Explanatory Statement
Issued by the Authority of the Assistant Treasurer
Competition and Consumer Act 2010
Assistant Treasurer to the Australian Competition and Consumer Commission Direction
Section 95ZE of the Competition and Consumer Act 2010 (the Act) provides that the Minister may give written directions to the Australian Competition and Consumer Commission (ACCC) to monitor prices, costs and profits relating to the supply of goods or services by persons in a specified industry and to give the Minister a report on the monitoring.
This Direction gives effect to the Government’s decision that the ACCC monitor the prices, costs and profits relating to the supply of unleaded petroleum products in the petroleum industry in Australia. The ACCC must also report to the Government on its monitoring activities within one year of 17 December 2012.
This Direction is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
This Direction commences the day after registration. The ACCC will commence monitoring the prices, costs and profits relating to the supply of unleaded petroleum products in the petroleum industry in Australia for one year from 17 December 2012.
Overview
The Competition and Consumer Act 2010 was enacted to establish and enforce the Australian Consumer Law, regulate competition and fair trading, and provide for consumer protection. This legislation was introduced to address issues such as anti-competitive practices, misleading or deceptive conduct, and unfair trading practices. The Act provides the legislative framework for the Australian Competition and Consumer Commission (ACCC) to oversee and enforce compliance with these provisions. The Assistant Treasurer, under Section 95ZE of the Act, has the authority to direct the ACCC to monitor specific industries, including the supply of unleaded petroleum products in this instance. The objective of this particular direction is to ensure that the ACCC comprehensively monitors and reports on the prices, costs, and profits within the petroleum industry over a specified period. This monitoring is intended to inform policy and regulatory decisions aimed at promoting fair competition and protecting consumer interests within the industry.
Scope and Application
The Competition and Consumer Act 2010, through the issuance of a legislative instrument by the Assistant Treasurer, directs the Australian Competition and Consumer Commission (ACCC) to undertake specific monitoring activities within the petroleum industry in Australia. This Direction, pursuant to section 95ZE of the Act, mandates the ACCC to focus on the prices, costs, and profits associated with the supply of unleaded petroleum products. This legislative measure applies to all entities engaged in the supply of unleaded petroleum products across Australia, thus encompassing the entirety of the national petroleum sector. The geographic scope of this Direction is national, ensuring comprehensive oversight throughout the country. The Direction does not specify any exclusions, exemptions, or thresholds, implying that all relevant entities within the specified industry are subject to its provisions. Additionally, the Act allows for the extension or restriction of its application through subordinate instruments, which may provide further details or adjustments to the monitoring activities as necessary.
Key Provisions
The primary operative sections of the Competition and Consumer Act 2010, as applied through the Direction, mandate the Australian Competition and Consumer Commission (ACCC) to oversee prices, costs, and profits in the supply of unleaded petroleum products within the Australian petroleum industry (Section 95ZE). This directive compels the ACCC to engage in detailed monitoring activities over a one-year period starting from 17 December 2012. Additionally, the ACCC is required to furnish a comprehensive report to the Minister, detailing the outcomes of this monitoring process within one year of the directive's commencement.
The obligations imposed by this Direction on the ACCC are substantial and specific. The ACCC must meticulously collect and analyse data related to the prices, costs, and profits of unleaded petroleum products. This involves gathering comprehensive information from various stakeholders within the industry, conducting detailed analyses, and ensuring that the data collected is both accurate and representative of the broader market. Furthermore, the ACCC is obligated to present a thorough report to the Minister, encapsulating its findings, insights, and any recommendations arising from the monitoring process.
Breaches of the requirements stipulated in this Direction can lead to significant consequences. While the specific offences and penalties are not detailed within the Direction itself, under the Competition and Consumer Act 2010, non-compliance with such directives can result in severe penalties. These may include substantial fines and, in more egregious cases, potential criminal charges against individuals or entities responsible for the breach. The exact penalties can vary depending on the nature and severity of the breach, but they are designed to ensure strict adherence to the legislative mandates.