NetworkInternational Competition NetworkInternational Competition NetworkInternational Competition Network, a global forum through which individual nationalcompetition agencies are able to liaise on common issues. The ACCC is a member of thesteering committee of the International Competition Network and its working groups includethose dealing with best practice in mergers and investigative techniques for conductingeffective merger review.

major mergers assessed

Australian Cement Holdings and Queensland Cement

result result result result result | merger not opposed

backgroundbackgroundbackgroundbackgroundbackground | unlikely to result in any significant reduction in competition in cement, flyashand blast furnace slag markets as there is minimal geographic overlap between the twocompanies

Australian Wheat Board Limited and Goodman Fielder, Milling Australia

result result result result result | acquisition opposed

backgroundbackgroundbackgroundbackgroundbackground | Australian Wheat Board monopoly exporter of wheat and largest domesticgrain trader; substantial lessening of competition in markets for flour milling and mixingacross Australia and grain trading in Queensland

Coles Myer Ltd and Theo’s Liquor

result result result result result | no intervention in acquisition

background background background background background | Theo’s Liquor has retail outlets located in the Sydney metropolitan area,Newcastle and on the Central Coast; information obtained from the market indicated thatremoving Theo’s Liquor outlets as an independent force was not likely to lead to a substantiallessening of competition in either wholesale or retail markets

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Farm Pride Foods and Pace Farms

result result result result result | joint venture opposed

backgroundbackgroundbackgroundbackgroundbackground | substantial lessening of competition as together companies would account formore than half the market; imports nor existing competitors would provide competitive restraint

Grainco Australia Ltd and GrainCorp Ltd


backgroundbackgroundbackgroundbackgroundbackground | GrainCorp predominantly involved in bulk grain storage and handling services inNew South Wales and Victoria; Grainco’s operations are predominantly in Queensland; Graincowill not retain its interest in Australian Bulk Alliance; no substantial lessening of competition

GrainCorp/Cargill and Milling Australia

result result result result result | acquisition not opposed

backgroundbackgroundbackgroundbackgroundbackground | GrainCorp is involved in the provision of storage and handling services in NewSouth Wales and Victoria while both GrainCorp and Cargill are involved in grain trading; marketinquiries found that there were strong constraints on GrainCorp’s ability to discriminateagainst particular users of its storage and handling facilities; acquisition will not giveGrainCorp the ability to raise rival millers’ costs through its storage and handling network

Incitec Ltd and Pivot Ltd


backgroundbackgroundbackgroundbackgroundbackground | fertiliser products containing the same basic nutrients are substitutable andconstrain each other in price; imported products would provide effective competitive constraint

Insurance Australia Group and Aviva CGU Insurance

result result result result result | acquisition not opposed

backgroundbackgroundbackgroundbackgroundbackground | on most product lines there is little overlap between IAG, which has beenmore consumer focused, and CGU which is commercially focused; home insurance anddomestic motor insurance are the only two significant areas of overlap between IAG and CGU;a substantial lessening of competition is unlikely because the merged entity will continue toface vigorous competition from other significant insurance companies

Pfizer Pty Ltd and Pharmacia Corporation

result result result result result | accepted section 87B undertaking for merger

backgroundbackgroundbackgroundbackgroundbackground | concerns that the worldwide merger of the parties may result in a substantiallessening of competition in Australia in relation to certain products used by cattle breeders,veterinarians and farmers for the management of cattle reproduction; Pfizer to divest itsCueMate product

Val Morgan and Hoyts, Greater Union and Village Roadshow

result result result result result | accepted section 87B undertaking on acquisition

backgroundbackgroundbackgroundbackgroundbackground | concern that independent exhibitors would be treated unfairly with screenadvertising; undertakings sufficient to resolve competition concerns

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authorising anti-competitive conduct

The adjudication process is a fundamental and unique feature of the ACCC’swork. The process involves assessing the public benefits and detrimentsresulting from certain anti-competitive practices. If there is a net public benefitthe ACCC may grant immunity from legal proceedings. There are two ways inwhich immunity from the Trade Practices Act is available: through applying foran authorisation or lodging a notification of exclusive dealing.

this year the ACCCreceived 61 new applications for authorisation, 21 new applications forminor variation to an existing authorisation, 11 new applications torevoke an existing authorisation and grant a substitute authorisation,11 requests to revoke an existing authorisation

made 41 final determinations for 89 applications for authorisation(including gas, electricity, merger and other authorisations)

made 16 interim decisions for 29 applications and made 35 draftdeterminations for 73 applications

decided 268 notifications for exclusive dealing

main adjudication issues

final decisions:

Royal Australasian College of Surgeons surgical training program andoverseas-trained surgeons’ assessment

Health Purchasing Victoria collectively tender for agency nursing staffin several hospitals in Melbourne and Geelong

Royal Australian College of General Practitioners—allow doctors in thesame practice to agree on patient fees

New South Wales Department of Health private in-patients in publichospitals to use public pathologists

Australian Hotels Association (NSW) collective bargaining for theprovision of wagering and broadcasting services

draft decisions:

Qantas and Air New Zealand strategic alliance

Star Alliance airlines offer of discounts on published airfares

Allianz Australia Insurance Limited, QBE Insurance (Australia) Limitedand NRMA Insurance Limited joint provision of public liabilityinsurance to eligible not-for-profit organisations

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interim decisions:

Qantas and British Airways joint services agreement

review:

International Air Transport Association authorisations

appl

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authorisation applications

authorisation applications 26 (67) 25 (61) 10 (22) 17 (59) 24 (47)

minor variation applications 0 11 (21) 0 8 (12) 3 (9)

revoke and substitute authorisationapplications 6 (6) 11 (11) 0 7 (7) 10 (10)

applications to revoke authorisationspreviously granted 0 11 (11) 0 11 (11) 0

total 32 (73) 58 (104) 10 (22) 43 (89) 37 (66)

last year 39 (94) 22 (40) 1 (1) 28 (60) 32 (73)

notes: figures in brackets indicate total applications including electricity and gas matters; openingbalance includes 30 applications relating to national electricity code changes and 11 applicationsrelating to gas supply market rules; closing balance includes 12 applications relating to nationalelectricity code and 11 applications relating to gas supply market rules; new applications decidedincludes one merger application

this year last year

notifications

opening balance 89 63new applications 248 307withdrawn 3 1decided 268 281balance 66 26

certification trade marks


in the balance four have had initial assessments

applications for review by the Australian Competition Tribunal


notes: Marven Poultry judicial review not included; application for review of Health Purchasing Victoriadetermination lodged on 20 December 2002; application for review of Agsafe determinationwithdrawn on 11 July 2002; application for review of Sydney Recycling determinations withdrawnin August 2002; application for review of Australian Diary Farmers Federation determinationresulted in a consent agreement between the applicant for authorisation (Australian Diary FarmersFederation), the applicant for review (National Foods) and the ACCC, being agreed to by thetribunal on 27 August 2002.

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The ACCC made 41 final determinations for 89 applications for authorisationapplications for authorisationapplications for authorisationapplications for authorisationapplications for authorisation, including gas,electricity and mergers. A signification portion of current adjudication workload is generated byorganisations responding to changing market conditions, for instance resulting from regulatorychange or global competition.

The ACCC engages with overseas competition authoritiesoverseas competition authoritiesoverseas competition authoritiesoverseas competition authoritiesoverseas competition authorities on authorisations where it has acommon interest. One example is liaising with the New Zealand Commerce Commission onthe Qantas/Air New Zealand strategic alliance proposal.

The ACCC also continues to respond to applications lodged as a result of the impact ofimpact ofimpact ofimpact ofimpact ofcompetition policycompetition policycompetition policycompetition policycompetition policy reform reform reform reform reform on areas once beyond the reach of the Trade Practices Act, forexample in relation to potentially anti-competitive arrangements in the professions orcollective bargaining by small businesses. In previous years these have focused on primaryprimaryprimaryprimaryprimaryproducersproducersproducersproducersproducers wishing to collectively bargain with processors. This year applications have beenconsidered from newsagents wishing to negotiate collectively with suppliers includingpublishers; hotels on the provision of totalisator betting from TAB Ltd and receivingbroadcasting services from Sky Channel Pty Ltd; lottery agents seeking to engage in collectivenegotiations with the Golden Casket Lottery Corporation Limited in Queensland; and concretecarters wishing to negotiate collectively with CSR in Western Australia and Queensland.The ACCC has also received a number of third line forcingthird line forcingthird line forcingthird line forcingthird line forcing notifications across many differentindustry sectors, including banking and finance, telecommunications, petrol and retail.

major authorisations and notifications

Australian Pharmaceutical Industries Ltd (API) and Sigma Company Ltd

result result result result result | 12 September 2002 acquisition opposed

backgroundbackgroundbackgroundbackgroundbackground | proposed acquisition would substantially lessen competition with full-linewholesalers reduced from three to two; together the companies would account forapproximately 60–70 per cent of products for retail pharmacies

Australian Hotels Association (NSW)

result result result result result | 27 June 2003 final determination granting authorisation

backgroundbackgroundbackgroundbackgroundbackground | proposed collective bargaining by New South Wales hotels for the provisionof totalisator (wagering) (PubTAB) from TAB Limited and receiving broadcasting services fromSky Channel Pty Ltd; Australian Hotels Association (NSW) no longer seeking authorisation forcollective boycott activity, the revision significantly reduced anti-competitive detriment

Australian Bankers’ Association

result result result result result | 20 December 2002 application withdrawn

background background background background background | 10 member banks proposing to collectively agree to offer a basic bank accountwith minimum features to low income consumers; concern that the proposal had the potentialto dampen competition between the major banks and result in the proposed minimum featuresbecoming the industry standard

Allianz Australia Insurance Limited, QBE Insurance (Australia) Limited and NRMA InsuranceLimited

result result result result result | 28 April 2003 draft determination proposing to grant conditional authorisationallowing the joint provision of public liability insurance to eligible not-for-profit organisations

background background background background background | 28 November 2002 interim authorisation granted allowing the companies tooffer the joint insurance product while the merits of the proposal are considered

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Investment and Financial Services Association

result result result result result | 11 December 2002 granted interim authorisation of the policy for members

backgroundbackgroundbackgroundbackgroundbackground | arrangement between life insurance companies to limit the use of genetictesting in life insurance policies

Qantas and Air New Zealand

result result result result result | 10 April 2003 draft determination proposing to deny authorisation; formed thepreliminary view that the proposed alliance would be highly anti-competitive and its benefitssmall; the ACCC is currently evaluating additional information

backgroundbackgroundbackgroundbackgroundbackground | 9 December 2002 Qantas and Air New Zealand applications seekingauthorisation for Qantas to acquire up to 22.5 per cent of the equity in Air New Zealand and forthe formation of a strategic alliance; the strategic alliance would involve price, capacity andschedule coordination on nominated routes with the primary focus being the Trans Tasman,North America and New Zealand domestic markets

Qantas and British Airways joint services agreement

result result result result result | 11 June 2003 granted interim authorisation while considering the matter in full

backgroundbackgroundbackgroundbackgroundbackground | 6 May 2003 Qantas and British Airways applications seeking re-authorisationof their joint services agreement due to expire on 21 July 2003

International Air Transport Association

result result result result result | 15 April 2003 application for revocation and substitution of an authorisation coveringall International Air Transport Association activities other than for travel agents; progress theapplication by issuing discussion papers on the matters before issuing consolidated draft andfinal determinations

backgroundbackgroundbackgroundbackgroundbackground | in consultation with IATA the ACCC commenced its review of authorisationsgranted 18 years ago covering IATA rules, regulations, agreements and resolutions; IATA isprogressively lodging submissions on each of the systems

Star Alliance

resultresultresultresultresult | 30 May 2003 draft determination proposing, to authorise the arrangements, subjectto certain undertakings

backgroundbackgroundbackgroundbackgroundbackground | 11 April 2002 Air New Zealand, on behalf of the members of the Star Alliance,applied for authorisation of the guidelines for implementation of the Star Joint CorporateAgreement and the Star Alliance Conventions Plus Program; Star Alliance airlines will jointlyoffer agreed discounts on published airfares to consenting corporate customers andconvention delegates; airlines participating in a joint bid will collect and exchange informationand will not make competing independent bids until a joint bid is withdrawn or rejected

Royal Australasian College of Surgeons

resultresultresultresultresult | 30 June 2003 granted authorisation subject to conditions

background background background background background | applied for authorisation of its processes for selecting, training and examiningsurgical trainees; accrediting hospitals and hospital posts as being suitable for surgicaltraining and for assessing the qualifications and experience of overseas-trained surgeons

Royal Australian College of General Practitioners

resultresultresultresultresult | 20 December 2002 granted authorisation subject to conditions, to ensure thatpractices genuinely function as one medical body; authorisation does not allow feeagreements between doctors in different general practices

backgroundbackgroundbackgroundbackgroundbackground | sought authorisation to allow general practitioners across Australia in thesame associateship or partnership with a corporate partner to agree on patient fees

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Health Purchasing Victoria

resultresultresultresultresult | 5 December 2002 granted authorisation subject to conditions; Nursing AgenciesAssociation of Australia lodged an application for review with the Australian Competition Tribunal

backgroundbackgroundbackgroundbackgroundbackground | public hospitals in metropolitan Melbourne and Geelong apply for authorisationto collectively tender for agency nursing staff

New South Wales Department of Health

resultresultresultresultresult | 27 June 2003 granted authorisation subject to conditions

backgroundbackgroundbackgroundbackgroundbackground | New South Wales Department of Health applied for authorisation of its policyof requiring private in-patients in New South Wales public hospitals to use public pathologists

Australian Self Medication Industry

resultresultresultresultresult | 12 February 2003 granted interim authorisation while merits of application are considered

backgroundbackgroundbackgroundbackgroundbackground | 8 January 2003 Australian Self Medication Industry sought authorisation for anindustry code of conduct for members designed to reduce the illicit diversion ofpseudoephedrine containing medicines for the production of methylamphetamine (speed)

notifications of exclusive dealing

Australian Dairy Farmers’ Federation

resultresultresultresultresult | August 2002 | the Australian Competition Tribunal agreed on position consented toby National Foods, Australian Dairy Farmers’ Federation and ACCC that groups of dairy farmerswith a shared community interest are authorised to collectively negotiate terms of supply,including pricing, with a dairy company that each member of the group wishes to supply

Sydney Recycling

resultresultresultresultresult | August 2002 | Waste Services Corporation New South Wales withdrew applicationfor review of two authorisations allowing various Sydney councils to collectively negotiate withrecycling facility operators

Agsafe Limited

resultresultresultresultresult | July 2002 | Veterinary Manufacturers and Distribution Association withdrewapplication for review of authorisation to a self-regulation compliance program for theagricultural and veterinary chemical industry, overseen by Agsafe Limited

Australian Competition Tribunal

Telstra Corporation and Telstra Pay TV

resultresultresultresultresult | 12 November 2002 ACCC decision not to intervene to remove third line forcingimmunity granted to Telstra enabling it to include Foxtel’s pay TV services in its ‘rewards’packages

backgroundbackgroundbackgroundbackgroundbackground | inclusion of Foxtel’s pay TV services supplied by Telstra Pay TV with Telstra’stelecommunications services in its existing ‘rewards’ packages, customer receives 5 or10 per cent discount off the retail price of the Foxtel service; public benefits of allowing Telstrato proceed with bundling arrangements likely to outweigh any public detriment

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distribution networksdistribution networksdistribution networksdistribution networksdistribution networksthe smaller wires and pipelines thatcarry electricity and gas from thetransmission networks to theconsumer.

derogationderogationderogationderogationderogationan exemption from a provision of thenational electricity code

electricity poolelectricity poolelectricity poolelectricity poolelectricity poolbecause electricity cannot be stored,and electricity produced by differentgenerators cannot be distinguished,the wholesale market uses theconcept of a pool where all electricityoutput from generators is centrallypooled and scheduled to meetdemand.

electricity spot marketelectricity spot marketelectricity spot marketelectricity spot marketelectricity spot marketallows wholesale electricity to betraded between generators andwholesale customers. A spot price iscalculated for each half hour period,based on price offers and bids.

forward-looking loss factorsforward-looking loss factorsforward-looking loss factorsforward-looking loss factorsforward-looking loss factorswholesale electricity prices to beadjusted to reflect losses intransmission due to resistance in thenetwork.

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s network service providersnetwork service providersnetwork service providersnetwork service providersnetwork service providersbusinesses that own and/or operatethe transmission and distributionwires and pipelines.

ring fencingring fencingring fencingring fencingring fencingstructures to prevent flows ofinformation and personnel within anintegrated utility and between relatedbusinesses.

transmission networkstransmission networkstransmission networkstransmission networkstransmission networksthe high voltage wires or high-pressure pipelines that carryelectricity or gas from generators orproducers to the distributionnetworks in the cities, towns and, insome cases, directly to majorcustomers.

vertical integrationvertical integrationvertical integrationvertical integrationvertical integrationbringing successive stages inproduction and marketing under thecontrol of one organisation, e.g.combining electricity generation,transmission, distribution andretailing.

[ ]

regulating infrastructure service markets andother markets where competition is restricted

The ACCC promotes competition in the network industries: energy,telecommunications, aviation, waterfront, rail and post as well asmonitoring prices of selected goods and services.

energyThe ACCC has powers and responsibilities to regulate the non-competitive sectors ofthe electricity and gas industries, the transmission wires and pipelines. The ACCC’sresponsibilities include regulating the terms and conditionsregulating the terms and conditionsregulating the terms and conditionsregulating the terms and conditionsregulating the terms and conditions on which competingbusinesses can gain access to transmission wires and pipelines, and constraining monopolypricing. It performs these functions in liaison with state and territory regulators, whichgenerally have responsibility for regulating the distribution wires and pipelines.

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electricity

this year the ACCC

finalised revenue cap decisions for transmission businesses of SPIPowerNet (Victoria), VENCorp (Victoria) and ElectraNet (South Australia)

finalised bidding and rebidding rule code changes

authorised code changes for implementing technical requirements foraccess to power system

authorised exemptions from provisions of the national electricity codeon the introduction of full retail competition in South Australia and theAustralian Capital Territory; extension of technical exemptions; safetynet provisions and reserve contracting; calculation of loss factors inQueensland; and Victorian transmission network arrangements

reduced to four the outstanding code change applications

reduced the time taken to complete authorisations

authorisation comparison

this year last year

authorisations 10 14minor variations to authorisations 1 0final approvals for access undertakings 2 0final decisions for revenue caps 3 1discount recovery applications considered 4 6

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the national electricity market

The national electricity marketnational electricity marketnational electricity marketnational electricity marketnational electricity market pools output from generators into a single wholesale market.The pool is managed by the National Electricity Market Management Company LtdNational Electricity Market Management Company LtdNational Electricity Market Management Company LtdNational Electricity Market Management Company LtdNational Electricity Market Management Company Ltd which isowned by the participating state and territory governments. Generators bid to supply givenquantities of electricity into the spot market. Based on these bids the National ElectricityMarket Management Company schedules which generators will operate for each five-minuteperiod.

Retailers purchase electricity through the spot marketspot marketspot marketspot marketspot market. They manage the risk of tradingthrough the pool by purchasing financial contracts directly from other market participantsincluding generators. All market participants supply the National Electricity MarketManagement Company with information that it needs to manage system security (the ability tomeet all electricity demand) and to enable it to forecast demand and supply for up to two yearsin advance. All market participants have access to this information for forward planningpurposes.

Detailed market rules are set out in the national electricity code which is administered by aseparate company, the National Electricity Code Administrator LtdNational Electricity Code Administrator LtdNational Electricity Code Administrator LtdNational Electricity Code Administrator LtdNational Electricity Code Administrator Ltd. The competition andaccess-related parts of the code are under the ultimate supervision of the ACCC. The ACCCalso approves changes to the code.

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source: National Electricity Market Management Company

The figure indicates average spot market prices during the year. There were price spikprice spikprice spikprice spikprice spikeseseseses in thespot market of the national electricity market in July 2002 during the evening peak periods from6 to 7:30pm. Prices increased from around $30 per megawatt hour to near the price cap of$10 000 per megawatt hour. High prices over the summer did not occur potentially because ofthe mild weather and changes in contract positions of market participants.

The price spikes in Queensland during the first week of December were caused by acombination of record demand, the reduction in availability of low priced generation, plantfailures and a restriction on imports from NSW resulting from planned and forced networkoutages due to bushfires.

PPPPPricesricesricesricesrices were generally low from February to June 2003 with mild summer weather, improvedplant availability and the contracting positions of market participants preventing very highpricing levels. The ACCC continues to monitor the performance of the market to determinewhether efficient outcomes are being achieved.

Recent investmentRecent investmentRecent investmentRecent investmentRecent investment outcomes and proposals include the following: over $800 million in gastransmission developments is under construction or committed; a further $5.4 billion in gastransmission investment is proposed; $2.5 billion in new intra-state electricity transmissioninvestments is underway or planned; new investment will increase the transmission assetbase in the national electricity market by 40–50 per cent over a period of five years.

The following reports were produced: A submission to the energy market reviewenergy market reviewenergy market reviewenergy market reviewenergy market review set up by theCouncil of Australian Governments: the submission suggests further reforms to improvetransmission investment outcomes and to mitigate market power in the NEM. TTTTTransmissionransmissionransmissionransmissionransmissionring-fencing guidelinesring-fencing guidelinesring-fencing guidelinesring-fencing guidelinesring-fencing guidelines which require transmission network service providers to providefinancial statements, accounts and compliance reports; final reporting guidelines were alsoreleased. Service standards guidelinesService standards guidelinesService standards guidelinesService standards guidelinesService standards guidelines (draft) to inform transmission network service providerswhat service standards information to provide to the ACCC in their revenue cap applicationsand in annual compliance statements. A discussion paper reviewing the regulatory testregulatory testregulatory testregulatory testregulatory test thatall transmission network investment must satisfy to receive regulated status.

volume weighted average price in the spot market

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bidding and rebidding rules

result result result result result | 4 December 2002 | public benefit in generators bidding and rebidding in good faith;change is intended to stop rebidding unless unexpected circumstances occur; enhance theNational Electricity Code Administrator’s role of enforcing the market rules

review of directions in the national electricity market

result result result result result | 3 October 2002 | single and consistent arrangement should apply to the use of theability of the National Electricity Market Management Company to intervene to direct supply;provisions strengthened to improve transparency of directions and to report on uses

review of integrating the energy market and network services stage one

result result result result result | 3 October 2002 | code changes arose from the National Electricity Code Administrator’sstage 1 review of integrating the energy market and network services: the extension andrefinement of settlement residue auction arrangements; refinement of the calculation of lossfactors, including a move towards a forward-looking approach in their calculation

review of technical standards

result result result result result | 26 February 2003 | code changes aimed at implementing technical requirements foraccess to the power system while maintaining network security

safety net provisions and reserve contracting derogations

result result result result result | 27 November 2002 | widen the scope of the existing reserve trader provisions; allowNational Electricity Market Management Company to enter into non-scheduled reservecontracts; ensure more reserve could be offered than currently possible

Queensland technical derogations

result result result result result | 27 November 2002 | specify technical standards for Queensland transmission anddistribution companies to ensure that the stability of the transmission system is maintained

South Australian full retail competition and system planning derogations

result result result result result | 27 November 2002 | proposed changes would: introduce transitional arrangementsfor metering services in the wholesale electricity market; provide the local network serviceproviders with a monopoly for the provision of metering services; ensure the derogation onsystem planning is consistent with the code; require planning information

Queensland intra-regional loss factors derogations

result result result result result | 15 January 2003 | derogation was extended to allow Queensland to continue usingthe forward-looking loss factors

amendments to the national electricity code

Australian Capital Territory full retail competition derogations

result result result result result | 5 March 2003 | agreed with delay to the introduction of competition for meteringservices for a transitional period to coincide with other transitional arrangements establishedas part of the Australian Capital Territory full retail competition program

amendments to Victorian transmission regulatory arrangements derogations

result result result result result | 19 March 2003 | regulation of transmission network services in Victoria; grantedconditional authorisation to ensure: greater clarity in the allocation of roles and responsibilitiesbetween the Victorian Energy Networks Corporation and SPI PowerNet; explicit recognition inVictoria’s derogations of VENCorp’s not-for-profit status; VENCorp is able to recover all of itsoperating costs and network capital expenditures

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network regulatory work

Basslink access undertaking

result result result result result | Basslink Pty Ltd’s access undertaking accepted; Basslink Pty Ltd is the marketnetwork service provider that proposes to build and provide access to the unregulatedtransmission cables that will connect Tasmania to the national electricity market

Murraylink access undertaking

result result result result result | Murraylink Transmission Company’s revised access undertaking was accepted;network service provider who proposes to provide access to the Murraylink interconnector,which will be an unregulated link connecting the Victorian and South Australian electricitygrids; recognised that it would not be appropriate to impose conditions to force company tooperate as a regulated interconnector; code provisions create a reasonable expectation thatcompany would be able to sell physical and financial transmission rights, and operate as amarket network service provider

South Australian transmission network

result result result result result | maximum allowable revenue that ElectraNet can earn from the use of its non-contestabletransmission assets will increase from $148 million in this year to $180 million in 2007–08;granted ElectraNet $48 million per annum for operating and maintenance expenditure over theregulatory period including grid support; total capital expenditure roll-in for the period 1 January2003 to 30 June 2008 of $358 million; includes an incentive scheme to encourage ElectraNet tomaintain or improve its service quality and reliability; the decision is expected to result in a4 per cent decrease (in real terms) in transmission prices over the regulatory period comparedto 2001–02

Victorian transmission network

result result result result result | revenue cap for SPI PowerNet that increases from $271.23 million in 2004 to$303.05 million in 2008; revenue cap based on post-tax nominal return on equity of 11.09 percent and an opening asset balance of $1835.60 million; total capital expenditure for the period1 January 2003 to 30 June 2008 of $378.64 million to cater for demand growth and ageingnetwork; the decision will save Victorian consumers $146 million over five and a quarter years

Tasmanian transmission network

review review review review review | commence regulation of Transend Networks from 1 January 2004; Tasmania is notcurrently part of the national electricity market, but will join with the expected commissioningof the Basslink interconnector between Victoria and Tasmania

Murraylink Transmission Company conversion application

review review review review review | preliminary view approving the conversion of the Murraylink interconnector from anunregulated interconnector (relying on spot price differential between two interconnectedregions to earn revenue) to a regulated interconnector (earning regulated revenue determinedby the ACCC); cap on the Murraylink interconnector’s revenues range from $12.25 million in2004 to $14.33 million in 2012; the revenue cap is based on a post-tax nominal return on equityof 11.17 per cent and an opening asset balance of $114.42 million

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gas

this year the ACCC

made final approvals for:

Amadeus Basin to Darwin pipeline access

Ballera to Mount Isa pipeline access

Moomba to Adelaide pipeline system access

revisions to the access arrangement for the principal transmissionsystem proposed by GasNet, the system owner

Wallumbilla to Brisbane pipeline access

made final decisions for:

principal transmission system owned by GasNet

principal transmission system operated by VENCorp

Amadeus Basin to Darwin pipeline access

this year last yearfinal approvals for access arrangements 5 1final decisions for access arrangements 3 4ring fencing reports assessed 8 5minor variations to authorisations 6 3authorisations 3 0VENCorp annual budget approved 1 1competitive gas tender approved 1 1

the national gas code

distribution of natural gaspipelines in Australia

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access arrangements

Moomba to Adelaide pipeline system: Epic Energy

result result result result result | final approval rejected proposed access arrangement and approved an accessarrangement re-drafted by the ACCC; proposed access arrangement did not comply withamendments required by the final decision; Epic applied to the Australian Competition Tribunalfor review of elements of the decision

Victorian principal transmission system review: GasNet

result result result result result | final approval rejected GasNet’s revisions in response to the final decision; ACCCdrafted and approved revisions for GasNet; GasNet applied to the Australian CompetitionTribunal to review the decision

Victoria Energy Networks Corporation (VENCorp)

result result result result result | final decision to approve VENCorp’s proposed access arrangement

The ACCC is the designated regulator for gas transmission pipelinesgas transmission pipelinesgas transmission pipelinesgas transmission pipelinesgas transmission pipelines in all states andterritories (except Western Australia). It is responsible for: assessing proposed pipelineaccess arrangements and subsequent amendments; monitoring and enforcing referencetariffs, ring fencing, incentive regulation and other access arrangement provisions; arbitratingaccess disputes between pipeline service providers and access seekers; overseeingcompetitive tendering processes for new transmission pipelines; and assessing applicationsfrom industry for authorisation of anti-competitive gas supply arrangements. The ACCC alsoregulates the industry through the general merger, anti-competitive conduct, fair trading andconsumer protection provisions of the Trade Practices Act.

