Small business and
the Competition and
Consumer Act
Your rights and responsibilities
July 2021
accc.gov.au
ISBN 978 1 920702 05 2
Australian Competition and Consumer Commission
23 Marcus Clarke Street, Canberra, Australian Capital Territory, 2601
© Commonwealth of Australia 2021
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Important notice
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ACCC 03/21_1329
www.accc.gov.au
Small business and the Competition and ConsumerAct: Your rights and responsibilities
Contents
Aboutthisguide .............................................................................................................................................................................................
Keyrightsandresponsibilities ................................................................................................................................................................
Pricingandpromotingyourbusiness ................................................................................................................................................
Workingwithotherbusinessesandcompetingfairly .......................................................................................................... 
Unfaircontractterms ................................................................................................................................................................................ 
Guaranteesandwarrantiesconsumersandbusinesses .................................................................................................... 
Treatingcustomersfairly ........................................................................................................................................................................ 
Sellingsafeproducts ................................................................................................................................................................................. 
Countryoforiginclaims .......................................................................................................................................................................... 
Resolvingdisputeswithcustomersorotherbusinesses .................................................................................................... 
Penaltiesfornon-compliance .............................................................................................................................................................. 
Relevantgovernmentagenciesandresources ......................................................................................................................... 
Small business and the Competition and ConsumerAct: Your rights and responsibilities
Small business and the Competition and ConsumerAct: Your rights and responsibilities
About this guide
Thisguidewillhelpsmallbusinessoperatorstounderstandtheirkeyrightsandresponsibilitiesunder
Australia’scompetitionandconsumerlaws
Itdoesn’tmatterwhetheryou’reasoletraderworkingfromhomeorabusinesswithor
employeesifyou’reengaginginsometypeofregularbusiness-likeconduct(egbuyingorsellinggoods
orservices)youmustcomplywiththeCompetitionandConsumerAct(CCA)
TheCCAisanationallawthatgovernshowallbusinessesinAustraliamustdealwiththeircustomers
competitorsandsuppliersThelawisdesignedtoenableallbusinessestocompeteontheirmeritsina
fairandopenmarketwhilealsoensuringconsumersaretreatedfairly
SomeoftheserightsandobligationsaresetoutintheAustralianConsumerLaw(ACL)whichyoucan
findinScheduleoftheCCATheACListheprimaryconsumerprotectionlawinAustraliaandapplies
thesamewayineachstateandterritoryTheselawsnotonlyregulateyourbehaviourbutalsooeryou
certainprotectionsinyourdealingswithotherbusinesses
IfyoufailtocomplywithyourobligationsundertheCCAorACLyouarebreakingthelaw
Small business and the Competition and ConsumerAct: Your rights and responsibilities
Key rights and responsibilities
UndertheCCAandACLyouhaveobligationsasasupplieraswellasrightsinyourcapacityasa
purchaserofgoodsandservicesSomeoftheseareoutlinedbelow
Youcanseektohaveanunfaircontractterminasmallbusinessstandardformcontractdeclaredvoid
bytheCourts
YoucancollectivelybargainwithothersmallbusinessesagainstalargerfirmprovidedyougetACCC
approvaltodosoinadvance
YouarefreetosetyourpricesanddiscountyourgoodsandservicesasyouseefitSupplierscan’t
forceyoutochargetheirrecommendedretailprice
Youmustnotengageinunconscionableconductandotherbusinessesmustnotengagein
unconscionableconductintheirdealingswithyou
Therearecircumstanceswhereitmaybeillegalforanotherbusinesstorefusetosupplytoyou
YoumustnotcolludewithyourcompetitorsThismeansthatyoumustnotenterintoorattemptto
enterintocontractsarrangementsorunderstandingswithcompetitorsaboutthingssuchas
– prices
– goods or services that will be supplied
– where goods or services will be sold or who they’ll be sold to.
Youmustidentifyandremoveunsafeproductsandproduct-relatedservicesfromthemarket
AseriesofautomaticguaranteesapplytoconsumerswhentheybuygoodsorservicesYoumust
honourtheseguaranteesandnotmisleadconsumersabouttheexistenceexclusionoreectofthem
Youmayalsobeprotectedbytheseguaranteeswhenbuyinggoodsorservicesasaconsumer
Ifyouprovidearemedytoaconsumerforaproblemcausedbyamanufacturingdefectyouare
entitledtoareimbursementofyourcostsfromthemanufacturer
Youdon’thavetoprovidearefundifaconsumerhassimplychangedtheirmind
Youradvertisingmaterialandanystatements(includingcountryoforiginstatements)madebyyour
businessmustbeclearaccurateandtruthfulYoucan’tmisleadpeopleandotherbusinessescan’t
misleadyou
Youmustprovideareceiptifaconsumerrequestsoneorthetransactionisover
Small business and the Competition and ConsumerAct: Your rights and responsibilities
Pricing and promoting your business
PromotionalactivitiesareanimportantpartofbuildingabrandandattractingnewcustomersWhen
advertisingandsellingyourgoodsorservicesyoumust
✓ ensureanyclaimsorstatementsaretruthfulandnotmisleading
✓ alwaysdisclosethefullpriceofgoodsorservices
✗ notengageinconductthat’slikelytomisleadordeceive
False or misleading claims
It’sillegalforabusinesstomakerepresentationsaboutagoodorservicethatisincorrectorlikelyto
createafalseimpressionForexampleaddingfake‘reviews’toyourwebsiteencouragingconsumersto
purchaseyourgoods
Representationsareessentiallywordsandorimagesthatsuggestsomethingaboutagoodorserviceto
theconsumer
Itdoesn’tmatterwhetherafalseormisleadingstatementwasintentionalornotAbusinessthatmisleads
itscustomersisbreakingthelaw
Representationscanbemadethroughadvertisementsorstatementsinanymedia(printradio
televisionsocialmediaandonline)onproductpackagingorinstatementsmadebyaperson
representingyourbusiness
u ExampleAnonlinestorepromotesitspillowsandbeddingashypoallergenicandhavingbeen
endorsedbyanasthmaassociationHowevernosuchendorsementhasbeengivenandnotesting
hasbeenundertakentoverifythatthematerialusedisunlikelytocauseanallergicresponseSuch
claimsarelikelytobefalseormisleadingandinbreachoftheACL
Small business and the Competition and ConsumerAct: Your rights and responsibilities
Anexceptiontothisruleis‘puery’(iewildlyexaggeratedorvagueclaimsthatnoonecouldpossibly
treatseriously)Forexampleaclaimbyacaféthattheyhave‘thebestcoeeinSydney’
Whentryingtodeterminewhethersomethingismisleadingyoushouldconsiderwhatimpression
therepresentationwillcreateinthemindofyourcustomersIftheuseofparticularwordsorimages
reasonablyleadstoaconclusionthat’ssomethingotherthanthetruthyouriskbreachingthelaw
Failingtopassonrelevantinformationmayalsobemisleadingifthecustomerhasthewrongideaabout
yourproductorserviceandisrelyingonyouradvice
u TipIfyou’reworriedabouttheimpressioncreatedbyyourpackagingoradvertisingshowthe
designstofamilyfriendsorotherpeoplewhoaren’tinvolvedinyourbusinessAskthemwhatthey
thinkisbeingimplied
Youshouldgobacktothedrawingboardiftheythinkitmeanssomethingotherthanthetruth
Fineprintqualifications
Businessescan’trelyonsmallprintanddisclaimersasanexcuseforamisleadingoverallmessage
Providingadditionalinformationinthe‘fineprint’oratalaterstagewon’texcusemisleadingomissions
ormisleadingclaimsintheinitialmaterialIfyourbusinessneedstoqualifyitsadvertisementsmakesure
thequalifyingstatementsareclearandprominentsoconsumersknowwhattherealoeris
Anyqualificationshouldn’tdirectlycontradictprominentfeaturesoftheadvertisementsuchas
promotingaproductas‘free’whenthefineprintindicatesapaymentisrequired
u ExampleAresidentialgardeneroerseveryfifthlawnmowingathalf-priceTheoerismade
throughaseriesofradioadswithaquickmentionthat‘termsandconditionsapply’Thetermsand
conditionsareonerousthedealonlyappliestolawnmowingonMondaymorningsthecustomer
mustbeapensionerandlivewithinakmradiusofthebusiness
Thefailuretoclarifyorexplainimportantelementsoftheoerislikelytomisleadcustomersand
breachtheACL
Offering rebates, gifts, prizes and other free items
Whensupplyingorpromotinggoodsorservicesit’sillegaltooerrebatesgiftsprizesorotherfree
itemswithoutintendingtoprovidethemYouwillalsobeinbreachoftheACLifyoufailtoprovide
themaspromisedArebateorgiftmustbeprovidedwithinthespecifiedtimeorifnotimeframewas
specifiedwithinareasonabletime
u ExampleAretaileradvertisesthatitscustomerswillgointoadrawtowinaprizeiftheyspendover
inonetransactionThebusinessaddsafictionalpersontothedrawandannouncesthemasthe
winnerTheresultisthattheprizeoeredisn’tgiventoanyofthebusiness’sactualcustomersThis
practiceisunlawful
Displaying prices
IngeneralbusinessesarefreetosettheirownpricesHoweverspecialrulesapplyundertheACLto
ensureyouprovideclearandaccuratepricingforgoodsandservicestominimisetheriskofconsumers
beingmisled
u TipClearlyexplainyourtermsandconditionsincludingpricingtoyourcustomersbeforetheyagree
tomakeapurchaseDoingthismayhelptoreducecostdisputesdownthetrack
Whenyoupresentpricestoyourcustomersyoumuststatethetotalcost(ietheminimumoverall
amounttobepaid)Ifyouchoosetoadvertiseapricethat’sonlyonecomponentofthetotalcost
(egthemonthlyfeeofa-yearcontract)thetotalpricemustalsobedisplayedasasinglefigureat
leastasprominentlyasthepartprice
Small business and the Competition and ConsumerAct: Your rights and responsibilities
Thetotalpricemustincludeanytaxdutyfeelevyorotheradditionalcharges(egGST)
Thisrule
generallydoesn’tapplyinbusiness-to-businesstransactions
u ExampleApersonaltraineradvertiseshisservicesatperhourHoweverthetraineralsoimposes
anequipmentfeeofandtheserviceattractsGST
Thecorrectwaytoadvertisethetrainer’shourlyrateiseither
Hourly rate: $69.30 Hourly rate: $63 + $6.30 GST
= $69.30
Hourly rate: $60 + $3 equipment fee +
$6.30 GST = $69.30
oror
Multiplepricing
SometimesdiscrepancieswillarisebetweendisplayedpricesForexampleashirtthat’sadvertisedinthe
storecatalogueasbutthepriceonthedisplayisThisisknownas‘multiplepricing’
Whenthisoccursthebusinessmusteithersellthegoodforthelowestdisplayed(oradvertised)priceor
withdrawthegoodsfromsaleuntilthepriceiscorrected
Thisruledoesn’tapplyif
theadvertisementstatesthatpricesvaryindierentregions
onepriceisentirelyhiddenbyanotherprice
aunitpriceisshown
apriceisdisplayedinanoverseascurrency
u ExampleAcustomerfindsacoeetableforinafurnitureretailer’scatalogueWhenthe
customervisitstheretailer’sstoretheyfindthesamecoeetablemarkedatTheretailermust
eitherorallowthecustomertopurchasethetableattheadvertisedpriceorwithdrawthe
coeetablefromsaleuntilthepriceiscorrected(thismayinvolvearetractionadvertisementtonotify
customerswhoreceivedtheircatalogue)
Two-pricecomparisonadvertising
Businessesoftenmakecomparisonsbetweenthepricescurrentlychargedand
previouspricing(eg‘wasnow’pricing)
the‘cost’orwholesaleprice
acompetitor’sprice
therecommendedretailprice
Thisisknownas‘-pricecomparisonadvertising’Ifyouusethismethodofadvertisingyoumustensure
thatconsumersarenotmisledaboutthesavingsthatmaybeachievedForexample‘wasnow’pricing
islikelytobemisleadingifproductshaven’tbeensoldatthespecified‘before’or‘strikethrough’pricefor
areasonableperiodoftimeimmediatelybeforethesalecommenced
u ExampleAboutiquerugdesignersetsupa‘pop-up’storeinashoppingcentreformonthsleading
uptoChristmasThedesignerreceiveslessinterestthanhopedforsellingonlyrugswithinthefirst
weekofopeningatfullpriceandhavingsoldmorerugsatadiscountHethandecidestopromote
therugswitha‘strikethrough’pricetoattractcustomersInthisinstancethedesignermaybefalsely
using-priceadvertisingAsthedesignerhadonlysoldalimitednumberofitemsatthefullpriceand
moreatadiscountleadinguptothesaletheuseofstrikethroughpricingislikelytobeariskychoice
forthatbusiness
 Restaurantscafésandbistrosthatchargeasurchargeoncertaindaysdon’tneedtocomplywiththerequirementtoprovide
atotalpriceinrelationtotheirmenusHoweverthemenumustincludethewords‘asurchargeof[percentage]applieson[the
specifieddayordays]’andthesewordsmustbedisplayedatleastasprominentlyasthemostprominentpriceonthemenu

