Small businesses cannot expect to fly under the ACCC’s radar. 
Managing risk of non compliance with laws, including the Australian Consumer Law (ACL) is something all businesses should be concerned with. The ACCC does not only deal with complaints and enquiries relating to the conduct of large businesses and companies. According to the ACCC’s latest Small Business in Focus Report , in the first 6 months of this year, the ACCC received nearly 4000 complaints relating to small businesses.
The majority of complaints related to issues of:
- misleading conduct or false representations; and
- consumer guarantees
How does the ACCC find out if a business is not compliant?
Businesses should realise that complaints can be, and are, made by consumers who believe that the business has done wrong under the law, or by competitors trying to gain a competitive advantage or wanting to level the playing field. The ACCC won’t investigate all complaints but if they think the issues are serious enough or fit with their enforcement priorities, they will do so. The ACCC can also initiate its own enquiries without first receiving a complaint.
What are the consequences of ACCC action?
The ACCC has a number of enforcement measures it can take if businesses, large or small, are found to be breaching the ACL or if the ACCC believes that they are, for example by engaging in misleading or deceptive conduct, not providing remedies under the consumer guarantees, by supplying unsafe goods or services. If a company or business is found to be in breach of the ACL, or if the ACCC has reason to believe that they are, the ACCC can take action including:
- issuing substantiation notices requiring them to provide evidence that their claims are true and accurate
- issuing infringement notices requiring them to pay a penalty
- seeking court enforceable undertakings
- requiring them to implement compliance programs
- requiring staff and owners to participate in training
- initiating court action.
Other negative impacts that an ACCC investigation and action can have on the business are:
- adverse publicity, which can damage the business’s reputation
- disrupting management from the core business in complying with the ACCC’s investigators’ demands.
5 Steps to managing risk of a breach
Businesses can manage the risks of being fined or otherwise penalised by the ACCC and the damage that this can cause to their business and reputation by taking the following 5 steps:
- Appoint a senior manager to be responsible for compliance.
- Know in what areas of your business you and your employees are at most risk of breaching the ACL, for example in how you advertise and promote goods, safety standards that apply to goods, responding to consumer complaints about the defects.
- Develop a process so that issues can be identified early and risks of breaches of the ACL and damage to the relationship with customers can be avoided or managed.
- Incorporate into staff training and professional development programs, aspects of practical training in the sections of the ACL that are relevant to staff and what they need to do to comply.
- Create a culture in the business of compliance and open communication.
Where to go for more help
The ACCC has a number of publications and resources available for businesses and consumers. If you want more assistance in managing the risks of breaching the ACL and protecting your reputation and customer relationships, I’m happy to talk to you about your concerns and how I may assist.