Mackay Chapman May 2024 ACCC Update
In this month’s ACCC update:
- Regulation of wholesale telecommunications to change following ACCC inquiry;
- Beware of fake invoices from scammers impersonating businesses;
- ACCC seeks leave from High Court to appeal CFMEU and Hutchinson boycott judgement; and
- HSBC pays penalties for alleged breaches of Consumer Data Right rules.
Regulation of wholesale telecommunications to change following ACCC inquiry
The ACCC's final report from its inquiry into the regulation of nine wholesale telecommunications services has been released. These services include:
- Domestic transmission capacity service;
- Wholesale line rental;
- Local carriage service;
- Wholesale Asymmetric Digital Subscriber Line (ADSL) service;
- Unconditioned local loop service;
- Line sharing service;
- Fixed originating access service;
- Fixed terminating access service; and
- Domestic mobile terminating access service.
After considering recent developments such as the completion of the NBN and declining use of Telstra’s copper network, the ACCC decided to allow the unconditioned local loop and line sharing services to expire on 30 June 2024. However, it extended the declarations of wholesale line rental, the local carriage service, and the wholesale ADSL service for five more years without changes to service descriptions.
The ACCC also extended the declaration of the domestic transmission capacity service for five years, removing regulation in areas where competition is effective. Additionally, it extended the declaration of fixed originating and terminating access services until 30 June 2029, with updated service descriptions reflecting industry developments.
A separate report on the domestic mobile terminating access service will be released by June 2024.
The inquiry began in May 2023, and the ACCC is mandated to hold public inquiries before the expiry of service declarations under the Competition and Consumer Act 2010.
More information is here.
Beware of fake invoices from scammers impersonating businesses
Australians are urged to verify payment details directly with businesses before paying emailed invoices to combat the increasing losses to payment redirection scams.
Despite a 28% decrease in reports to Scamwatch last year, losses to payment redirection scams rose by 3%, totaling $16.2 million. Scammers, posing as legitimate businesses, alter payment details on fake invoices, making detection difficult.
Industries targeted include real estate, legal, and construction, with recent reports indicating car dealerships and travel companies are also affected. Scam victims include individuals like a man who lost over $35,000 to a compromised email account scam.
The National Anti-Scam Centre held an industry forum to address sectors targeted by these scams and shared Scamwatch reports with law enforcement. Australians are advised to verify payment details by calling businesses directly before making payments.
For scam examples and further information, head to the ACCC media release.
ACCC seeks leave to appeal to High Court in relation to the CFMEU and Hutchinson boycott judgement
The ACCC is seeking special leave to appeal to the High Court from the Full Federal Court’s finding that the Construction, Forestry and Maritime Employees Union (CFMEU) and J Hutchinson Pty Ltd were not guilty of an anti-competitive arrangement.
The ACCC brought its case against the CFMEU and construction giant Hutchinson in December 2020 alleging the CFMEU and Hutchinson boycotted a waterproofing subcontractor at a Brisbane construction site in 2016, causing the subcontractor to be unable to continue work.
In February 2022, the Federal Court found Hutchinson had contravened sections 45E and 45EA of the Competition and Consumer Act, with the CFMEU being knowingly involved or party to the contraventions. On 29 February 2024, the Full Federal Court overturned that decision, allowing appeals by the CFMEU and Hutchinson against the initial decision.
The ACCC has now applied for special leave to appeal to the High Court. ACCC Commissioner Liza Carver has said the application is seeking “the High Court’s ruling on what is required to demonstrate that parties have reached an anti-competitive arrangement or understanding,”. This would be important clarification on what ACCC Commissioner Liza Carver saidSeeking clarity on what constitutes anti-competitive conduct, and how it is proven.
More information can be found here.
HSBC pays penalties for alleged breaches of Consumer Data Right rules
HSBC Bank Australia Limited has paid fines totaling $33,000 following the issuance of two infringement notices by the ACCC for alleged breaches of the Consumer Data Right (CDR) regulations.
The notices were related to HSBC's alleged failure to provide complete mortgage interest rate details and accurate credit card balances in response to separate CDR data requests.
The ACCC's investigation revealed that HSBC inaccurately disclosed fixed rate home loan interest rates and credit card account balances during specified periods in 2023. This inaccurate data could mislead consumers and impact their financial decisions.
ACCC Commissioner Peter Crone emphasised the importance of accurate data within the CDR framework, particularly in enabling consumers to make informed choices amidst economic concerns such as mortgage interest rates and cost-of-living pressures.
HSBC cooperated with the investigation and has since taken steps to enhance its CDR compliance, addressing data quality issues identified during the inquiry. It's essential to note that the payment of the penalty doesn't constitute an admission of guilt regarding CDR rule violations. The ACCC can issue infringement notices when it has reasonable grounds to believe a breach has occurred.
Read more here.
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.