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Imposingpaymentsurcharges
Businessesdon’thavetochargetheircustomersasurchargeHoweverifyoudecidetoimposeafeefor
usingacreditdebitorprepaidcardthesurchargeamountmustnotexceedyourcostsofacceptingthat
paymenttypeYou’renotallowedtoincludeanyofyourowninternalcostswhencalculatingsurcharges
(eglabourelectricitycosts)
Your‘costofacceptance’couldinclude
merchantservicefees
rentalandmaintenanceofcardterminals
otherfeesincurredinprocessingcardtransactions(egswitchingfeesfraud-relatedchargeback
feescross-bordertransactionfees)
Calculatingyour‘costofacceptance’
Bankfees
(from merchant statement)
Additionalpermissiblecosts
(payabletoathirdparty)
Gateway fees
Terminal fees
Fraud prevention
Insurance
Costofacceptance
Inordertocalculatethesecostsyourbankorpaymentfacilitatorisrequiredtoprovideyouwith
statementsthatclearlysetoutyouraveragecostsofacceptanceasapercentageforeachcardscheme
u TipApaymentsurchargeisconsideredexcessiveifitexceedsthe‘costofacceptance’
Baitadvertising
Baitadvertisingistheillegalpracticeofadvertisingspecificpricesusually‘sale’pricesongoodsthat
aren’tavailableorareonlyavailableinverylimitedquantities
Youshouldonlyoergoodsorservicesata‘specialprice’ifthey’reavailableinreasonablequantitiesfor
areasonableperiodunlessyoustateclearlythatthegoodisinshortsupplyoronsaleforalimitedtime
u ExampleAnelectronicsretaileradvertises-inchtelevisionsataspecialpriceofforaweek-
longsaleTheretailerusuallysellsabouttelevisionsofthistypeeveryweekTheretaileronlystocks
televisionsattheadvertisedpriceandrefusestotakecustomerorders
Whencustomersattempttobuythetelevisionattheadvertisedpricethey’retoldit’soutofstock
andareoeredamoreexpensiveunitforThisislikelytobebaitadvertisingastheretailer
doesn’thaveareasonablesupplyoftheadvertisedtelevision

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Working with other businesses and
competing fairly
It’simportantthatyouunderstandyourrightsandresponsibilitieswhendealingwithwholesalers
suppliersandotherbusinessesthatpurchaseyourgoodsandservices
u TipIfyou’reconcernedaboutconductyou’reproposingtoengageinorabouttheconductofothers
inthemarketplaceyoushouldseekadvicefromalawyerandconsidermakingareporttotheACCC
Misuse of market power
AspartofyourbusinessyoumaydealwithfirmsthathaveasubstantialamountofmarketpowerAfirm
withmarketpowerisonethat’sabletoactwithadegreeoffreedomfromtheactionsofcompetitors
suppliersandcustomers
It’snotillegalforafirmtoobtainmarketpowerNordoestheCCAprohibitafirmwithasubstantial
degreeofmarketpowerfrom‘outcompeting’itsrivalsbyusingsuperiorskillsandeciencytowin
businessHowevertheCCAdoesprohibitafirmwithasubstantialdegreeofmarketpowerfrom
engaginginconductthathasthepurposeeectorlikelyeectofsubstantiallylesseningcompetitionin
amarket
SometypesofconducthavegreaterpotentialtoinvolveamisuseofmarketpowerTheseinclude
refusalstodealrestrictingaccesstoessentialinputspredatorypricingloyaltyrebatesmarginsqueezes
tyingandbundling
WhenassessingwhetherconductamountstoamisuseofmarketpowertheACCCconsidersthenature
andextentofthatconductincludingthefirm’scommercialrationaleForexampleifafirmisengaging
inconducttomakeitsproductsmoreattractivetocustomerstheconductisunlikelytosubstantially
lessencompetition

