The ACCC has established an internal COVID-19 task force with the aim of educating businesses about their obligations in relation to cancellations, refunds and suspension of services as a result of COVID-19. That task force will be paying particular attention to price gouging, will consider affordability issues and consider a range of competition issues to ensure that Australian markets and in particular individuals and businesses comply with Australian competition, fair trading, and consumer protection laws.
On 27 March 2020, the Australian Competition and Consumer Commission (ACCC) released its response to the COVID-19 pandemic. The ACCC regulates competition and fair trade in Australian markets and ensures individuals and businesses comply with Australian competition, fair trading, and consumer protection laws, and in particular the Competition and Consumer Act 2010.
The ACCC has reported that many Australian businesses are facing severe disruption and an uncertain future as a result of COVID-19 impacts. Maintaining competition in the long term is one of the ACCC’s core objectives. The ACCC has adjusted the focus of its regulatory activities to account for the impact of COVID-19 on Australian consumers and businesses.
The ACCC has established an internal COVID-19 Taskforce which is already communicating directly with businesses to educate them about their obligations in relation to cancellations, refunds and suspension of services as a result of COVID-19.
The ACCC will re-focus its efforts on those priorities of most relevance to competition and consumer issues arising from the impact of COVID-19, including:
- Monitoring price gouging which is of significant concern at this time.
- Focusing on affordability issues and identifying sectors with excessive pricing.
- Engaging with governments and businesses to potentially authorise coordination between competitors that are ordinarily prohibited, but which is necessary and in the public interest at this time. For example, allowing supermarkets to have a coordinated approach to maintain the supply of essential goods.
- Seeking to minimise the regulatory burden for the ACCC’s enforcement activities.
- Continuing to consider proposed mergers but recognising timelines may need to be extended.
- Considering exemptions from infrastructure regulation if current obligations become impracticable as a consequence of COVID-19.