The national gas codenational gas codenational gas codenational gas codenational gas code applies to transmission and distribution pipelines with naturalmonopoly characteristics. The owner or operator of a pipeline covered by the code must lodgean access arrangement with the relevant regulator, detailing proposed terms and conditions foraccess to its services. The code sets out the principles to be applied by the regulators inassessing an access arrangement. It also provides for binding arbitration of disputes betweenservice providers and access seekers.

The ACCC and National Competition Council released a joint publication joint publication joint publication joint publication joint publication in November 2002Regional development of natural gas transmission pipelines which outlines the possibleregulatory implications for new pipelines.

South AustraliaMoomba to Adelaide pipeline

VictoriaVictorian transmission system

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Wallumbilla to Brisbane pipeline

result result result result result | final approval accepted on the terms and conditions of transportation servicesproposed by APT Petroleum Pipelines Limited

Ballera to Mt Isa pipeline

result result result result result | final approval accepted on the terms and conditions of transportation servicesproposed by the Carpentaria Gas Pipeline Joint Venture

Amadeus Basin to Darwin pipeline: NT Gas

result result result result result | final approval accepted on the terms and conditions of transportation servicesproposed by NT Gas

Victorian market and system operations rules

result result result result result | six minor applications for variations to the market and system operations rulesreceived; authorisations were granted to give effect to exclusionary provisions and exclusivedealing arrangements; public detriment outweighed by the public benefits arising from thechanges

Victorian market and system operations rules

result result result result result | granted three re-authorisations for exclusionary provisions and exclusive dealingaspects of the market and system operations rules

Competitive tenders

result result result result result | issued a decision approving a request to conduct a competitive tender for theconstruction of a new natural gas transmission and distribution system to the Central Rangesregion of New South Wales.

QueenslandBallera to Mt Isa pipeline,Wallumbilla to Brisbane pipeline

Northern TerritoryAmadeus to Darwin pipeline

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telecommunications

Telecommunications markets were opened to full competition. The ACCC is responsible for thecompetition and economic regulationcompetition and economic regulationcompetition and economic regulationcompetition and economic regulationcompetition and economic regulation of communications markets. The ACCC administersthe general consumer protection consumer protection consumer protection consumer protection consumer protection provisions within the Trade Practices Act which apply to thetelecommunications industry, comprising competitive safeguards and access regimes, as wellas other legislative provisions in the Telecommunications Act 1997 and related legislation.

The central premise of the competitive safeguards regime competitive safeguards regime competitive safeguards regime competitive safeguards regime competitive safeguards regime is that companies must notengage in anti-competitive conduct. The ACCC can issue competition notices in response toallegations of anti-competitive conduct. Importantly, the effect of the notice is to reverse theonus of proof. Recipients of the notice must demonstrate to the court that they are notengaging in anti-competitive conduct. The telecommunications access regimeaccess regimeaccess regimeaccess regimeaccess regime does notprovide automatic rights of access as services must first be declared by the ACCC.Once declared, disputes can be brought to the ACCC for arbitration. The regime also enablesaccess providers to lodge undertakings regarding conditions of access and seek exemptionsfrom the standard access obligations.

this year the ACCC

declared line sharing service

granted exemptions for local carriage service

accepted undertakings from pay TV industry regarding Foxtel/Optuscontent sharing agreement

issued draft determinations for model terms and conditions for coreservices

established framework for review of existing declared services

issued record-keeping rules to Telstra for bundling and enhancedaccounting separation

reported to communications minister on emerging market structures

accepted court enforceable undertakings from Vodafone fastfoneprepaid services

finalised anti-competitive conduct investigation into Telstra’s agencyarrangements

issued guide to the resolution of access disputes

produced fair call advertising guide for telecommunicationsbusinesses

this year last year

anti-competitive conduct investigations 11 13consumer complaints investigations 7 18services declared 1 0access undertakings received 3 0exemption applications received 0 1

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The ACCC delivered its three annual telecommunications reports to the Minister forCommunications, Information Technology and the Arts in June 2003. In its reports on TTTTTelstraelstraelstraelstraelstra’s’s’s’s’scompliance with price control arrangementscompliance with price control arrangementscompliance with price control arrangementscompliance with price control arrangementscompliance with price control arrangements the ACCC found that Telstra had complied withits price control arrangements under the 2001 ministerial direction subject to one caveat: thereis a disparity of views between Telstra and the ACCC on the measurement of price movements,the extent of carry-over in relation to the second basket of services and Telstra’s application ofthe ACCC’s methodology for determining compliance with the ministerial determination. Thismay have implications for Telstra’s compliance with the determination in future price cap periods.

In its competitive safeguards reportcompetitive safeguards reportcompetitive safeguards reportcompetitive safeguards reportcompetitive safeguards report to the minister the ACCC noted its continued concern atthe lack of effective competition within and across telecommunications markets, due in largepart to the continued dominance of Telstra. This was supported by the changes in prices forchanges in prices forchanges in prices forchanges in prices forchanges in prices fortelecommunications services reporttelecommunications services reporttelecommunications services reporttelecommunications services reporttelecommunications services report, which found that price reductions have slowed over thelast few years. While in real terms the overall price paid for telecommunications services in2001–02 fell by 2.7 per cent, this was the lowest rate of decrease since 1998–99.

At the request of the Minister for Communications, Information Technology and the Arts inJune 2003 the ACCC provided a report on emerging market structures in the communicationsemerging market structures in the communicationsemerging market structures in the communicationsemerging market structures in the communicationsemerging market structures in the communicationssectorsectorsectorsectorsector, encompassing telecommunications, subscription television and media. In this reportthe ACCC argued that these markets are at a crossroads and without changes tocommunications regulatory arrangements Australia is unlikely to reap the full benefits of newtechnologies, particularly broadband applications. The report proposes that the government:introduce legislation requiring Telstra to divest its hybrid fibre coaxial network in full and divestits 50 per cent shareholding in Foxtel, unless it can be shown that the costs in doing so wouldoutweigh the benefits; bring forward the review of the moratorium on the number ofcommercial free-to-air broadcast licences and an across the board review of media sectorregulation, in particular those that have a direct impact on competition; and introducelegislation to increase access to pay TV content for broadband networks.

The ACCC implemented the TTTTTelecommunications Competition Act 2002elecommunications Competition Act 2002elecommunications Competition Act 2002elecommunications Competition Act 2002elecommunications Competition Act 2002, passed in December2002, which amended the telecommunications specific provisions of the Trade Practices Act,focusing on improving information available to the market and transparency within the industry.Using these new provisions, the minister issued a direction to the ACCC to make a record-keeping rule and to publish reports that are produced to implement enhanced accountingaccountingaccountingaccountingaccountingseparationseparationseparationseparationseparation of Telstra’s wholesale and retail operations. Initial record kInitial record kInitial record kInitial record kInitial record keeping ruleseeping ruleseeping ruleseeping ruleseeping rules wereissued in June 2003, requiring Telstra to provide the ACCC with information on current costs,key performance indicators and imputation analysis.

As required by the legislative amendments, in June 2003 the ACCC released for comment draftprice and non-price model terms and conditionsmodel terms and conditionsmodel terms and conditionsmodel terms and conditionsmodel terms and conditions for three core services: the local carriageservice, the unbundled local loop service, and public switched telephone network originatingand terminating access services. Non-price conditions include faults and maintenance, servicemigration and creditworthiness.

The amendments to the legislation also set five year expiry dates for all new servicenew servicenew servicenew servicenew servicedeclarationsdeclarationsdeclarationsdeclarationsdeclarations where previously they were open ended. Under the transitional provisions in June2003, the ACCC released the timetable of expiry dates for declared servicestimetable of expiry dates for declared servicestimetable of expiry dates for declared servicestimetable of expiry dates for declared servicestimetable of expiry dates for declared services, affirming itsearlier draft decision. In accordance with the timetable, the mobile services declaration isbeing reviewed as part of a broader mobile services reviewmobile services reviewmobile services reviewmobile services reviewmobile services review, started in April 2003, examiningwhat form of regulation, if any, should be applied to the mobile terminating and originatingaccess services, the domestic and international roaming services and third generation mobileservices. The ACCC issued a discussion paper and began industry consultation on this review.In September 2002 the ACCC varied the pricing principles for mobile termination servicespricing principles for mobile termination servicespricing principles for mobile termination servicespricing principles for mobile termination servicespricing principles for mobile termination services, toinclude termination on code division multiple access networks as well as general service formobile networks. This followed the broadening of the declaration for these services to includecode division multiple access services in the previous year.

The ACCC monitors telecommunications markets for anti-competitive conductanti-competitive conductanti-competitive conductanti-competitive conductanti-competitive conduct, usinginformation gathered from record keeping rules and other sources. This year it continuedmonitoring broadband markets using record keeping rules currently in place. The ACCC alsoproduced a quarterly report on take-up of broadband servicesbroadband servicesbroadband servicesbroadband servicesbroadband services, using data voluntarily providedby the industry. A telecommunications infrastructure surveytelecommunications infrastructure surveytelecommunications infrastructure surveytelecommunications infrastructure surveytelecommunications infrastructure survey was also completed, gatheringinformation from industry on network deployment and the supply of telecommunicationsservices across Australia.

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Bundling has emerged as a competition issue over the last few years. New record keepingNew record keepingNew record keepingNew record keepingNew record keepingrulesrulesrulesrulesrules were issued this year to Telstra, requiring it to keep records and provide the ACCC withquarterly reports in relation to bundled servicesbundled servicesbundled servicesbundled servicesbundled services, including the discounts given on a bundle ofservices, the number of customers receiving bundled services and whether customerscurrently receiving a bundle of services previously received individual services from Telstra oranother provider. The ACCC also released a paper outlining its proposed approach toproposed approach toproposed approach toproposed approach toproposed approach tobundlingbundlingbundlingbundlingbundling, providing guidelines for how it will assess whether specific bundling conduct in thetelecommunications industry is anti-competitive.

The ACCC conducted 11 anti-anti-anti-anti-anti-competitive conduct investigationscompetitive conduct investigationscompetitive conduct investigationscompetitive conduct investigationscompetitive conduct investigations. In particular, aninvestigation was conducted into Telstra’s agency arrangements. The ACCC conducted sevenconsumer protection investigationsconsumer protection investigationsconsumer protection investigationsconsumer protection investigationsconsumer protection investigations. Each matter may represent conduct that affects manyconsumers. Three matters were progressed to court: Global Pre Paid Communications Pty Ltdand In-Touch Networks Pty Ltd regarding pre-paid calling cards; Telstra Pty Ltd about the sayg’day pre-paid long distance calling cards; and National Telecommunications Group Pty Ltdregarding ‘free’ phone systems. An investigation into Vodafone fastfone pre-paid services wasfinalised out of court, with the ACCC accepting undertakings from Vodafone.

The ACCC removed access regulation from some services, granting an exemption for theexemption for theexemption for theexemption for theexemption for thelocal carriage servicelocal carriage servicelocal carriage servicelocal carriage servicelocal carriage service in central business districts of major capitals. The ACCC was satisfiedthat there are a number of alternatives by which local call services can potentially be deliveredin these business areas and the removal of regulation should encourage use of thesealternatives. The ACCC added regulation to others services, declaring the line sharing servicedeclaring the line sharing servicedeclaring the line sharing servicedeclaring the line sharing servicedeclaring the line sharing service inAugust 2002. Despite commercial agreements negotiated for the supply of these services,given that Telstra is the sole provider of these services, the ACCC decided to declare theservice. An internet interconnection declaration inquiryinternet interconnection declaration inquiryinternet interconnection declaration inquiryinternet interconnection declaration inquiryinternet interconnection declaration inquiry started in April 2003, seeking toestablish whether internet interconnection should be regulated. The ACCC is concerned toensure that the terms and conditions for interconnection between domestic internet serviceproviders are competitive.

A guide to the resolution of access disputesguide to the resolution of access disputesguide to the resolution of access disputesguide to the resolution of access disputesguide to the resolution of access disputes was issued in October 2002, incorporatingrevised dispute resolution processes. In May 2003 the ACCC revised the guide to take accountof the December 2002 amendments to the access regime, including the removal of meritsreview on final ACCC arbitrations decisions and introduction of a new power to enable theACCC to choose to defer arbitrations when undertakings are lodged.

Two arbitrations continued on analogue broadcast subscription television (pay TV) servicessubscription television (pay TV) servicessubscription television (pay TV) servicessubscription television (pay TV) servicessubscription television (pay TV) services.The ACCC deferred these arbitrations while the FFFFFoxtel/Optus content sharing agreementoxtel/Optus content sharing agreementoxtel/Optus content sharing agreementoxtel/Optus content sharing agreementoxtel/Optus content sharing agreementwas considered. In November 2002 it accepted court enforceable undertakings from membersof the pay TV industry that addressed concerns about the content sharing agreement.As foreshadowed in these undertakings, Foxtel and Telstra Multimedia lodged separate accessseparate accessseparate accessseparate accessseparate accessundertakings for analogue subscription pay TV servicesundertakings for analogue subscription pay TV servicesundertakings for analogue subscription pay TV servicesundertakings for analogue subscription pay TV servicesundertakings for analogue subscription pay TV services, proposing the terms andconditions on which each would give access to their pay TV services. A decision on the accessundertakings, a separate process from acceptance of the court enforceable undertakings,will be made within the legislative deadline. Again, as foreshadowed in the court enforceableundertakings, Foxtel and Telstra Multimedia lodged anticipatory exemptions for digitisationanticipatory exemptions for digitisationanticipatory exemptions for digitisationanticipatory exemptions for digitisationanticipatory exemptions for digitisationof their pay TV services in December 2002, using new provisions in the access regime.Neither company has as yet digitised their networks and equipment, but have committed todo so via the initial undertakings, should this exemption be accepted. If the exemption weregranted, and each company digitised its services, each would be exempted from standardaccess obligations that would apply if a digital subscription TV service were declared in thefuture. Consideration of this exemption by the ACCC is a separate process from acceptanceof the initial undertakings and a final decision will be made within the legislative deadline.

The ACCC participated in meetings of the Australian Communications Industry FAustralian Communications Industry FAustralian Communications Industry FAustralian Communications Industry FAustralian Communications Industry Forumorumorumorumorumaddressing regulatory and policy issues about next generation networks.

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Vodafone fastfone prepaid services

result result result result result | court enforceable undertakings September 2002 | Vodafone agreed to offer refundsand full disclosure of contract conditions; company acknowledged that it did not inform allcustomers of changes to expiry period and that old advertising material was available at pointof sale.

Telstra’s agency arrangements with Optus

result result result result result | agency recognition agreement signed April 2003 | Telstra and Optus acknowledgedthe other’s role in assisting businesses that decided to change whole-of-business serviceproviders; Telstra amended its standard form of agreement to meet ACCC’s broader concernsthat it gave Telstra the right to withhold consent to a customer’s request to appoint an agent orthird party to manage its telecommunications services.

Local carriage service exemptions

result result result result result | two local carriage service exemptions granted July 2002 | an individual exemption toTelstra for the supply of wholesale local calls in the central business district areas of Sydney,Melbourne, Brisbane, Adelaide and Perth effective July 2003, and a class exemption to all othercarriers and carriage service providers in the same areas effective 31 July 2002.

Line sharing service declaration

result result result result result | ACCC declared line sharing service August 2002 | although Telstra had entered intoagreements to provide these services, which enable two separate carriers to provide separateservices over a single line, the ACCC declared it was doubtful about the long-term durability ofthese agreements as Telstra is the sole provider of the service.

Content sharing agreement—Foxtel and Optus

result result result result result | ACCC accepted court enforceable undertakings November 2002 | proposed byFoxtel, Optus, Telstra and Austar to address ACCC concerns about the potential anti-competitive effects of planned pay TV content sharing arrangements between Foxtel andOptus; ACCC assessed there was evidence that the competitive position of Optus in themarket was being adversely affected by its inability to access and supply key content, whichwould be remedied by these arrangements.

Pricing principles for mobile services

result result result result result | issued pricing principles October 2002 | setting out the broad principles that itwould follow if called on to arbitrate a dispute in the supply of general services for mobile orcode division multiple access termination.

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aviation

this year the ACCC

completed regulatory reports covering quality of service monitoring,price cap administration and financial reporting for phase I and IIairports, as well as Sydney airport

assessed Sydney airport’s terminal 2 price restructuring notification

reviewed quality of service indicators and financial reportingrequirements

completed two assessments of Airservices Australia’s pricenotifications

This year a new regulatory regimenew regulatory regimenew regulatory regimenew regulatory regimenew regulatory regime for airports was introduced. The ACCC’s mainresponsibilities for the major seven airports—Sydney, Melbourne, Brisbane, Perth, Adelaide,Canberra, Darwin—now include: under the Prices Surveillance Act monitoring of prices, costsand profits relating to aeronautical services and aeronautical-related services; under theAirports Act reporting on financial accounts and quality of service monitoring. Monitoringinvolves collecting information and reporting on prices, quality and financial accounts, but theACCC has no power to prevent price increases.

The ACCC’s financial accounts and quality monitoringfinancial accounts and quality monitoringfinancial accounts and quality monitoringfinancial accounts and quality monitoringfinancial accounts and quality monitoring functions also apply to some smallerairports—Alice Springs, Gold Coast, Hobart, Launceston and Townsville. Aeronautical servicesfor regional airline services at Sydney airport are also still subject to a price capprice capprice capprice capprice cap. The ACCC isalso responsible for assessing proposals by Airservices AustraliaAirservices AustraliaAirservices AustraliaAirservices AustraliaAirservices Australia to increase charges for enroute and terminal navigation services and rescue and fire fighting services.

Each year since 1997–98 the ACCC has released regulatory reportsregulatory reportsregulatory reportsregulatory reportsregulatory reports for the regulated airports.The reports provide details on quality of service, financial accounts, compliance with theformer price caps on aeronautical services, and prices, costs and revenue information ofmonitored aeronautically related services. This year the ACCC reported the final price capprice capprice capprice capprice capresults for a number of airports. These showed that over the five years that prices werecapped, Brisbane airport exceeded its price cap by a total of $2.4 million. Perth airport was alsoover its price cap by $0.5 million, but Melbourne airport complied with the cap with a smallunder-recovery of $0.2 million at the end of the regulatory period.

The ACCC monitors airport quality of servicequality of servicequality of servicequality of servicequality of service, collecting information from airport operators,Australian Customs Service, Airservices Australia and airlines. The information includes datafrom customer perception surveys and airline surveys. Findings were: quality of services hasgenerally been good for all airports during the five year period of reporting; service quality hasnot been sacrificed to reduce costs under the price cap arrangements; at Brisbane airportBrisbane airportBrisbane airportBrisbane airportBrisbane airportthere have been consistently high standards of quality reported; recent survey results forSydney airport Sydney airport Sydney airport Sydney airport Sydney airport indicate a high degree of satisfaction with the quality of services provided;results for Melbourne airport Melbourne airport Melbourne airport Melbourne airport Melbourne airport showed that users have been satisfied with the availability andstandard of the facilities and services each year except 1999–2000, however issues identifiedthen have since been addressed; PPPPPerth airporterth airporterth airporterth airporterth airport surveys of users indicate reasonable levels ofsatisfaction with the services provided, although some lower recent ratings from airlines wereapparent. This is the second year in which quality of service monitoring has been conducted forthe phase II airports, and survey results indicated that airline users are generally satisfied withthe quality of service at these airports.

The financial accountsfinancial accountsfinancial accountsfinancial accountsfinancial accounts show that all the regulated airports continued to make positiveearnings before interest and tax. Except for Sydney, Townsville and Hobart, however, all airportsmade losses after the deduction of interest and tax and writing off of lease premiums.

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The current review of the Airports ActAirports ActAirports ActAirports ActAirports Act by the Department of Transport and Regional Servicesfollows the government’s recent policy response to the report by the Productivity Commissionon price regulation of airport services. The ACCC made a submission to the department’sreview arguing that both part 7 (financial accounts and reports) and part 8 (quality of service)remain relevant and necessary to complement price monitoring. The submission alsorecommends that the definitions of aeronautical services for separate accounts reporting bebrought into line with definitions for monitoring prices, costs and profits under the PricesSurveillance Act. The submission favours continued application of parts 7 and 8 only to thoseairports subject to price monitoring: Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberraand Darwin, but not for other smaller airports. The ACCC also recommended a more efficientmore efficientmore efficientmore efficientmore efficientquality monitoring frameworkquality monitoring frameworkquality monitoring frameworkquality monitoring frameworkquality monitoring framework, which would involve the government setting the objectives andmatters to be monitored in broad terms, while the ACCC administered the scheme, includingdetermining appropriate quality indicators following consultation with stakeholders.

price notifications

Sydney Airports Corporation Limited

result result result result result | October 2002 | final decision; ACCC did not object to the proposal to offer apassenger-based charge for regional air services at the common use terminal now known asterminal two, the former Ansett domestic terminal; proposed price structure was unlikely tolead to a price increase in excess of the consumer price index; regional air services given thechoice of electing to pay a terminal charge on either of two bases: elect to pay existingcharges, originally approved for users of the domestic express terminal, for terminal facilities,apron parking and check in counters; or pay a new passenger facilitation charge of $4.50 perarriving and departing passenger.

Airservices Australia 2002–03 pricing

result result result result result | 25 July 2002 | ACCC did not object to the proposal which allowed for a temporary5.1 per cent weighted average increase in prices across all services comprising an average5.9 per cent increase for terminal navigation charges (across 9 of the 22 locations where thoseservices are provided), an average 8.1 per cent increase for aviation rescue and fire fightingcharges (across all 16 locations where these services are provided) and a 3.9 per cent increasein charges for enroute navigation services.

Airservices Australia 2003–04 pricing

result result result result result | June 2003 | final decision to object to the proposed price increases but to allowAirservices Australia to continue current prices for a further 12 month period, until 30 June2004; the main reason being that Airservices had failed to develop a longer-term approach topricing that would provide better incentives to innovate in order to minimise costs; ratherAirservices was proposing a short-term, rate of return-based approach that tends to result inthe highest charges when airlines are under the most financial pressure.

rail

this year the ACCC

monitored Australian Rail Track Corporation’s compliance with itsobligations outlined in its access undertaking

accepted the minor amendments to track description variation in theundertaking

The ACCC administers the terms and conditions of access to rail tracksaccess to rail tracksaccess to rail tracksaccess to rail tracksaccess to rail tracks owned or leased byAustralian Rail Track Corporation. The tracks are part of the interstate mainline standard gaugetrack linking Kalgoorlie in Western Australia, Adelaide, Wolseley and Crystal Brook in SouthAustralia, Broken Hill in New South Wales and Melbourne and Wodonga in Victoria.

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completed assessment of Australia Post’s proposal to increase theprice of the basic postage stamp and related services, including largeletters and PreSort mail

completed assessment of Australia Post’s proposal to change thepricing structure for reply paid mail

The ACCC is responsible for assessing proposals by Australia Post to increase charges formonopoly postal services. It also has a role in resolving disputes over the price charged tousers of Australia Post’s bulk interconnection services.

postal price changes

result result result result result | 7 October 2002 | ACCC did not object to Australia Post’s proposal to increase thebasic postage rate from 45 cents to 50 cents, the first rise since 1992; opposed increasesoriginally proposed in bulk rates and large letters, which was already making good profits forAustralia Post and cross-subsidising ordinary mail users; users of bulk mail services have beenaffected by recent price increases after the phasing out of AdPost and discounts forunbarcoded mail; the proposed increase in the cost of postage stamps will enable AustraliaPost to achieve adequate returns for at least the next five years; it should also ensure AustraliaPost continues to provide the high level of service consumers have become accustomed to.

reply paid mail

result result result result result | March 2003 | ACCC did not object to changes in reply paid services: for barcodedsmall letters a decrease of 6 cents to 40 cents; for non-barcoded small letters an increase of9 cents to 60 cents; for large letters an increase of 8 cents in the per item administration feefrom 2 cents to 10 cents; the introduction of an annual fee of $60 for each reply paid permitnumber; requirement that all reply paid customers hold a current Australia Post businesscharge account.

waterfront and shipping

this year the ACCC

administered international liner cargo shipping arrangements

issued report monitoring container stevedoring costs and profits

The Treasurer directed the ACCC under the Prices Surveillance Act to monitor prices, costs andprofits of container stevedoring operatorscontainer stevedoring operatorscontainer stevedoring operatorscontainer stevedoring operatorscontainer stevedoring operators in the ports of Adelaide, Brisbane, Burnie,Fremantle, Melbourne and Sydney to inform the community about the progress of waterfrontreform at major container terminals, as well as the absorption of the stevedoring levy.