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Refusal to supply
InmostcasessuppliershavetherighttodecidewhotheydobusinesswithThey’regenerallynot
requiredtosupplyasmallbusinessjustbecausethesmallbusinesshasaskedthemtoThesupplier’s
decisionmaybeswayedbyfactorssuchasthecustomer’sreliabilitydeliverycostshowthegoodswill
besoldadvertisedandadherencetocertainstandards
TheCCAdoesnottypicallyforceamanufacturerorwholesalertosupplygoodsorservicestosmall
businessesHoweverasupplier’srefusaltosupplymaybreakthelawwheretheyare
misusingtheirmarketpower
involvedinacarteloraboycott
imposingminimumpricesonretailers
engaginginexclusivedealingwiththepurposeorlikelyeectofsubstantiallylesseningcompetition
Ifarefusaltosupplyislegitimateyouwillneedtorenegotiatetermswiththatsupplierorseek
alternatesupply
u ExampleAnocesuppliesretailerbuyspencilsfromseparatepencilmanufacturersOneofthe
manufacturerstellstheretailertostopbuyingpencilsfromtheothermanufacturerThesupplies
companykeepsbuyingpencilsfrombothsothemanufacturerstopssupplyingtotheretailer
Thisrefusaltosupplyisunlikelytobeillegalasitwon’thaveasignificantimpactoncompetitionthere
aremanyotherpencilsuppliersthattheretailercouldpurchasefrom
Exclusive dealing
Exclusivedealingoccurswhenonepersontradingwithanotherimposessomerestrictionsontheother’s
freedomtochoosewithwhominwhatorwheretheydealExclusivedealingisunlawfulwhereit
substantiallylessenscompetition
Generallythemoreexclusivetheproductandthemorepowerfulthepurchaserorsupplierthemore
likelyitisthatcompetitionwillbeaectedinamarket
u ExampleTheownerofanindependentelectronicsstoreinSouthAustraliafindsthatmanycustomers
wouldcometoherstoreforadviceandthenpurchaseproductsfromhercompetitorsatlowerprices
Theownerdecidestoonlydealwithsupplierswhoagreenottosupplytheirelectricalproductsto
otherSouthAustralianretailers
Whilethisconductamountstoexclusivedealingit’sunlikelytobeillegalTherearemanyother
retailersthatsupplierscansupplytoandmanyothersuppliersthatherretailcompetitorscansource
supplyfromHoweveriftherewereonlyasmallnumberofavailableretailersorsuppliersitmayraise
concernsaslimitingaccesstothoseretailersorsupplierscouldsignificantlyimpactcompetition
Price fixing
It’sillegalforcompetingbusinessestogettogetherandagreetofixtheirpricesForexampleitwouldbe
unlawfulforcompetitorstoagreetoonlychargeasetprice(egtheRRP’)
Pricefixingagreementsdon’thavetobeinwritingyoudon’tevenneedtohavea‘formal’agreementit’s
enoughifthereisanunderstandingbetweenbusinesses
u ExampleAgroupoflocalbuildersdecidetomeetinformallyonaregularbasisAttheirfirstmeeting
theyalldecidetoincreasetheirhourlyratestoacertainamountforatrialperiodThiswouldbe
pricefixing

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Anti-competitive contracts, arrangements, understandings
and concerted practices
Ifacontractarrangementunderstandingorconcertedpracticebetweenbusinesseshasthepurpose
eectorlikelyeectofsubstantiallylesseningcompetitionitwillcontravenetheCCA
Acontractorarrangementariseswhenonepartymakesanoerandtheotherpartycommunicatesan
intentiontoacceptitThiscouldbeachievedbysigningadocumentagreeingtoanoeronawebpage
orverballyagreeingtosomethingoverlunch
AnunderstandingisusuallylessformalthanacontractorarrangementForexampleAustralianCourts
havesaidthatanunderstandingmayarisewheretherehasbeen‘meetingoftheminds’between
entitiesandsomecommitmenttoactinaparticularway
Aconcertedpracticeinvolvessomeformofcooperationorcommunicationbetweenbusinesses
thatfallsshortofacontractarrangementorunderstandingForexamplebusinessessharingsales
informationwitheachotherwithoutagreeingwhattheywilldowiththatsalesinformationmaybea
concertedpractice
u Example(concertedpractice)Anassociationofelectricitymetermanufacturersactivelyassistsits
memberstoplanforthefuturebyproducingaquarterlyreportoutliningindustrytrendsThereport
compilessurveydatafrommembersonforecastsalesinputcostsandpricingintentionsMembers
saythatthepricingforecastchartsinthereportarehelpfultoensurethattheirproposedpricesare
notoutofstepwiththemarket
Ifthisconductresultsinmembersreducingakeycompetitiveuncertaintybeingcompetitor’sfuture
pricingstrategiesitcouldamounttoaconcertedpracticeinbreachoftheCCA
Thisdoesn’tmeanyouneedto‘closeyoureyesandcoveryourears’towhat’sgoingoninyour
marketFollowingindustrytrendsandseekingtounderstandyourcompetitors’oersisanormalpart
ofbusiness
Thekeyistodetermineyourpriceoutputcustomersandresponsestotendersindependentlyrather
thaninconsultationorcooperationwithyourcompetitors
Market sharing
Marketsharingoccurswhencompetitorsagreetoonlydobusinessinspecificmarketsegmentsrather
thanallowingcompetitivemarketforcestoworkThisconductisillegalbecausecompetitorsaredividing
themarketbetweenthemselvesratherthancompetingagainsteachother
Marketsharingcanoccurwherebusinesses
agreenottoproduceeachother’sgoodsandservices
allocatecustomersbygeographicarea(thisincludesagreeingnottoexpandintoa
competitor’smarket)
divideupcontractscustomersorproducts
allocatecustomerstoeachcompetitorwithanunderstandingnotto‘poach’

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Imposing minimum resale prices
Ingeneralbusinessesarefreetosettheirownpricesanddiscounttheirgoodsorservicesastheysee
fitHoweverit’sillegalforsupplierstoattempttosetaminimumdownstreampricefortheirproducts
Thisbehaviourisknownas‘resalepricemaintenance’Forexampleitwouldbeillegalforawholesalerto
setaminimumretailpricefortheirproductsbyrequiringaretailbusinesstochargeatleasttheRRP(or
threateningtowithdrawsupplyifthebusinessdoesn’t)
It’salsoillegalforabusinesstosupplyproductsontheconditionthatthedownstreambusiness
sellsthoseproductsatacertainspecifiedprice
sellsthoseproductsatapricedeterminedbyaformulasetbythesupplieror
doesn’tdiscountthoseproducts
TherearesomeexceptionstotheprohibitiononresalepricemaintenanceForexampleitwon’tapplyto
agency(orsimilar)arrangementswherethe‘retailer’isactingonbehalfofthe‘supplier’
Inmostcasesasuppliercanspecifyamaximumretailprice
f Case study
IntheACCCtooklegalactionagainstawholesalerfornotallowingretailerstodiscountits
BertinibrandbabypramsThewholesaleradmittedithadtoldsomeretailersitwouldn’tsupplythem
withBertiniproductsunlesstheyagreedtosellthemaboveaspecifiedpriceThewholesaleralso
admittedithadattemptedtoinducesomeretailersnottosellthepramsbelowacertainpriceand
hadevenenteredintoaformalagreementwithoneretailerTheCourtimposedapenaltyof
againstthecompanyandagainstitsmanagingdirector
Collective bargaining
Collectivebargainingiswhereormorecompetitorscometogethertonegotiatewithasupplierora
customerovertermsconditionsandpricesCollectivebargaininggroupssometimeswanttobeableto
refusesupplytoorbuyfromaparticularcustomerorsupplierunlessoruntiltheyreachagreementon
termsandconditionsThisiscalleda‘collectiveboycott’
Negotiatingasagroupenablessmallbusinessestocombinetheirresourcesandbargainingpowerto
getabetterdealHoweversucharrangementscanraiseconcernsundertheCCAForexamplewhere
there’sanagreementaboutpricing(pricefixing)ortorestrictdealingswithaparticularsupplierorbuyer
(acollectiveboycott)
IftheACCCissatisfiedthatthearrangementprovidesanoverallpublicbenefititcan‘authorise’parties
tocollectivelybargainevenifthatconductwouldotherwisebeunlawfulundertheCCATheACCChas
approvedcollectivebargainingarrangementsacrossmanyindustires
f Case study
InagroupofNSWdairyfarmersappliedtotheACCCforapprovaltocollectivelynegotiate
withWoolworthsoverthetermsandconditionsofrawmilksupplyagreementsTheACCCallowed
oneofthefarmersinthegrouptocollectivelynegotiatethetermsandconditionsofthesupply
agreementswiththeretaileranditsagentonbehalfofthegroup

