Misleading claims are a continuing issue for the small business sector, according to the ACCC’s latest Small business in focus report.
The ACCC received over 1500 complaints in the 2013-2014 financial year for misleading conduct and false representations, followed by complaints over consumer guarantees (more than 900).
The watchdog also used a range of compliance and enforcement tools last financial year, to encourage compliance with the Competition and Consumer Act 2010, and achieved several significant court outcomes during the period that are relevant to small businesses.
The ACCC took action against Coles for claims that its “Cuisine Royal” and “Coles Bakery” bread was “Baked Today, Sold Today” and “Freshly Baked In-Store”. The Federal Court found that these claims were false, misleading and deceptive as the bread products were baked off site and frozen, and “finished” at in-store bakeries.
The ACCC also accepted a court enforceable undertaking from Carlton & United Breweries in relation to ACCC concerns that it represented that Byron Bay Pale Lager was brewed by a small brewer in Byron Bay when this was not the case.
“Small businesses often rely on a unique selling point to compete. If a large business presents a product as having a feature that it doesn’t, this can harm small businesses,” ACCC Deputy Chair Dr Michael Schaper said.
