Competition and Consumer Act 2010 - Monitoring of the Prices, Costs and Profits Relating to the Supply of Unleaded Petroleum Products in the Petroleum Industry in Australia (09/12/2014)

Overview

The Competition and Consumer Act 2010, enacted by the Parliament of Australia, was introduced to address issues related to competition and consumer protection. This Act provides a framework for regulating anti-competitive conduct and ensuring fair trading practices across various industries. One of its provisions, Section 95ZE, empowers the Minister for Small Business to direct the Australian Competition and Consumer Commission (ACCC) to monitor specific sectors and report on prices, costs, and profits. This legislative instrument, F2014L01724, issued by the Minister for Small Business, instructs the ACCC to monitor the prices, costs, and profits relating to the supply of unleaded petroleum products in Australia for a three-year period starting from 17 December 2014. The policy objective is to provide timely and accessible information to fuel consumers, allowing the ACCC to report quarterly on its monitoring activities and focus on topics of particular interest to consumers. This direction does not require public consultation as it is considered minor and does not substantially alter existing arrangements.

Scope and Application

Section 95ZE of the Competition and Consumer Act 2010 authorises the Minister for Small Business to issue written directions to the Australian Competition and Consumer Commission (ACCC) for the monitoring of prices, costs, and profits within specified industries, with the aim of reporting findings to the Minister. Pursuant to this provision, the Minister has directed the ACCC to undertake a three-year monitoring program of the petroleum industry in Australia, specifically focusing on the supply of unleaded petroleum products, starting from 17 December 2014. This monitoring is intended to provide insights into the dynamics of the petroleum market, particularly concerning consumer-related aspects such as fuel prices, operational costs, and profitability. The ACCC is mandated to submit quarterly reports to the Minister throughout the monitoring period, ensuring that the findings are both timely and accessible to stakeholders, including consumers. This legislative instrument, which is of a minor or machinery nature, does not require public consultation and is effective from the day after its registration.

Key Provisions

The main operative sections of this legislation, specifically section 95ZE of the Competition and Consumer Act 2010, empower the Minister to issue written directions to the Australian Competition and Consumer Commission (ACCC) to monitor the prices, costs, and profits related to the supply of unleaded petroleum products in the Australian petroleum industry. The Minister has exercised this power, directing the ACCC to monitor these elements for a period of three years from 17 December 2014, and to report to the government on its findings at least quarterly. This monitoring and reporting are intended to provide timely and accessible information to fuel consumers and focus on topics that are of particular interest to them. The Act imposes several obligations on the ACCC. Firstly, it must monitor the prices, costs, and profits relating to the supply of unleaded petroleum products in the petroleum industry in Australia over the specified three-year period. Secondly, the ACCC is required to report to the government on its monitoring activities at least quarterly, starting from 17 December 2014. These reports are intended to ensure that the government and the public have regular updates on the findings of the ACCC’s monitoring activities. Additionally, the ACCC is required to focus on topics of particular interest to fuel consumers in its reports, ensuring that the information provided is relevant and useful. Failure to comply with the obligations set out in the Act may result in civil or criminal consequences. Although the Explanatory Statement does not specify the exact penalties for non-compliance, breaches of the Act can potentially lead to significant fines and other legal actions. For example, under the Competition and Consumer Act 2010, individuals and corporations can be fined up to $1.1 million for breaches of the Act. The specific penalties for breaches related to this Direction would depend on the nature and severity of the non-compliance. Additionally, persistent non-compliance could lead to further regulatory scrutiny and enforcement actions against the ACCC. The precise penalties and consequences would be determined based on the specific circumstances of any breach.