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Applying for an exemption to engage in anti-competitive
conduct
TheACCCmaypermitbusinessestoengageinvariousconductincludingmakingarrangements
betweencompetitorsexclusivedealingandengaginginresalepricemaintenancewherethepublic
benefitsoutweighthedetrimentsofsuchanarrangement
Forexampleagroupofsmallbusinessesmaywishtogettogethertocollectivelybargainasdiscussed
aboveInthesecircumstancesbusinessescanseekanexemptionfromtheACCCtoengageinthe
conductbywayofanauthorisationornotification
TheACCCcanalsoissueaclassexemptionwhichexemptsacategoryofconductfromhavingtoapply
forauthorisationornotificationThismeansthatbusinesseswillnotneedtomakeseparateindividual
applicationsforauthorisationornotificationiftheirconductfallswithinthatcategory
IftheACCCgrantsanexemptionwhetherbywayofauthorisationnotificationorclassexemptionthe
businessessubjecttothatexemptionwillhaveprotectionfromlegalactionprovidedthattheirconduct
fallswithintheexemption
TheACCCmaintainsapublicregisteronitswebsiteofactiveauthorisationsandnotifications
u TipIfyouareconsideringengaginginanti-competitiveconductyoushouldfirst
talktoalawyer
contactyourindustryassociation
visittheACCC’swebsitewwwacccgovaubusinessapplying-for-exemptions
calltheACCC’ssmallbusinesshelplineonoremailadjudication@acccgovau
Unconscionable conduct
TheACLprohibitsbusinessesfromactingunconscionablytowardsotherbusinesses(otherthanalisted
publiccompany)inconnectionwiththesupplyandacquisitionofgoodsandservicestoorfromthe
otherbusiness
u TipPagecontainsinformationaboutunconscionableconductinconsumerinteractions
Conductmaybeunconscionableifit’sparticularlyharshoroppressiveHoweveritneedstobemore
thanjusthardcommercialbargainingorsimplyunfairtreatmentitmeansdoingsomethingwhich
shouldn’tbedoneingoodconscience
Thelawsetsoutanon-exhaustivelistofmattersthatCourtsmayconsiderwhendecidingwhether
conductisunconscionableTheseincludebutaren’tlimitedto
therelativebargainingstrengthoftheparties
whetherthestrongerpartyhasimposedconditionsthataren’treasonablynecessarytoprotecttheir
legitimateinterests
whethertheweakerpartycouldunderstandthedocuments
undueinfluencepressureorunfairtacticsbythestrongerparty
theextenttowhichthepartiesactedingoodfaith
f Case study
InafranchisorwasorderedtopayapenaltyfollowingactionbytheACCCTheCourt
foundthatthefranchisorhadamongothercontraventionsengagedinunconscionableconductin
itsdealingswithfranchiseesbyfailingtopaythemfortheworkthey’dcompletedandcontinuing
todemandpaymentfortheinitialfranchisingfee

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Industry Associations
Smallbusinessgroupsandindustryassociationsplayanimportantroleinprovidingavoiceforindividual
businessesTheynotonlyoereducationalsupportbutcanalsohelptheirbusinesseswith
collectivebargaining
recommendedretailprices
membershiprestrictions
informationsharingguidelines
voluntarycodesofconduct
Youcanfindfurtherinformationaboutthisonourwebsitewwwacccgovaubusinessprofessional-
services
Howeversincethisofteninvolvescompetitorsworkingtogethertheyneedtobecarefulthatthisdoesn’t
breachthecompetitionprovisionsoftheCCATheACCCcanauthorisecollectivearrangementsinsome
circumstancesFormoreinformationvisitourwebsitewwwacccgovaubusinessanti-competitive
Franchising
Ifyouoperatewithinafranchisesystemorarethinkingofjoiningoneyoushouldbeawareofyourrights
andobligationsunderthemandatorynationalFranchisingCodeofConduct
TheCodeaimstoregulatetheconductoffranchisingparticipantstowardseachotheratanystageofa
franchiseagreementItdoesthisby
requiringfranchisorstodisclosecertaininformationtoprospectiveorexistingfranchisees
imposingagoodfaithobligationonparties
establishingadisputeresolutionmechanism
outliningcertainminimumstandardsofconduct
Youcanfindoutmoreaboutthisonourwebsitewwwacccgovaufranchising

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Unfair contract terms
Asasmallbusinessyoumayberequiredtoenterintostandardformcontractswithotherlarger
businessesforgoodsandservices(egequipmentpropertyrentalfinancingorutilities)Youmayalso
usestandardformcontractswhendealingwithyourcustomers
Astandardformcontractisanagreementthathasbeenpreparedbyonepartyincircumstanceswhere
theotherpartyhashadlittleornoopportunitytonegotiatetheterms
UnderACLaCourtmayfindthataterminastandardformcontractisunfairanddeclarethattermvoid
u TipThere’sanautomaticassumptionthatanagreementwillbeastandardformcontractThismeans
itwillbeuptothepartythatpreparedittoproveitisn’tstandardform
Types of terms that may be unfair
Atermmaybeconsideredunfairifitenablesoneparty(butnottheother)to
varythetermsofthecontract(egchangeitspricesorservicesatanytimewithoutpriornotice)
automaticallyrenewthecontractwithouttheotherparty’sexpressconsent
avoidorlimittheirobligationsunderthecontract(eglimitthecontractprovider’sliabilitywherethey
haveactednegligently)
terminatethecontract
penalisetheotherpartyforbreachingorterminatingthecontract
u ExampleAsmallbusinessentersintoastandardformcontractwithatelecommunicationscompany
Thecontractallowstheprovidertodisconnectaccessatanytimewithoutnoticetoraisepricesatits
absolutediscretionandchargealargecancellationfeeifthecustomerdecidestoleavethecontract
earlyACourtcoulddeterminethatthesecontracttermsareunfair

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Which contracts are covered?
Theunfaircontracttermslawappliestoconsumeraswellassmallbusinessstandardformcontracts
(egshopleasesadvertisingequipmentleaseorhirepurchase)
Asmallbusinesscontractisanagreement
whereatleastoneofthepartiesisasmallbusinessand
wheretheupfrontpricepayableisupto(ormillionifthecontractisformorethan
months)and
forthesupplyofgoodsorservicesorthesaleorgrantofaninterestinland
Aconsumercontractisanagreement
forthesupplyofgoodsorservicesorthesaleorgrantofaninterestinlandtoanindividual(nota
company)forpersonaldomesticorhouseholduse
Determining whether a term is unfair
TobeunfairundertheACLatermmust
causeasignificantimbalanceintheparties’rightsandobligationsand
notbereasonablynecessarytoprotectthelegitimateinterestsofthepartyadvantagedbythe
termand
causedetriment(financialorotherwise)toapartyifitwereappliedorreliedupon
AllelementsoftheunfairnesstestmustbeprovedforatermtobedeemedunfairOnlyaCourtor
tribunal(nottheACCC)canmakethisdeterminationACourttribunalmaytakeintoconsideration
transparencyofthetermaclausemaynotbetransparentifit’shiddeninthefineprintorphrasedin
legalcomplexortechnicallanguageHoweveratransparenttermcanstillbeunfair
theoverallrightsandobligationsofeachpartythefairnessofatermmustbeassessedinlightof
thecontractasawholeForexampleatermmaybecounterbalancedbyadditionalbenefitstothe
otherpartysuchthatit’snolongerunfair
Rememberadeclarationthatatermisunfairappliesonlytothespecificcontract(s)beforethe
Courttribunal(ieaspecificcontractbetweenpartiesorallcontractsenteredintobythatbusiness
whichconsistofthestandardterm)YoucannotassumethatjustbecauseaCourttribunalhasfound
thatatermisunfairinaparticularbusiness’scontractthatsuchaterminyourcontractisunfairorthat
youwillhavethebenefitofthatclausebeingdeclaredunfair
Effect of having an unfair contract term
Ifatermisfoundtobeunfairitwillbevoidmeaningitwon’tbebindingonthepartiesHowevertherest
ofthecontractwillcontinuetobindthepartiestotheextentthatit’scapableofoperatingwithoutthe
unfairterm
Ifabusinesssubsequentlytriestoapplyorrelyonatermthathasbeendeclaredunfairitmaybea
breachoftheACLandtheaectedpartycouldapplytoaCourtforarangeofremediesThiscould
includecompensationoraninjunctionrestrainingthebusinessfromactingupontheterm
u Tips
AlwaysreviewcontractsbeforeyousignthemIfyoufindatermyouthinkisunfairasktheother
partytoremoveitoramendit
Ifyouthinkaterminacontractisunfairandyoucan’tresolvetheproblemwiththeotherparty
considerengagingamediatortohelpyouresolvethedisputeYoucanfindfurtherinformation
aboutdisputeresolutiononpage

