Explanatory Statement
Issued by the Authority of the Minister for Competition Policy and Consumer Affairs
Competition and Consumer Act 2010
Minister for Competition Policy and Consumer Affairsto the Australian Competition and Consumer CommissionDirection
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 2013.
This Direction is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Public consultation was not necessary for this Direction in accordance with section 18 of the Legislative Instruments Act 2003. The Direction is of a minor or machinery nature and does not substantially alter existing arrangements. It implements the Government’s 2013-14 Budget decision to continue the existing monitoring activities of the ACCC.
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 2013.
Overview
The Competition and Consumer Act 2010 was enacted to provide a comprehensive framework for consumer protection, competition policy, and fair trading across Australia. This legislation was introduced to address issues related to misleading or deceptive conduct, unfair practices, and anti-competitive behaviour that could harm consumers and disrupt fair market competition. The Act empowers the Australian Competition and Consumer Commission (ACCC) to enforce these provisions and ensure compliance by businesses. The Minister for Competition Policy and Consumer Affairs issued a Direction under Section 95ZE of the Act to mandate the ACCC to monitor prices, costs, and profits in the supply of unleaded petroleum products within the Australian petroleum industry. This initiative is a continuation of the 2013-14 Budget decision aimed at maintaining oversight and providing a report on these activities within a year. The Direction does not require public consultation as it is considered a minor or machinery nature instrument that does not substantially alter existing arrangements.
Scope and Application
The Competition and Consumer Act 2010, through the legislative instrument F2013L01423, mandates the Australian Competition and Consumer Commission (ACCC) to monitor prices, costs, and profits in the supply of unleaded petroleum products within the Australian petroleum industry. This directive applies specifically to the entities involved in the supply of unleaded petroleum products across the nation, thus having a national jurisdictional reach. The monitoring is intended to ensure that the prices, costs, and profits associated with these products are being managed in a manner consistent with fair competition and consumer protection principles. This legislative instrument, issued under section 95ZE of the Act, was implemented without public consultation as it is considered of a minor or machinery nature, and it does not substantially alter existing arrangements. The ACCC is required to report its findings to the Minister for Competition Policy and Consumer Affairs within one year of the commencement of the Direction, which occurred on 18 December 2013. The Direction does not exclude any particular entities or transactions within the scope of its application to the petroleum industry, nor does it specify any particular thresholds that need to be met for its application.
Key Provisions
The key operative sections of the legislation (sections 95ZE) provide for the Minister to direct the Australian Competition and Consumer Commission (ACCC) to monitor the prices, costs and profits in a specified industry and report back to the Minister. In this case, the Minister has directed the ACCC to monitor the prices, costs and profits relating to the supply of unleaded petroleum products in the petroleum industry in Australia and to report back to the Minister within one year of 17 December 2013. This Direction implements the Government’s 2013-14 Budget decision to continue the existing monitoring activities of the ACCC. The Direction is a legislative instrument and commences the day after registration.
The Act imposes obligations on the ACCC to monitor 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 2013 and to report back to the Minister within one year of 17 December 2013. The Direction does not substantially alter existing arrangements and was not subject to public consultation as it is of a minor or machinery nature.
Breaching the obligations imposed by the Act may have civil or criminal consequences. However, the legislation does not specify the maximum penalties for breach. It is important to note that the Direction is a legislative instrument and is subject to the Legislative Instruments Act 2003. The Direction is not intended to substantially alter existing arrangements and implements the Government’s 2013-14 Budget decision to continue the existing monitoring activities of the ACCC. It is therefore important for the ACCC to comply with the obligations imposed by the Act to ensure the continued effectiveness of the monitoring activities.