Competition watchdog to target business behaviour over coronavirus cancellations
Businesses refusing to pay refunds or continuing to charge consumers for services not provided during the Covid-19 crisis will come under the scrutiny of a special taskforce set up by the consumer watchdog.
The Australian Competition and Consumer Commission has established an internal taskforce to “identify and take action against businesses who are engaging in misconduct associated with Covid-19”, a spokesperson told Guardian Australia.
“The taskforce will focus on allegations of misconduct that impacts the rights of consumers and small businesses under competition and consumer law.
“The taskforce is designed to intervene rapidly and investigate these allegations.”
Global travel restrictions, widespread cancellation of major events, new rules against non-essential travel and now state-level restrictions to entry of Queensland, Tasmania, Western Australia and the Northern Territory have played havoc with Australians’ travel plans, prompting airlines to offer credit to customers whose flights were cancelled.
The ACCC advises that if an event or travel is cancelled, it “expects that you will receive a refund or other remedy, such as a credit note or voucher, in most circumstances”.
“However, if your travel is cancelled due to government restrictions, this impacts your rights under the consumer guarantees,” its advice states.
“You may still be entitled to a refund under the terms and conditions of your ticket.
“The ACCC encourages all businesses to treat consumers fairly in these exceptional circumstances.”
The ACCC spokesperson told Guardian Australia it was “working closely with other state and federal regulators to identify misconduct impacting consumers and small businesses”.
The ACCC has also issued advice about gym memberships and food delivery services, informing consumers that under law businesses are prohibited “from taking payments for goods or services when there are reasonable grounds to believe the services won’t be supplied”.
“This applies whether or not your contract allows you to suspend payments,” it said.
But the ACCC warned it “cannot prevent or take action to stop excessive pricing, as it has no role in setting prices”.
“In some limited circumstances excessive pricing may be unconscionable, for example where the product is critical to the health or safety of vulnerable consumers.”
Online marketplaces such as eBay and Amazon have committed to crack down on users profiteering from the resale of groceries, after warnings from agriculture minister David Littleproud about “parasites” charging five times the regular price for hand sanitiser and up to $35 for a 12-roll pack of toilet paper.
On Thursday the home affairs minister, Peter Dutton, said he was “going after” people who he suspected of profiteering, telling 2GB he had asked the Australian federal police, Home Affairs Department, and state police to investigate.
Victoria police told Guardian Australia it was “not currently investigating any matters relating to this type of activity” but would investigate “if there is any evidence of a criminal offence being committed”.
A spokesperson for NSW police said it “will assist the efforts of the commonwealth, if requested”.