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Guarantees and warranties: consumers
and businesses
TheACLprovidesconsumersandbusinesseswithabasicsetofrightswhentheypurchasegoodsand
servicesThese‘consumerguarantees’ensuregoodsandservicesmeetcertainminimumstandards
Failuretocomplywithanyoftheconsumerguaranteeswillprovideconsumersandsmallbusinesseswith
alegalbasisforseekingremedieswhenthegoodsorservicesdon’tmeetthatstandard
Consumerguaranteesapplyautomaticallyandcan’tbeexcludedmodifiedorlimitedbycontract
Importantlya‘consumer’canbeapersonsoletraderorabusinessprovidedthegoodsorservices
purchasedare
lessthan
ofakindnormallyboughtforpersonaldomesticorhouseholduseorconsumptionor
acommercialvehicleortrailerusedmainlytotransportgoodsonpublicroads
Howevertheconsumerguaranteeswon’tapplytogoodsintendedforre-saleorfurtherprocessing
productionormanufacture
u ExampleAnaccountantpurchasesamultifunctionbusinessprinterandscannerforSix
monthslatertheprinterbreaksdownwithoutsueringanymisuseHerethebusinesswouldbe
protectedbytheconsumerguaranteesastheprintercostlessthan

Small business and the Competition and ConsumerAct: Your rights and responsibilities
The guarantees
Goodsmust
beofacceptablequality(ieacceptableinappearanceandfinishfreefromdefectssafe
anddurable)
befitforanydisclosedpurposeanddoallthethingssomeonewouldnormallyexpectthemtodo
matchtheirdescriptionorthesampleordemonstrationmodelprovided
meetanyextrapromisesmade(egaboutperformanceconditionorquality)
havesparepartsandrepairfacilitiesavailableforareasonabletimeafterpurchase
comewithfulltitleownershipandundisturbedpossession
notcarryanyhiddendebtsorextracharges
Servicesmustbe
providedwithduecareandskill(ieservicesshouldbecarriedoutwithcareandskilland
reasonablestepsmustbetakentoavoidlossordamage)
fitforanyspecifiedpurpose(ieservicesandanyresultingproductsaresuitableforthepurpose
specifiedbytheconsumer)
providedwithinareasonabletime(whennotimeisset)
Failure to meet a guarantee
Ifyousellagoodorservicethatfailstomeetaconsumerguaranteethepurchaserisentitledtoa
remedy(iearepairreplacementorrefund)andcompensationforanyconsequentiallosssuered
becauseofthefailureThesupplier(yourbusiness)islegallyobligedtoprovidetheappropriateremedy
Thetypeofremedyavailabletotheconsumerwilldependontheextentoftheproblem
Problemswithagood
Iftheproblemwithagoodisminorthesuppliercanchoosetoprovidearefundreplacementora
freerepair(withinareasonabletime)Iftheproblemwiththegoodismajororcan’tbefixedwithina
reasonabletimetheconsumercanchoosewhetherto
rejectthegoodsandobtainafullrefundorreplacementor
keepthegoodsandseekcompensationforthereductioninvalueofthegoods
Agoodhasamajorproblemif
areasonablepersonwouldn’thaveboughtitifthey’dknownabouttheproblem
ithasmultipleminorproblemsthatwhentakenasawholewouldhavestoppedareasonableperson
frombuyingitifthey’dknownaboutthem
it’sunsafe
itdoesn’tmatchthesampleordescription
itdoesn’tdowhatthebusinesssaiditwouldorwhattheconsumeraskedforandcan’teasily
befixed
u Examples
MajorproblemwithagoodAconsumerbuysanelectricblanketwhichstopsworkingafterthe
firstuseThiswouldbeamajorproblemandthecustomercanchooseareplacementorarefund
MinorproblemwithagoodAsmallbusinessbuysafridgeandfindsthatthedoorhasascratch
onit(thisdefectdoesn’timpactthesafetyorfunctioningoftheproduct)Thiswouldbeaminor
problemandthesuppliercanchoosehowtoremedytheproblem

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Problemswithaservice
Iftheproblemwithaserviceismajortheconsumercanchoosewhetherto
canceltheservicecontractandgetarefundor
keepthecontractandgetcompensationforthedierencebetweentheservicedeliveredandwhat
theypaidfor
Iftheproblemwithaserviceisonlyminortheconsumermustgivethesupplieranopportunitytofix
theproblemfreeofchargeandwithinareasonabletimeThecustomercan’tautomaticallycancel
thecontract
There’samajorproblemwithaserviceifit
isaproblemthatwouldhavestoppedareasonablepersonfrombuyingtheserviceifthey’dknown
aboutit
hasmultipleminorproblemsthatwhentakenasawholewouldhavestoppedareasonableperson
frombuyingtheserviceifthey’dknownaboutthem
createsanunsafesituation
issubstantiallyunfitforitsnormalpurposeandcan’tbeeasilyfixedwithinareasonabletime
doesn’tmeetthespecificpurposetheconsumeraskedforandcan’teasilybefixedwithina
reasonabletime
u Examples
MajorproblemwithaserviceAsmallbusinessasksatechniciantoincreasetheirstorecomputer’s
memorycapacitywithinoneweekWheninstallinganewdrivethetechniciandamagesthe
computerRepairswilltakeweeksbutthesmallbusinessneedsthedevicewithintheweekThe
smallbusinesscanchoosewhethertocontinueorcancelthecontract
MinorproblemwithaserviceAconsumerhiresacarpentertobuildacarporttocovertheir
vehicleThecarpenterbuildsastructurethatisn’tlongenoughtocoverthecarAlthoughthey
haven’tmettheconsumer’srequestthecarpenterisabletofixtheproblemwithinareasonable
timeTheadditionalworkwouldneedtobedonefreeofcharge
Reimbursement for consequential loss
Inadditiontoarepairreplacementorrefundconsumersandbusinessesareentitledtoseek
compensationfromsuppliersforlossordamageassociatedwithafailuretomeetaguarantee
Commonlylossesarefinancial(egthecostofreturningthegoodsorrepairingothergoodsdamaged
asaresultofthefailure)buttheycanalsoincludelosttimeorproductivity
Whileyou’reresponsibleforlossordamagesueredasaresultofaproblemwithagoodorserviceyou
suppliedyoudon’thavetopayfordamagesorlossesthat
werenotcausedbyyourbusinessthegoodsyousupplied
relatetosomethingindependentofyourbusinessafterthegoodsleftyourcontrol
werenotareasonablyforeseeableconsequenceofthefailureofthegoodorservice
u ExampleAconsumertakestheircurtainstoadrycleanerThegoodsaredamagedduringcleaning
Theconsumerwouldbeentitledtoarefundofthedrycleaningfeeaswellascompensationtocover
thecostofreplacingthecurtains
Suppliers’ rights against manufacturers
Someproductsyousellmayfailtomeetaconsumerguaranteeduetoamanufacturingdefectorissue
thatwouldotherwisebethemanufacturer’sfaultInthissituationyouhaveadditionalprotectionsunder
theACL

