The Federal Government has committed to creating a new designated complaints function within the Australian Competition and Consumer Commission (ACCC) designed specifically to preference complaints made by consumer interest groups.
The new function, which the Government has put to public consultation, would enable designated consumer and small business advocates to submit a complaint to the ACCC where they have evidence of a “significant or systemic market issue” affecting Australian consumers or small businesses.
Once a complaint is lodged via this mechanism, the ACCC would be required to publicly respond within 90 days, making clear what further action, if any, the competition regulator intends to take.
The Bill is part of the Government’s Better Competition commitment, which has vowed to establish a ‘super complaints’ function (now referred to as ‘designated complaints’ function) within the ACCC.
Whilst, currently, any individual or small business can submit a complaint report (addressing a widespread or systemic issue) to the ACCC, these complaints must – due to the sheer number received – be categorised and actioned by the watchdog in order of urgency.
The proposed Bill comes in response to a push from small businesses and consumer groups for a separate channel that would enable “certain designated organisations to bring evidence of significant or systemic market issues to the ACCC, and require [the regulator] to publicly respond to the complaints in a timely way”.
A designated complainant – which comprises a corporation, an individual or an unincorporated association – is an entity that has specific approval from the competition minister.
This, the Government noted, provides an opportunity for entities that represent the interests of consumers or small businesses in Australia to become designated complainants, regardless of their corporate structure. Among these include a range of consumer and small business advocacy organisations.
The Minister may cap both the number of designated complainants and the number of designated complaints that may be submitted in a given period.
“This will ensure that the ACCC has adequate resources to progress designated complaints alongside their identified enforcement priorities, while also encouraging designated complainants to consider the type and quality of proposed designated complaints ahead of lodgement,” Treasury wrote in its consultation briefing document.
In its most recent annual report, the ACCC recorded a 34 per cent rate of completion, within a three month timeline, for initial competition investigations, significantly down on the 60 per cent target the competition watchdog set for itself.
The completion rate for in-depth competition investigations, within a 12 month timeline, sits at just 42 per cent, significantly down on the ACCC’s 70 per cent target rate.
Assistant Minister for Competition, Charities and Treasury Andrew Leigh said the proposed legislation would be “good for consumers and… good for small business.”
“This designated complaints function will enable consumer and small business advocates to raise systemic issues and have them prioritised by the competition and consumer watchdog.”
