Mackay Chapman May 2025 ACCC Update

In this month’s ACCC update:

• LDV Automotive Australia in court for alleged misleading advertising
• Hungry Jack’s pays penalties for supplying non-compliant toys with button batteries
• ACCC proposes authorisation for sustainable finance collaborations
• Hard Rock admits to price maintenance and misleading consumer claims
• Qteq found attempting to induce cartel arrangements in the oil and gas industry
• ACCC seeks feedback on proposed stamp price increase by Australia Post

Keep reading for more information and key details.

LDV Automotive Australia in court for alleged misleading advertising

The ACCC has initiated proceedings against Ateco Automotive Pty Ltd, trading as LDV Automotive Australia, over allegations of misleading advertising. 

The alleged breaches concern representations about the durability and suitability of specific LDV vehicle models, including the T60 and G10, which were found to have a propensity to rust or corrode within five years of manufacture.

The ACCC claims that between 23 April 2019 and 30 November 2024, LDV misled consumers about the vehicles' ability to handle various terrains and environments despite evidence that they were prone to rust. 

The ACCC also alleges that a 10-year anti-corrosion warranty advertised for the T60 model was misleading, as it did not reflect the reality of the rust issues. 

The regulator is seeking penalties, consumer redress, and other orders.

Hungry Jack’s pays penalties for supplying non-compliant toys with button batteries

Hungry Jack’s Pty Ltd has paid $150,240 in penalties after receiving eight infringement notices from the ACCC. 

The breach involved Garfield toys, powered by button batteries, that were supplied with children’s meals across Australia between 20 May 2024 and 30 May 2024.

Although the toys met the button battery safety standard, they lacked critical warnings about the dangers of button batteries, such as the risk of ingestion, which can lead to severe injury or death. The ACCC is focused on enforcing these safety standards due to the dangers posed by button batteries, which have been linked to the deaths and injuries of young children in Australia.

Hungry Jack’s has recalled the toys and committed to a compliance program to prevent future breaches. The company has also been working with the ACCC to ensure adherence to safety regulations.

ACCC proposes authorisation for sustainable finance collaborations

The ACCC has released a draft decision proposing authorising the Australian Sustainable Finance Institute (ASFI) and industry participants to collaborate on sustainable finance initiatives. 

The collaboration, aimed at improving natural capital data integration and supporting sustainable investment, is expected to enhance private capital flow into environmental projects. The ACCC has proposed conditions to limit any negative impacts on competition, ensuring the public benefits outweigh potential harm. Public submissions are open until 2 May 2025.

Hard Rock admits to price maintenance and misleading consumer claims

Apparel business Hard Rock Enterprises Pty Ltd has admitted to engaging in resale price maintenance and misleading consumers about their rights to return faulty or incorrect products. 

The ACCC accepted a court-enforceable undertaking from Hard Rock, which includes corrective actions and a compliance program. 

Hard Rock required resellers to sell products within a specific price range and falsely limited consumers' time to seek remedies for faulty items. The company will now issue corrective notices and update its website to comply with consumer rights.

Qteq found attempting to induce cartel arrangements in the oil and gas industry

The Federal Court has found Qteq Pty Ltd, an oil and gas services company, and its executive chairman, Simon Ashton, guilty of attempting to induce cartel conduct in the oil and gas industry between 2017 and 2019. 

The court revealed that Qteq and Ashton tried to influence competitors or potential competitors to enter into illegal agreements involving market sharing, bid rigging, and agreements not to supply services to large oil and gas companies. These attempts included manipulating a multi-million-dollar tender. 

The ACCC has warned that cartel conduct is a serious violation of competition law and will be met with enforcement action. The Federal Court will hold further hearings to determine penalties and other consequences.

ACCC seeks feedback on proposed stamp price increase by Australia Post

The ACCC has consulted on Australia Post’s proposed stamp price increase of 13.3% for mid-2025. 

The proposed increase would apply to certain letter types, with the introductory postage rate rising from $1.50 to $1.70. The ACCC's preliminary view is that the price hike is unlikely to generate surplus revenue for Australia Post, which has suffered significant losses due to declining letter volumes. 

The consultation invited public feedback, particularly focusing on how the increase could impact vulnerable groups and businesses that rely on postal services. 

The ACCC is also considering ways to support concession card holders and small businesses through the price change. 

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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.