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Ifyourbusinessprovidesaremedyforthesefailuresyoucanrecoverthecostsincurredfromthe
manufacturerAsupplierhasyearstorequestareimbursementtakenfromwhentheyfixedthegoods
ortheconsumertooklegalactionagainstthemwhicheverisearliest
Exceptions to consumer guarantees
Consumers’rightsarenotlimitlessTheACLdoesn’trequireyoutoprovidearemedyif
thecustomer
– simply changes their mind (unless your store has a policy for change of mind)
– discovers they can buy the goods or services cheaper elsewhere
– has damaged the goods by misusing them in an unreasonable way.
thefailuretomeettheguaranteeonlyoccurredbecauseof
– something someone else said or did (unless that person was an employee or acting as your agent)
– something beyond your control that happened after you sold the product or provided the service.
Refunds and return signs
Thefollowingtypesofsignsarenotpermitted
‘Norefunds’
‘Norefundsonsaleitems’
‘Exchangeorcreditnoteonlyforthereturnofsaleitems’
Suchsignsareunlawfulbecausetheymisrepresentthecustomer’sautomaticrightsundertheACLSigns
thatstate‘Norefundsforchangeofmind’areacceptable
u TipDownloadanddisplayour‘refundsandreturns’point-of-salesignwhichclearlysetsoutwhen
youareandarenotrequiredundertheACLtoprovidearemedyThissignisavailableontheACCC
websiteatwwwacccgovaupublications
Offering warranties
A‘warranty’isatypeofpromiseIfyoumakeawarrantytoyourcustomersaboutyourgoodsor
servicesyouhavetohonourthatwarrantyaswellasyourobligationsundertheACL
Therearetypesofwarrantiesyoushouldbeawareof
 Explicitwarrantiessuchasextrapromisesaboutthegood’squalitystateconditionperformanceor
characteristicsortheavailabilityofservicingsupplyofpartsoridenticalgoods
 Warrantiesagainstdefectsmanufacturers’warranties
makingadditionalpromisestoconsumers
aboutwhatyouwilldoifsomethinggoeswrongwithagoodorservicesuchas‘-month
replacementguarantee’
 Extendedwarrantiesoeringlengthenedcoverageofamanufacturer’swarrantyorextrapromises
suchaspriorityconsumertreatmentortechnicalsupport
Warrantiesareadditionaltoaconsumer’sACLrightsThismeansthataconsumermaystillbeentitledto
aremedyundertheACLevenifthewarrantyperiodhasexpiredorifnowarrantyexistsatall
u ExampleAretailerstatesthattheywillonlyreplaceorrepairafaultyproductiftheconsumerbuys
anextendedwarrantyThisismisleadingasaconsumer’sACLrightsalreadyentitlethemtothesame
remedyatnocost
 ToensureconsumersunderstandthewarrantyandknowhowtomakeaclaimtheACLrequiresthatalldocuments‘evidencing’a
warrantyagainstdefectsmustbeinwritingandincludespecificinformation

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Treating customers fairly
TherearerulesinplacetoensurebusinessestreattheircustomersfairlyIt’syourresponsibilitytomake
sureyouunderstandtheserulesandwhattheymeanforyourbusiness
Unconscionable conduct
TheACLprohibitsbusinessesfromengaginginunconscionableconductwhendealingwiththeir
customersThefollowingpracticaltipsmayassistyoutoavoidengaginginunconscionableconductwith
yourcustomers
don’texploitcustomerswhennegotiatingthetermsofanagreementorcontract
considerthecharacteristicsandvulnerabilitiesofyourcustomers(eguseplainEnglishwhendealing
withcustomersfromanon-Englishspeakingbackground)
makesureyourcontractsareclearthoroughandeasytounderstand
ifthingsgowrongbeopentoresolvingcomplaints
f Case study
Inavacuumcleanerdistributorwasorderedtopayapenaltyofforengagingin
unconscionableconductwhensellingvacuumcleanerstoelderlywomen
Thesalesrepresentativecalledonthewomenintheirhomesunderthepremiseofafreevacuum
cleanermaintenancecheckbutwiththepurposeofsellingavacuumcleanerThewomenwere
subjectedtounfairsalestacticsandpressuredintopurchasingavacuumcleaner

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Unsolicited supply of goods or services
‘Unsolicitedsupplies’referstogoodsorservicesthatareprovidedtosomeonewhohasn’taskedtobuy
orreceivethem
It’sillegalundertheACLtorequestpaymentforunsolicitedgoodsorservicesunlessyoureasonably
believeyouhavearighttobepaidThismeansthatapersonwhoreceivesunsolicitedgoodsorservices
doesn’thavetopayforthemorforanylossordamageresultingfromtheirsupply
u ExampleAconsumerarrangesforabusinesstowashtheoutsideofhercarThebusinessalsocleans
theinsideofhercarandchargesheranextraTheconsumerdoesn’thavetopaytheadditional
amountasshedidn’taskfortheextraservice
Abusinessthathassuppliedanunsolicitedgoodhasmonthstorecoveritotherwiseitbecomes
theconsumer’spropertywithnoobligationtopayThisrecoveryperiodisreducedtoonemonthifthe
consumerhaswrittentothebusinesssettingout
theirnameandaddress
thatthegoodisunsolicitedandtheydon’twantitand
wherethegoodcanbecollected
Unsolicited consumer agreements
An‘unsolicitedconsumeragreement’takesplacewhen
it’sforthesupplyofgoodsorservicestoacustomerand
itresultsfromnegotiationsbyphoneoratalocationotherthantheseller’sbusinessortrade
premisesand
asellersalesagentcallsapproachesacustomeruninvitedand
thetotalvalueofthegoodsorservicesismorethan(orcannotbedeterminedwhenthe
agreementismade)
Ifyourbusinessusesthesesalesmethodsyouneedtobeawareofyouradditionalobligationsunderthe
ACLwhenyouapproachyourcustomersincluding
permittedhoursfortelemarketingandmakinguninvitedhousevisits
disclosurerequirementsbeforemakingasalespitch
customers’cooling-orights
informationrequirementsforthesalesagreement
u TipSeeDoor-to-doorandtelemarketingsalesforfurtherinformation
Harassment and coercion
It’sillegalforbusinessestophysicallyforcecoerceorundulyharasssomeoneincludinganother
businessaboutthesupply(orpossiblesupply)oforpaymentforgoodsorservices
Undue harassmentmeansrepetitiveunnecessaryorexcessivecontactorcommunicationwithaperson
tothepointwherethatpersonfeelsintimidatedordemoralised
Coercioninvolvesforce(actualorthreatened)thatrestrictsanotherperson’schoiceorfreedomtoact
Unlikeharassmentcoerciondoesn’thavetoinvolverepetitivebehaviour
u TipChasingadebt?Downloadour‘Debtcollectionguidelineforcollectorsandcreditors’fordirection
onwhatyoucanandcan’tdowhentryingtocollectmoneyowingtoyourbusiness

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Proof of transaction
Businessesmustprovidetheircustomerswitha‘proofoftransaction’forgoodsorservicessuppliedto
themtotallingormore(excludingGST)Aproofoftransactionmaybeataxinvoiceacashregister
orhandwrittenreceiptalay-byagreementorareceiptnumberforatelephoneorinternettransaction
Aproofoftransactionmustincludethesupplier’snameandABNACNdateofsupplygoodorservice
suppliedandtheprice(includingGST)peritemaswellastheoveralltotal
Forgoodsorservicestotallinglessthan(excludingGST)you’reonlyrequiredtoprovideaproofof
transactionifthecustomerrequestsone
Itemisedbills
Acustomercanaskaserviceproviderforan‘itemisedbill’uptodaysaftertheservicesweresupplied
orthecustomerreceivesabillaccountfortheservicessuppliedwhicheverhappenslaterIfyou’reasked
toprovideanitemisedbillyouhaveuptodaystocomplywiththerequestItemisedbillsmustbe
providedfreeofchargeandshow
howthepricewasworkedout
ifrelevantthenumberoflabourhoursandhourlyrate
ifrelevantalistofmaterialsusedandtheamountchargedforthem
Lay-by agreements
Ifyou’reinthebusinessofoeringlay-bysyoumustensuretheagreement
isinwriting
setsoutallrelevanttermsandconditionsincludinganyterminationcharge
isexpressedinplainlanguage
islegibleandclearlypresented
Businessesmustgiveacopyoftheagreementtothecustomer
Rememberanagreementthatdoesn’tspecificallystateitisalay-bywillbeconsideredtobeoneifthe
customerpaysforagoodinatleastinstalments(orormoreinstalmentswhentheagreementdoes
stateitisa‘lay-by’)anddoesn’treceivethegooduntilthetotalpricehasbeenpaidDepositscountasan
instalmentpayment
Ifacustomercancelsalay-byyoumustrefundthemoneypaidlessanyterminationfeeThisfeemustbe
clearlyspecifiedintheagreementandreflectyourreasonablecostsinrelationtothelay-byItmustnot
bea‘penalty’forcancelling
Youcanonlycancelalay-byagreementinlimitedcircumstances(egwherethecustomerhasbreached
theagreement)Youcan’tchargeaterminationfeeifyoucancelthelay-by
u TipNeedtoknowmore?CheckoutourAdvertisingandsellingguide