The ACCC released its fourth container stevedoring reportcontainer stevedoring reportcontainer stevedoring reportcontainer stevedoring reportcontainer stevedoring report in October 2002 examining trends inprices, costs and profits of the three major stevedoring companies, P&O Ports Pty Ltd, PatrickStevedores Operations Pty Ltd, and CSX World Terminals Pty Ltd for the two half year periodsJuly to December 2001 and January to June 2002. The average industry wide costaverage industry wide costaverage industry wide costaverage industry wide costaverage industry wide cost per twenty-footequivalent unit for the six months July to December 2001 was $130, which fell slightly to $129for the six months to June 2002. Average unit revenue also fell slightly from $166 per twenty-footequivalent unit in the six months to December 2001 to $165 for the first six months of 2002.The ACCC monitoring highlighted major productivity improvementsmajor productivity improvementsmajor productivity improvementsmajor productivity improvementsmajor productivity improvements in the container stevedoringindustry. In long-run trends, industry wide average revenue (indicative prices) and average costsare much lower than in 1995 when the previous stevedoring monitoring program ended.

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petrol

this year the ACCC

monitored the retail prices of unleaded petrol, diesel and automotiveliquefied petroleum gas in the capital cities and about 110 country towns

monitored international crude oil and refined product prices, publishedterminal gate prices of the oil majors and the city–country price differential

increased monitoring of domestic retail petrol prices in the five majormetropolitan cities (Sydney, Melbourne, Brisbane, Adelaide and Perth)during the war in Iraq to determine if movements in prices wereconsistent with international product prices

dealt with 2105 inquiries and complaints on fuel pricing

Monitoring of unleaded petrol pricesMonitoring of unleaded petrol pricesMonitoring of unleaded petrol pricesMonitoring of unleaded petrol pricesMonitoring of unleaded petrol prices indicated that average retail unleaded petrol pricesin metropolitan and country areas were volatile principally because of movements in theinternational product price (measured by the spot price for Singapore Mogas 95 unleaded) andthe Australian/United States dollar exchange rate. The monthly movement in the internationalproduct price was fairly stable for the first five months of the year before increasing inDecember 2002, January and February 2003, the period immediately before the war in Iraq.Following the start of the war in March the international product price fell significantly.The monthly average exchange rate ranged from a low of around 0.54 cents in August 2002to a high of around 0.66 cents in June 2003.

Movements in the average monthly five capital city unleaded petrol pricesunleaded petrol pricesunleaded petrol pricesunleaded petrol pricesunleaded petrol prices were similar to themovements in the international product price. The average price during the year was 88.6 centsper litre which was 5.2 cents per litre above the average price the year before.

monthly average price of Singapore Mogas 95 unleaded; July 2002–June 2003

source: Platts, energy information division of McGraw-Hill, Inc.

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The average price in country townscountry townscountry townscountry townscountry towns was fairly stable for the first six months and thenincreased in the first three months of 2003, before declining in April, May and June. As a resultof lower volume turnover rates in the country, country prices do not respond as quickly as thosein metropolitan areas to international price changes. The average differential between averageretail petrol prices in the five major metropolitan cities and country areas was 4.9 cents perlitre. The monthly differential ranged from a high of 8.3 cents per litre in April 2003 to a low of3.0 cents per litre in February 2003.

On 19 November 2002 the ACCC launched its initiative to increase consumers’ understandingof petrol price cyclespetrol price cyclespetrol price cyclespetrol price cyclespetrol price cycles and how to take advantage of them. The ACCC’s website provides dataon unleaded petrol price cycles in the five major metropolitan cities. It does not includeCanberra, Hobart or Darwin as petrol prices in those cities do not have regular price cycles.Consumers can make significant savings by buying petrol at the bottom of the price cycle.

Information for each city is available on: the days of the weekdays of the weekdays of the weekdays of the weekdays of the week when prices were at the bottomor top of price cycles in the previous four months (this provides a simple guide to the best daysof the week, in general, on which to buy petrol); average retail petrol pricesretail petrol pricesretail petrol pricesretail petrol pricesretail petrol prices over the past30 days (this enables consumers to see previous cycles and where the latest price may be inthe current cycle); and the length of price cycleslength of price cycleslength of price cycleslength of price cycleslength of price cycles over the previous four months (this providesa guide to consumers about how long the current cycle may last). Examples of these charts forSydney are shown below. The website also includes information on what determines Australianpetrol prices, country petrol prices and answers to some frequently asked questions. It has linksto a number of other websites that have information about petrol prices and petrol pricing issues.

monthly average five capital city unleaded petrol prices; July 2002–June 2003

days of the week for peaks and troughs of unleaded petrol prices in Sydney;1 March to 30 June 2003

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On 23 April 2003 the ACCC released a report on terminal gate pricing arrangementsreport on terminal gate pricing arrangementsreport on terminal gate pricing arrangementsreport on terminal gate pricing arrangementsreport on terminal gate pricing arrangements inAustralia and other fuel pricing arrangements in Western Australia. Terminal gate pricingbroadly refers to the sale of fuel from the terminal gate without additional services that may beprovided such as freight, branding and marketing. Terminal gate pricing arrangements wereintroduced on a regulatory basis in Western Australia and Victoria in 2001 and on a voluntarybasis in the other states by a number of the oil companies in 2002.

The report commented that it was hard to conclude that the Western Australian fuel pricingWestern Australian fuel pricingWestern Australian fuel pricingWestern Australian fuel pricingWestern Australian fuel pricingarrangements have been successful to date, and noted that Perth average petrol prices hadincreased by 2.5 cents per litre to 3.0 cents per litre against various benchmarks (although asignificant proportion of this increase may be due to tighter fuel standards in WesternAustralia).

For terminal gate pricing arrangements in VictoriaVictoriaVictoriaVictoriaVictoria, the report concluded that it was difficult toform a view on their impact because the extent to which they apply to the petroleum market inVictoria was not clear. However, it found that since their introduction, average petrol prices inMelbourne had increased by 1.0 cents per litre and average country prices had increased by0.5 cents per litre compared with a benchmark indicator.

average daily retail prices for unleaded petrol in Sydney;1 June 2003 to 30 June 2003

length of price cycles for unleaded petrol in Sydney;1 March to 30 June 2003

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insurance and prices oversight

On 5 July 2002 the Parliamentary Secretary to the Treasurer, Senator Ian Campbell, requestedthat the ACCC monitor costs and premiums in the public liability and professional indemnitypublic liability and professional indemnitypublic liability and professional indemnitypublic liability and professional indemnitypublic liability and professional indemnitysectors of the insurance market every six months for two years to consider the effect oninsurance premiums of actions taken by governments to reduce and contain legal claims costsand to improve data available to insurers to evaluate and price risk. On 1 January 2003, at therequest of the government, the ACCC began monitoring medical indemnity insurancemedical indemnity insurancemedical indemnity insurancemedical indemnity insurancemedical indemnity insurancepremiums to assess whether they are actuarially and commercially justified. The ACCC alsomonitors bank feesbank feesbank feesbank feesbank fees and charges, including credit cards and personal transaction accounts.

intellectual property

The ACCC surveys of the prices of books and computer softwarebooks and computer softwarebooks and computer softwarebooks and computer softwarebooks and computer software in Australia and overseashave consistently shown that Australians pay more than overseas consumers for best sellingbusiness software and books. In March 2003 Parliament, using the data provided, amended theCopyright Act to allow, among other things, parallel importation of computer software.In March 2003 the ACCC made a submission to the Senate Economics Legislation Committeesupporting the right of repair as an appropriate way of excluding spare partsspare partsspare partsspare partsspare parts from the newdesign registration scheme. The committee’s report of May 2003 agreed with the ACCC’s view.

regulators forum

The ACCC, with state and territory regulatory agencies, set up a public utility regulators forumutility regulators forumutility regulators forumutility regulators forumutility regulators forumto share information and develop understanding of the activities of various regulators andindustries as they implement reform. The forum was formed when public utilities in manyindustries were experiencing competition for the first time. All regulators are involved inencouraging efficient price setting principles, ensuring access to essential facilities, andminimising inefficiencies of interstate trade. The forum published three newsletters withupdates on regulatory activities as well as articles on common challenges.

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instituted proceedings against Synergy small business development program

received API/Sigma merger authorisation application

did not object to temporary price increase for Airservices Australia

deregulated local telephone call services in major capital cities

instituted proceedings against Wesfil Australia Pty Ltd for alleged country oforigin deception on air filters

opposed joint venture between Farm Pride Foods and Pace Farms

court ordered NRMA health insurance advertisements misleading

launched rural and regional information program

stopped pyramid scheme in home loan industry

court ordered Dell to publish corrective advertisements

issued warning on unsafe fire extinguisher

submitted review of the Dawson inquiry into the Trade Practices Act

recommended consistent pricing principles for mobile telephone services

Telstra cut charges for transferring business numbers

court found television production company misled job seekers, aided by network

issued draft report on disclosure of telecommunications information

merger between Consolidated Meat Group and Teys Bros not opposed

banned dangerous confectionery jelly cups containing konjac

Woolworths beef advertisements false and misleading

court found Wesfil misled about filters’ country of origin

proposed to approve revenue increase for Gasnet

Graincorp/Cargill’s proposed acquisition of Milling Australia not opposed

real estate agent refunded GST on commission

opposed acquisition of Milling Australia by Australian Wheat Board to protectcompetition in flour milling

issued final decision on transmission ring fencing guidelines

Ford Credit to provide over $430 000 in GST refunds on car leases

launched compulsory vehicle third party claim charter

sought to intervene in South Sydney rugby league case

issued final approval on Moomba to Adelaide gas pipeline access arrangement

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reported to the Senate on wholesale grocery prices

Vodafone refunded customers misled by fastfone changes

United States web-based pyramid selling scheme banned in Australia

instituted against Commonwealth Bank over ‘cricket’ home loan advertising

instituted against Dodo Internet Pty Ltd

launched free internet-based training program

alleged misleading conduct by Internet Registrations Australia

alleged predatory pricing in Fraser Island barges

approved access arrangement for Ballera to Mount Isa gas pipeline

approved access arrangement for Wallumbilla to Brisbane gas pipeline

denied authorisation for API and Sigma merger

published country of origin guide for the food and beverage industry

completed trifecta against Gold Coast punting software promoters

instituted legal action against Fila for AFL licensed apparel policy

court found Rockhampton obstetricians’ boycott of ‘no-gap’ billing breachedcompetition laws

took action against BMW (Australia) over jacks

Wizard found to have misled or deceived home loan consumers

announced final decision on postal prices

Tamar Knitting Mills fined, false labelling and misleading information

authorised scheme to increase the number of skilled bricklayers inNew South Wales

received public liability pooling proposal for not-for-profit organisations

Westfund health insurance fund misled consumers

issued research report into competition and consumer issues in Indigenouscommunities

warned internet domain name resellers against misleading, deceptive conduct

acquisition of Budget by Avis not opposed

instituted against the producers of Viva olive oils

Incitec/Pivot merger not opposed

offered undertaking by company supplying unsafe children’s cot

Golden Casket to reform procedure for assessing gaming applications

released guide on telecommunications dispute resolution processes

issued decision on collective negotiations in New South Wales chicken meatindustry

court verdict given on Saatchi & Saatchi element in NRMA advertising

stopped false professional credentials claim by accounting firm

court declared Free2aiR misled, harassed consumers

IAG acquisition of Aviva’s CGU Insurance not opposed

proceedings against South Australian fire protection companies

approved changes to contracting provisions to cover power shortfalls

informed consumers how to exploit petrol price cycles

issued Victorian gas transmission decisions

Telstra freecall misled, deceived consumers

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allowed Telstra proposed pay television notification to stand

accepted Foxtel–Optus pay television deal

instituted proceedings against Harvey Norman Holdings Pty Ltd

acted on mirror Sydney Opera House website

proposed to allow CSR concrete cartage protocols

approved changes to Transgrid’s revenue cap

court fined publisher for wrongfully accepting payment for advertising

instituted against Baxter Healthcare Pty Ltd for bundling parenteral fluid products

John Holland’s proposed acquisition of Transfield Construction and WalterConstruction not opposed

accepted cosmetic relabelling program by Dr Lewinn Private Formula

found Yellow Pages service misled consumers

made final determination on market and system operations rules to benefitVictorian energy industry

court disapproved of Dell’s price advertising

issued warning on product safety for pool toys

gave certainty to doctors within general practices on fee-setting

issued discussion paper on Telstra and Foxtel’s analogue access undertakingsfor pay television

reported container stevedoring costs reach historic low

accepted undertakings from Hoyts, Greater Union and Village Roadshow oncinema advertising

kept watch on internet trading over Christmas/new year

rejected basic bank account agreement proposal

issued revenue cap decision for Victorian electricity transmission network

made decision that will reduce electricity transmission charges in South Australia

Virgin Mobile advertisements found to be false and misleading

Allans Music fined $80 000 for misleading Christmas catalogue

issued Northern Territory Amadeus Basin to Darwin pipeline final decision

concluded investigation into allegations of unlawful conduct in art acquisitioninvolving National Gallery of Australia and the Tasmanian Museum and Art Gallery

proposed to authorise new technical standards for national electricity code

final determination made on national electricity market rebidding code changes

court action taken against alleged attempt to fix flour prices by George WestonFoods Limited

allowed Queensland to continue forward-looking calculation of electricity lossfactors

court found Daewoo engaged in unconscionable conduct

issued final determination on nurses in Victoria

Queensland Newspapers Pty Ltd offered undertakings to allow internetadvertising in classifieds

domain name reseller provided refunds

Duty Free Group gave undertakings over misleading advertising

took action against Berwick Springs general practitioner for alleged attempt toinduce boycott of bulk-billing

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released paper on bundling Telco services

accepted undertakings from Alliance WA Pty Ltd over mobile telephoneadvertising: refunds for consumers

approved Gasnet’s revised access arrangement

initiated court hearing on Peter Foster and slimming products

issued discussion paper on Telstra and Foxtel’s digital pay television exemptionapplications

authorised Inghams to continue collective negotiations with South Australianchicken growers

issued report on disclosure of telecommunications information

warned consumers, retailers to check for banned jellies

reported on price cap for phase I privatised airports

received EFTPOS reform proposal

interim decision approved industry code to restrict manufacture of illegalamphetamines

concluded investigation into Bpay scheme

Furniture Direct misled consumers in store cost plus $1 campaign

issued paper for improving electricity network investment framework

weight-loss promoter fined $9000 for contempt of court

merger between Australian Cement Holdings and Queensland Cement Limitednot opposed

published report on aspects of competition in the pharmacy sector

instituted legal proceedings against National Telecoms Group

Dodo internet service provider engaged in misleading, deceptive andunconscionable conduct

led international internet sweep for travel offers

consumers refunded for claimed health cures sold by Transformation 2012 overinternet

internet trader jailed for contempt

Boral decision highlighted difficulties in establishing misuse of market power

facilitated smooth introduction of full electricity retail competition in theAustralian Capital Territory

filed proceedings against global vitamin C cartel

instituted proceedings against demolition and asbestos removal companies foralleged price fixing

found misleading and deceptive conduct in sale of orange juice machines

proposed surgical college reform to help address surgeons shortage

allowed CSR’s Western Australia concrete cartage arrangements

acquisition by Burns Philp Limited of Goodman Fielder Limited not opposed

approved access arrangement for Amadeus Basin to Darwin gas pipeline

finalised oil companies investigation

consumers and small business gained from lower software prices

approved changes to Victorian transmission regulatory arrangements

produced country of origin guidelines for the furnishing industry

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Greenstar pyramid scheme found to be illegal

issued record keeping rule to Telstra for bundling

proposed to approve code of ethical conduct for the employment services industry

allowed BHP Billiton joint venture in the Pilbara region

doctor prevented from inducing boycotts of bulk-billing, after hours service atmedical centre

authorised new technical standards for national electricity code

Queensland lottery agents’ negotiating group not approved

James Cook University enrolment policy allowed to continue

defined Pan Pharmaceutical consumers refund rights for recalledpharmaceuticals

obtained $1.2 million refunds for misled Feminique health product consumers

Haier, Retravision consumers refunded over energy claims

issued discussion paper of key performance indicators on Telstra’s serviceperformance

Dawson report released: criminal sanctions major step forward for competitionpolicy

instituted proceedings against Global Pre Paid Communications Pty Ltd andIn-Touch Networks Pty Ltd

acted against car firms for non-compliant vehicle jacks

cosmetic surgery consumers benefitted from declarations

set bar for sideshow alley arrangements

set model price terms and conditions for core telecommunications services

considered Qantas/Air New Zealand alliance very anti-competitive and not inpublic interest

obtained interim orders against Aboriginal-style souvenir dealer

Telstra met obligations to low income customers

final decision made on Australia Post reply paid mail

no intervention in brick merger acquisition of Bristile Limited by BrickworksLimited

Sunny Queen’s acquisition of Farm Pride Foods’ egg business not opposed

acquisition of Theo’s Liquor by Coles Myer Ltd not opposed

proposed to allow public liability insurance scheme for not-for-profitorganisations

orders made against Woolworths and Arnhem Club over alcohol sales

instituted proceedings against Radio Rentals

merger of Graincorp Ltd and Grainco Australia Ltd not opposed

set revenues for Murraylink electricity interconnector

joined international effort to combat internet spam

accepted undertaking from Pfizer Pty Ltd

Will Writers Guild contravened franchising code and misled franchisees

instituted proceedings against Tasmanian fish farmer and trade association

declaration against Billbusters’ conduct on Telstra’s bills; warning toconsumers

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final decision allows greenhouse gas, ozone recovery program

Xstrata Plc’s acquisition of Mim Holdings Limited not opposed

acquisition of Geelong independent newspaper masthead by Geelong AdvertiserLimited not opposed

Mitre 10 admitted misleading sale advertising

Voyages Hotels misled consumers about tours to Aboriginal land

reform of surgeons’ training program required

court found Safeway engaged in price fixing, misused market power

alleged Econovite stockfeeding misrepresentation

alleged Metro Brick and Midland Brick price fixing

alleged Woolworths, Liquorland anti-competitive liquor deals

released leniency policy to expose hard core cartels in Australia

allowed New South Wales hotels to collectively bargain with TAB, Sky Channel

issued new accounting separation rules for Telstra

code of conduct proposed greater consumer awareness of drug companies’dealings with doctors

blocked price increases for air navigation services

acquisition of Peats Ridge by Coca-Cola Amatil not opposed

Australian Stock Exchange electronic trading system rules maintained

issued latest figures broadband growth remains flat

sunglasses recalled

approved changes to enhance security of Victorian gas transmission system

allowed concrete carriers to negotiate collectively with CSR

opposed AGL acquiring a stake in Loy Yang Power

allowed more small businesses to enter into the motor vehicle fleet servicingindustry

allowed short-term authorisation of Qantas and British Airways joint servicesagreement

acquisition of Neverfail Springwater by Coca-Cola Amatil not opposed

received undertakings from Outback Juice orange juice producer

decision allowed Myer/Grace Bros concession businesses to participate indiscount promotions

acquisition of Stevenson Transport Pty Limited by Cootes Holdings Pty Limitednot opposed

allowed Star Alliance discount programs for corporate and convention travellers

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management and accountability

The ACCC aims to have efficient management, including cost-effective useof resources in national and regional offices. This chapter reports on theACCC’s governance and use of resources.

this year the ACCCreceived funding of $62.5 million, including $1 million for the litigationreserve fund and $0.7 million additional funding to undertakeincreased regulatory oversight of Australia Post and to monitormedical indemnity insurance premiums

incurred a net operating loss of $10.2 million, principally due to legalexpenses exceeding budget

established an in-house general counsel unit to provide strategic advice

developed an online learning system for staff with workshops andseminars on the law, cases and procedural issues

redeveloped its internet and intranet to comply with governmentpolicy concerning accessibility and functionality

[ ]

$’000 $’000

this year last year

budget 62 560 83 460fines and costs collected 7 556 6 780authorisation fees 352 361total government administered revenue 7 912 7 152expenditure on consultants 2 850 3 900expenditure on advertising and market research 229 375expenditure on staff training 964 1 098

financial

commissioners (including chairman) 6 4associate commissioners 12 14formal meetings held by commission 62 56papers considered by commission 460 434speeches by commissioners 111 144staff employed 490 540full-time equivalent staff 468.6 478.2senior executive staff 17 18temporary staff 39 39part-time staff 36 53staff who received study assistance 64 36graduates employed 11 26staff attending investigation skills courses 36 55staff who used employee assistance program 25 20staff on international exchange 7 4staff on secondment to other organisations 6 5per cent of payroll spent on training 2.8 3.3publications distributed 809 370 519 169publications produced 88 111media releases 317 271number of consultants engaged 92 91


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governance

The Commission comprised the Chairman and five full-time members who were appointed bythe Governor General for terms of up to five years. Two new full-time members were appointedduring the year—Jennifer McNeill and Ed Willett; Chairman Allan Fels and member Ross Jonesresigned.

Jennifer McNeillJennifer McNeillJennifer McNeillJennifer McNeillJennifer McNeill was appointed in July 2002 for a five year term. Before joining the ACCC,Ms McNeill was a partner in the law firm of Blake Dawson Waldron where her practicefocused on litigation, regulatory and risk management advice for both Commonwealthdepartments and the private sector. Ms McNeill also tutored in litigation and disputemanagement at the Australian National University.

Edward WillettEdward WillettEdward WillettEdward WillettEdward Willett was appointed in January 2003 for a five-year term. Before being appointed tothe ACCC, he was the inaugural executive director of the National Competition Council forseven years. Before that he worked as an Assistant Commissioner with the IndustryCommission, helped develop the Commonwealth Department of Industry, Science andTechnology’s role in business law and regulation, spent three years as deputy head of theCommonwealth Office of Regulation Review, and was involved in other Industry Commissioninquiry work and research. He also spent three years with the New Zealand Ministry of ExternalRelations and Trade as an advisor on international economics and trade and eight years as aneconomist with the Department of Defence. Mr Willett has degrees in law and economics anda post-graduate diploma in international law.

PPPPProfessor Allan Frofessor Allan Frofessor Allan Frofessor Allan Frofessor Allan Felselselselsels AAAAAOOOOO resigned his position as chairperson on 30 June 2003 to become thefirst dean of the Australia and New Zealand School of Government.

Ross JonesRoss JonesRoss JonesRoss JonesRoss Jones resigned on 30 June 2003 to take up an appointment as deputy chair of theAustralian Prudential Regulatory Authority.

Graeme Samuel AGraeme Samuel AGraeme Samuel AGraeme Samuel AGraeme Samuel AOOOOO was appointed acting chairperson on Professor Fel’s departure, and thenchairperson for a five year term commencing 1 August 2003.

Before joining the ACCC, Graeme Samuel was president of the National Competition Councilfor six years. He was executive director of Macquarie Bank from 1981–86. His career as abanker was preceded by 12 years as a partner of leading Melbourne law firm Phillips Fox andMasel. He has held several other offices, including chair of the Melbourne and Olympic ParksTrust, commissioner of the Australian Football League and member of the Docklands Authority.He was a trustee of the Melbourne Cricket Ground Trust, president of the Australian Chamberof Commerce and Industry and chair of the Inner and Eastern Health Care Network.Graeme Samuel was appointed an Officer of the Order of Australia in 1998.

staff training and development

this year last year$ $

salaries of staff on development activities 310 559 351 538salaries of training unit employees 217 696 170 299courses, conference fees, study assistance 345 004 455 541travel to events 69 373 107 910incidentals 20 868 13 442TOTAL 963 500 1 908 370

economic education 231 150law education 234 153information technology 64 68operational skills 247 635management development 30 44personal development 23 19senior executive development 7 5

types of training and units of training


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The financial operations of the ACCC were audited by the Commonwealth Auditor General.The auditauditauditauditaudit was satisfactory and an unqualified audit report was issued.

The terms and conditions of non SES staff are provided by the certified agreement certified agreement certified agreement certified agreement certified agreement 2002–03,(made under section 170LK of the Workplace Relations Act 1996) which was certified on 4 June2002 and has a nominal expiry date of 30 November 2003. Staff received a 4 per cent salaryincrease in January 2003 under this agreement. PPPPPerformance payerformance payerformance payerformance payerformance pay is not paid to non seniorexecutive staff. Performance pay was paid to 17 senior executive staff in the range band 1 toband 3. The total amount of these payments was $142 481.50. Senior executives are employedunder Australian workplace agreementsAustralian workplace agreementsAustralian workplace agreementsAustralian workplace agreementsAustralian workplace agreements. Eight non senior executive staff have workplaceagreements. The special salary level scheme (for sustained, exceptional and excellentperformance) was awarded to 24 staff. Six staff requests for a review of employment actionwere received; five were resolved internally and one remains current.

The ACCC participated in the second HRMHRMHRMHRMHRM benchmarking studybenchmarking studybenchmarking studybenchmarking studybenchmarking study conducted by the AustralianNational Audit Office and launched a supervision pilot programsupervision pilot programsupervision pilot programsupervision pilot programsupervision pilot program in Melbourne to raise theability of new managers to supervise workgroups. A workplace diversity plan A workplace diversity plan A workplace diversity plan A workplace diversity plan A workplace diversity plan was finalisedand presented to the Public Service Commissioner. A revised policy on achieving a harassmentharassmentharassmentharassmentharassmentfreefreefreefreefree workplace was agreed and sent to all employees. Staff completed an annual conflict ofconflict ofconflict ofconflict ofconflict ofinterestinterestinterestinterestinterest self assessment. Eleven graduates were engaged for the 2003 graduate program2003 graduate program2003 graduate program2003 graduate program2003 graduate program.The annual senior managementsenior managementsenior managementsenior managementsenior management conferenceconferenceconferenceconferenceconference was held in Sydney. Sixty-four staff receivedassistance to engage in further tertiarytertiarytertiarytertiarytertiary studiesstudiesstudiesstudiesstudies.

