Overview

The Monitoring of the Prices, Costs and Profits Relating to the Supply of Certain Feminine Hygiene Products Direction 2018, enacted in 2018, was introduced to address a policy gap in the oversight of the feminine hygiene products industry, particularly in relation to the pricing, costs, and profits of menstrual products. The Competition and Consumer Act 2010 authorised the Minister to issue such directions to the Australian Competition and Consumer Commission (ACCC) to ensure transparency and fairness in the market. This legislative instrument was issued by the Treasurer, following consultation with the ACCC, and aims to monitor the menstrual products market ahead of the removal of the Goods and Services Tax (GST) on these products starting from 1 January 2019. The ACCC was tasked with monitoring the prices of menstrual products from 1 December 2018 to 28 February 2019 and submitting a report to the Treasurer by 31 March 2019. This Direction is a legislative instrument under the Legislation Act 2003 and was registered on the Federal Register of Legislation.

Scope and Application

The Monitoring of the Prices, Costs and Profits Relating to the Supply of Certain Feminine Hygiene Products Direction 2018, established under section 95ZE of the Competition and Consumer Act 2010, mandates the Australian Competition and Consumer Commission (ACCC) to oversee and report on the prices, costs and profits associated with the supply of menstrual products within the feminine hygiene products industry. This directive applies specifically to entities involved in the supply of menstrual products in Australia. Its geographic reach is national, applying uniformly across the Commonwealth, and it is not limited by state or territory boundaries. The Direction does not specify any exclusions, exemptions, or thresholds within its scope of application. The legislative instrument is designed to be complemented and potentially extended by subordinate instruments, thereby allowing for more detailed or sector-specific regulations to be introduced as necessary. The Direction was issued by the Treasurer on 28 November 2018, following consultation with the ACCC, and it will commence on the day after its registration on the Federal Register of Legislation.

Key Provisions

The main operative sections of the Monitoring of the Prices, Costs and Profits Relating to the Supply of Certain Feminine Hygiene Products Direction 2018 (Section 95ZE of the Competition and Consumer Act 2010) require the Australian Competition and Consumer Commission (ACCC) to monitor the prices, costs, and profits relating to the supply of menstrual products in the feminine hygiene products industry. This monitoring is to be conducted from 1 December 2018 to 28 February 2019, with a report to be submitted to the Treasurer by 31 March 2019. The Direction facilitates the government's commitment to oversee the market dynamics of these products following the decision to remove the Goods and Services Tax (GST) from menstrual products starting 1 January 2019. This legislative instrument, which was issued by the Treasurer and provided to the ACCC on 28 November 2018, is a response to the need for transparency and accountability in the pricing strategies of entities within the specified industry. The obligations imposed by the Direction on the ACCC are to diligently monitor the market prices of menstrual products over the specified period. This involves gathering and analysing data on the costs incurred by suppliers and the profits made, ensuring that these aspects are transparent and do not lead to anti-competitive practices. The ACCC must also prepare a comprehensive report detailing their findings, which should be submitted to the Treasurer by the stipulated deadline. Additionally, the Direction stipulates that while the ACCC was consulted, public consultation was deemed unnecessary due to the minor nature of the Direction and its alignment with existing legislative frameworks. Failure to comply with the requirements set out in the Direction could result in various consequences. While the Direction itself does not explicitly state penalties for non-compliance, the overarching Competition and Consumer Act 2010 provides a framework within which breaches of such directives can be addressed. Typically, non-compliance with directions issued under Section 95ZE may result in civil penalties, including fines, as well as potential criminal penalties for more severe breaches. The Act also allows for the imposition of corrective orders or other measures to ensure compliance. The specific penalties are determined by the courts and can vary widely depending on the nature and severity of the breach, but they may include significant financial penalties for both individuals and corporations.