Consumer and small business advocates will now have special powers to raise significant and systemic issues with the Australian Competition and Consumer Commission (ACCC) for investigation.
This comes from new legislation introduced by the Albanese Government, which will establish a designated complaints function within the ACCC.
The new function will empower designated consumer and small business advocates to submit a complaint to the ACCC where they have evidence of a significant or systemic market issue affecting Australian consumers or small businesses.
Once a designated complaint is lodged, the ACCC will be required to consider and publicly respond to the complaint within 90 days. The ACCC must state what further action, if any, will be taken in response to the complaint.
It is expected that the first designated complaints will be able to be lodged with the Australian Competition and Consumer Commission from July 2024.
“Small businesses work hard, and they deserve to be heard,” Minister for Small Business Julie Collins said. “We are fulfilling our commitment to give small businesses and their representatives better opportunities to have their concerns addressed quickly.”
Assistant Member for Competition, Charities, Treasury and Employment Andrew Leigh said small business and consumer advocates have often raised problems of uncompetitive markets.
“This empowers them to raise significant or systemic problems with the ACCC – with a guarantee that the ACCC will consider the issue and respond,” Leigh said.
“Competition is the consumer’s best friend. Whether it’s beer or ice cream, airlines or supermarkets, too many markets are excessively concentrated.
“A lack of competition means people pay higher prices, and experience slower productivity growth. Because monopolies tend to gouge the vulnerable, a lack of competition worsens inequality.”
As well as highlighting key issues affecting consumers and small business, ACCC chair Gina Cass-Gottlieb said the proposed new function will also reinforce the role of advocate organisations in detecting emerging issues.
“A number of our successful compliance and enforcement outcomes have come about from referrals to us by consumer or small business advocacy groups, so we welcome this proposed measure that will provide an official avenue for this information,” Cass-Gottlieb said.
“We consider it will reinforce public confidence in the responsiveness of the ACCC to the competition, consumer and fair trading issues significantly impacting the community.”
Similar schemes also operate in the United Kingdom and Canada, according to the ACCC.