Influenza vaccinations were made available to all employees, and exercise classes and yogawere provided in some offices on a fee-for-service basis as part of the ACCC’s commitment tooccupational health and safetyoccupational health and safetyoccupational health and safetyoccupational health and safetyoccupational health and safety. Twenty-nine health and safety incidents were reported withone reported to Comcare. Seventy-nine consultations were provided to 25 staff and four familymembers under the employee assistance program employee assistance program employee assistance program employee assistance program employee assistance program.

Seven staff took part in international staff exchangesinternational staff exchangesinternational staff exchangesinternational staff exchangesinternational staff exchanges: Vanessa Holliday with the IrishCompetition Authority, Ireland; Michelle Coco, United Kingdom Office of Fair Trading;David Snowdon, New Zealand Commerce Commission; John Bardenhagen, Fair TradeCommission, Taiwan; Konrad Chmielewski, Canadian Competition Bureau; Kate Reader,Hong Kong Office of the Telecommunications Authority; and Stuart Gilding, US Federal TradeCommission.

An environmental awarenessenvironmental awarenessenvironmental awarenessenvironmental awarenessenvironmental awareness campaign in line with sustainability was implemented: stafffollow guidelines on recycling paper, reducing waste, minimising the use of electricity andusing public transport where possible. PurchasingPurchasingPurchasingPurchasingPurchasing policy ensures that office equipmentpurchases are in line with government guidelines. Government energy efficiency targetsenergy efficiency targetsenergy efficiency targetsenergy efficiency targetsenergy efficiency targets fortenant light and power consumption were met. The greenpowergreenpowergreenpowergreenpowergreenpower component of electricitypurchased for the Canberra office has doubled to 10 per cent.

The ACCC received three formal complaints on its standards of servicestandards of servicestandards of servicestandards of servicestandards of service. They were dealt within accordance with the procedures set out in the ACCC’s service charterservice charterservice charterservice charterservice charter. The ACCC has a draftdisability action plandisability action plandisability action plandisability action plandisability action plan, which identifies actions in relation to the community.

Nine offices are maintainedoffices are maintainedoffices are maintainedoffices are maintainedoffices are maintained: one in each state and territory capital and Townsville. During theyear the ACCC ceased operations in Tamworth. Public contact hours for regional offices werechanged and are now 9 am to 5 pm. SecureNet and Synop were contracted to redevelop theACCC internet and intranet internet and intranet internet and intranet internet and intranet internet and intranet sites to comply with government policy, including specifications toimprove accessibility for disabled people, meeting all priority one requirements. The five yearcontract with Telstra Enterprise Services (originally Advantra Pty Ltd) for informationinformationinformationinformationinformationtechnology and telecommunications servicestechnology and telecommunications servicestechnology and telecommunications servicestechnology and telecommunications servicestechnology and telecommunications services has one year remaining and the selectionprocess for a new service provider was begun. Major changes to the infrastructure and desktopduring the year included migration to Windows XP and Office XP as the standard desktopstandard desktopstandard desktopstandard desktopstandard desktopenvironmentenvironmentenvironmentenvironmentenvironment on all PCs and notebooks, replacing all file and email servers with high capacitysystems and installing high speed switching technologyhigh speed switching technologyhigh speed switching technologyhigh speed switching technologyhigh speed switching technology in the Canberra and Melbourneoffices. Data links to all regional offices were substantially increased to improve networkperformance. In June 2003 the ACCC set up a general counsel unitgeneral counsel unitgeneral counsel unitgeneral counsel unitgeneral counsel unit, comprising generalcounsel and two deputy general counsels, to advise on strategic litigation. The panel oflegal firmslegal firmslegal firmslegal firmslegal firms selected to enforcement litigation on behalf of the ACCC included: AustralianGovernment Solicitor; Corrs Chambers Westgarth; Phillips Fox; Deacons; Slater and Gordon;Norman Waterhouse. The operations of the ACCC were not subject to any decisions or reportsof any Parliamentary Committee, or the Auditor General, or the Commonwealth Ombudsman.


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Following a review of library serviceslibrary serviceslibrary serviceslibrary serviceslibrary services, three positions were advertised and filled.The Melbourne office library collection was amalgamated with the national office collectionin Canberra. The highlights of the publishing programpublishing programpublishing programpublishing programpublishing program included videos of the competing fairlyforums, including a hypothetical hosted by Geoffrey Robertson; brochures and electronicnewsletters produced for the International Consumer Protection and Enforcement Network,of which Australia was president; and new country of origin guidelines for several industries,including food and beverage industry, furnishing and complementary health care. Twenty-fivestatutory and voluntary publicpublicpublicpublicpublic registersregistersregistersregistersregisters are maintained, including for certification trade marks,section 87B undertakings, authorisations, notifications, mergers and acquisitions, access toservices, product safety conferences and telecommunications (competition notices, accessundertakings and agreements, tariff information etc).

The ACCC engaged 92 consultantsconsultantsconsultantsconsultantsconsultants during the year with a value of $2.85 million. The main skillcategories for which consultants were engaged were information technology, economicexpertise and industry expertise. Full details of consultancies are available on the ACCCwebsite www.accc.gov.au. A total of $229 443 was paid in contracts with creative advertisingagencies.

$

Attorney Generals Department Gazette advertising 460

Australian Public Service Commission Gazette subscription 7950

Barossa Riverland Midnorth Consultative Committee information for small business 154

Better Business Magazine information for small business 12 000

Brainwaves Information Services information for regulatory affairs 155

Coffs Harbour Chamber of Commerce and Industry information for small business 218

Executive Media information for small business 1995

The Good Guides Group employment advertising 4000

HMA Blaze Pty Ltd employment and general advertising 36 001

HH&M Media information for small business 2964

Horsham Retail Traders information for small business 198

Independent Pricing and Regulatory Tribunal information for regulatory affairs 4036

Local Government Focus information for regulatory affairs 682

The Magazine Publishing Company information for small business 1365

Made to Measure Publications Pty Ltd information for small business 2450

Monash University employment advertising 300

Newsnet.Com media releases 80 984

Niche Media information for small business 1600

Professional Publishers Pty Ltd information for small business 2636

SA Regional Media Pty Ltd information for small business 403

Seek Communications Ltd employment advertising 99

Starcom Worldwide employment and general advertising 68 413

The Warwick Newspaper Pty Ltd information for small business 180

University of New England employment advertising 200

advertising and market research


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Cap

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graduates 4 1 5 1 11 25 female 2 1 2 1 6 14 male 2 3 5 11

class 1 4 1 5 5 female 2 1 3 5 male 2 2 0

class 2 3 3 4 2 2 1 15 25 female 3 3 3 2 2 1 14 22 male 1 1 3

class 3 13 4 3 1 1 1 1 24 29 female 11 4 3 1 1 1 1 22 28 male 2 2 1

class 4 37 3 9 8 2 2 3 1 65 78 female 26 3 5 5 2 1 1 43 52 male 11 4 3 1 3 22 26

class 5 31 13 24 5 6 4 1 1 1 86 80 female 20 4 16 4 5 3 1 1 1 55 43 male 11 9 8 1 1 1 31 37

class 6 40 10 28 7 6 4 3 1 99 105 female 23 7 10 5 3 1 1 50 51 male 17 3 18 2 3 3 3 49 54

executive 1 36 12 29 6 5 3 1 92 88 female 15 6 9 3 1 2 36 38 male 21 6 20 3 4 1 1 56 50

executive 2 37 8 19 1 1 1 1 2 70 83 female 12 2 4 1 1 20 23 male 25 6 15 1 1 1 1 50 60

seniorexecutive 1 7 1 4 1 13 14 female 2 1 1 4 5 male 5 3 1 9 9

seniorexecutive 2 2 1 3 3 female male 2 1 3 3

seniorexecutive 3 1 1 1 female male 1 1 1

total P S Actstaff 484 536 female 253 281 male 231 255

total non P SAct staff 6 6 4 female 1 1 male 5 5 4

total staff 221 55 127 31 24 15 8 3 6 490 540 female 117 31 54 21 15 8 1 3 4 254 281 male 104 24 73 10 9 7 7 2 236 259

total staff


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female 14 7 4 4 1 2 32 46

male 2 1 1 4 7

total this year 16 8 5 4 1 2 36 53

last year 26 13 6 2 3 2 1 53

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female 16 2 1 2 1 22 37

male 15 1 1 17 23

total this year 31 3 1 1 2 1 39 60

last year 39 5 8 2 3 2 1 60

temporary staff

female 2 1 1 4 5male 5 3 1 9 9

femalemale 2 1 3 3

femalemale 1 1 1

total this year 10 1 5 1 17 18

last year 12 1 4 1 18

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equal opportunity target groups

non English speaking this year 2 (0.4) 9 (1.8) 24(4.9) 24(4.9) 3 (0.6) 62 last year 5(0.9) 14(2.6) 25 (4.6) 22(4.1) 4(0.7) 70

people with disabilities this year 1(0.2) 2 (0.4) 5 (1.0) 8 last year 2 (0.4) 1 (0.2) 5 (0.9) 5 (0.9) 13

women this year 23 (4.7) 65 (13.3) 105 (21.4) 56 (11.4) 5 (1.0) 254 last year 41(7.6) 80 (14.8) 94 (17.4) 61 (11.3) 5 (0.9) 281

Aboriginal and Torres Strait Islanders this year 1 (0.2) 1 last year 1 (0.2) 1 (0.2) 2

total staff this year 31 (6.3) 89 (18.2) 185 (37.8) 162 (33.1) 23 (4.7) 490 last year 55 (10.2) 107 (19.8) 185 (34.3) 171 (31.7) 22 (4.1) 540

equivalent classification

The total number of staff employed includes part-time employees, employees absent on leaveand secondments. The numbers cover only those employees who nominate for each group.

‘I would just like to thank the team at the ACCC for the fantastic job you are all doing.There is a huge silent majority of people out here that are really appreciating yourwork. Since we are all too busy and too small to take on many of the issues it’s greatthat we finally have an ACCC that is speaking up for all of us and even moreimportantly backing this up with action and hopefully stiffer penalties in the future.Again thank you for your fantastic work.’

‘I would like to thank the chairman and the ACCC team for the brilliant job you are alldoing. I am sure a lot of people are very thankful for the ACCC and the good work youare doing for us Australians. Keep the good work up.’

‘I am happy there is an organisation like the ACCC in Australia that genuinely andhonestly protects the little people from big business. I wish to convey mycongratulations.’

some of the 69 complimentary messages to the ACCC


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Australian Competition and Consumer Commissionstatement of financial performance

for the year ended 30 June 2003

20032003200320032003 2002NotesNotesNotesNotesNotes $’000$’000$’000$’000$’000 $’000

Revenues from ordinary activities

Revenues from government 3(a) 62 56062 56062 56062 56062 560 83 460Sales of goods and services 3(b) 530530530530530 390Interest 3(c) 5454545454 730Revenue from sale of assets 3(d) 33333 9

Revenues from ordinary activities 63 14763 14763 14763 14763 147 84 589

Expenses from ordinary activities(excluding borrowing costs expense)

Employees 4(a) 35 13235 13235 13235 13235 132 33 859Suppliers 4(b) 35 96935 96935 96935 96935 969 35 991Depreciation and amortisation 4(c) 2 1262 1262 1262 1262 126 2 011Write-down of assets 4(d) 2626262626 -Value of assets sold 3(d) 1717171717 324

Expenses from ordinary activities(excluding borrowing costs expense) 73 27073 27073 27073 27073 270 72 185

Borrowing costs expense 4(e) 8080808080 110

Net surplus / (deficit) (10 203) 12 294

Net credit to asset revaluation reserve 10(a) ----- 284

Total revenues, expenses and valuation adjustmentsattributable to the Commonwealth Government andrecognised directly in equity - 284

Total changes in equity other than those resultingfrom transactions with owners as owners (10 203) 12 578

The above statement should be read in conjunction with the accompanying notes.


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ASSETS

Financial assets

Cash 5(a) 2 1862 1862 1862 1862 186 16 378Receivables 5(b) 8 2348 2348 2348 2348 234 989

Total financial assets 10 42010 42010 42010 42010 420 17 367

Non-financial assets

Land and buildings 6(a) 1 9991 9991 9991 9991 999 2 462Infrastructure, plant and equipment 6(b) 1 7341 7341 7341 7341 734 1 743Intangibles 6(c) 978978978978978 787Inventories 6(e) 8787878787 103Other 6(f) 768768768768768 1 335

Total non-financial assets 5 5665 5665 5665 5665 566 6 430

TOTAL ASSETS 15 986 23 797

LIABILITIES

Interest bearing liabilities

Leases 7 562562562562562 995

Total interest bearing liabilities 562562562562562 995

Provisions

Employees 8 10 38610 38610 38610 38610 386 9 703

Total provisions 10 38610 38610 38610 38610 386 9 703

Payables

Suppliers 9(a) 9 0709 0709 0709 0709 070 6 510Other 9(b) 468468468468468 593

Total payables 9 5389 5389 5389 5389 538 7 103

TOTAL LIABILITIES 20 486 17 801

NET ASSETS (4 500) 5 996

EQUITY

Contributed equity 3 1003 1003 1003 1003 100 3 100Reserves 1 0521 0521 0521 0521 052 1 052Retained surpluses or (accumulated deficits) (8 652)(8 652)(8 652)(8 652)(8 652) 1 844

TOTAL EQUITY 10(a) (4 500) 5 996

Current assets 11 18211 18211 18211 18211 182 18 700

Non-current assets 4 8044 8044 8044 8044 804 5 097

Current liabilities 14 80314 80314 80314 80314 803 12 545

Non-current liabilities 5 6835 6835 6835 6835 683 5 256

Australian Competition and Consumer Commissionstatement of financial position

as at 30 June 2003



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Australian Competition and Consumer Commissionstatement of cash flows



OPERATING ACTIVITIES

Cash received

Appropriations 62 50062 50062 50062 50062 500 83 400Goods and services 708708708708708 979Interest 6868686868 724GST received from ATO 3 5373 5373 5373 5373 537 3 933

Total cash received 66 81366 81366 81366 81366 813 89 036

Cash used

Cash returned to OPA 7 4397 4397 4397 4397 439 -Employees 34 45034 45034 45034 45034 450 32 765Suppliers 36 42436 42436 42436 42436 424 38 834Borrowing costs 8080808080 109

Total cash used 78 39378 39378 39378 39378 393 71 708

Net cash from / (used by) operating activities 11 (11 580) 17 328

INVESTING ACTIVITIES

Cash received

Proceeds from sales of property, plant and equipment 33333 9

Total cash received 33333 9

Cash used

Purchase of property, plant and equipment 1 4511 4511 4511 4511 451 1 586Purchase of intangibles 438438438438438 296

Total cash used 1 8891 8891 8891 8891 889 1 882

Net cash (used by) investing activities (1 886) (1 873)

FINANCING ACTIVITIES

Cash used

Lease payments 433433433433433 477Other 293293293293293 -

Total cash used 726726726726726 477

Net cash (used by) financing activities (726) (477)

Net increase / (decrease) in cash held (14 192)(14 192)(14 192)(14 192)(14 192) 14 978Cash at the beginning of the reporting period 16 37816 37816 37816 37816 378 1 400

Cash at the end of the reporting period 5(a) 2 1862 1862 1862 1862 186 16 378



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Australian Competition and Consumer Commissionschedule of commitments

as at 30 June 2003

20032003200320032003 2002$’000$’000$’000$’000$’000 $’000

BY TYPE

Other commitments

Operating leases1 13 75313 75313 75313 75313 753 16 127Contract for IT services2 1 3081 3081 3081 3081 308 2 378Other commitments3 2 0242 0242 0242 0242 024 708

Total other commitments 17 08517 08517 08517 08517 085 19 213

Commitments receivable 1 5471 5471 5471 5471 547 1 708

Net commitments 15 538 17 505

BY MATURITY

All net commitments

One year or less 5 8555 8555 8555 8555 855 4 879From one to five years 8 0188 0188 0188 0188 018 10 265Over five years 1 6651 6651 6651 6651 665 2 361

Net commitments 15 538 17 505

Operating lease commitments

One year or less 3 2883 2883 2883 2883 288 3 099From one to five years 7 5487 5487 5487 5487 548 9 239Over five years 1 6651 6651 6651 6651 665 2 361

Net commitments by maturity 12 501 14 699

NB: All commitments are GST inclusive where relevant.

1 Operating leases included are effectively non-cancellable and comprise:

! leases for office accommodation

! motor vehicle leases

2 A contract for services and future finance lease commitments for IT equipment.

3 Other commitments included are for contracts entered into for various services to be performed over the next12 months.

The above schedule should be read in conjunction with the accompanying notes.


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20032003200320032003 2002$’000$’000$’000$’000$’000 $’000

Contingent liabilities

Claims for damages/costs 8 0908 0908 0908 0908 090 3 243

Contingent assets

Claims for damages/costs ----- -

Net contingent liabilities (8 090) (3 243)

Australian Competition and Consumer Commissionschedule of contingencies

as at 30 June 2003

Details of each class of contingent liabilities and assets, including those not included above because they cannot bequantified or are considered remote, are disclosed in Note 12: Contingent Liabilities and Assets.

The above schedule should be read in conjunction with the accompanying notes.


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20032003200320032003 2002Notes $’000$’000$’000$’000$’000 $’000

Revenues administered on behalf of governmentfor the year ended 30 June 2003

Taxation revenue

Other taxes, fees and fines 18 7 9127 9127 9127 9127 912 7 152

Total revenues administered on behalf of government 7 912 7 152

Expenses administered on behalf of governmentfor the year ended 30 June 2003

Total expenses administered on behalf of government 19 - -

Assets administered on behalf of governmentas at 30 June 2003

Financial assets

Cash 20(a) 1010101010 3Receivables 20(b) 3 9813 9813 9813 9813 981 6 807

Total assets administered on behalf of government 3 991 6 810

Liabilities administered on behalf of governmentas at 30 June 2003

Total liabilities administered on behalf of government 21 - -

Net assets administered on behalf of government 3 991 6 810

Current liabilities ----- -

Non-current liabilities ----- -

Current assets 3 5633 5633 5633 5633 563 6 200

Non-current assets 428428428428428 610

Australian Competition and Consumer Commissionschedule of administered items

This schedule should be read in conjunction with the accompanying notes.


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continued

20032003200320032003 2002Notes $’000$’000$’000$’000$’000 $’000

Administered cash flowsfor the year ended 30 June 2003

Operating activities

Cash received

Other taxes, fees and revenue - Fines and costs 10 38210 38210 38210 38210 382 3 445 - Authorisation fees 352352352352352 361 - Other 44444 11

Total cash received 10 73810 73810 73810 73810 738 3 817

Cash used

Cash to OPA 10 73110 73110 73110 73110 731 3 814

Total cash used 10 73110 73110 73110 73110 731 3 814

Net cash from operating activities 7 3

Net increase in cash held 77777 3Cash at the beginning of the reporting period 33333 -

Cash at the end of the reporting period 20(a) 1010101010 3

Administered commitmentsas at 30 June 2003

BY TYPE

Capital commitments ----- -

Other commitments ----- -

Commitments receivable ----- -

Net administered commitments - -

BY MATURITY

All net commitments

One year or less ----- -From one to five years ----- -One year or less ----- -

Net administered commitments - -



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20032003200320032003 2002Notes $’000$’000$’000$’000$’000 $’000

Administered contingencies 23as at 30 June 2003

Administered contingent liabilities - -

Administered contingent assets

Fines and costs 11 47611 47611 47611 47611 476 17 022

Total contingent assets 11 47611 47611 47611 47611 476 17 022

Net contingent assets 11 476 17 022


continued

Details of each class of contingent liabilities and assets, including those not included above because they cannot bequantified or are considered remote, are disclosed in Note 23: Administered contingent liabilities and assets.

Statement of activities administered on behalf of government

The major administered activities of the Commission are directed towards achieving the outcome described in Note 1to the financial statements. The major financial activities are the recognition of fines and costs which have beenapplied by the courts or by agreement between the Commission and the defendant. These fines and costs arerecognised when awarded by the courts, or when agreement has been executed. Authorisation and notification feesand other revenue are also applied when required under the relevant legislation, and are recognised upon payment.

Details of planned activities for the year can be found in Treasury's Portfolio Budget and Portfolio Additional EstimatesStatements for 2002–03 which have been tabled in Parliament.



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Australian Competition and Consumer Commissionnotes to and forming part of the financial statements


NoteNoteNoteNoteNote DescriptionDescriptionDescriptionDescriptionDescription

1 Summary of significant accounting policies

2 Events occurring after reporting date

3 Operating revenues

4 Operating expenses

5 Financial assets

6 Non-financial assets

7 Interest bearing liabilities

8 Provisions

9 Payables

10 Equity

11 Cash flow reconciliation

12 Contingencies liabilities and assets

13 Executive remuneration

14 Remuneration of auditors

15 Average staffing levels

16 Acts of grace payments, waivers and defective administration scheme

17 Financial instruments

18 Revenues administered on behalf of government

19 Expenses administered on behalf of government

20 Assets administered on behalf of government

21 Liabilities administered on behalf of government

22 Administered reconciliation table

23 Administered contingent liabilities and assets

24 Administered financial instruments

25 Appropriations

26 Assets held in trust

27 Reporting of outcomes

Note 1 Summary of significant accounting policies

1.1 Objectives of the CommissionThe objectives of the Commission are to:

! promote effective competition and informed markets

! encourage fair trading and protect consumers

! regulate infrastructure services market and other markets where competition is restricted.

The Commission’s outcome is to enhance social and economic welfare of the Australian community by fosteringcompetitive, efficient, fair and informed Australian markets.

Commission activities contributing toward these outcomes are classified as either departmental or administered.Departmental activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by theCommission in its own right. Administered activities involve the management or oversight by the Commission on behalfof the government of items controlled or incurred by the government.

The Commission’s outcome is separated into two output groups as follows:

Output Group 1Output Group 1Output Group 1Output Group 1Output Group 1

Output Group 2Output Group 2Output Group 2Output Group 2Output Group 2

Compliance with competition, fair trading and consumerprotection laws and appropriate remedies when the lawis not followed.

Competitive market structuresand informed behaviour.


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1.2 Basis of accountingThe financial statements are required by section 49 of the Financial Management and Accountability Act 1997 and area general purpose financial report.

The statements have been prepared in accordance with:

! Finance Minister's Orders (or FMOs, being the Financial Management and Accountability (Financial Statements forreporting periods ending on or after 30 June 2003) Orders)

! Australian Accounting Standards and Accounting Interpretations issued by the Australian Accounting StandardsBoard

! Consensus Views of the Urgent Issues Group.

The Commission's Statements of Financial Performance and Financial Position have been prepared on an accrual basisand are in accordance with the historical cost convention, except for certain assets, which, as noted, are at valuation.Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

Assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that futureeconomic benefits will flow and the amounts of the assets or liabilities can be reliably measured. However, assets andliabilities arising under agreements equally proportionately unperformed are not recognised unless required by anAccounting Standard. Liabilities and assets, which are unrecognised, are reported in the Schedule of Commitmentsand the Schedule of Contingencies (other than unquantifiable or remote contingencies, which are reported at Note 12).

Revenues and expenses are recognised in the Statement of Financial Performance when and only when the flow orconsumption or loss of economic benefits has occurred and can be reliably measured.

The continued existence of the Commission in its present form, and with its present outcome and outputs, isdependent on government policy and on continuing appropriations by Parliament for the Commission's administration,outcome and outputs.

Administered revenues, expenses, assets and liabilities and cash flows reported in the Schedule of AdministeredItems and related notes are accounted for on the same basis and using the same policies as for Agency items,except where otherwise stated at Note 1.20.

1.3 Changes in accounting policyThe accounting policies used in the preparation of these financial statements are consistent with those used in2001–02, except in respect of:

! the accounting for output appropriations (refer to Note 1.4)

! recognition of equity injections (refer to Note 1.5)

! measurement of certain employee benefits at nominal amounts (refer to Note 1.6)

! the initial revaluation of property, infrastructure, plant and equipment on a fair value basis (refer to Note 1.12)

! the imposition of an impairment test for non-current assets carried at cost (refer to Note 1.13).

1.4 Revenue

Revenues from governmentDepartmental outputs appropriations for the year (less any savings offered up in Portfolio Additional EstimatesStatements) are recognised as revenue, except for certain amounts which relate to activities that are reciprocal innature, in which case revenue is recognised only when it has been earned.

The appropriation for the 2001–02 year includes an amount of $10,000,000 which was for the creation of a LitigationReserve Fund (LRF). The funds are to be used primarily to meet court costs awarded against the Commission.

Resources received free of chargeServices received free of charge are recognised as revenue when and only when a fair value can be reliably determinedand the services would have been purchased if they had not been donated. Use of those resources is recognised as anexpense.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair value when theasset qualifies for recognition.

Other revenueRevenue from the sale of goods is recognised upon the delivery of goods to customers.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts or otheragreements to provide services. The stage of completion is determined according to the proportion that costs incurredto date bear to the estimated total costs of the transaction.

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financialassets.

Revenue from disposal of non-current assets is recognised when control of the asset has passed to the buyer.


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1.5 Transaction with the government as owner

Equity injectionsFrom 1 July 2002 the FMOs require that amounts of appropriations designated as 'equity injections' (less any savingsoffered up in Portfolio Additional Estimates Statements) are recognised directly in Contributed Equity as at 1 July or laterdate of effect of the appropriation.

This is a change of accounting policy from 2001–02 to the extent any part of an equity injection that was dependent onspecific future events occurring was not recognised until that appropriation was drawn down.

The change in policy has no financial effect in 2002–03 because the full amounts of the equity injections for 2001–02were recognised in that year.

1.6 Employee benefitsLiabilities for services rendered by employees are recognised at the reporting date to the extent that they have not beensettled.

Liabilities for wages and salaries (including non-monetary benefits), annual leave, sick leave are measured at theirnominal amounts. Other employee benefits expected to be settled within 12 months of the reporting date are alsomeasured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. This is achange in accounting policy from last year required on initial application of a new Accounting Standard AASB 1028 from1 July 2002. The Commission's Certified Agreement is due to expire on 30 November 2003 and is under negotiation atreporting date. As a pay increase was provided to all staff in January 2003, and the current certified agreement doesnot provide for any further increases, the amounts provided for equate to amounts that would be payable on settlement.

