The Rudd Government today introduced into the Parliament the Trade Practices Legislation Amendment Bill 2008 to improve the effectiveness of the Trade Practices Act in protecting competitive processes in the Australian economy.
The Bill forms a key part of the government's economic reform agenda - giving the Australian Competition and Consumer Commission (ACCC) the tools it needs to promote competition, fair trading and protect consumers.
"This Bill represents the most significant reform of the Trade Practices Act in 22 years," the Minister for Competition Policy and Consumer Affairs, Chris Bowen said.
"The Rudd Government has a fundamental view that competition policy is at the core of the government's economic agenda.
"These reforms will make it easier to prosecute businesses engaging in anti-competitive behaviour, give small business permanent representation on the ACCC, and allow small business to access cheaper and more efficient judicial processes."
"These reforms are good news for small businesses, like independent petrol retailers and small grocers, who are competing against more powerful businesses."
Strengthening section 46 and cracking down on anti-competitive conduct
The Government's amendments will:
- ensure that victims of predatory pricing will not need to prove that the predator has the ability to recoup losses after participating in an anticompetitive, below cost pricing strategy.
- clarify the meaning of the term 'take advantage' in section 46 in response to concerns that the present meaning of that term has prevented section 46 from capturing anticompetitive behaviour.
- remove the unnecessary uncertainty that has arisen following the 'two track' process for predatory pricing that developed under the previous government.
Boosting the competitive position of small business
The Bill amends the Trade Practices Act to require that at least one of the Deputy Chairpersons of the ACCC have knowledge of, or experience in, small business matters. It also extends the jurisdiction of the Federal Magistrates Court to cases involving alleged breaches of section 46 of the Trade Practices Act.
The Bill also removes the existing arbitrary monetary threshold currently that applies to allegations of unconscionable conduct in business transactions.
More information on the amendments and the government's original announcement.
CANBERRA
26 June 2008