BRADBURY:
I've seen reports in the papers today that some franchisors have been sending information to franchisees suggesting they should increase their prices and allow those price increases to be falsely blamed on the introduction of the carbon price.
This sort of behaviour is reprehensible. Of course these are matters that are the subject of investigation by the ACCC and if any breaches of the law have occurred, then those involved in this sort of conduct could be up for fines of up to $1.1 million per contravention of the act. It's very serious indeed. There is of course the question of the legality of what's occurred in some of these instances and they are matters that are subject to investigation by the ACCC, but there's also a question of the morality of businesses seeking to rip off their customers and to communicate with suppliers to ensure that customers are being ripped off, and to somehow use the carbon price as an excuse for this behaviour. Well, this sort of behaviour is not on, it's unacceptable and frankly it should be condemned. These are practices that are not appropriate and frankly are treating consumers as mugs.
I see that earlier today Mr Abbott was given the opportunity to condemn this sort of conduct and he chose not to do so. I find it extraordinary that this sort of behaviour would not be condemned, and it would seem from Mr Abbott's comments as though he is condoning this sort of behaviour. Anyone that seeks to rip off their customers by jacking up prices and blaming those prices increases on the carbon price will be the subject of investigation and potential enforcement activity by the ACCC.
I think these practices serve as a reminder to us all; a reminder to businesses – be very, very careful about any representations you make about your prices. Don't jack up your prices and falsely blame the carbon price. It also serves as an important reminder to consumers. If you see a business you are dealing with jack up its prices, ask some serious questions, try and get to the bottom of why those price rises are occurring and if you're not satisfied with the responses that you're receiving, pick up the phone and call the ACCC. The ACCC has a dedicated hotline that can be reached on 1300 303 609.
JOURNALIST:
[Inaudible]
BRADBURY:
These are matters that will be, and are, the subject of investigation by the ACCC. Whether the law has been broken or not is a matter that will be determined by the ACCC and ultimately the courts if that is necessary. But I would make this point: there is something morally reprehensible about any business that is seeking to jack up their prices and rip off consumers and to somehow seek some cover behind the carbon price. Businesses that jack up their prices and seek to falsely attribute those price rises to the carbon price, well they are in breach of the law. But of course, the ACCC relies upon consumers and those of us out there in the community where we see potential breaches to make sure they are brought to the attention of the Commission so they can be investigated and where necessary action taken.
JOURNALIST:
[Inaudible]
BRADBURY:
The legislation is strong enough to deal with any example of where someone jacks up their price and falsely attributes that increase to the carbon price. That is not just a law that is specific to the carbon price, that's a general law that operates. You can't mislead your consumers and you can't rip them off and then seek to falsely blame those price rises on the carbon price.
JOURNALIST:
Isn't it worrying that small businesses are being forced to put up their prices?
BRADBURY:
We've always said there will be some price increases as a result of the introduction of the carbon price but let me keep this in perspective: overall prices will increase by less than one per cent – 0.7 per cent. That means one cent in the dollar. If you're experiencing price rises that are in excess of that, outside of your energy bills, which are a different case, but if you're experiencing price rises above that where people are blaming the carbon price, you should be asking questions of the business and if you're not happy with the answers you're getting, pick up the phone and give the ACCC a call.
JOURNALIST:
[Inaudible]
BRADBURY:
The ACCC is a very strong regulator, we have provided additional resources to the ACCC to ensure that they are equipped to deal with the challenges of the introduction of the carbon price. And the law is very strong with potential penalties of up to $1.1 million per breach, per offence. My message to businesses is to be very, very careful and if you are inclined to jack up your prices and falsely mislead consumers into thinking it's because of the carbon price, then be aware there are very serious consequences for doing that.