All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to bemade in respect of services provided by employees up to the reporting date.

LeaveThe liability for employee benefits includes provision for annual leave and long service leave. No provision has beenmade for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of theCommission is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees' remuneration, including the Commission's employersuperannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out ontermination.

The non-current portion of the provision for long service leave is recognised and measured at the present value of theestimated future cash flows to be made in respect of all employees as at 30 June 2003. The estimate of present valueof the liability takes into account attrition rates and pay increases through promotion and inflation.

SuperannuationStaff of the Commission are members of the Commonwealth Superannuation Scheme and the Public SectorSuperannuation Scheme. The liability for their superannuation benefits is recognised in the financial statements of theCommonwealth and is settled by the Commonwealth in due course.

The Commission makes employer contributions to the Commonwealth at rates determined by an actuary to besufficient to meet the cost to the Commonwealth of the superannuation entitlements of the Commission's employees.Employer contributions in relation to the two schemes amounting to $3,400,523 in 2002–03 ($3,072,190 in 2001–02)have been expended in these financial statements.

Employer Superannuation Productivity Benefit contributions totalled $750,518 in 2002–03 ($641,763 in 2001–02).

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight ofthe year.

1.7 LeasesA distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially allthe risks and benefits incidental to ownership of leased non-current assets and operating leases under which thelessor effectively retains substantially all such risks and benefits.

Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at the present value ofminimum lease payments at the inception of the lease and a liability recognised for the same amount. Leased assetsare amortised over the period of the lease. Lease payments are allocated between the principal component and theinterest expense.

Operating lease payments are expensed on a basis, which is representative of the pattern of benefits derived from theleased assets. The net present value of future net outlays in respect of surplus space under non-cancellable leaseagreements is expensed in the period in which the space becomes surplus.

The Commission entered into a sale and leaseback of certain IT assets on 1 July 1999. The carrying amount of theseassets was written down to fair value at that date and the consequent loss on sale was amortised over the period ofthe lease (Refer Note 4(d)).

Lease incentives taking the form of ‘free’ leasehold improvements and rent holidays are recognised as liabilities. Theseliabilities are reduced by allocating lease payments between rental expense and reduction of the liability. Leaseliabilities are amortised using a straight-line method over the term of the lease.


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1.8 Borrowing costsAll borrowing costs are expensed as incurred except to the extent that they are directly attributable to qualifying assets,in which case they are capitalised. The amount capitalised in a reporting period does not exceed the amount of costsincurred in that period.

The Commission did not have any qualifying assets for which funds were borrowed during the 2002–03 financial year.

1.9 CashCash means notes and coins held and any deposits held at call with a bank or financial institution.

1.10 Financial instrumentsAccounting policies for financial instruments are stated at Note 17.

1.11 Acquisition of assetsAssets are recorded at cost of acquisition except as stated below. The cost of acquisition includes the fair value ofassets transferred in exchange and liabilities undertaken.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fairvalue at the date of acquisition.

1.12 Property, infrastructure, plant and equipment

Asset recognition thresholdPurchases of property, infrastructure, plant and equipment are recognised initially at cost in the Statement of FinancialPosition, except for purchases costing less than $1,000, which are expensed in the year of acquisition (other than wherethey form part of a group of similar items which are significant in total).

Revaluations

BasisProperty, infrastructure, plant and equipment are carried at valuation. The Commission revalues all of its assets inthree-year cycles. Revaluations have been undertaken up to 30 June 2002 on a deprival basis. These revaluations beingfor the cycle which finishes on 30 June 2005.

Future revaluations by the Commission are to be undertaken at fair value. This change in accounting policy is requiredby Australian Accounting Standard AASB 1041 Revaluation of Non-Current Assets.

Under both deprival and fair value, assets which are surplus to requirements are measured at their net realisable value.At 30 June 2003 the Commission had no assets in this situation.

Buildings (leasehold improvements) were revalued as at 30 June 2002 at depreciated replacement cost.

Infrastructure, plant and equipment (P&E) assets were revalued as at 30 June 2002 at deprival value.

FrequencyThe Commission revalues all of its assets in three-year cycles. Revaluations have been undertaken up to 30 June 2002on a deprival basis. These revaluations being for the cycle which finishes on 30 June 2005.

ConductAll valuations are conducted by an independent qualified valuer (refer to Note 6(b)).

Depreciation and amortisationDepreciable infrastructure, plant and equipment assets are written-off to their estimated residual values over theirestimated useful lives to the Commission using, in all cases, the straight line method of depreciation. Leaseholdimprovements are amortised on a straight-line basis over the lesser of the estimated useful life of the improvements orthe unexpired period of the lease.

Depreciation/amortisation rates (useful lives) and methods are reviewed at each reporting date and necessaryadjustments are recognised in the current, or current and future reporting periods, as appropriate. Residual values arere-estimated for a change in prices only when assets are revalued.

Depreciation and amortisation rates applying to each class of depreciable asset are based on the useful lives in thetable below. These rates apply to each item in that class except where the useful life of the item has been reassessedfollowing revaluation.

The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed inNote 4(c).


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Asset class 20032003200320032003 2002TTTTTotal useful lifeotal useful lifeotal useful lifeotal useful lifeotal useful life Total useful life

Fitout Lesser of the term ofLesser of the term ofLesser of the term ofLesser of the term ofLesser of the term of lesser of the term ofthe lease or 10 yearsthe lease or 10 yearsthe lease or 10 yearsthe lease or 10 yearsthe lease or 10 years the lease or 10 years

Furniture and fittings 10 years10 years10 years10 years10 years 10 yearsOffice equipment 5 years5 years5 years5 years5 years 5 yearsComputer hardware 3 years3 years3 years3 years3 years 3 yearsComputer software 3 to 7 years3 to 7 years3 to 7 years3 to 7 years3 to 7 years 3 to 7 years

Recoverable amount testFrom 1 July 2002, Schedule 1 of the FMOs (Schedule 1) no longer requires the application of the recoverable amount testin Australian Accounting Standard AAS10 Recoverable Amount of Non-Current Assets (AAS10) to the assets ofagencies where the primary purpose of the asset is not the generation of net cash inflows.

No infrastructure, plant and equipment assets have been written down to recoverable amount per AAS10. Accordingly,the change in policy has had no financial effect.

1.13 IntangiblesIntangibles comprise software that has been externally acquired for internal use. These assets are carried at cost.

From 1 July 2002, Schedule 1 no longer requires the application of the recoverable amount test in AAS10 to the assetsof agencies where the primary purpose of the asset is not the generation of net cash inflows.

However, Schedule 1 now requires such assets, if carried on the cost basis, to be assessed for indications ofimpairment. The carrying amount of impaired assets must be written down to the higher of its net market selling priceor depreciated replacement cost.

All software assets were assessed for impairment as at 30 June 2003. An impairment writedown has been booked at30 June 2003 for software that was no longer functional.

Software is amortised on a straight-line basis over its anticipated useful life. The useful life of the Commission'ssoftware is 3 to 7 years (2001–02: 3 to 7 years).

1.14 InventoriesInventories (publications) held for resale are valued at the lower of cost or net realisable value.

Inventories not held for resale are valued at cost, unless they are no longer required, in which case they are valued at netrealisable value.

1.15 TaxationThe Commission is exempt from all forms of taxation except fringe benefits tax and the goods and services tax.

Revenues, expenses and assets are recognised net of GST:

! except where the amount of GST incurred is not recoverable from the Australian Taxation Office

! except for receivables and payables.

1.16 Foreign currencyTransactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction.Foreign currency receivables and payables are translated at the exchange rates current as at balance date. Associatedcurrency gains and losses are not material.

1.17 InsuranceThe Commission has insured for risks through the government's insurable risk managed fund, called ‘Comcover’.Workers compensation is insured through the government's Comcare Australia.

1.18 Comparative figuresComparative figures have been adjusted to conform to changes in presentation in these financial statements whererequired.

1.19 RoundingAmounts have been rounded to the nearest $1,000 except in relation to the following:

! act of grace payments and waivers

! remuneration of executives

! remuneration of auditors

! appropriations.


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1.20 Reporting of administered activitiesAdministered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule of AdministeredItems and related Notes.

Except where otherwise stated below, administered items are accounted for on the same basis and using the samepolicies as for Departmental items, including the application to the greatest extent possible of Accounting Standards,Accounting Interpretations and UIG Consensus Views.

Administered appropriations received or receivable from the Official Public Account (OPA) are not reported asadministered revenues or assets respectively. Similarly, administered receipts transferred or transferable to the OPAare not reported as administered expenses or payables. These transactions or balances are internal to theadministered entity.

These transfers of cash are reported as administered (operating) cash flows in the administered reconciliation table inNote 22.

Accounting policies which are relevant to administered activities only of the Commission are disclosed below.

RevenueAll administered revenues are revenues relating to the core operating activities performed by the Commission on behalfof the Commonwealth.

Fines and costs are applied by the courts or by agreement between the Commission and the defendant, and arerecognised when awarded by the courts, or when agreement has been executed.

Court costs awarded against the Commission are recorded as a departmental expense.

Authorisation and notification fees and other revenue are applied when required under the relevant legislation, and arerecognised upon payment.

Note 2 Events occurring after reporting dateThere are no events that have occurred after balance date which affect the amounts brought to account in the financialstatements for the year ended 30 June 2003.

20032003200320032003 2002$’000$’000$’000$’000$’000 $’000

Note 3 Operating revenues

3(a) Revenues from government

Appropriations for outputs 62 50062 50062 50062 50062 500 83 400Resources received free of charge 6060606060 60

Total revenues from government 62 560 83 460

3(b) Goods and services

Goods 5656565656 45Services 474474474474474 345

Total sales of goods and services 530 390

Provision of goods to:Related entities ----- -External entities 5656565656 45

Total sales of goods 5656565656 45

Provision of services to:Related entities 5151515151 23External entities 423423423423423 322

Total rendering of services 474474474474474 345

3(c) Interest revenue

Litigation Reserve Fund 4444444444 467Interest on deposits 1010101010 263

Total interest 54 730


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20032003200320032003 2002$’000$’000$’000$’000$’000 $’000

3(d) Net loss from sale of assets

Buildings (leasehold improvements):Write-offs (12)(12)(12)(12)(12) (31)

Net loss on disposal of buildings (leasehold improvements) (12)(12)(12)(12)(12) (31)

Infrastructure, plant and equipment:Proceeds from disposal 33333 9Net book value of assets disposed (5)(5)(5)(5)(5) (15)Amortised loss on sale of assets ----- (278)

Net loss on disposal of infrastructure, plant and equipment (2)(2)(2)(2)(2) (284)

TOTAL proceeds from disposals 33333 9TOTAL value of assets disposed (17)(17)(17)(17)(17) (324)

TOTAL net loss from disposal of assets (14) (315)

Note 4 Operating expenses

4(a) Employee expenses

Wages and salary 26 77926 77926 77926 77926 779 25 629Superannuation 4 1514 1514 1514 1514 151 3 714Leave and other entitlements 3 3123 3123 3123 3123 312 3 225Separation and redundancies 245245245245245 137Other employee expenses 558558558558558 942

Total employee benefits expense 35 04535 04535 04535 04535 045 33 647

Workers compensation premiums 8787878787 212

Total employee expenses 35 132 33 859

4(b) Suppliers expenses

Goods from related entities 66666 6Goods from external entities 823823823823823 899Services from related entities 14 64614 64614 64614 64614 646 13 967Services from external entities 17 30517 30517 30517 30517 305 18 494Operating lease rentals* 3 1893 1893 1893 1893 189 2 625

Total supplier expenses 35 969 35 991

* These comprise minimum lease payments only.

4(c) Depreciation and amortisation

DepreciationInfrastructure, plant and equipment 363363363363363 243

Total depreciation 363363363363363 243

AmortisationLeasehold improvements 522522522522522 471Leased assets 1 0191 0191 0191 0191 019 948Intangibles—computer software 222222222222222 349

Total amortisation 1 7631 7631 7631 7631 763 1 768

Total depreciation and amortisation 2 126 2 011

The aggregate amounts of depreciation or amortisation expensed during the reporting period for each class ofdepreciable asset are as follows:

Leasehold improvements 522522522522522 471Plant and equipment 1 3821 3821 3821 3821 382 1 191Intangibles—computer software 222222222222222 349

Total depreciation and amortisation 2 126 2 011


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20032003200320032003 2002$’000$’000$’000$’000$’000 $’000

4(d) Write-down of assets

Non-financial assetsSoftware 2626262626 -

Total write-down of assets 26 -

4(e) Borrowing costs expense

Leases—finance charge 8080808080 110

Total borrowing costs expense 80 110

Note 5 Financial assets

5(a) Cash

Cash at bank and on hand 2 1862 1862 1862 1862 186 3 707Cash on deposit1 ----- 12 671

Total 2 186 16 3781 Cash on deposit as at 30 June 2002 includes the Litigation Reserve Fund appropriated to the Commission in 2001–02

(refer Note 1.4).

Refer to Note 5(b) under Funds returned to OPA for the Litigation Reserve Fund balance as at 30 June 2003.

5(b) Receivables

Funds returned to OPA1 7 4397 4397 4397 4397 439 -Goods and services 5858585858 185Less: Provision for doubtful debts (7)(7)(7)(7)(7) (31)

7 4907 4907 4907 4907 490 154

GST receivable from the Australian Taxation Office 744744744744744 835

Total receivables (net) 8 234 989All receivables are current assets.1 Funds returned to OPA represents the return of cash balances above the agreed level of working cash capital, effective on or

before 30 June 2003, as a result of the Budget Estimates and Framework Review (BEFR) implementation. This figure representsthe balance of the Litigation Reserve Fund as at 30 June 2003. As at 30 June 2002 this balance was reflected in cash on deposit(Refer Notes 1.4 and 5(a)).

Receivables (gross) are aged as follows:Not overdue 8 2218 2218 2218 2218 221 927Overdue by:

Less than 30 days ----- 830 to 60 days 22222 2760 to 90 days 66666 24More than 90 days 1212121212 34

2020202020 93

Total receivables (gross) 8 241 1 020

The provision for doubtful debts is aged as follows:Not overdue ----- -Overdue by:

Less than 30 days ----- -30 to 60 days ----- -60 to 90 days ----- -More than 90 days (7)(7)(7)(7)(7) (31)

Total provision for doubtful debts (7) (31)


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Note 6 Non-financial assets

6(a) Land and buildings

Leasehold improvementsAt cost 6767676767 -Less: Accumulated depreciation (5)(5)(5)(5)(5) -

6262626262 -

At 2002–2005 valuation (deprival) 3 8913 8913 8913 8913 891 3 900Less: Accumulated depreciation (1 954)(1 954)(1 954)(1 954)(1 954) (1 438)

1 9371 9371 9371 9371 937 2 462

Total leasehold improvements 1 9991 9991 9991 9991 999 2 462

Total land and buildings (non-current) 1 999 2 462

6(b) Infrastructure, plant and equipment

Infrastructure, plant and equipment (not under finance lease)At cost 912912912912912 208Less: Accumulated depreciation (221)(221)(221)(221)(221) (19)Work in progress 1818181818 -

709709709709709 189

At 2002–2005 valuation (deprival) 1 1431 1431 1431 1431 143 1 155Less: Accumulated depreciation (650)(650)(650)(650)(650) (497)

493493493493493 658

Total infrastructure, plant and equipment (not under finance lease) 1 2021 2021 2021 2021 202 847

Plant and equipment under finance leaseAt cost 3 0863 0863 0863 0863 086 2 431Less: Accumulated amortisation (2 599)(2 599)(2 599)(2 599)(2 599) (1 616)

487487487487487 815

At 2002–2005 valuation (deprival) 153153153153153 153Less: Accumulated amortisation (108)(108)(108)(108)(108) (72)

4545454545 81

Total plant and equipment under finance lease 532532532532532 896

Total infrastructure, plant and equipment (non-current) 1 734 1 743

All revaluations are independent and in accordance with the revaluation policy stated at Note 1.12. In 2001–02 therevaluations were completed by an independent valuer, Chris Tuttle (Australian Valuation Office). No revaluations wereundertaken in 2002–03.

6(c) Intangibles

Computer software at cost 1 2301 2301 2301 2301 230 1 541Work in progress 630630630630630 208Less: Accumulated amortisation (882)(882)(882)(882)(882) (962)

Total intangibles (non-current) 978 787


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6(d) Analysis of property, plant, equipment and intangibles

Table A —Reconciliation of the opening and closing balances of property, plant and equipment and intangibles

Item Leasehold Infrastructure Intangibles TOTALimprovements plant and (computer

equipment software)$’000 $’000 $’000 $’000

As at 1 July 2002Gross book value 3 900 3 948 1 749 9 5979 5979 5979 5979 597Accumulated depreciation/amortisation (1 438) (2 205) (962) (4 605)(4 605)(4 605)(4 605)(4 605)

Net book value 2 462 1 743 787 4 992

Additions by purchase 71 1 378 439 1 8881 8881 8881 8881 888

Depreciation/amortisation expense (522) (1 382) (222) (2 126)(2 126)(2 126)(2 126)(2 126)

Disposals Other disposals (12) (5) (26) (43)(43)(43)(43)(43)

As at 30 June 2003Gross book value 3 958 5 312 1 860 11 13011 13011 13011 13011 130Accumulated depreciation/amortisation (1 959) (3 578) (882) (6 419)(6 419)(6 419)(6 419)(6 419)

Net book value 1 999 1 734 978 4 711

Table B—Assets at valuation



As at 30 June 2003Gross value 3 891 1 296 - 5 1875 1875 1875 1875 187Accumulated depreciation/amortisation (1 954) (758) - (2 712)(2 712)(2 712)(2 712)(2 712)

Net book value 1 937 538 - 2 475

As at 30 June 2002Gross book value 3 900 1 308 - 5 2085 2085 2085 2085 208Accumulated depreciation/amortisation (1 438) (569) - (2 007)(2 007)(2 007)(2 007)(2 007)

Net book value 2 462 739 - 3 201

Table C—Assets held under finance lease



As at 30 June 2003Gross value - 3 239 - 3 2393 2393 2393 2393 239Accumulated depreciation/amortisation - (2 707) - (2 707)(2 707)(2 707)(2 707)(2 707)

Net book value - 532 - 532

As at 30 June 2002Gross book value - 2 584 - 2 5842 5842 5842 5842 584Accumulated depreciation/amortisation - (1 688) - (1 688)(1 688)(1 688)(1 688)(1 688)

Net book value - 896 - 896

Table D—Assets under construction (work in progress)



Gross value at 30 June 2003 18 630 648648648648648

Gross value at 30 June 2002 - - 208 208208208208208


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20032003200320032003 2002$’000$’000$’000$’000$’000 $’000

6(e) Inventories

Publications held for sale 87 103

All inventories are current assets.

6(f) Other non-financial assets

Leasehold rights 105105105105105 156Prepayments 663663663663663 1 179

Total other non-financial assets 768 1 335

Other non-financial assets are represented by:Current 675675675675675 1 230Non-current 9393939393 105

Total other non-financial assets 768 1 335

Note 7 Interest bearing liabilities

Leases

Finance lease commitments:Payable:

Within one year 594594594594594 831In one to five years ----- 238In more than five years ----- -

Minimum lease payments 594594594594594 1 069

Deduct: future finance charges (32)(32)(32)(32)(32) (74)

Net lease liability 562 995

Lease liability is represented by:Current 562562562562562 770Non-current - - - - - 225

Net lease liability 562 995

Finance leases exist in relation to certain major computer, communication and office equipment assets. The leasesare non-cancellable and for fixed terms averaging three years, with a maximum of five years. The existing leasesentered into by the Commission will expire on or before 30 June 2004.

Note 8 Provisions

Employee provisions

Salaries and wages 842842842842842 750Leave 9 4139 4139 4139 4139 413 8 850Superannuation 131131131131131 103

Aggregate employee benefit liability and related on-costs 10 386 9 703

Employee benefit liability and related on-costs are represented by:Current 4 9464 9464 9464 9464 946 4 999Non-current 5 4405 4405 4405 4405 440 4 704

Aggregate employee benefit liability and related on-costs 10 386 9 703


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20032003200320032003 2002$’000$’000$’000$’000$’000 $’000

Note 9 Payables

9(a) Suppliers

Trade creditors and accruals 9 070 9 070 9 070 9 070 9 070 6 510

Total supplier payables 9 070 6 510

Suppliers payables are represented by:Current 9 0709 0709 0709 0709 070 6 510Non-current ----- -

Total supplier payables 9 070 6 510

9(b) Other payables

Lease incentives 327327327327327 411Prepayments received 141141141141141 182

Total other payables 468 593

Other debt is represented by: Current 225225225225225 266 Non-current 243243243243243 327

Total other payables 468 593

Note 10 Equity

10(a) Analysis of equity

Item Accumulated Asset Contributed TOTAL EQUITYresults revaluation equity

reserve

20032003200320032003 2002 20032003200320032003 2002 20032003200320032003 2002 20032003200320032003 2002$’000$’000$’000$’000$’000 $’000 $’000$’000$’000$’000$’000 $’000 $’000$’000$’000$’000$’000 $’000 $’000$’000$’000$’000$’000 $’000

Opening balance as at 1 July 1 8441 8441 8441 8441 844 (10 450) 1 0521 0521 0521 0521 052 768 3 1003 1003 1003 1003 100 81 5 9965 9965 9965 9965 996 (9 601)Net surplus/(deficit) (10 203)(10 203)(10 203)(10 203)(10 203) 12 294 ----- - ----- - (10 203)(10 203)(10 203)(10 203)(10 203) 12 294Net revaluation increment/(decrement) ----- - ----- 284 ----- - ----- 284Return of prior year interest received to OPA1 (293)(293)(293)(293)(293) - ----- - ----- - (293)(293)(293)(293)(293) -

Transactions with owner:Contribution of equity2 ----- - ----- - ----- 3 019 ----- 3 019

Closing balance as at 30 June (8 652) 1 844 1 052 1 052 3 100 3 100 (4 500) 5 996

Less: outside equity interests ----- - ----- - ----- - ----- -

Total equity attributable to theCommonwealth (8 652) 1 844 1 052 1 052 3 100 3 100 (4 500) 5 996

1 The Commission was required to return $293,000 to maintain the budget neutrality of the Australian Banking IncentiveScheme (ABIS). The amount represents the excess interest revenue earned by the Commission over the last three years from1999–2000, following the government's decision to abolish ABIS.

2 As a result of a funding review undertaken by the Commission and the Department of Finance and Administration, theDepartment of Finance and Administration converted a loan from the government of $3,019,000 to capital effective 1 July 2001.


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20032003200320032003 2002$’000$’000$’000$’000$’000 $’000

Note 11 Cash flow reconciliationReconciliation of cash per Statement of Financial Position to Statement of Cash Flows

Cash at year end per Statement of Cash Flows 2 186 16 378

Statement of Financial Position items comprising above cash: 'Financial Asset—Cash' 2 186 16 378

Reconciliation of net surplus (deficit) to net cash from operating activities:Net surplus (deficit) (10 203)(10 203)(10 203)(10 203)(10 203) 12 294Depreciation / amortisation 2 1262 1262 1262 1262 126 2 011Net write down of non-financial assets 2626262626 -(Gain) / loss on disposal of assets 1414141414 315(Increase) / decrease in net receivables (7 245)(7 245)(7 245)(7 245)(7 245) 104(Increase) / decrease in inventories 1616161616 (9)(Increase) / decrease in prepayments 516516516516516 444(Increase) / decrease in other assets 5151515151 181Increase / (decrease) in employee provisions 683683683683683 1 094Increase / (decrease) in supplier payables 2 5602 5602 5602 5602 560 850Increase / (decrease) in prepayments received (41)(41)(41)(41)(41) 183Increase / (decrease) in other liabilities (83) (139)

Net cash from / (used by) operating activities (11 580) 17 328

Note 12 Contingent liabilities and assets

Quantifiable contingenciesThe Schedule of Contingencies reports contingent liabilities in respect of claims for damages/costs of $8,090,000(2002: $3,243,000). The amount represents an estimate of the Commission's liability based on precedent cases.The Commission is defending the claims.

Unquantifiable contingenciesAs at 30 June 2003 the Commission has 9 matters before the courts alleging breaches of the Trade Practices Act. Inthe event of unfavourable judgment by the court, the Commission stands to lose by way of penalties or costs awarded.It is not possible to determine the amount in relation to these matters. The Commission is defending the claims.

Remote contingenciesAs at 30 June 2003 the Commission has 1 matter before the courts alleging breaches of the Trade Practices Act inrespect of which it has received legal advice that there is a remote chance of unfavourable judgments by the court.The Commission stands to lose by way of costs awarded. It is not possible to determine the amounts in relation tothese matters. The Commission is defending the claims.


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20032003200320032003 2002

Note 13 Executive remunerationThe number of executives who received or were due to receive total remuneration1 of $100 000 or more:

Number Number$100 000 to $110 000 11111 1$110 001 to $120 000 ----- 2$120 001 to $130 000 ----- 5$130 001 to $140 000 66666 1$140 001 to $150 000 33333 2$150 001 to $160 000 11111 -$160 001 to $170 000 ----- 2$170 001 to $180 000 11111 1$180 001 to $190 000 ----- -$190 001 to $200 000 22222 2$200 001 to $210 000 22222 1$210 001 to $220 000 ----- 1$220 001 to $230 000 22222 1$230 001 to $240 000 11111 -$320 001 to $330 000 ----- 1$370 001 to $380 000 11111 -

The aggregate amount of total remuneration of executives shown above. $3 560 252 $3 293 046

The aggregate amount of separation payments during the year toexecutives shown above. - -

1 Total remuneration includes salary and wages, accrued leave, performance pay, superannuation entitlements,motor vehicles and other fringe benefits and fringe benefits tax.

Note 14 Remuneration of auditorsFinancial statement audit services are provided free of charge to theCommission by the Australian National Audit Office (ANAO).The fair value of the services provided was: 60 000 60 000

No other services were provided by ANAO.