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Pyramid schemes and referral selling
Businessescommonlytrytoincentivisetheircustomersandmayevenoerbenefitsiftheyhelpthe
businessfindmorecustomersHoweverbusinessesmustbecarefulthatsuchactivitiesarelawful
TheACLmakesitillegaltoparticipateinortopersuadesomeonetoparticipateina‘pyramidscheme’
Theseschemesworkbyrequiringindividualstomakea‘participationpayment’inordertojoinand
promisingpaymentsinreturnforrecruitingother‘investors’ornewparticipants(recruitmentpayments)
Pyramidschemesmakemoneybyrecruitingpeopleratherthanbysellingactualgoodsorservices
(althoughthesaleofagoodorservicemaybeinvolved)
u ExampleAbusinesssetsupaschemewhereconsumerspayamembershipfeeofand
receivea‘travelcertificate’andtheopportunitytoearncommissionsforrecruitingotherpeople
intotheschemeThedesignoftheschememakesitextremelydicultforpeopletoredeemtheir
travelcertificate
ThistypeofmodelislikelytoraiseconcernsundertheACLastheonlywayparticipantscanearnany
incomeorobtainabenefitisthroughtheintroductionofnewmembers
It’salsoillegalforbusinessestoengageinreferralselling‘Referralselling’iswhereabusinesspersuadesa
consumertobuygoodsorservicesbypromisingthembenefits(egarebateorcommission)iftheyhelp
thebusinesssupplygoodsorservicestootherconsumersIftheincentiveispaidregardlessofwhether
thesaletoothercustomersismadeornotthiswouldnotbe‘referralselling’undertheACLHoweverit
wouldbeillegaliftheincentiveiscontingentuponthesaletoothercustomers
u ExampleAconsumerbuysanewTVandisoeredafreeDVDplayerontheconditionthattheygive
thebusinessthenamesoffriendsandthatthosefriendsallbuyTVsfromthebusinessThisisillegal
referralsellingbecausethey’llonlyreceivetheDVDplayerifallfriendspurchaseanewTV

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Selling safe products
TheACLestablishesanationalconsumerproductsafetysystemtoensurethesafetyofgoodsusedin
AustraliaThissystemreliesonthecooperationofconsumerssuppliersandgovernmentagenciesAs
abusinessowneroroperatoryoumustunderstandthevoluntaryandmandatoryrulesthatexistto
minimisesafetyrisksforAustralianconsumers
UndertheACLCommonwealthstateandterritoryministerscanregulateconsumergoodsandproduct-
relatedservicesby
implementingmandatorysafetystandards
issuingacompulsoryrecallnoticetosuppliers
banningproducts
issuingsafetywarningnotices
u TipChecktoseeifanyoftheproductsyoubuyorsellaresubjecttoarecallbanorsafety
warningnotice
visitwwwproductsafetygovau
downloadthe‘RecallsAustralia’phoneapp
‘like’theACCCProductSafetyFacebookpage

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Mandatory standards
Mandatorystandardssetoutdesignelementsorinformationrequirementsforalimitednumberof
productsiftheyaretobesoldinAustralia(egcertainchildren’stoysclothingandtextilesandtobacco)
Theirpurposeistomakeparticularsafetyorinformationfeaturesavailableonaproducttopreventor
reducetheriskofinjurytoaperson
It’sillegaltosupplyagoodthatdoesn’tmeetanapplicablemandatorystandardAfulllistofallnational
mandatorystandardsisavailableonlinefromwwwproductsafetygovau
Product recalls
IfaproductisdangerousunsafeorharmspeopleitmustberecalledArecallisthetemporaryor
permanentremovalofaproduct(orpartofaproduct)fromsaleoruse
AsuppliercanvoluntarilyrecallaproductoraresponsibleMinistercaninitiateacompulsoryrecallIfyou
initiateavoluntaryrecallyoumustnotifytheACCCatwwwproductsafetygovaurecalls
f Case study
Inaretailerwasorderedtopaymorethanmillioninpenaltiesforfailingtoremoveanumber
ofhousebrandproducts(includingadeepfryerandafoldingstool)fromsaleafterbecomingaware
theyhadcausedseriousinjuriesTheCourtfoundthatbynotrecallingtheproductsandremoving
themfromsaletheretailerhadmisledconsumersastothesuitabilityofthegoods
Bans
Atemporaryorpermanentbancanbeplacedonaproductorproduct-relatedserviceifthere’s
ariskthatitmaycauseseriousinjuryillnessordeathAtemporarybanlastsfordaysandcan
beorderedatthestateterritorylevelornationallyApermanentbancanonlybeorderedbythe
CommonwealthMinister
Ifanyofyourproductsaresubjecttoabanyoumustnotsellthem
Safety warning notices
AresponsibleMinistercanissueasafetywarningnoticetoinformconsumersandsuppliersabout
consumergoodsorproduct-relatedservicesthatmaycauseinjuryandorarebeinginvestigated
Youdon’thavetostopsellingthegoodorservicethatisthesubjectofthesafetywarningnoticebutit’s
importantthatyoustayinformedaboutitsstatus
Mandatory reporting of serious injuries or death
Ifyourbusinessbecomesawareofanyproduct-relateddeathseriousinjuryorseriousillnessrelatedtoa
productyousupplyyoumustreporttheincidenttotheACCCAmandatoryreportmustbemadewithin
daysofthesupplierbecomingawareofareportableincident
u ExampleThesupplierofarangeofmobilityscootersfindsoutthataconsumerhassueredanarm
fractureandrequiredstitchesaftertheirscooterlostitsfrontwheelandtippedoverThesupplier
isconcernedthatabatchofitsproductshasdefectiveboltsconnectingthefrontwheelstothe
bodyTheseinjurieswerecaused(ormayhavebeencaused)bytheuseofthescooterandmustbe
reportedtotheACCCwithindaysofthecompanybecomingawareoftheincident

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Country of origin claims
Ingeneralbusinessesarefreetomakeanyclaimstheywishtoabouttheirproducts(eg‘local’‘home-
made’)providedtheclaimsaretruthfulclearandaccurateHoweverit’sunlawfulforbusinessestomake
falseormisleadingclaimsincludingaboutthecountryoforiginofgoods
Ifthegoodsarefoodproductsoeredorsuitableforretailsaletherearemandatorylabelling
requirementsthatapplyundertheCountryofOriginFoodLabellingInformationStandardThese
requirementsareoutlinedinthenextsectionundertheheading‘Foodlabelling’
Whetheryouchoosetomakeacountryoforiginrepresentationaboutyourproductsorarelegally
requiredtodosoyoumustmakesuretheclaimisclearaccurateandtruthful
Non-food products
Inmostcircumstancesitwillbeuptobusinessestodecidewhethertopromotetheirnon-foodproducts
ashavingacertainorigin
Countryoforiginrepresentationsaboutgoodsmayarisefromwordspicturesoracombinationofboth
Forexample
byastatementsuchas‘MadeinAustralia’‘ProductofThailand’or‘GrowninNewZealand’
bywordsorimages(egproductpackagingwithamapofItalynexttotheItalianflag)thatmay
implytheproductisfromItaly
Ifareasonableconsumerislikelytobeledintoerrorbytheuseofcertainwordsorimagesonaproduct’s
labellingthenthere’sariskofbreachingtheACLItdoesn’tmatterwhetherabusinessintendedto
misleadordeceiveconsumers
 NotethatwhileACLdoesn’trequirecountryoforiginlabellingonnon-foodproductsotherlawsmaydosoegcustoms
regulationsforimportedgoods

