Mackay Chapman July 2025 ACCC Update

In this month’s ACCC update:

• Warning issued after ACCC phone numbers spoofed by scammers
• Banana Boat and Hawaiian Tropic owner taken to court over alleged ‘reef-friendly’ claims
• Bupa in court over misleading health insurance benefits and unconscionable conduct
• Unsafe products in online marketplaces among top ACCC product safety priorities
• Cash Converters and Mobile Travel Agents pay penalties for allegedly breaching Franchising Code of Conduct
• ACCC calls for stronger rules to protect digital market competition
• Optus faces $100 million penalty for unconscionable sales conduct

Keep reading for more information and key details.

Warning issued after ACCC phone numbers spoofed by scammers

The National Anti-Scam Centre is warning Australians about scammers spoofing ACCC phone numbers to steal personal info.

Scammers have called pretending to be ACCC representatives, sometimes using other organisations’ names and speaking in languages other than English.

ACCC Deputy Chair Catriona Lowe said the ACCC does not make cold calls or ask for passwords, bank details, or personal info. If you get a suspicious call, hang up and don’t share any information.

Banana Boat and Hawaiian Tropic owner taken to court over alleged ‘reef-friendly’ claims

The ACCC has launched Federal Court proceedings against Edgewell Personal Care Australia and its US parent company for allegedly making false or misleading ‘reef-friendly’ claims about Hawaiian Tropic and Banana Boat sunscreens.

Between August 2020 and December 2024, Edgewell Australia promoted over 90 sunscreen products as ‘reef friendly’ (including via packaging logos), even though the sunscreens contained chemicals the ACCC says can harm coral reefs and marine life.

ACCC Deputy Chair Catriona Lowe said the claims lacked a reasonable scientific basis, misleading consumers who want environmentally safe products.

The ACCC alleges Edgewell ignored evidence about the reef risks and continued the claims in Australia well after removing them in the US.

Bupa in court over misleading health insurance benefits and unconscionable conduct

The ACCC has commenced Federal Court proceedings against Bupa HI Pty Ltd for misleading members about their private health insurance entitlements and unconscionable conduct in assessing claims over more than five years.

Bupa admitted to wrongly telling members they were not entitled to benefits for entire claims involving multiple treatments, when part of the claim was covered. This affected thousands of consumers and led to delayed or cancelled treatments, financial hardship, and distress.

Bupa has paid $14.3 million in compensation to affected members, medical providers, and hospitals and agreed to continue remediation under an ACCC-enforceable undertaking.

The ACCC is seeking penalties, injunctions, and other orders. The Court will decide on the outcomes.

If you believe you’ve been affected, contact Bupa or complete a remediation form at www.bupa.com.au/mixedcoverage or seek specialist legal advice.

Unsafe products in online marketplaces among top ACCC product safety priorities

The ACCC will focus on unsafe products in online marketplaces as a key part of its 2025-26 product safety priorities, ACCC Chair Gina Cass-Gottlieb announced at the National Consumer Congress.

The regulator will target high-risk and systemic product safety issues in the digital economy using regulation, education, compliance, and enforcement.

Other priorities include child safety (button batteries, furniture, infant sleep products), lithium-ion battery safety, updating mandatory standards, and improving product safety data.

The ACCC plans expedited reviews of mandatory standards from July 2025 to keep standards current and reduce costs for businesses. 

Cash Converters and Mobile Travel Agents pay penalties for allegedly breaching Franchising Code of Conduct

Cash Converters Pty Ltd and MTA – Mobile Travel Agents Pty Ltd have each paid $16,500 in penalties after allegedly failing to update franchisor information annually on the Franchise Disclosure Register, as required by the Franchising Code of Conduct.

The ACCC says accurate, up-to-date information on the Register is essential for prospective franchisees to make informed decisions. ACCC Deputy Chair Mick Keogh said failure to maintain this information undermines transparency and the Register’s integrity.

The ACCC will continue monitoring franchisors’ compliance with the Code and may take further enforcement action if needed.

More information is available on the ACCC website.

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ACCC calls for stronger rules to protect digital market competition

The ACCC’s final Digital Platform Inquiry report finds ongoing risks of unfair and anti-competitive practices are harming Australian consumers and small businesses.

The regulatory body says current laws fall short and recommends new rules, including an unfair trading ban, a dispute resolution body, and a digital competition regime.

The report flags issues like hidden fees, manipulative design, and dominant platforms favouring their services. Emerging tech like cloud computing and AI also pose new competition risks.

Optus faces $100 million penalty for unconscionable sales conduct

Optus Mobile Pty Ltd has admitted to unconscionable conduct in selling telecommunications products to over 400 vulnerable consumers across 16 stores nationwide between 2019 and 2023. 

The ACCC alleges that Optus pressured customers into unaffordable phone plans and devices they did not want or need, often failing to explain terms or check coverage.

Many affected consumers were vulnerable, including First Nations Australians, had disabilities, or low financial literacy. Debt collectors pursued some for debts arising from these sales.

Optus has agreed to a $100 million penalty, subject to Federal Court approval, and committed to compensating consumers, improving staff training, changing sales incentives, and buying back some licensee stores.

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The contents of this article do not constitute legal advice and it is not intended to be a substitute for legal advice and should not be relied upon as such.  It is designed and intended as general information in summary form, current at the time of publication, for general informational purposes only.  You should seek legal advice or other professional advice in relation to any particular legal matters you or your organisation may have.