Note 15 Average staffing levelsThe average staffing levels for the Commission during the year were: 468.70 478.20

Note 16 Acts of grace payments, waivers anddefective administration scheme

No acts of grace payments were made during the reporting period. (2001–02 : Nil)

No waivers of amounts owing to the Commonwealth were made pursuant to subsection 34(1) of the FinancialManagement Accountability Act 1997. (2001–02 : Nil)

No payments were made under the Defective Administration Scheme during the reporting period. (2001–02 : Nil)

No waivers of amounts were made pursuant to any other legislation. (2001–02 : Nil)


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Note 17 Financial instruments

17(a) Terms, conditions and accounting policies

Financial instrument Notes Accounting policies and methods Nature of underlying instrument(including recognition criteria and (including significant terms & conditionsmeasurement basis) affecting the amount, timing and

certainty of cash flows)

FINANCIAL ASSETS Financial assets are recognisedwhen control over future economicbenefits is established and theamount of the benefit can bereliably measured.

Cash 5(a) Deposits are recognised at their The Commission invested excess fundsnominal amounts. Interest was with the Reserve Bank during the year.credited to revenue as it accrues. However, due to the abolition of ABIS

during the year (refer Note 10(a)), theCommission's last interest payment wasreceived on 29 August 2002. Operationalbanking arrangements are managed bythe Westpac Bank.

Receivables for 5(b) These receivables are recognised at All receivables on 30 day termsgoods and services the nominal amounts due less any (2001–02: 30 days).

provision for bad and doubtful debts.Collectability of debts is reviewed atbalance date. Provisions are madewhen collection of the debt is judgedto be less rather than more likely.

FINANCIAL Financial liabilities are recognisedLIABILITIES when a present obligation to another

party is entered into and the amountof the liability can be reliablymeasured.

Finance lease 7 Liabilities are recognised at the At reporting date, the Commission hadliabilities present value of the minimum lease finance leases with fixed terms

payments at the beginning of the averaging three years, with a maximumlease. The discount rates used are of five years. The existing leases enteredestimates of the interest rates into by the Commission will expire on orimplicit in the leases. before 30 June 2004. The interest rate

implicit in the leases averaged 6.27%(2001–02: 6.54%). The lease assets secure the lease liabilities.

Trade creditors 9(a) Creditors and accruals are Trade creditors are normally settled onrecognised at their nominal 30 day terms.amounts, being the amounts atwhich the liabilities will be settled.Liabilities are recognised to theextent that the goods or serviceshave been received (and irrespectiveof having been invoiced).

Lease incentives 9(b) The lease incentive is recognised as The Commission has received rent-freea liability on receipt of the incentive. period incentives on entering propertyThe amount of the liability is reduced operating leases. Lease payments areon a straight-line basis over the life of made monthly.the lease by allocating leasepayments between rental expenseand reduction of the liability.


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17(c) Net fair values of financial assets and liabilities

Notes 20032003200320032003 2002

TTTTTotal carryingotal carryingotal carryingotal carryingotal carrying AggregateAggregateAggregateAggregateAggregate Total carrying Aggregateamountamountamountamountamount net fair valuenet fair valuenet fair valuenet fair valuenet fair value amount net fair value$'000$'000$'000$'000$'000 $'000$'000$'000$'000$'000 $'000 $'000

Departmental financial assetsCash at bank 5(a) 2 1862 1862 1862 1862 186 2 1862 1862 1862 1862 186 3 707 3 707Cash on deposit 5(a) ----- ----- 12 671 12 671Receivables for goods and services 5(b) 8 2348 2348 2348 2348 234 8 2348 2348 2348 2348 234 989 989

Total Financial assets 10 420 10 420 17 367 17 367

Departmental financial liabilitiesFinance lease liabilities 7 562562562562562 562562562562562 995 995Trade creditors 9(a) 9 0709 0709 0709 0709 070 9 0709 0709 0709 0709 070 6 510 6 510Lease incentives 9(b) 327327327327327 327327327327327 411 411

Total financial liabilities 9 959 9 959 7 916 7 916

Financial assetsThe net fair values of cash and non-interest bearing monetary financial assets approximate their carrying amounts.

Financial liabilitiesThe net fair values of finance leases are based on discounted cash flows using current interest rates for liabilities withsimilar risk profiles.

The net fair values for trade creditors are approximated by their carrying amounts.

17(d) Credit risk exposures

The Commission's maximum exposure to credit risk at reporting date in relation to each class of recognised financialassets is the carrying amount of those assets as indicated in the Statement of Financial Position. The Commissiondoes not have any significant exposures to any concentrations of credit risk.

All figures for credit risk referred to do not take into account the value of any collateral or other security.

20032003200320032003 2002$’000$’000$’000$’000$’000 $’000

Note 18 Revenues administered on behalf of governmentOther taxes, fees and fines

Fines and costs 7 5567 5567 5567 5567 556 6 780Authorisation fees 352352352352352 361Other 44444 11

Total revenues administered on behalf of government 7 912 7 152

Note 19 Expenses administered on behalf of government

Total expenses administered on behalf of government - -


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20032003200320032003 2002$’000$’000$’000$’000$’000 $’000

Note 20 Assets administered on behalf of government

Financial assets

(a) CashCash at bank 1010101010 3

Total cash 1010101010 3

(b) ReceivablesFines and costs 4 3124 3124 3124 3124 312 7 138Less: Provision for doubtful debts (331)(331)(331)(331)(331) (331)

Total receivables (net) 3 9813 9813 9813 9813 981 6 807

All receivables are current assets.

Receivables (gross) are aged as follows:Not overdue 3 8073 8073 8073 8073 807 6 658Overdue by:

Less than 30 days 4040404040 4730 to 60 days ----- 660 to 90 days ----- 6More than 90 days 465465465465465 421

Total receivables (gross) 4 3124 3124 3124 3124 312 7 138

The provision for doubtful debts is aged as follows:Not overdue ----- -Overdue by:

Less than 30 days ----- -30 to 60 days ----- -60 to 90 days ----- -More than 90 days (331)(331)(331)(331)(331) (331)

Total provision for doubtful debts (331)(331)(331)(331)(331) (331)

Total assets administered on behalf of government 3 991 6 810

Note 21 Liabilities administered on behalf of government

Total liabilities administered on behalf of government - -

Note 22 Administered reconciliation tableAdministered assets less administered liabilities as at 1 July 6 8106 8106 8106 8106 810 3 472Plus Administered revenues 7 9127 9127 9127 9127 912 7 152Less: Administered expenses ----- -Administered transfers to/from government transfers to OPA (10 731)(10 731)(10 731)(10 731)(10 731) (3 814)

Administered assets less administered liabilities as at 30 June 3 991 6 810


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Note 23 Administered contingent liabilities and assets

Quantifiable administered contingenciesThe Schedule of Administered Items reports contingent assets in respect of claims for damages/costs of $11,475,500(2002: $17,022,000). The Commission is expecting to succeed in 14 alleged breaches of the Trade Practices Act,although the cases are continuing. The estimate is based on legal advice and the precedents in such cases.

Unquantifiable administered contingenciesAs at 30 June 2003 the Commission has 22 matters before the courts alleging breaches of the Trade Practices Act.In the event of favourable judgment by the court, the Commission stands to gain by way of penalties or costs awarded.It is not possible to determine the amounts in relation to these matters.

Remote administered contingenciesAs at 30 June 2003 the Commission has 6 matters before the courts alleging breaches of the Trade Practices Actin respect of which it has received legal advice that there is a remote chance of favourable judgment by the court.The Commission stands to gain by way of penalties or costs awarded. It is not possible to determine the amountsin relation to these matters.

Note 24 Administered financial instruments

24(a) Terms, conditions and accounting policies

Financial instrument Notes Accounting policies and methods Nature of underlying instrument(including recognition criteria and (including significant terms andmeasurement basis) conditions affecting the amount,

timing and certainty of cash flows)

Cash 20(a) Deposits are recognised at their Monies in the Commission'snominal amounts Administered Receipts bank account

are swept into the OPA.

Administered 20(b) As for receivables for goods and Fines and costs are payable asreceivables for services. per judgment orders. Authorisation feesfines and costs are payable on receipt of application.


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24(c) Net fair values of financial assets and liabilities

Notes 20032003200320032003 2002

TTTTTotal carryingotal carryingotal carryingotal carryingotal carrying AggregateAggregateAggregateAggregateAggregate Total carrying Aggregateamountamountamountamountamount net fair valuenet fair valuenet fair valuenet fair valuenet fair value amount net fair value$’000$’000$’000$’000$’000 $’000$’000$’000$’000$’000 $’000 $’000

Administered financial assetsCash at bank 20(a) 1010101010 1010101010 3 3Fines and costs receivable 20(b) 3 9813 9813 9813 9813 981 3 9813 9813 9813 9813 981 6 807 6 807

Total financial assets 3 9913 9913 9913 9913 991 3 9913 9913 9913 9913 991 6 810 6 810

Administered financial liabilities

Total financial liabilities 21 ----- ----- - -

Financial assetsThe net fair values of cash and non-interest bearing monetary financial assets approximate their carrying amounts.

20032003200320032003 2002$$$$$ $

Note 25 Appropriations

Cash basis acquittal of appropriations from Acts 1 and 3–Departmental outputs

Balance carried forward from previous year 16 378 18116 378 18116 378 18116 378 18116 378 181 1 507 710Appropriation for reporting period (Act 1) 61 800 00061 800 00061 800 00061 800 00061 800 000 83 400 000Appropriation for reporting period (Act 3) 700 000700 000700 000700 000700 000 -GST credits (FMA s. 30A) 3 537 3203 537 3203 537 3203 537 3203 537 320 3 824 655Annotations to net appropriations (FMA s. 31) 778 441778 441778 441778 441778 441 1 711 795

Available for payments 83 193 94283 193 94283 193 94283 193 94283 193 942 90 444 160

Payments made (73 568 805)(73 568 805)(73 568 805)(73 568 805)(73 568 805) (74 065 979)

Balance carried to next year 9 625 137 16 378 181

Represented by:Cash 2 185 9402 185 9402 185 9402 185 9402 185 940 16 378 181Add: Receivables—Funds returned to OPA 7 439 1977 439 1977 439 1977 439 1977 439 197 -

Total 9 625 137 16 378 181

Note 26 Assets held in trustOther trust monies (ACCC)

Legal authority—Financial management and accountability Act 1997; s. 20

Purpose—for the receipt of moneys temporarily held on trust or otherwise for the benefit of a person other than theCommonwealth

Balance carried forward from previous period 252 588252 588252 588252 588252 588 4 384 703Receipts during the period 138 299138 299138 299138 299138 299 690 995

Available for payments 390 887390 887390 887390 887390 887 5 075 698

Payments made (9 475)(9 475)(9 475)(9 475)(9 475) (4 823 110)

Balance carried forward to next period 381 412 252 588

Represented by:Funds on hand ----- 252 588Funds returned to OPA receivable 380 099380 099380 099380 099380 099 -Funds on hand to be returned to OPA 1 3131 3131 3131 3131 313 -

Balance carried forward to next period 381 412 252 588


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Note 27 Reporting of outcomesThe Commission attributes its outcome between its two output groups on the basis of identifiable actual costs.Shared costs incurred with respect to these output groups are apportioned according to these resulting actual costs.This basis of attribution is consistent with that used in the 2002–03 budget.

Note 27(a)—Net cost of outcome delivery

Outcome 1 Output group 1 Output group 2 Total

20032003200320032003 2002 20032003200320032003 2002 20032003200320032003 2002$’000$’000$’000$’000$’000 $’000 $’000$’000$’000$’000$’000 $’000 $’000$’000$’000$’000$’000 $’000

Departmental expensesEmployees 21 76021 76021 76021 76021 760 21 009 13 37213 37213 37213 37213 372 12 850 35 13235 13235 13235 13235 132 33 859Suppliers 28 89328 89328 89328 89328 893 27 718 7 0767 0767 0767 0767 076 8 273 35 96935 96935 96935 96935 969 35 991Depreciation & amortisation 1 5571 5571 5571 5571 557 1 504 569569569569569 507 2 1262 1262 1262 1262 126 2 011Other 8383838383 291 4040404040 143 123123123123123 434

Total departmental expenses 52 293 50 522 21 057 21 773 73 350 72 295

Funded by:Revenue from government 41 29041 29041 29041 29041 290 57 716 21 27021 27021 27021 27021 270 25 744 62 56062 56062 56062 56062 560 83 460Sale of goods and services 294294294294294 198 236236236236236 192 530530530530530 390Other non-taxation revenues 3838383838 487 1919191919 252 5757575757 739

Total departmental revenues 41 622 58 401 21 525 26 188 63 147 84 589

Outcome 1 Total

20032003200320032003 2002 20032003200320032003 2002$’000$’000$’000$’000$’000 $’000 $’000$’000$’000$’000$’000 $’000

Administered expenses ----- - ----- -Departmental expenses 73 35073 35073 35073 35073 350 72 293 73 35073 35073 35073 35073 350 72 293

Total expenses 73 35073 35073 35073 35073 350 72 293 73 35073 35073 35073 35073 350 72 293

Costs recovered from provision of goods and servicesto the non-government sector

Administered ----- - ----- - Departmental 478478478478478 367 478478478478478 367

Total costs recovered 478478478478478 367 478478478478478 367

Other external revenuesAdministered 7 9127 9127 9127 9127 912 7 152 7 9127 9127 9127 9127 912 7 152

Total administered 7 9127 9127 9127 9127 912 7 152 7 9127 9127 9127 9127 912 7 152

DepartmentalInterest on cash deposits 5454545454 730 5454545454 730Revenue from disposal of assets 33333 9 33333 9Other 6060606060 60 6060606060 60Goods and services revenue from related entities 5252525252 23 5252525252 23

Total departmental 169169169169169 822 169169169169169 822

Total other external revenues 8 0818 0818 0818 0818 081 7 974 8 0818 0818 0818 0818 081 7 974

Net cost/(contribution) of outcome 64 791 63 952 64 791 63 952

Outcome 1 is described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculatingthe actual Budget outcome.

Note 27(b)—Major classes of departmental revenues and expenses by output groups andoutputs



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Note 27(c)—Major classes of administered revenues and expenses by outcomes

Outcome 1 Total

20032003200320032003 2002 20032003200320032003 2002$’000$’000$’000$’000$’000 $’000 $’000$’000$’000$’000$’000 $’000

Administered revenuesFines and costs 7 5567 5567 5567 5567 556 6 780 7 5567 5567 5567 5567 556 6 780Authorisation fees 352352352352352 361 352352352352352 361Other 44444 11 44444 11

Total administered revenues 7 912 7 152 7 912 7 152

Administered expensesTotal administered expenses - - - -



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amendments to the Trade Practices Act

Statute Law Revision Act 2002; commenced various timesnumber 63 of 2002

Trade Practices Amendment Act (No. 1) 2002; commenced 11 December 2002number 128 of 2002

Telecommunications Competition Act 2002; 19 December 2002number 140 of 2002

Trade Practices Amendment (Liability for Recreational Services) Act 2002; 19 December 2002number 146 of 2002

Maritime Legislation Amendment Act 2003; 19 March 2003number 7 of 2003

Industry, Tourism and Resources Legislation Amendment Act 2003; 12 April 2003number 21 of 2003

regulations introduced under the Act

Trade Practices (Consumer Product Safety Standard) (Baby Walkers) Regulations 2002

Trade Practices (Consumer Product Safety Standard) (Disposable Cigarette Lighters)Amendment Regulations 2002 (No.1)

amendments to the Prices Surveillance Act

Statute Law Revision Act 2002 taken as commenced 6 November 1995number 63 of 2002

other laws

Additional legislation affecting the work of the ACCC includes:

Airports Act 1996; focusing on access, prices and the quality of service at Australia’s privatisedairports

Australian Postal Corporation Act 1989; defining access to the postal network

Broadcasting Services Act 1922; covering the payment of TV licences

Gas Pipeline Access Act 1998; regulating gas transmission pipelines

Telecommunications Act 1997; detailing the telecommunications provisions of theTrade Practices Act

Telecommunications (Consumer Protection and Service Standards) Act 1999; detailing thetelecommunications provision of the Trade Practices Act

Trade Marks Act 1995; governing the approval of a trade mark that certifies that a goods orservices are of a particular standard of quality, origin, material or mode of manufacture.

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03exceptions under Commonwealth, state and territory legislation

Some Commonwealth, state and territory Acts permit conduct that would normally be anoffence under the Trade Practices Act. Section 51(1) of the Trade Practices Act provides thatsuch conduct may be permitted if it is specifically authorised under those other Acts. Below isa list of legislation that allows such conduct.

Commonwealth

Trade Practices Act 1974; part X,division 5, section 173

Trade Practices Amendment (Countryof Origin) Act 1998

Trade Practices Amendment(International Liner Cargo Shipping) Act2000

Wheat Marketing Act 1989

Australian Postal Corporation Act 1989

Year 2000 Information Disclosure Act1999

New South Wales

Coal Industry Act 2001

Competition Policy Reform (NSW)Regulation 1996*

Farm Produce (Repeal) Act 1996

Industrial Relations (Ethical ClothingTrades) Act 2001

Industrial Relations Amendment (PublicVehicles and Carriers) Act 2001

Liquor Act 1982

Marketing of Primary Products Act 1983

Olympic Roads and Transport AuthorityAct 1998*

Olympics Arrangements Act 2000*

Poultry Meat Industry Amendment(Price Determination) Act 2002

Registered Clubs Act 1976

Sydney Organising Committee for theOlympic Games Act 1993*

Totalizer Act 1997

Queensland

Chicken Meat Industry Committee Act1976

Competition Policy Reform(Queensland—Dairy IndustryExemptions) Regulation 1998*

Competition Policy Reform(Queensland—Sugar IndustryExemptions) Regulation 1998*

Competition Policy Reform(Queensland) Act 1996*

Competition Policy Reform(Queensland) Public Passenger ServiceAuthorisations Regulation 2000

Forestry Act 1959

Gladstone Power Station AgreementAct 1993

exce

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ns u

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mon

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n Petroleum Act 1923

Sugar Industry Act 1999

Transport Operations (PassengerTransport) Act 1994

Year 2000 Information Disclosure Act1999*

South Australia

Authorised Betting Operations Act 2000

Barley Marketing Act 1993

Tasmania

Electricity Supply Industry Act 1995

Electricity Supply Industry Restructuring(Savings and Transitional Provisions) Act1995

Victoria

Barley Marketing Act 1993*

Competition Policy Reform (Victoria)Act 1995*

Electricity Industry (Amendment) Act1996*

Electricity Industry (Trade Practices)Regulations 1994*

Gas Industry (Residual Provisions) Act1994

Gas Industry Act 1994

Gas Industry Act 2001

Western Australia

Grain Marketing Act 2002

North West Gas Development(Woodside) Agreement Act 1979

Northern Territory

Electricity Reform Act 2000

Water Supply and Sewerage Act 2002

Year 2000 Information Disclosure Act1999*

Consumer Affairs and Fair Trading (TowTruck Operators Code of Practice)Regulations

* subsection 51(1) exceptionsno longer current


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freedom ofinformation

The ACCC received 23 freedom of information requests including one partial transfer fromanother agency. The requests were for access to documents generally relating toinvestigations and complaints. There were eight requests carried over from last year.

In 14 cases access was granted in part. Access was granted in full in two cases and 11 caseswere not proceeded with. Four requests had not been finalised by the end of the year.It is ACCC policy to provide information wherever possible. However, it seeks to protectinformation provided to it in the course of its investigation and inquiries, and treats thatinformation as confidential both to protect the sources and to ensure the flow of informationvital to ACCC functions.

There were three requests for internal review and one application was made to theAdministrative Appeals Tribunal for review.

organisation, functions and decision-making

The structure, functions, legal basis, organisation and detailed descriptions of the exercise ofpowers of the ACCC are set out in detail earlier in this report.

arrangements for outside participation

The ACCC’s functions bring it into frequent contact with private individuals, companies,industry and consumer groups and other state, territory and Commonwealth governmentagencies. This contact allows interested bodies outside the ACCC to express their opinions andto have them taken into account by the ACCC when it establishes its policies and priorities.

The Trade Practices Act sets out formal procedures for the submission of views andinformation on adjudication matters and conferences. Less formal arrangements have beenestablished through contact with industry associations and consumer groups. The ACCCconvenes a consumer consultative committee four times a year to act as a forum to exchangeviews and information on trade practices issues. It has expanded its liaison by establishing asmall business advisory group that includes representatives from a wide range of business andprofessional areas. The ACCC has also established, on a trial basis, a rural and regionaladvisory committee with business and community groups in South Australia. Both advisorygroups meet every six months. The ACCC has also established the utility regulators forumwhich meets three times a year to discuss specific issues in regulated industries. The ACCCalso meets with ad hoc consultative committees from time to time.

Under section 31(1) of the Prices Surveillance Act the ACCC is required to conduct its pricinginquiries in public unless the minister directs otherwise. The Trade Practices Amendment Bill 2003,which is currently before Parliament proposes to incorporate the Prices Surveillance Act intothe Trade Practices Act, but the amendment would not affect the current intent of section 31(1).


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The Trade Practices Act and the Prices Surveillance Act require the ACCC to maintain a numberof public registers.

trade practices registers

The ACCC maintains a public register containing the details of authorisation applications,related submissions, the ACCC’s decision, reasons for its decision and any conferences heldon bans or mandatory recall of defective goods. With respect to its functions under Part IIIA ofthe Trade Practices Act the ACCC is required to maintain public registers of:

each decision by a Commonwealth minister that a regime established by a state orterritory for access to a service is an effective access regime for the service andeach declaration of a service, including a declaration that is no longer in force—section 44Q

certain details of registered contracts for access to declared services including thedate the contract was made, the parties and the nature of the service—section 44ZW

all access undertakings accepted by the ACCC, including those no longer in force andall variations to access undertakings—section 44ZZC

the details of each determination, the names of the parties, the service to which thedetermination relates and the date the determination was made—section 44ZZL.

In addition, although it is not obliged to by statute, the ACCC maintains public registers onmergers and undertakings under section 87B of the Trade Practices Act. The purpose of themergers register is to make available to the public brief details of mergers and acquisitionsconsidered by the ACCC. The details include the names of the target, acquirer and possibleacquirer, product description, outline of the matter and the ACCC’s decision, including thereasons for that decision.

The undertakings register contains copies of section 87B undertakings, under whichenforceable undertakings may be given to the ACCC in connection with a matter in relation towhich the ACCC has a power or function other than under Part X. Such undertakings provide forthe ACCC to negotiate administrative settlements.

prices surveillance register

Although it is not obliged to do so by the statute, the ACCC maintains a public register onprices surveillance matters showing price notifications, the ACCC’s deliberations, the outcomeand the reasons for the outcome.

guidance

The ACCC consults with outside groups in the development of its guidance publications.The minister can request the ACCC to examine and report on any aspect of laws relating tothe protection of consumers, and it must publicly invite submissions from interested parties.It may not submit its report until interested people have had a reasonable opportunity toexpress their views.


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categories of documents

The ACCC maintains the following categories of documents: particulars of agreementsfurnished to the Commissioner of Trade Practices under previous Acts; court, adjudication andlegal material; library material; organisation matters; publications, speeches and mediareleases; personnel records; working documents including staff investigations, reports,analyses, recommendations, correspondence and complaints; public registers and confidentialmaterial excluded from public registers, and ACCC papers; relating to parliamentarycommittees and questions; relating to meetings of the ACCC with government and non-government bodies; relating to new and amending legislation; general correspondence withmembers of the public.

facilities for access

ACCC publications may be inspected at any of the ACCC’s offices at the contact addressesshown at the end of this report. Most publications are available from any of the ACCC’s officesand on the ACCC’s website www.accc.gov.au. Documents on the public register may beexamined and photocopies bought at any of the ACCC’s offices during business hours. Priornotice is advisable as not all documents are held in each office. Information about facilitiesavailable to help people with a disability gain access to documents may also be obtained fromACCC offices. If necessary, special arrangements can be made to overcome any difficultieswith physical access.

procedures and contact officers

The freedom of information contact officer in each state is the regional director, and in thenational office, Canberra, the freedom of information officer, legal group. The contact officerwill help applicants to identify the particular documents they seek. Access to documents maynot always be available because of disclosure restrictions imposed by the Trade Practices Actand the Privacy Act as well as exemptions set out under the Freedom of Information Act; forexample, confidentiality of some public register material kept under sections 89(3) and 95(2) ofthe Trade Practices Act, disclosure in certain adjudication or compliance work (section 157(1))and the secrecy of documents provided to the Commissioner of Trade Practices before thestart of the current Act.

If a request is refused on the grounds set out in section 15(2) or section 24(1) of the Freedom ofInformation Act (insufficient information or unreasonable diversion of resources), applicantswill be notified and given the opportunity for consultation. The officer authorised to denyaccess to documents is the chairman of the ACCC, who has delegated that power to certainspecified senior officers, including the chief executive officer, general manager legal group, thegeneral manager, electricity group. Requests for access under the Freedom of Information Actshould be submitted in writing to any of the ACCC’s offices. All requests will be dealt with innational office, Canberra. Access will be provided through the office that received the requestand in the manner requested by the applicant (unless this is not practicable). If an applicantlives some distance from the place where access is normally provided, alternativearrangements will be considered.

Inquiries about access to documents or other matters on freedom of information should bedirected to the contact officers in business hours.


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publications

The ACCC’s publications—print, electronic and audio visual—are produced to provide guidanceto business and the community, disseminate information to them, and inform them about theACCC’s functions and objectives. The range of publications include technical reports,parliamentary reports and papers, guides to legislation, consumer leaflets and magazines,product safety brochures, small business booklets and videos. The list below is for the currentyear only. A full list of publications is available on the website www.accc.gov.au or in theACCC Journal.

ACCC Journal: bi-monthly magazine

ACCC update: quarterly newsletter—subjects covered: ACCC an account;health; Trade Practices Act review; small business; consumers andmarket reform

consumer express: free electronic newsletter

Are you being harassed about debts?

