ACCC ready to crack down on carbon cheats

The consumer watchdog wants people to dob in businesses that use Labor’s controversial carbon tax to gouge customers on price.

The Australian Competition and Consumer Commission (ACCC) earlier this month launched a carbon price hotline and online claims form for people who fear they’re being ripped off.

The commission doesn’t want consumers being duped into accepting a price increase that’s not appropriate or being led by false claims to buy products they otherwise wouldn’t.

The ACCC has received 200 complaints so far about attempts to lift the price of beer, taxis, pizza and even a swimming pool.

People have been told the carbon tax will force up electricity prices many times over in an attempt to make them buy solar panels. Some have been encouraged to buy a house now to “beat the carbon tax”.

Others still have been told their gym membership would go up, but if they bought additional years’ coverage it wouldn’t.

Most complaints have been resolved with warning letters, but four “intensive investigations” are under way.

The ACCC can ask businesses to substantiate their claims, write warning letters or issue infringement notices with fines of up to $66,000.

In extreme cases the watchdog can launch Federal Court proceedings with penalties of up to $1.1 million.

“(But) if small business are honest in their dealings with their customers they have nothing to fear from us,” ACCC chairman Rod Sims said in mid-June when launching the complaints hotline.

The ACCC doesn’t plan to ping business people who have a genuine belief in what they are saying – so long as they don’t just parrot a political fear campaign in order to price gouge.

Small businesses have told been told they too have the right to “push back” on suppliers if they think they are being had.

Suspect price claims can be reported to the ACCC on 1300 303 609 or by visiting accc.gov.au/carbon

The Institute of Chartered Accountants in Australia’s Yasser El-Ansary believes many small businesses have yet to quantify the impact of the carbon price on their activities, and urges them to be careful given the ACCC’s scrutiny.

“Whether or not your business is directly liable, the carbon price will indirectly affect most industries,” Mr El-Ansary said in a statement.

“It is these price increases, through increases in energy costs, which small businesses are yet to fully quantify.”

The institute, in collaboration with PricewaterhouseCoopers, has published a business briefing note covering 20 issues on the business implications of a carbon cost to provide a framework for firms to modify their activities during the transition to a low carbon economy.

“Given that for many businesses their bottom line may be impacted by the carbon price, the internal management of carbon needs to be closely scrutinised by finance and business planning teams,” Mr El-Ansary said.

He said without complete, accurate and timely data, businesses stood to miss potential risks or opportunities arising from the introduction of the carbon price.

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