An Australian Competition and Consumer Commission (ACCC) announcement caught my attention on Australian Consumer Law (ACL) as it has been an ongoing advocacy issue. For more than a decade, we’ve contributed to the evolution of the statutory consumer and competition framework to ensure effective legislative protections are provided for both consumers and traders. Regardless of the regulatory preventative measures enacted, new scams and viruses emerge targeting individuals and businesses and unsafe products permeate the retail market.
Scamwatch estimates that the amount Australians are set to lose in 2019 from scams will be a record. By the end of the year, the total will exceed $532 million, surpassing half-a-billion dollars for the first time. This is the age of digitalisation, and scammers use the internet to carry out their illegitimate business activities. And it is a business, having call centres with convincing scripts, staff training programs, and corporate performance indicators their ‘employees’ need to meet. MTA Queensland is one of the Federal Government’s Small Business Digital Champions and is thus able to assist small business members to be digitally savvy and advise on protection and detection skills.
A recent ACCC report highlights the exponential increase in product recalls. Excluding motor vehicle recalls, there are some 6.6 million individual products under voluntary recall, with about half of these, probably, still to be found in people’s homes. Figures show that each year, the ACCC is notified of about 650 consumer product recalls. Of these, only about half of the affected products are returned to sellers, leaving one in four Australian households exposed to potential hazards. Consequently, the ACCC is recommending to government to further strengthen the ACL.
The proposal is to require businesses to comply with a ‘new safety of duty’ which would mean businesses must take ‘reasonable steps’ to ensure products they sell are not unsafe. The ACCC is of the view that legally requiring businesses to take steps to ensure the safety of their products before they enter the market is needed to protect Australian consumers. Estimates show there are around 780 deaths and 52,000 injuries per year from unsafe consumer products in Australia. This amounts to a cost of at least $5 billion to the economy, including medical costs, lost wages and lost productivity.
To help consumers with product recalls, the ACCC is urging Australian consumers to sign up to the Product Safety Australia website to receive product recall alerts. In addition, where possible, they should register their products with manufacturers to ensure they receive immediate information if a product is recalled.
In last month’s Viewpoint I mentioned the compulsory recall of particular vehicles with defective Takata air bags to be replaced by 31 December 2020. The ACCC recently issued an “urgent safety alert for ‘critical’ Takata airbags. Major motor vehicle manufacturers including BMW, GM Holden, Honda, Mitsubishi and Toyota, are warning that 20,000 vehicles already under recall for defective Takata airbags are now classified as ‘critical’. The ACCC is urging consumers not to drive these vehicles until the airbag has been replaced. Under the urgent recall, drivers are entitled to have their vehicles towed to the dealership by the manufacturer and have the airbag replaced for free.
The frequency of product and vehicle recalls, coupled with poor customer service relationships, has had the effect of undermining consumer trust and confidence across the retail and service industries. MTA Queensland’s members are committed to 10 member values. They are: honest, professional, transparent, courteous, integrous, caring, innovative, proactive, accountable, and compliant. The display of the MTA Queensland logo and/or the Professional Circle branding in workshops and offices provides consumers with reassurance of commitment to the delivery of the highest standards of service and professionalism.
Fuel Prices
The annual ACCC petrol report is indicative of the substance of many MTA Queensland submissions to the ACCC on the now discontinued rampant petrol price discounting by the major supermarkets through shopper docket schemes. In a nutshell, a decade or so ago we said: ‘consumers may benefit in the short term from super fuel pricing discounting but in the medium term, competition will be diminished by the closure of independent or non-aligned supermarket fuel outlets forced out of the market’.
The ACCC report said: ‘independent chains were the lowest priced retailers in all eight cities, while Coles Express was the highest priced retailer in almost all cities.’ A motorist in Brisbane buying petrol at the highest priced retailer (i.e. Coles Express) instead of purchasing it at the lowest priced retailer (i.e. United), could have saved on average 8.8 cpl each time the vehicle was filled up, or $229 in 2018.
MTA Queensland contributions to the ACCC to have super discounting ceased was successful but the advocacy for a competitive independent fuel market remains to be achieved. At 30 June 2018, in Brisbane there were 418 fuel sites of which only 59 were small independents. In other words, the six largest fuel retailers accounted for about 74 per cent of total retail sales.
Fuel Price App
To assist consumers with managing fuel price volatility, a new exciting world first fuel trading Application (App) has been launched. It is the initiative of Refueler, an Australian company which was developed with MTAiQ – our innovation hub – and has the capability of benefiting both business and consumers. Our interest in the App, whilst clearly advantageous to consumers, is to ensure that it is conducive to competition supporting both small fuel retailers and independents as well as the major players.
For consumers, the App allows them to buy and pay for a tank of fuel at real-time pricing at a designated service station or fuel retail site of their choosing and collect all of it or some within ten days. The advantages of the App are considerable, ranging from savings, convenience, parents paying for the fuel for their children and even gifting a tank of fuel. There is also a crowdfunding opportunity just announced to launch the App. To find out more click here.
Industrial Relations advice
Indelibly embedded into the MTA Queensland service to members is the specialist industrial relations advice, resources, guides and representation. There’s been a change in personnel following the recent retirement of long-serving Industrial Relations Manager Ted Kowalski – but not the quality or immediacy of the advice. Our senior industrial relations team now comprises two Senior Workplace Relations Advisors: Evangeline Kannis, who has been with the MTA Queensland for more than a year and brought copious years of practice and understanding of all aspects of employment relations, and new recruit Ian Naylor who brings extensive workplace relations experience. Evangeline and Ian both have significant experience successfully representing employers in mediations and conferences and I assure members they can rely on expert and courteous advice from our industrial relations team.
Finally
Calling all women in automotive to get your expressions of interest in for scholarship places for the ‘Elevate’ leadership course. The ‘Elevate’ initiative has been implemented to educate emerging and mid-level female leaders in the automotive industry by offering two leadership development programs.
Expressions of interest for the Elevate initiative close on 29th November, with both leadership courses commencing early 2020. Interested candidates can find more information and register their interest here.
With every ticket now sold for our MTA Queensland Industry Awards Dinner, it is shaping up to be an excellent event where we will celebrate achievements and automotive value chain camaraderie. It is to be held on Saturday 16 November at the Emporium Hotel, South Bank, Brisbane and for those who managed to get tickets, we look forward to seeing you there!
As always, take care and stay safe.