Competition and consumer issues for Indigenous Australians;A report to the ACCC by the Centre for Aboriginal Economic Policy Research

Complementary health care industry—country of origin guidelines to the Trade Practices Act

Consumer product standards and bans: a compliance guide for suppliers

Debit and credit card schemes in Australia—a study of interchange feesand access; a joint report by the Reserve Bank of Australia and the ACCC

Electronic funds transfer: report by the Treasury and the ACCC on theoperation of the code of conduct

Fair and square—a guide to the Trade Practices Act for the real estate industry

Food and beverage industry—country of origin guidelines to the Trade Practices Act

Furnishing industry—country of origin guidelines to the Trade Practices Act

News for business: merchant pricing for credit card payments

Protecting consumers worldwide; brochure from ICPEN

Real estate agents and the Trade Practices Act

Report to the Senate by the ACCC on prices paid to suppliers by retailersin the Australian grocery industry

Retail flash (published jointly with the Australian Retailers Association)

Travel and tourism—the Trade Practices Act

regularpublications

fair tradingand consumerprotection


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Best and fairest: compliance training package (hard copy, CD-ROM)

Competing fairly forum—Geoffrey Robertson hypothetical (video, CD-ROM)

Competing fairly forum—prevention is better than cure (video, CD-ROM)

Competing fairly forum—future directions (video, CD-ROM)

Country of origin claims and the Trade Practices Act

Country of origin claims

Franchising code of conduct compliance manual

GST final report

News for business: Commercial unconscionable conduct

Primary producers and the Trade Practices Act

Retailers and the Trade Practices Act

Service industries and the Trade Practices Act

Small business: refusal to deal

Straight talking—advertising, selling and the Trade Practices Act (video)

Access to public registers

Consumer credit insurance review—final report

Container stevedoring—monitoring report

Draft greenfields guideline for natural gas transmission pipelines

Insurance industry market pricing review

National regulatory reporting for electricity distribution and retailingbusinesses

Regional development of natural gas transmission pipelines

Regulatory reports on phase II airports 2001–02:Brisbane, Melbourne, Perth, Sydney airports

Second insurance industry market pricing review

The fair call advertising guide: telecommunications

Utility regulators forum discussion papers

ACCC annual report 2001–02

ACCC cooperation policy for enforcement matters

ACCC intervention in private proceedings

ACCC leniency policy for cartel conduct (website)

ACCC service charter

ACCC: role and functions

Corporate plan and priorities 2002–03

Keeping good company—an insight into the ACCC (video)

Rural industry and the Trade Practices Act

Section 155 of the Trade Practices Act: information-gathering powers ofthe ACCC in relation to its enforcement function

Submission to the Trade Practices Act review

Summary of the Trade Practices Act 1974

corporate

effectivecompetitionand informedmarkets

infrastructureservicemarkets


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AustralianCompetition andConsumerCommission

ACCC infocentre

ACCC website

national office

470 Northbourne AvenueDickson ACT 2602

PO Box 1199Dickson ACT 2602

telephone: 02 6243 1111facsimile: 02 6243 1199

business and consumer inquiries1300 302 502

www.accc.gov.au


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regional office regional address telephonedirector facsimile

New South Wales Rose Webb Level 7 123 Pitt Street 02 9230 9133Sydney NSW 2000 02 9223 1092

GPO Box 3648Sydney NSW 2001

Victoria Tom Fahy Level 35 The Tower 03 9290 1800Melbourne Central 03 9663 3699360 Elizabeth StreetMelbourne VIC 3000

GPO Box 520JMelbourne VIC 3001

South Australia Bob Weymouth Level 14 ANZ House 08 8213 344413 Grenfell Street 08 8410 4155Adelaide SA 5000

GPO Box 922Adelaide SA 5001

Queensland Alan Ducret Level 3 AAMI Building 07 3835 4666500 Queen Street 07 3832 0372Brisbane QLD 4000

PO Box 10048Adelaide Street Post OfficeBrisbane QLD 4000

North Queensland Kim Prowse Level 6 Commonwealth 07 4729 2666director Bank Building, Flinders Mall 07 4721 1538

Townsville QLD 4810

PO Box 2016Townsville QLD 4810

Western Australia Sam Di Scerni Level 3 08 9325 0600East Point Plaza 08 9325 5976233 Adelaide TerracePerth WA 6000

PO Box 6381East Perth WA 6892

Tasmania Peter Clemes Level 3 AMP Building 03 6215 933386 Collins St 03 6234 7796Hobart TAS 7000

GPO Box 1210Hobart TAS 7001

Northern Territory Derek Farrell Level 8 08 8946 9666National Mutual Centre 08 8946 96009–11 Cavenagh StreetDarwin NT 0800

GPO Box 3056Darwin NT 0801


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glossary and abbreviations

ACCC Australian Competition and Consumer Commission

Act the Trade Practices Act

AFL Australian Football League

amicus curiae ‘friend of the court’—Counsel who assists the court by putting arguments in support ofan interest that might not be adequately represented by the parties to the proceedings,such as the public interest.

AMWU Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union

ANAO Australian National Audit Office

AWU Australian Workers’ Union

CEPU Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and AlliedServices Union of Australia

CJ Chief Justice

Dawson inquiry review of the Trade Practices Act inquiry, chaired by Sir Daryl Dawson

ex-officio commissioners hold office on the Commission because they head up other regulatory agencies

GST goods and services tax

HECS Higher Education Contribution Scheme

NEM national electricity market

OECD Organisation for Economic Cooperation and Development

pay TV subscription television services

s. 87B undertaking court enforceable undertaking made under section 87B of the Trade Practices Act

TPA Trade Practices Act

the tribunal Australian Competition Tribunal


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i i i letter of transmittal

v table of contents

161–162 contact officers

161 internet addresses

81, 163 glossary and abbreviations

165 index

3 review

10–14 role and functions

9 organisation structure

18 outcome and output structure

20 review of performance against outputs contribution to outcome

26–106 narrative and analysis of performance

25 summary resource table

108 financial performance

109 corporate governance

111 managing fraud and risk

111 decision making structure

112 service charter

112 external scrutiny

112 human resources112 assessment of effectiveness in managing and developing human resources

to achieve objectives114 statistics on staffing112 certified agreements and AWAs112 performance pay

112 purchasing

112, 113 consultancy services

113 competitive tendering and contracting

112 Commonwealth disability strategy

112 occupational health and safety

156 freedom of information

113 advertising and market research

112 ecologically sustainable development and environmentalperformance

117

aids to access

overview

report onperformance

management andaccountability

compliance index

requirements for annual reports

financialmanagement

[ ]


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index

ABB Transmission and Distribution Limited, 39, 64

Aboriginal and Torres Strait Islander Services, 28

Aboriginal Australians, see Indigenous Australians

Aboriginal Coordinating Council, 30

Abtronic device, 68

ACCC Briefing, 21

ACCC Consumer Express, 21

ACCC Infocentre, 35–7

ACCC Infolink, 21

ACCC Journal, 24

access for disabled people, 112

access regimes

gas, 23, 87, 88–9: media releases, 24

rail, 95

telecommunications, 90, 92

accidents and incidents, occupational, 112

accommodation, Commission, 112

accountability and management, 17, 108–17

accountants, 55

accounting framework, Telstra, 91, 92

acquisitions, see mergers, asset sales and jointventures

addresses of ACCC, 161–2

Adelaide airport, 94, 95

Adelaide–Brisbane air route, 65

Adelaide–Moomba gas pipeline system, 88

adjudication, see authorisations

Advanced Medical Institute Pty Ltd, 38, 67

advertising, 52, 53, 56, 57, 59, 70, 71

bait, 48, 69

in cinemas, 75

by Commission, 108, 113

fine print, 47, 55, 57, 70

motor vehicle roundtable, 31

newspaper, 59, 66

sales and discount prices, 48, 51, 54, 55, 60

telecommunications businesses, guide for, 7

unsolicited, 52, 69

Yellow Pages connect service, 55

see also misrepresentations

advertorials, 51

advisory group meetings, 24

aeronautics, see airline industry; airports

agents, engagement of, 52

agricultural sector, 27, 28, 48

authorisations, 80

merger activities, 74, 75

see also dairy industry; food and beverage industry;rural and regional Australia

Agriculture Forestry Fisheries Australia, 28

Agsafe Ltd, 80

agvet industry, 75, 80

air filters, 44

Air New Zealand, 78, 79

airline industry, 27, 31, 94–5

authorisations, 78, 79

litigation, 39, 65

airports, 94–5

Airports Act 1996, 94, 95

Airservices Australia, 94, 95

AK Freund Pty Ltd, 39, 42

alarm systems, 45

alcohol, 46, 47, 74

Alice Springs airport, 94

Allans Music Group Pty Ltd, 40, 51

Alliance WA Pty Ltd, 59

Allianz Australian Insurance Limited, 78

Alstom Australia Limited, 64

alternative health therapies, see health claims

Amadeus Basin to Darwin pipeline, 89

amicus curiae, 33

Ampol/Caltex brand petroleum, 65

AMWU, 38, 44

analogue subscription television, 92

animal health, 75, 80

annual reports/statements, see reporting arrangements

Ansell latex gloves, 71

anti-competitive agreements, see collusion

anti-competitive conduct, 12, 31, 37, 41, 42, 44–6, 50–1,58–9, 64–6

telecommunications, 91

see also authorisations

Apco brand petroleum, 65

API, 78

appeals, 32, 33–4

APT Petroleum Pipelines Limited, 89

Are you being harassed about debts, 37

Armidale, 57

Arnhem Club Inc., 39, 47

Arnold’s Ribs and Pizza Australia Pty Ltd, 38, 67

art, Aboriginal, 47

asbestos removal, 46


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Asia-Pacific Economic Cooperation (APEC), 31

asset sales, see mergers, asset sales and joint ventures

associate commissioners, 9, 108

Atlantic salmon farmers, 46

ATTM card scheme, 72

.au Domain Administration, 21

Audi Australia, 59

audits, 112

Austar, 93

Australia Cooperative Foods Ltd, 51

Australia Post, 23, 96, 108

Australian Bankers’ Association, 78

Australian Biologics Testing Services Pty Ltd, 38, 47

Australian Capital Territory, 85, 94, 95

see also regional offices

Australian Cement Holdings, 74

Australian Communications Industry Forum, 92

Australian Competition Tribunal, 3, 77, 80, 88

Australian Consumers Association, 30

Australian Dairy Farmers’ Federation, 28, 80

Australian Early Childhood College, 68

Australian Federation of Disability Organisations, 30

Australian Fire Services Pty Ltd, 45

Australian Fire Services (SA) Pty Ltd, 45

Australian Hotels Association (NSW), 78

Australian Icon Products Pty Ltd, 39

‘Australian made’, see country/place of origin

Australian Medical Association (Western Australia), 64

Australian National Audit Office, 112, 118

Australian Pharmaceutical Industries Ltd, 78

Australian Postal Corporation, 23, 96, 108

Australian Rail Track Corporation, 95

Australian Rugby League, 46

Australian Safeway Stores Pty Ltd, 38, 50

Australian Self Medication Industry, 80

Australian standards, submissions to reviews of, 24

Australian Wheat Board Limited, 74

Australian Workers’ Union (AWU), 38, 44

Australian workplace agreements, 112

authorisations, 24, 76–80, 108

electricity, 82

gas, 87, 89

Automotive, Food, Metals, Engineering, Printing andKindred Industries Union (AMWA), 38, 44

automotive industry, see motor vehicles

average staffing level, 25

aviation, see airline industry; airports

Aviva CGU Insurance, 75

B Digital, 59

bait advertising, 48, 69

Ballarat region, 65

Ballera to Mt Isa pipeline, 89

banks and banking, 47, 71

authorisations, 78

complaints received, 36

banned consumer products, 24, 29, 43

Barbados, 24

barge services, 45

BASF Aktiengesellschaft, 65

Basslink Pty Ltd, 86

Baxter Healthcare Pty Ltd, 39, 44

beauty products, see pharmaceutical cosmetic andtoiletry retailing

beds, 62

‘beefing up the economy’ advertisement, 57

Berbatis Holding Pty Ltd, 39, 52

Berri Ltd, 38, 67

Berties Pty Ltd, 60

Berwick Springs Medical Centre, 42

betting, see gambling services

beverages, see alcohol; food and beverage industry

Bevins, John, 32, 39

Billbusters Pty Ltd, 38, 67

Bio Enviro Plan Pty Ltd, 69

Black on White Pty Ltd, 39, 67

blast furnace market, 74

blood analysis, 47

BM Faulkner Pty Ltd, 64

BMW (Australia) Pty Ltd, 38, 47

Bolans clot retraction test, 47

books, see printing and publishing industries

Boral Besser Masonry Ltd, 50

Boral Ltd, 50

Boral Masonry Ltd, 4, 16, 33, 38, 50

boycotts, 50

primary, 42, 46, 51

secondary, 44

BP brand petroleum, 65

Bray & F Hoffmann-La Roche, 39, 65

breaches, 20

see also complaints and inquiries; litigation

bread and flour market, 45, 50, 74

bricks, 46

Bridge Printing Office, 66

Brisbane–Adelaide air route, 65

Brisbane airport, 94, 95

Brisbane–Wallumbilla pipeline, 89

Bristile Operations Pty Ltd, 39, 46

Britain, 112

British Airways, 79

broadband networks, 91

broadcasting, see television

Buangor, 65

budget, see finance

building industry, 46


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bulk-billing, 42

bundled telecommunications services, 92

business investment, leasing and finance, 24, 33, 52, 53,57, 71

see also income-earning opportunities; franchisesand franchising

Buyers Group Pty Ltd, 39, 51

Buyplus Commodities Brokers Pty Ltd, 69

Cadbury Schweppes Pty Limited, 38, 68

cameras, digital, 48

Canadian Competition Bureau, 112

Canberra airport, 94, 95

Care labelling, 37

Cargill, 75

Carpenteria Gas Pipeline Joint Venture, 89

cars, see motor vehicles

cartels, 3, 15, 20

see also collusion

CDs, 66

ACCC, 27

cement market, 74

CEPU, 38, 44

certification trade marks, 77

certified agreement, 112

CG Berbatis Holding Pty Ltd, 33, 52

chairman, 9, 109, 110, 111, 167

Chaste Corporation Pty Ltd, 39, 68

chemicals, veterinary, 75, 80

chemists, see pharmaceutical cosmetic and toiletryretailing

Chen, Richard, 39, 49

child care training services, 67

children’s cots, 62

chipping, 33, 65

cinema advertising, 75

City International Duty Free Pty Ltd, 60

civil penalties, 3, 15

clothing industry, 45, 53

COAG, 84

codes of conduct, 30

contravention, 49, 70, 72

domain name licence sellers, 28

franchising, 31, 70, 72

coercion, see harassment and coercion

Coles Myer Ltd, 51, 73

Collagen Aesthetics Australia Pty Ltd, 40, 52

collective bargaining, 78

dairy industry, 28, 80

Dawson inquiry recommendations, 3, 16

collusion (anti-competitive agreements), 45, 46, 64, 66


oil companies, allegations against, 32

telecommunications investigations, 92

see also authorisations; market sharing; price fixing

Comcare, 112

Commercial and General Publications Pty Ltd, 40, 52

commercial leases, 24, 33, 52, 71

commercial road sweepers, 62

commissioners, 9, 108, 109–11

terms of appointment, 110

committees, 111

committees, 111

parliamentary, 31, 100

Commonwealth Bank of Australia, 38, 47, 71

Commonwealth Ombudsman, 112

communication strategies, 4, 27–8

see also publications

Communications, Electrical, Electronic, Energy,Information, Postal, Plumbing and Allied Services Unionof Australia (CEPU), 38, 44

communications industry, merger activities in, 74

Communications Law Centre, 30

compact discs, see CDs

competition policy reform, 78

competitive market structures and informed behaviour,22–5, 73–106

competitive safeguards regime (telecommunications),90, 91

competitive tendering and contracting, gas industry, 89

complaints and inquiries, 20, 26, 35–7

ACCC’s standards of service, 112

telecommunications, 36, 90–93

complementary health care industry, 27

compliance, 20–2, 26–72

resources, 25

see also litigation

compliments, 35

compressors, 51

computer games, 65

computers and computing, 32, 53, 69

Commission, 112, 113

industry merger activities, 74

see also internet

concrete masonry products, 50

confectionery, 43

conferences, seminars and workshops

international, 24, 31

rural and regional Australia, 27, 28

senior management, 112

see also meetings

conflict of interest, 112

construction industry, 46

consultants engaged, 108, 113

consultative committee, 17

consumer consultative committee, 30

Consumer Credit Legal Service (WA), 30

Consumer Law Centre of Victoria, 30

consumer product safety, see product safety

consumer protection, see fair trading and consumerprotection


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Consumer Protection and Enforcement Network, 5

Consumers Federation of Australia, 30

Consumers Health Forum of Australia, 30

contact numbers and addresses, 161–2

container stevedoring operations, 7, 96

contempt of court, 42, 53, 55, 72

Contiki Holidays (Australia) Pty Ltd, 60

contraceptives, 53

contract, breaches of, 52

copyright, 33, 65, 100

Copyright Act 1968, 100

corporate governance, 108–16

corporate publications, 160

cosmetics, see pharmaceutical cosmetic and toiletryretailing

Cosmetics and toiletries—ingredient labelling , 37

cots, 62

Council of Australian Governments, 84

Country of origin claims, 37

country/place of origin, 44, 53, 57, 60, 62, 67

publications, 27, 37

Country Women’s Association, 30

court, contempt of, 42, 53, 55, 72

courts, see litigation; undertakings

Crackerjack Productions Pty Ltd, 38, 52

Creative Brands Pty Ltd, 60

criminal penalties, 3, 15

internet health promoter, 5

Crowded Planet, 38, 53

Crown immunity, 50

CSX World Terminals Pty Ltd, 96

CueMate product, 75

Daewoo Australia Pty Ltd, 39, 52

Daewoo Automotive, 60

Daewoo Heavy Industries and Machinery Ltd, 52

dairy industry, 51

collective bargaining, 28, 80

Daniels Corporation International Pty Ltd, 39, 51

Danoz Direct Pty Ltd, 39, 68

Darwin airport, 94, 95

Darwin–Amadeus Basin pipeline, 89

data exchange, 21

Dataline.net.au Pty Ltd, 39, 68

Dawson inquiry, 3, 15–17

DCD Enterprises Pty Ltd, 46

debt recovery/collection, 37, 69

by ACCC, 20

deceptive conduct, see misleading and deceptiveconduct

decision-making structure, 111

delegations, international, 22

Dell Computer Pty Ltd, 32, 38, 53

demolition services, 46

Department of Agriculture Forestry Fisheries Australia, 28

Department of the Treasury, 28, 31

Department of Transport and Regional Services, 28, 95

Dermalogica, 38, 44

derogation, 81, 85

design registration scheme, 100

dial high club mobile phone packages, 56

digital cameras, 48

digital television, 92

disabilities, people with, 70, 112

staff, 116

disability action plan, 112

discount and sale prices, 48, 51, 54, 55, 60

discount recovery applications, electricity, 82

diversity, 112, 116

doctors, 4, 50, 64, 79

see also Wilkinson review; health and medicalservices

documents, 158

ACCC’s powers to acquire, 32, 34, 51

papers considered by Commission, 108

see also publications

Dodo Internet, 40, 42

domain names, 21

codes of practice, 28

litigation, 42, 54

domestic appliance retailing, 36, 61, 63

Downtown Duty Free Pty Ltd, 60

draft determinations, 78

duty free shops, 60

e-commerce, 5, 21, 31, 36

earthmoving equipment, 52

earthworm farming, 69

ecologically sustainable development, 112

Econovite, 39, 48

econsumer.gov international consumer complaintfacility, 21

education and training, 49, 67

ACCC programs, 27, 28

see also publications; staff training and development

effective competition and informed markets, 26, 160


litigation, 42, 44–7, 50–1, 58–9, 64–6

effectiveness indicators, 20–5

ElectraNet SA, 86

electrical goods, 61, 63, 70

electricity, 81–6

ACCC’s use, 112

electricity distribution transformers, 64

electronic commerce, 21, 31, 36

electronic information, see internet

electronic muscle stimulation products, 51, 68, 68


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email, 28

complaints to ACCC by, 36

newsletters, 21

Emerald Ocean Distributors Pty Ltd, 39, 68

employee assistance program, 108, 112

employment advertisements, 52

energy efficiency targets of ACCC, 112

energy industries, 74, 81–9

see also electricity; gas; petroleum products

energy market review, see Parer review

energy ratings, 61, 63

enforcement, 5, 13, 28–30, 31–2

international, 22

see also compliance; litigation

environmental awareness campaign, 112

Epic Energy, 88

equal employment target groups, 116

equity and social justice, 112, 116

Esanda Finance Corporation Ltd, 39, 69

Eui Hwan Kang, 52

Eurong Beach Resort Limited and others, 39, 45

European Commission, 22

ex-officio commissioners, 9, 110

exclusive dealing, 44, 45, 46, 66


Dawson inquiry recommendations, 17

notifications, 76, 77, 80

undertakings, 58

expos/field days, 27

external scrutiny, 112

F. Hoffman-La Roche Ltd, 39, 65

facsimile directories, 69

fair trading and consumer protection, 26, 29–30, 159

inquiries and complaints, 37

litigation, 42–4, 47–9, 51–8, 59–64

telecommunications investigations, 92

false or misleading conduct, see misleading or deceptiveconduct

Farm Pride Foods, 75

Farrington Fayre Shopping Centre, 52

fast food franchises, 67

FastFone pre-paid call credits, 63, 93

Federal Court, see litigation

female staff, 115–17

Feminique muscle stimulation device, 51

FFE Building Services, 38, 40, 45

field days/expos, 27

Fila Sports Oceania, 38, 45

Fiji, 24

final determinations, 78

finance and financial management, ACCC, 25, 108, 112,113–14, 120–53

statutory fees and judgment debts, 20, 22

financial planning, 53

financial services industry, 36

debt collectors, 37, 69

merger activities, 74

see also banks and banking; insurance

financial statements, ACCC, 120–53

fine print advertising, 47, 55, 57, 70

fines (pecuniary penalties), 3, 5, 13, 15

fire-fighting services, aviation, 7

fire protection industry, 45

fitness and weight loss products and claims, 42, 48, 51, 68

flour and bread market, 45, 50, 74

flu vaccinations, 112

flyash market, 74

food and beverage industry, 45, 46, 47, 68

authorisations, 80

country of origin claims, 49, 57, 60, 67: complianceguide, 27

franchises, 56

grocery wholesale prices, 31

merger activities, 74, 75

product safety, 43

see also agricultural sector

Ford Credit Australia Limited, 61

forensics, 21

forestry/mining merger activities, 74

Foster, Peter, 68

4WD Systems Pty Ltd, 40, 66

Foxtel, 80, 91, 92, 93

franchise consultative panel, 31

Franchisees guide, 37

franchises and franchising, 31, 37


litigation, 49, 56, 57, 66, 67, 70, 72

franchising code of conduct, 31, 70

Francis, David, 38, 42, 48

Fraser Island, 37

freedom of information, 156–8

Free2aiR, 54

freight services, 71

Freund, Abraham, 39, 42

friend of the court, 33

friendly society dispensaries, 31

fruit and vegetable producers, 27, 37

fruit juice/drinks, 62, 67, 68

fruit juice machines, 54

fuel, see electricity; gas; petroleum products

full-time commissioners, 9, 109, 110, 111

full-time equivalent staff, 108

functions, 10–12

funding, see finance

Furnelect Pty Ltd, 55

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gambling services, 56, 58

in hotels, 78

gas, 23, 81, 87–9

investment, 84

media releases, 24

Patricia Baleen plant, 44

GasNet transmission system, 88

general counsel unit, 112

general practitioners, 79

George Weston Foods Limited, 39, 45, 50

GIA Pty Ltd, 53

Giraffe World Australia, 38, 69

Global Pre Paid Pty Ltd, 38, 48

Gold Coast, 71

airport, 94

Golden Casket Lottery Corporation Limited, 58

Golden Way Realty, 61

golf, 54

Goodman Fielder, Milling Australia, 74

goods and services tax, 48, 55, 56, 61


reports to Minister for Financial Services andRegulation, 31

governance, 108–16

graduate recruitment, 7, 108, 112, 117

grain market, 74, 75

see also bread and flour market

Grainco Australia Ltd, 75

GrainCorp Ltd, 75

Greater Union, 75

Greenstar Cooperative Ltd, 39, 69

Greenstar Management Pty Ltd, 69

groceries, see supermarkets and groceries

GST, see goods and services tax

A guide to the resolution of access disputes, 92

Gunnedah, 57

Haier Australia Pty Ltd, 61

harassment and coercion, 45, 54, 69, 70

publication, 37

harassment free workplace policy, 112

Harvey Norman Holdings Pty Ltd, 38, 48

health and medical services, 42, 47

authorisations, 79–80

bulk billing, 42

complementary health care industry, 27

internet, 42, 43, 55, 63

litigation, 42, 44, 43, 47, 50, 64

medical fluids, 44

medical indemnity insurance premiums, 100, 108


obstetricians, 50

oral contraceptives, 53

radiologists, 58

rural and regional Australia, 4

trading hours, 42

health and safety incidents, ACCC, 112

health claims, 43, 55, 63

fitness and weight loss, 42, 48, 51, 68

impotence and erectile dysfunction, 67

negative ion mats, 69

health insurance, 34, 57, 70, 71

‘no gap’ billing arrangements, 50

parliamentary report, 31

pregnancy and, 55, 70

Health Purchasing Victoria, 80

Health Services Advisory Committee, 4

heavy earthmoving equipment, 52

High Court rulings, 4, 16, 33–4, 52

Hobart airport, 94

home loans, 47, 57, 71

Hong Kong Office of the Telecommunications Authority, 112

horse-race betting software, 56

horticultural producers, 27, 37

hotels, 78

household goods, 49, 61

housing loans, 47, 57, 71

Hoyts, 75

Hughes, David Zero Population Growth, 53

human resources, see staff

Hunter Area Health Service, 58

Hylagenesis products, 52

IATA, 79

IMB Group Pty Ltd, 39, 53

imports, parallel, 66

in-house general counsel unit, 112

In-Touch Networks Pty Ltd, 38, 48

Incitec Ltd, 75

income-earning opportunities, 48, 52

pyramid selling, 56, 69, 72

see also franchises and franchising; gamblingservices

income tax, 31

Indigenous Australians, 28

art, 47

staff, 116

tourism and, 43

industry codes of conduct, see codes of conduct

Infocentre, 35–7

Info4pc.com Pty Ltd, 39, 53

information powers, 32, 34, 51

information requests, international, 22

information technology, see computers and computing;internet

informed behaviour, see publications

infrastructure service markets, 81–100, 160


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Inglewood Olive Processors Limited, 49

