NSW reforms target comm

THE NSW Government has announced plans to force all businesses that make product and service recommendations to disclose their commissions, referral fees and kickbacks.

NSW Minister for Innovation and Better Regulation Matt Kean said the move would put buying power back in the hands of consumers and small businesses.

“Consumers are increasingly relying on referrals from third parties, including agents and price comparison websites when deciding what to buy,” Kean said.

“Not everyone knows that these referral businesses often receive a financial incentive for recommending specific products or services.”

The proposal is under Kean’s shakeup of NSW consumer laws, which he has dubbed “Better Business Reforms”.

“Under my reforms, referral businesses will need to be clear up front about any commissions they’re receiving,” Kean said.

AFTA CEO Jayson Westbury told TD AFTA welcomed the announcement, but believed strongly that these types of reforms needed to have a national footprint in order to work effectively.

“Reforms of this nature on a state-by-state basis lead to confusion and uncertainty for both business and consumers,” Westbury said.

“While no detail has been provided to AFTA at this time, it may impact upon those travel websites which are designed with heavy discounts as their primary proposition to consumers.”

Kean plans to introduce the Better Business Reforms to Parliament later this month.