The Australian Competition and Consumer Commission has released its second statement on carbon price complaints and enquiries since the commencement of the carbon pricing mechanism on 1 July 2012.
"The ACCC Infocentre, including its 1300 303 609 carbon hotline and web form, has received just over 1260 carbon price complaints and enquiries between 1 July and 24 July 2012," ACCC chairman Rod Sims said.
"Compared to the 630 carbon price related complaints and enquiries received within the first ten days of the scheme, this represents a decline from an average of 63 complaints per day to approximately 45 per day. This trend has continued downwards in recent days."
As noted in the ACCC's first update, this number is not large compared to over 900 complaints and enquiries that the ACCC has received per day across all other matters during the same period.
The majority of contacts to the ACCC have been about general price increases not specific complaints about carbon price misrepresentation. This is especially the case with electricity complaints where cost increases reviewed by the ACCC have been of the order expected. The sectors that continue to record the most complaints are the energy, landfill, refrigerants, and building and construction sectors.
"The ACCC is engaging with businesses and their industry associations everyday and, for the most part, is confident that they understand their obligations when making claims about price increases attributed to the carbon price," Mr Sims said.
"The ACCC has undertaken extensive education and consultation with hundreds of businesses since 1 July. The ACCC has issued around 30 businesses with an educative or warning letter depending upon the circumstances."
"The ACCC, at any one time, can be investigating up to 20 businesses in order to understand the claims being made and will, where necessary, take enforcement action."
"Many of the complaints and enquiries received arise from confusion between carbon price claims and other price adjustments. Even where a business has tried to ensure its representations are clear and accurate, a stray comment from an employee that casually refers to price increases as being carbon related when they are not could result in a complaint to the ACCC."
"Businesses that make a good faith attempt at calculating the effect of the carbon price have nothing to fear from the ACCC. Businesses in general are making an effort to ensure that their staff are aware of the importance of not misleading consumers."
The ACCC has been encouraging businesses to ensure their staff, particularly those interacting with customers, are aware that any representations made must be truthful and have a reasonable basis. The ACCC is continuing to review complaints and enquiries received, educate and raise awareness to ensure that consumers and businesses are not being duped by misleading carbon price claims about price increases.
The ACCC has already announced enforcement action with undertakings from two suppliers of solar panels and court enforceable undertakings received from Brumby's and Equipserve.
- Polaris Solar Pty Ltd and ACT Renewable Energy Pty Ltd: Informal undertakings were accepted from solar panel suppliers, Polaris Solar Pty Ltd and ACT Renewable Energy Pty Ltd, for carbon price claims in advertising leaflets regarding the impact of the carbon price on household electricity prices that the ACCC considered were likely to mislead.
- Brumby's: Retail Food Group, owner of Brumby's bakery, gave court enforceable undertakings in relation to comments made by Brumby's to its franchisees in an internal newsletter suggesting that franchisees link retail price increases to the carbon price.
- Equipserve: Equipserve Solutions, a refrigeration contractor, offered a court enforceable undertaking in relation to statements made in an email to its customers which attributed the entire amount of an increase in the price of a refrigerant gas to the carbon price when that was not the case.
Further actions are expected to arise from investigations over the next few weeks.