inquiries, see complaints and inquiries

inquiries (official), submissions to, 24, 31, 84, 95, 100

insurance, 100, 108

authorisations, 78–9


litigation, 53

market pricing review, 31


round table meetings, 27

see also health insurance

Insurance Australia Group, 75

intellectual property, 33, 65, 100

interest, conflict of, 112

international activities, 22, 78

conferences and meetings, 21, 22, 24, 31, 79

e-commerce, 21

staff exchanges, 108, 112

technical assistance, 24

international agreements, 22

International Air Transport Association, 79

International Competition Network, 31, 74

International Consumer Protection and EnforcementNetwork, 22, 31

international delegations, 22

internet, 44, 53, 54

e-commerce, 21, 31, 36

health cures, 43, 55

interconnection declaration inquiry, 92

international sweep day, 5

mirror sites, 49

online betting, 58

travel agency websites, 31

see also domain names

internet, ACCC, 24, 27, 108, 112

email newsletters, 21

retail petrol price information, 98

Internet Name Group, 54

Internet Name Protection Pty Ltd, 39, 54

Internet Registrations Australia Pty Ltd, 39, 42

internet service providers, 92

litigation, 42, 54, 68

Internet TV Australia Pty Ltd, 39, 54

interstate rail network, 95

intranet, ACCC, 108, 112

Inverell, 57

investigations, 26, 32, 36

e-commerce, 21

staff skills courses, 108


Investment and Financial Services Association, 79

investment in energy infrastructure, 84

Ippaso, Filippo, 51

Irish Competition Authority, 112

IT&T AG, 39, 69

jacks, 47, 59, 60, 62

jelly cups, 43

JM Australia Pty Ltd, 61

job advertisements, 52

John Bevins Pty Ltd, 70

joint ventures, see mergers, asset sales and jointventures

Joondalup Health Campus, 64

judgment debts and statutory fees, 20, 22

Kabushiki Kaisha Sony Computer Entertainment, 39, 65

Kang, Eui Hwan, 52

Karmy Pty Ltd, 38, 43

Kendrick-Smith, Miles, 67

Khoo, Paul, 39, 50, 58

Kingsford Smith (Sydney) airport, 94, 95

konjac, 43

Korean Fair Trade Commission, 22

Kotowicz, Michael, 38, 54

Kwik Fix International Pty Ltd, 39, 70

labelling, 37

cosmetics, 37, 52, 62

stock feed, 48

vehicle jacks, 59, 60

washing machines, 61, 63

Lane Wrigley Pty Ltd, 62

Launceston airport, 94

Leahy Petroleum Pty Ltd, 38, 65

leases

commercial and retail, 24, 33, 52, 71

motor vehicles, 61

legal firms, panel, 112

legal profession, 48

legal professional privilege, 34

legislation, 94, 96, 100, 154

amendments, 154

exceptions, 155

negligence, 31

review of Airports Act, 95


see also Trade Practices Act 1974

leniency policy, 3, 20

Leyden, Mark, 39, 50

liaison, see conferences, seminars and workshops;meetings

library services, ACCC, 113

life insurance, 79

line sharing service, 92, 93

Liquorland (Australia) Pty Ltd, 38, 46, 51

litigation, 30, 31–2, 33–4, 42–72


general counsel unit, 112


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legal expenses, 108

litigation reserve fund, 108

local carriage service, 92, 93

Logan Lions Ltd, 53

long distance ‘say g’day’ calling cards, 43

lotteries, see gambling services

Lux Pty Ltd, 39, 70

MacDonald Johnston Engineering Company Pty Ltd, 62

McMahon Services Pty Ltd & ors, 40, 46

‘made in … ’ claims, see country/place of origin

mail services, 23, 96, 108

Malanda Dairyfoods Ltd, 51

males, see men

management and accountability, 17, 108–17

Mannum area, 66

manufacturing merger activities, 74

market power, misuse of, 33, 44, 50, 65–6

Boral case, 4, 16, 33, 50


undertakings, 58

market research and advertising, ACCC, 108, 113

see also surveys

market sharing, 45, 50, 64, 66

market structures and informed behaviour, 22–5, 73–106

masonry products, 50

Mayne Group Ltd, 39, 64

MBF, 32, 39, 70, 70

meat, 57, 60

media, 91

see also internet; printing and publishing industries;television

media activities, ACCC, 17, 32

media releases, 24, 108, 113

Medibank Private, 34, 39, 70

Medical Benefits Fund of Australia Ltd, 32, 39, 70, 70

medical indemnity insurance premiums, 8

medical practitioners, 4, 50, 64, 79

medical services, see health and medical services;surgeons

Meerkin & Apel, 51

meetings, 21, 24, 27, 108

communications industry, 92

international, 21, 22, 31

Melbourne airport, 94, 95

Melbourne petrol prices, 7, 99

men

impotence and erectile dysfunction, 67

staff, 115–16, 117

Merchant pricing for credit card payments, 37

mergers, asset sales and joint ventures, 22, 73–5, 78–9


media releases, 24

metal products sector, 64

methylamphetamine, 80

Michigan Group Pty Ltd, 39, 54

Midland Brick Company Pty Ltd, 39, 46

milk, see dairy industry

Millar, William Greig, 56

Milling Australia, 74, 75

mini jelly cups, 43

mining/forestry merger activities, 74

miracle health claims, see health claims

misleading or deceptive conduct, 42–4, 47–9, 51, 52–3,54–8, 66–7, 68–72


undertakings, 59, 60, 61, 62, 63

see also advertising

misrepresentations

commercial leases, 71

country/place of origin, 49, 53, 59, 60, 62

employment, availability of, 52

franchises, 56, 57, 67, 68, 72

GST payable, 55

health claims, 51, 53, 67, 68

household goods rental, 49

internet access, 42, 68

internet domain names, 61

legal services, 48

pest eradication, 49

price, 51, 53, 59

pyramid selling, 69

stock feed, 48

telecommunications services, 48, 67

weight loss, 48

misuse of market power, see market power, misuse of

Mitre 10 Pty Ltd, 38, 54

mobile telecommunications, 91, 93

litigation, 56, 59, 59, 63, 93

services review, 91

Moomba to Adelaide gas pipeline system, 88

Moree, 57

Morgan Buckley Pty Ltd, 39, 48

mortgages, 47, 57, 71

motor vehicles, 31


education campaign, 27

franchises, 66, 70

repossession for debt, 69

safety standards, mandatory, 47, 59, 61, 62

Mt Isa–Ballera pipeline, 89

Multigroup Distribution Services, 40, 71

Murraylink access undertaking, 86

Murraylink Transmission Company Pty Ltd, 86

muscle stimulation products, 51, 68, 68

music records, importation of, 66

music retailers, 51

Muswellbrook, 57


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nannies training, 67

Narrabri, 57

National Competition Council, 88

national complaints database, 20

national electricity code, 83, 85

National Electricity Code Administrator Ltd, 83, 85

national electricity market, 83–6

National Electricity Market Management Company Ltd,83, 85

National Foods, 80

national gas code, 87–9

National Telecoms Group Pty Ltd, 38, 48

Nationwide Mercantile Services, 69

natural gas, see gas

negative ion mats, 69

negligence, law of, 31

net operating loss, 108

Network, 24

Network Ten, 52

New South Wales, 155

electricity, 83, 84

gas, 89

Sydney airport, 94, 95

Sydney petrol prices, 98–9


New South Wales Department of Health, 80

new tax system, see goods and services tax

New Zealand Commerce Commission, 78, 112

News for business—fresh fruit and vegetables and theTPA, 37

News Limited, 39, 46

newspaper publishing, 59, 66

Nhulunbuy, 47

non-English speaking background, staff from, 116

Northern Pacific Paper, 66

Northern Territory, 155

airports, 94, 95

gas, 89


notices issued by ACCC, 32

notifications, 76, 77, 80

NRMA Health Pty Ltd, 39, 55, 71

NRMA Insurance Ltd, 78

NT Gas, 89

NT Power Generation Pty Ltd v Power and WaterAuthority, 39, 50

Nuance Group Australia Pty Ltd, 60

Nursing Agencies Association of Australia, 80

obstetrics and obstetricians, 50, 58

occupational health and safety, 112

Oceana Commercial Pty Ltd, 39, 71

office accommodation, ACCC, 112

olive oil, 49

Ombudsman, 112

On-Line Fire Protection Pty Ltd, 45

open relay email, 28

operating loss, 108

Optus, 92, 93

oral contraceptives, 53

orange juice machines, 54

organisation and structure, 9, 112

decision-making, 111

outcome and outputs, 18

see also staff

Organisation for Economic Cooperation andDevelopment (OECD), 31

origin claims, see country/place of origin

Outback Juice Company Pty Ltd, 62

outcome and outputs, 20–106

outside participation, arrangements for, 156, 157

P&O Port Ltd, 96

Pace Farms, 75

Pacific Access Pty Ltd, 38, 55

Pacific Dunlop Ltd, 38, 71

PackagePlus products, 70

packaging, 44, 71

Pan Pharmaceuticals, 35

papers considered by Commission, 108

parallel imports, 66

Parer review (energy market), 3, 84

Parker Freight Express, 71

parliamentary committees, 31, 100, 112

part-time (associate) commissioners, 9, 110

part-time staff, 108, 115

Patricia Baleen gas plant, 44

Patrick Stevedores Operations Pty Ltd, 96

Pauls Ltd, 39, 51

pay, commission staff, 112, 113

pay TV, 80, 91, 92, 93

payment, acceptance without intending/able to supply,42, 52, 69

pecuniary penalties, 3, 5, 13, 15

per se prohibitions, see exclusive dealing

performance indicators, 20–5

performance pay, 112

performance report, 20–106

Perth airport, 94, 95

Pest Free Australia Pty Ltd, 40, 49

petroleum products, 7, 32, 97–9


litigation, 65

see also gas

Pfizer Pty Ltd, 22, 75

pharmaceutical cosmetic and toiletry retailing, 31

authorisations, 78


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complaints received, 35, 36

litigation, 44, 52: undertakings, 62

publications, 37

Pharmacia Corporation, 22, 75

pipelines, 6, 23, 81, 87

Pivot Ltd, 75

place of origin, see country/place of origin

PlayStation consoles, 65

P&O Port Ltd, 96

polo shirts, 53

port services, 7, 96

postal services, 23, 96, 108

Power and Water Authority, 39, 50

powers of ACCC, 32, 34, 51

pre-paid mobile telephone services, 63, 93

pre-paid telephone cards, 43, 48

predatory pricing, 37

presentations given, 21

Preston Market, 50

Price, Robert James, 56

price exploitation, 4, 31

price fixing, 45–7, 50, 51, 59, 64, 65

price maintenance, 44, 51, 65, 68

prices and pricing, 55, 56

aeronautical charges, 94, 95

bank fees, 100


container stevedoring operations, 7, 96


electricity spot market, 83

grocery wholesale, 31

insurance, 8, 31, 100

petrol, 7, 32, 97–9: litigation, 65

postal, 96

telecommunications, 91, 93

Prices Surveillance Act 1983, 12, 94, 95, 154

prices surveillance register, 157

primary boycotts, 42, 46, 51

Principles-based review of the law of negligence, 31

printing and publishing industries

newspapers, 59, 66

unsolicited services, 52, 69

Private Formula International Pty Ltd, 62

private health insurance, see health insurance

prizes, 54

procurement, see purchasing

‘Product of Australia’, see country/place of origin

product safety, 24, 29

litigation, 43, 47: undertakings, 29, 59, 60–2

Productivity Commission, 95

professional indemnity insurance, 100, 108

professional privilege, legal, 34, 51

professions, 4, 32, 50, 64, 79–80

property development, 53

Proton Cars Australia Pty Limited, 62

pseudoephedrine, 80

PT Khoo Pty Ltd, 58

public liability insurance, 78, 100

public registers, 113, 157

publications of ACCC, 21, 24, 27, 108, 113, 159–60

ACCC consultation in development of, 157

cross-border consumer protection, 31

electricity, 84

gas, 87

guides, 157

media releases about, 24

petrol prices, 99

price monitoring, 25

sent to Infocentre callers, 37

small business, 21, 37

stevedoring monitoring, 96


utility regulators forum, 24

see also conferences, seminars and workshops;printing and publishing industries

PubTAB, 78

purchasing, 112

gas industry, 89

public hospitals, Victoria, 80

Purple Harmony Plates Pty Ltd, 39, 55

pyramid selling, 56, 69, 72

Qantas Airways Ltd, 39, 65, 78, 79

QBE Insurance (Australia) Limited, 78

Queensland, 155

airports, 94, 95

electricity, 83, 84, 85

gas, 89


Queensland Cement, 74

Queensland Juice Co., 54

Queensland Newspapers Pty Ltd, 59

Radio Rentals, 49

rail, 95

real estate and real estate agents, 61, 71

reality television, 52

recycling, see waste recycling

Redmond Holdings, 39, 55

referral (pyramid) selling, 56, 69, 72

refunds, 37, 43

Refusal to deal, 37

Regional development of natural gas transmissionpipelines, 88

regional offices, 112, 113

contact numbers and addresses, 162

inquiries and complaints, 37

investigations, 38–40


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staff, 115–16, 117

registers, public, 113, 157

regulations introduced, 154

regulatory activities, 81–100, 160

remuneration of staff, 112, 113

reporting arrangements

airports, 94

telecommunications industry, 91, 92

Republic of China, 112

Republic of Korea, 22

resale price maintenance, 44, 51, 65, 68

rescue services, aviation, 7

resources, see finance; staff

retail, 36, 37

liquor, 46, 47

sales catalogues, 48, 51, 54

see also pharmaceutical cosmetic and toiletryretailing; prices and pricing

Retail Flash, 21

retail leases, 24, 33, 52, 71

Retravision Pty Ltd, 63

Returned Services League, 52

revenue caps, electricity, 82, 86

reviews of Trade Practices Act, 3, 4, 15–17

Rhonwood Pty Ltd, 39, 47

ring fencing, 81, 84, 87

The River News regional newspaper, 66

road sweepers, 62

Robertson, Geoffrey, 27

Robson, Stephen, 39, 50

Rockhampton, 50

Rod Turner Consulting Pty Ltd, 38, 55

round table discussions, 24, 27

Royal Australasian College of Surgeons, 79

Royal Australian College of General Practitioners, 79

rubber gloves, 71

rugby league, 46

rural and regional Australia, 3, 27–8

newspapers, 66

recruitment and retention of medical practitioners, 4

Rural Press Ltd, 40, 66

SA Demolition and Salvage Pty Ltd, 46

Saatchi & Saatchi, 32, 39, 71

safety, 112

see also consumer product safety

salaries, staff, 112, 113

sale and discount prices, 48, 51, 54, 55, 60

salmon farming, 46

satellite broadcasting, by ACCC, 27

‘say g’day’ calling cards, 43

Schneider Electric (Australia) Pty Ltd, 64

Schots Restoration Emporium, 43

Scone, 57

scrap metal auctions, 38, 64

screen advertising, 75

scrutiny, 112

secondary boycotts, 44

secondments of staff, 108

section 87B undertakings, see undertakings

security services, 56

seminars, see conferences, seminars and workshops

Senate committees, 31, 100

senior executive staff (SES), 108, 112, 115

senior management conference, 112

Sensis Pty Ltd, 38, 55

service charter, 112

Service standards guidelines (draft), 84

Shark Golf Challenge 2000, 54

Shell brand petroleum, 65

shipping, 7, 96

barge services, Fraser Island, 45

shopping centre leases, 24, 33, 52, 71

Sigma Company Ltd, 78

Signature Security Group Pty Ltd, 38, 56

SIP Australia Pty Ltd, 38, 51

skin care products, see pharmaceutical cosmetic andtoiletry retailing

Sky Channel Pty Ltd, 78

SkyBiz.Com Pty Ltd, 39, 56

Slendertone Health and Beauty Pty Ltd, 68

slimming products and claims, 42, 48, 51, 68, 68

small business, 21, 27, 113

complaints, 36


publications for, 21, 37

training and development franchise system, 49

small business advisory group, 31

Small business and the Trade Practices Act, 37

small print advertising, 47, 55, 57, 70

smash repair industry, 27

snack foods, 56

social justice, 112, 116

software products, 21

GST-related, 48

horse-race betting, 56

Solutions Software International, 39, 56

South Australia, 155

Adelaide airport, 94, 95

electricity, 83, 84, 85, 86

gas, 88


South Australian Olive Corporation Pty Ltd, 40, 49

South Korea, 22

South Sydney Rugby League Football Club, 39, 46

spam, 28

speeches, 108

speed (methylamphetamine), 80


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SPI PowerNet, 85, 86

sport, 46, 53, 54

sports apparel, 45

spot market, 81, 83, 84

staff, 7, 25, 108, 112, 114–16

staff training and development, 21, 108

expenditure on, 113

standards, 24

Commission’s service, 112

see also product safety

Star Alliance, 79

statutory fees and judgment debts, 20, 22

stevedoring industry, 7, 96

Stevens v Kabushiki Kaisha Sony ComputerEntertainment, 33

stock feed, 48

structure, see organisation and structure

study assistance, 108

submissions, 24, 31, 84, 95, 100

subscription television, 80, 91, 92, 93

sunglasses, 60, 61

supermarkets and groceries, 50, 57

wholesale prices, 31

supervision pilot program, 112

surgeons, 79

surveys

airport services, 94

product safety, 29

telecommunications infrastructure, 91

Swift petroleum, 65

Sydney airport, 94, 95

Sydney Airports Corporation Limited, 95

Sydney Opera House bookings, 49

Sydney petrol prices, 98–9

Sydney Recycling, 80

Synergy in Business Pty Ltd, 40, 49

TAB Limited, 78

Taiwan Fair Trade Commission, 112

Takeda Chemical Industries, 65

Tamar Knitting Mills, 40, 53

Tamworth, 57

ACCC office, 112

Tasmania, 94, 155

electricity, 86


Tasmanian Council of Social Services, 30

Tasmanian Salmonid Growers Association, 40, 46

Tassal Ltd, 40, 46

tax invoices, 48

taxation, 31

see also goods and services tax

technical assistance, 24

telecommunications, 90–3

complaints received, 36, 90

infrastructure survey, 91

international staff exchange, 112

litigation, 43, 48, 56, 67: undertakings, 59, 59

see also Telstra Corporation Limited

Telecommunications Competition Act 2002, 91

telephone bill-paying services, 67

telephone calls to ACCC, 36

telephone cards, pre-paid, 43, 48

television, 52, 91

authorisations, 78, 80

ACCC broadcasts, 27

subscription, 80, 91, 92, 93

Telstra Corporation Limited, 91–2, 93

bill-paying services for, 67

exclusive dealing, notification of, 80

litigation, 38, 43

Telstra Multimedia, 92

Telstra Pay TV, 80

temporary staff, 108, 115

tenancy, retail, 24

Theo’s Liquor, 74

thermography, 47

third line forcing, 53, 78

see also exclusive dealing

Thorn Australia Pty Ltd, 39, 49

time open for public contact, 112

timeline, 101–6

timeliness

electricity authorisations, 82

Infocentre calls answered, 20

mergers finalised, 73

toiletries, see pharmaceutical cosmetic and toiletryretailing

Toowoomba Furniture and Electrical, 55

Top Snack Foods Pty Ltd, 38, 56

Torres Strait Islanders, see Indigenous Australians

tourism, see travel and tourism

Townsville airport, 94

Townsvlle office, 40, 112, 115, 117

Trade Practices Act 1974, 12–14, 37, 91, 154

Dawson inquiry, 3, 15–17

information powers under, 32, 34, 51

Parer review (energy market), 3, 84

Wilkinson review, 3, 4, 17

trade practices registers, 157

trade unions, 44

trading hours, 42

training, see education and training; staff training anddevelopment

Trans Oriental Import and Export Pty Ltd, 39, 43

Transend Networks, 86

Transformation 2012 Pty Ltd, 39, 43

transmission of electricity, 81–6


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transmission of gas, 87–9

Transmission ring-fencing guidelines, 84

transport industry merger activities, 74

travel and tourism, 43, 60


travel agents, 31

Treasury, 28, 31

TRIMit, 68

Tullamarine (Melbourne) airport, 94, 95

two tier marketing, 71

Tyco Australian Pty Ltd, 45

unconscionable conduct, 42, 54, 66, 67, 68, 69, 70–1, 71

High Court rulings, 33, 52

undertakings, 20, 22, 58–64

breaches, 56

media releases, 24

undue harassment and coercion, see harassment andcoercion

unions, 44

United Kingdom Office of Fair Trading, 112

United States Federal Trade Commission, 112

Universal Music Australia, 38, 66

Universal Sports Challenge Ltd, 54

unsolicited services, 52, 54, 69

utility regulators forum, 24, 100

vaccination of staff, 112

vacuum cleaners, 70

Val Morgan, 75

vegetable producers, 27, 37

vehicles, see motor vehicles

veterinary chemicals, 75, 80

Veterinary Manufacturers and Distribution Association, 80

Victoria, 155

electricity, 83, 84, 85, 86

gas, 88, 89

Melbourne airport, 94, 95

Melbourne petrol prices, 7, 99


Victorian Energy Networks Corporation (VENCorp), 85, 88

video productions, ACCC, 27

Vietnam, 24

Village Roadshow, 75

Virgin Mobile Australia Pty Ltd, 39, 56

Visy Paper Pty Ltd, 38, 66

vitamins, 65

Viva brand olive oil, 49

Vodafone, 63, 93

voluntary codes of conduct, see codes of conduct

Voyagers Hotels and Resorts, 39, 43

wagering services, see gambling services

Waikerie Printing House, 66

Walkabout Tavern, 47

Wallumbilla to Brisbane pipeline, 89

Warner Music Australia Pty Ltd, 38, 66

warranties, 37

Warranties and refunds, 37

washing machines, 61, 63

waste recycling, 66, 80

by Commission, 112

Waste Services Corporation New South Wales, 80

waterfront industry, 7, 96

websites, see internet

weight-loss products and claims, 42, 48, 51, 68

Western Australia, 155

Perth airport, 94, 95

petrol prices, 99


Western District Health Fund Ltd, 39, 57

Westfield Shopping Centre Management Co (Qld) PtyLtd, 39, 71

Westfil (Australia) Pty Ltd, 39

wheaten flour, 45

wholesale prices, groceries, 31

Wilkinson review, 3, 4, 17

Will Writers Guild Pty Ltd, 40, 57, 72

Wilson Transformer Company, 64

Wizard Mortgage Pty Ltd, 38, 57

women staff, 115–17

Woolworths Ltd, 38, 46, 51, 57

Woolworths (South Australia) Pty Ltd, 39, 47

workplace diversity, 112, 116

workplace relations, 112

workshops, see conferences, seminars andworkshops

World Netsafe Pty Ltd, 39, 72

worm farming, 69

Yellow Pages connect service, 55

Yulara Pulka, 43

Zambia, 24


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Professor Allan Fels left the ACCC as chairman on 30 June 2003 after leading the organisationfrom its inception.

Here are some reflections on his tenure as chairman.

‘Allan Fels; one of Australia’s great public servants, probably the mostvisible that Australia has had. A politician once said that he’d do a dealwith the devil to get the kind of media profile that Allan Fels had but he’dbetter not do a deal with the devil because Allan Fels would call it acollusive agreement.

One of the most active people I have ever seen explaining the newtaxation system. The goods and services tax affected the pricing of anestimated two billion individual items. You were given the job of policingthe price exploitation which turned out to be minimal. I think you broughtone case and the reason you brought only one case is the whole ofAustralian industry was petrified that if they didn’t do the right thing inrelation to price changes, then you would be there as an activeenforcement agent. And more than that, your educational activities inexplaining price changes, the way in which it should operate, wassecond to none. It was a magnificent job.’

Peter Costello

‘He is the man who forced the Olympics minister Michael Knight toapologise—16 times in 40 minutes. He cost the building materialscompanies Pioneer, Boral and CSR $21 million in fines for price fixing.He stopped Telstra from taking over OzEmail; he prevented Cable andWireless Optus buying AAPT and he declared Telstra’s local-call networkopen to competitors. He has forced cigarette and oil companies to sellparts of their business to rivals. He even dared to take on the MaritimeUnion of Australia during the waterfront dispute, threatening the unionwith prosecution for secondary boycotts. He is Allan Fels, chairman ofthe ACCC and Australia’s most powerful regulator.’

Business Review Weekly

goodbye Allan, hello Graeme

0302


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‘We think the ACCC and Allan Fels are probably the best friends thatconsumers have. He’s become something of a Robin Hood for Australia.’

Louise Sylvan

‘I reluctantly wish him well; he’s a good sparring partner. I’m going tobuy the retirement home that he goes to so that I can treat him thesame way he has treated me.’

Gerry Harvey

‘The highlights of my tenure here have been getting exciting results.I was really pleased with the big cases; when we broke the cartels,Mayne Nickless/TNT, building codes, vitamins, power transformers,some of the consumer protection cases including life assurance and theAborigines and quite a few others. They were fantastic experiences withgreat results.

I was really pleased that we got the merger law changed in 1993 fromdominance to substantial lessening of competition—that’s somethingthat will have an abiding effect on the Australian economy andcompetition.

Personally I was always deeply involved in the question of whether thereshould be parallel imports of compact discs and I was unbelievablypleased when that went through the Senate by one vote at 2am on aSunday morning. I am pleased with the other parallel import casesalthough I’d like books to go further.

More generally making the Commission a very effective enforcer of theTrade Practices Act and quite an effective regulator of public utilities.

Allan Fels

‘I don‘I don‘I don‘I don‘I don’t regard myself as a hero but as someone’t regard myself as a hero but as someone’t regard myself as a hero but as someone’t regard myself as a hero but as someone’t regard myself as a hero but as someonevery determined to do the right thing.’very determined to do the right thing.’very determined to do the right thing.’very determined to do the right thing.’very determined to do the right thing.’

Allan Fels leaves and Graeme Samuel takes over as the chairman for five yearsfrom 1 August 2003. The Treasurer has written to the states and territories seekingtheir support for the appointment of Louise Sylvan as deputy chair.

Louise Sylvan is currently chief executive of the Australian Consumers Associationand has served for six years on the Prime Minister’s Economic Planning AdvisoryCouncil.

Allan Fels

AR2002-03_6_inside back cover.p65 17/09/2003, 1:51 PM179

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