Trade Practices Act Reforms Offer Greater Competition

The Motor Trades Association of Australia (MTAA) welcomes the introduction of the Trade Practices Amendment Legislation Bill 2008 (the Bill), because it will offer retail motor traders and other small business operators long denied access to justice against unfair and anti-competitive behaviour.

MTAA has long advocated for a strengthening of the Trade Practices Act 1974 (the Act) particularly in relation to providing small business operators with opportunities to seek redress against anti-competitive behaviour. This is because access to justice is often out of the reach of small business due to high legal costs, confusion regarding the definition of ‘take advantage’ and concerns about the difficulty in pursuing predatory pricing cases.

The proposed clarification of aspects of section 46 will assist small business operators in seeking redress against predatory behaviour. MTAA welcomes the ability of small business operators to take action in the Federal Magistrates Court against section 46 infringements, because the Court offers more affordable justice than is currently available. Similarly, MTAA is pleased that it will no longer be necessary to show recoupment in predatory pricing actions and that the Government has retained, in an amended forms the provisions relating to predatory pricing and below cost selling. MTAA also welcomes the removal of the 51AC threshold for unconscionable conduct action.

MTAA congratulates the Government for recognising the need for these reforms and looks forward, once passage of the legislation is secured, to strong action by the Australian Competition and Consumer Commission in relation to breaches of those provisions.


END

26 June 2008

For further information please contact Michael Delaney, Executive Director of MTAA on (02) 6273 4333.