Small business and the Competition and ConsumerAct: Your rights and responsibilities
u ExampleAhardwarestorerunsanAustraliaDaypromotionwhereitattachescardscaptioned
‘DoitforAustraliabuyAussiemade’toproductsthatwerenotmadeinAustraliaThiswouldlikely
bemisleadingasthesignscouldreasonablyleadconsumerstobelievethatthoseproductswere
Australian-madewhenthiswasnotthecase
Key claims
Generallyspeakingbusinessesthatmakethefollowingcountryoforiginrepresentationsabouttheir
goodsareunlikelytocontravenetheACLiftheserequirementsaremet
agrowninclaimcanbemadeifeachsignificantingredientorcomponentofagoodwasgrownin
thatcountry(egbananasflowers)orcamefromsomethingthatgrewinthatcountry(egeggs
wool)andallorvirtuallyalloftheprocessesinvolvedintheproductionandmanufacturingofthe
goodoccurredinthatcountrytoo
aproductofclaimcanbemadeifeachsignificantingredientorcomponentofagoodoriginated
inthecountryclaimedandallorvirtuallyalloftheprocessesinvolvedintheproductionand
manufacturingofthegoodalsooccurredinthatcountry
AmadeinclaimcanbemadeifagoodwaslastsubstantiallytransformedinthatcountryAgood
was‘substantiallytransformed’inacountryifasaresultofoneormoreprocessesundertakeninthat
countrythegoodisfundamentallydierentinidentitynatureoressentialcharacterfromallofthe
ingredientsorcomponentsthatwereimportedintothatcountry
ThesetermsalsohavedefinedmeaningsundertheCountryofOriginFoodLabellingInformation
StandardTheremaybeadditionalrequirementsthatmustbesatisfiedinordertomake
theseclaims
Food labelling
Anumberofmandatoryinformationstandardsregulatethetypeandamountofinformationthatmust
beprovidedtoconsumersaboutparticularproductsandservicesTheCountryofOriginFoodLabelling
InformationStandard(‘Standard’)isoneofthem
TheStandardisintendedtoprovideconsumerswithclearermoremeaningfulandaccurateinformation
aboutthefoodtheybuyFormostfoodsthelabelswillalsotellconsumerswhatpercentageofthe
ingredientscomefromAustralia
TheStandardcommencedundertheACLonJulyandregulatesthecountryoforigininformation
thatmustbeprovidedformostfoodoeredorsuitableforretailsaleinAustraliaIt’simportantthat
producersmanufacturersprocessorsandimportersaswellasretailersareawareoftheobligations
imposedbytheStandard
FromJulybusinessesmustlabeltheirproductsaccordingtotherequirementsoftheStandard
u Tips
Visitwwwacccgovaucooltoaccessguidancematerialsthatwillassistyoutounderstandthe
Standardincludingacountryoforiginfoodlabellingguide
Anonlinetoolisavailableatwwworiginlabeltoolbusinessgovautoassistbusinessestodetermine
theirobligationsundertheStandard
Made in
Vietnam
from at
least 75%
Australian
ingredients
Made in
Australia
from at
least 50%
Australian
ingredients
Made in
Italy
Packed
in Australia
Product of
Australia

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Resolving disputes with customers or
other businesses
Ifadisputearisesbetweenyourbusinessandathirdparty(egasupplier)therearebasicstepsyou
maywishtotaketohelpyouresolvethematter
Stepinformtheotherpartyofthedispute
Telltheotherpartywhattheproblemistheoutcomeyouwantandwhatactionyouthinkwillsettlethe
disputeIt’sagoodideatoputthisinwriting(letteremailetc)
Steptrytoresolveyourdisputedirectly
TrytonegotiatearesolutionwiththeotherpartyIfyoucan’tresolvethematteryoumayneedtoseek
assistancefromathirdparty
Stepcontactathirdpartymediationservice
Mediationinvolvesanindependentthirdpartysteppinginandhelpingyouandtheotherpersonto
reachanacceptableresolutionMediationisarelativelyquickandcheapoptionthatcanhelptokeep
relationshipsintactTheAustralianSmallBusinessandFamilyEnterpriseOmbudsman(ASBFEO)oryour
localSmallBusinessCommissioner(ifavailable)maybeabletoprovideamediationservice
u TipSeepageforcontactinformationfortheASBFEOandstateSmallBusinessCommissioners
Steptalktoalawyer
IfyouareunabletoresolvethedisputeyoushouldconsiderseekinglegaladviceaboutyourrightsCourt
actioncanbecostlyandtimeconsumingandshouldbeconsideredalastresort

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Penalties for non-compliance
TheconsequencesofbreachingtheCCAorACLmaybesignificantandcouldinclude
financialpenalties
communityserviceorders
adversepublicityorders(iecorrectiveadvertising)
disqualificationfrommanagingcorporations
compensationordersforpersonswhomayhavesueredlossordamageasaresultofyour
misconduct
imprisonment(forindividualswhocontravenethecriminalcartelprovisions)
TheACCCoperatesanInfocentreforthegeneralpublictoreportconcerningbehaviourorbusiness
practicesWerelyonthesereportstoidentifyissuesandinformcomplianceandenforcementactivities
TheACCCaswellasanyofthestateterritoryACLregulatorscantakeactionforpenaltieswherea
businessbreachestheACLTheACCCistheonlyagencythatcantakeactionforbreachesofthe
competitionprovisionsoftheCCA
TheCCAandACLalsoallowindividualpartieswhohavesueredlossfromabreachoftheCCAorACL
totaketheirownprivateaction
u Tips
ToreduceyourriskofbreachingtheCCAortheACLyoushouldensure
youprovideACLtrainingtoyoursta
youcansubstantiateanyclaimsyoumakeaboutyourproductsorservices
eectiveproceduresareinplacetodealwithcustomercomplaints
youobtainindependentlegaladvicepriortoenteringintoanyspecialarrangementswith
yourcompetitors

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Relevant government agencies and
resources
Thereareanumberofgovernmentagenciesandresourcesthatcanassistyouorprovideimportant
informationthataectstherunningofyourbusiness
The ACCC
Websitewwwacccgovau
SmallbusinessonlineeducationprogramThisfreeonlineprogramprovidesabroadoverview
ofthekeyprovisionsoftheCCAandtheACLYoucanworkthroughallthemodulesoryou
canselecttheonesmostrelevanttoyourbusinessAttheendofeachmodulethereisashort
self-assessmentquizwhichyoucantaketotestyourunderstandingTheprogramisavailableat
wwwacccgovauccaeducation
SmallbusinesspublicationsWehavearangeofguidestohelpyouunderstandyourrightsand
obligationsundertheCCAThesematerialsareavailableatwwwacccgovaupublications
InformationnetworksWouldyouliketokeepupwiththelatestnewsandeventsrelevanttosmall
businessandorfranchising?Subscribetoourfreenewslettersbyvisitingwwwacccgovaumedia
subscriptions
Smallbusinesshelpline
– Callers with a hearing or speech impairment can contact the ACCC through the National Relay
Service (www.relayservice.com.au).
– TTY or modem users: phone 133677 and ask for 1300302 021
– Voice-only (speak and listen) users: phone 1300555 727 and ask for 1300302 021.
– For information in languages other than English, phone 131450 and ask for 1300302 021.
Small business bodies
AustralianSmallBusinessandFamilyEnterpriseOmbudsman
TheASBFEOprovidesinformationandassistancetosmallbusinessesandfamilyenterprisesincluding
referraltodisputeresolutionandbusinessadvisoryservicesForfurtherinformationcontactthe
ASBFEOonorvisitwwwasbfeogovau
SmallBusinessCommissioners
Theseareindependentagencieswhocanprovideinformationandassistancetosmallbusinesses
includingdisputeresolutionandadvisoryservices
NewSouthWales
OceoftheSmallBusinessCommissioner

wwwsmallbusinessnswgovau
SouthAustralia
OceoftheSouthAustralianSmallBusiness
Commissioner

wwwsasbcsagovau
Victoria
VictorianSmallBusinessCommission

wwwsbcvicgovau
WesternAustralia
SmallBusinessDevelopmentCorporation
(includingSmallBusinessCommissioner)

wwwsmallbusinesswagovau

Small business and the Competition and ConsumerAct: Your rights and responsibilities
Otherhelpfulagencies
AustralianSecuritiesandInvestmentsCommission
ASICisAustralia’scorporatemarketsandfinancialservicesregulatorandisresponsibleforbusiness
nameregistrationsASICisalsotheregulatorofconsumercreditinAustraliaContactASICon
orvisitwwwasicgovau
AustralianTaxationOce
TheATOmanagesandshapestaxexciseandsuperannuationsystemsthatfundservices
ForinformationabouttaxationmattersrelatingtoyourbusinesscontacttheATOonorvisit
wwwatogovaubusinesses
FairWorkOmbudsman
TheFWOisAustralia’semploymentandworkplacerelationsregulatorForinformationaboutyour
workplaceresponsibilitiesincludinghiringemployeesmanagingperformanceandcalculatingwagesand
entitlementsItalsooverseessomespecificemploymentlawsapplicabletofranchisingContactFWOon
orvisitwwwfairworkgovau
IPAustralia
IPAustraliaadministersAustralia’sintellectualpropertyrightssystemspecificallypatentstrademarks
designsandplantbreeder’srightsContactIPAustraliaonorvisitwwwipaustraliagovau
Businessgovau
wwwbusinessgovauprovidesbusinesseswithafirstpointofcontacttoaccessinformationandreferral
servicesacrossgovernmentVisitthewebsiteorcallforinitialadviceandreferralserviceson
matterssuchasobtainingfinancepromotionandmarketingandhardshipcounselling

Small business and the Competition and ConsumerAct: Your rights and responsibilities