False and misleading conduct by other businesses including suppliers is the main concern for small business, according to the ACCC.
Complaints to the ACCC increased by eight per cent in the six months to 31 December 2019, totalling more than 900 and accounting for over a third of small business reports.
Deputy chair Mick Keogh says he is concerned about the increase and reminds businesses they must ensure their representations to both consumers and business counterparts are accurate and honest.
“The ACCC will take action when we become aware of misleading and deceptive conduct, especially when that conduct has the potential to result in widespread harm,” he says.
A recent example is Coles Group not fully passing on t Norco a milk price rise, as was claimed in its marketing materials. As a result of ACCC action, Coles committed to paying Norco dairy farmers around $5.25 million.
However, franchisees not acting in good faith towards franchisees continues to be the most commonly reported conduct under the Franchising Code. Another common issue was inadequate disclosure, which accounted for 14 per cent of franchising report.
“We are continuing our work to educate franchisees that franchising, like other businesses, involves risks and to remind franchisors of their obligations.
“We’ve developed resources including a guide to help franchisees understand their disclosure document, and a guide for franchisors about what a disclosure document should look like.”
The ACCC frequently hears concerns being expressed by small businesses that are subject to onerous contract agreements with large businesses.
The ACCC continues to advocate for changes to business-to-business unfair contract term laws including the inclusion of penalties for non-compliance.
“This work highlights the importance of our enforcement and compliance activities to benefit small businesses more broadly,” Keogh adds.
