Misleading claims are an ongoing issue in the small business sector. The Australian Competition and Consumer Commission (ACCC) regularly release reports on the interests of small businesses. Misleading conduct and false representations continue to be the biggest small business issue, with over 1,500 complaints received in the 2013–2014 financial year, followed by complaints about consumer guarantees (more than 900). It is not just small businesses making misleading claims hurting other small businesses. The ACCC noted that when large businesses present their products as having a particular feature when they dont, it can undermine the unique selling point that small businesses who do offer that feature depend on to compete. Small businesses often rely on a unique selling point to compete. If a large business presents a product as having a feature that it doesnt, this can harm small businesses, ACCC Deputy Chair Dr Michael Schaper said. The ACCC says it will continue to use a range of compliance and enforcement tools to encourage compliance. Focus areas for ACCC compliance for 2014 include the following: emerging online trading issues; complexity and unfairness in consumer or small business contracts; conduct in concentrated markets which impacts on small business consumers or suppliers; credence claims (such as organic and country of origin claims); and consumer guarantees, particularly in relation to the sale of extended warranties. The report, Small business in focus –1 January 2014 to 30 June 2014, is available on the ACCC website.
Posted on: Fri, 07 Nov 2014 03:03:00 +0000
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