The Bell Gully Regulator Report lists recent changes, decisions and developments at the main New Zealand corporate, commercial and competition regulatory bodies and also lists relevant updates from the Australian Competition and Consumer Commission. This edition of the Regulator Report covers the period from 6 June 2008 to 3 July 2008. For further details on any matter in this report, just click on the hyperlinks in each item.

Ministry of Economic Development (MED)

Mutual Recognition of Securities Offerings regime
Following years of discussion, the Mutual Recognition of Securities Offerings regime was launched on 13 June 2008 by New Zealand Commerce Minister Lianne Dalziel and Senator the Hon Nick Sherry, Australian Minister for Superannuation and Corporate Law at a meeting at the New Zealand Parliament. The new regime means issuers of securities can now use one prospectus to offer securities to investors on both sides of the Tasman, subject to meeting certain requirements. The approach adopted in the Australia-New Zealand regime is considered to be world leading in this area.
Click here for more
Click here for Bell Gully commentary on the new regime

Airport changes given time to bed in before more reviews
In November last year the government made decisions for the regulation of aeronautical charges at Auckland, Wellington and Christchurch airports whereby the current regime is to be replaced with enhanced disclosure requirements. This includes information on how airport charges are set based on binding input methodologies to be developed by the Commerce Commission, along with active monitoring of the disclosed information by the Commerce Commission under the Commerce Act. The new information regime is contained in the Commerce Amendment Bill currently before the Select Committee and is expected to take effect in 2010.

The government has decided to hold off on further work looking at the effectiveness of that regulation and whether regional airports should also be regulated under the Commerce Act. This is to give Auckland, Wellington and Christchurch airports and their customers more certainty over the next two years as the Commerce Commission develops input methodologies for the new information disclosure regime.
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Climate Change (Emissions Trading and Renewable Preference) Bill
The Finance and Expenditure Committee has reported back on the Climate Change (Emissions Trading and Renewable Preference) Bill and recommends by majority that it be passed with amendments. The bill seeks to amend the Climate Change Response Act 2002 to introduce a greenhouse gas Emissions Trading Scheme in New Zealand (the NZ ETS). The bill also proposes the amendment of the Electricity Act 1992 to create a preference for renewable electricity generation by implementing a restriction on new fossil-fuel thermal electricity generation, except to the extent necessary to ensure the security of New Zealand's electricity supply.
Click here for a guide on the main changes to the NZ ETS
Click here for a guide to the main changes for renewable preference
Click here for a guide on the main changes to participant obligations
Click here to read the full report

Electricity Industry Reform Amendment Bill
The Electricity Industry Reform Amendment Bill has been considered by the Commerce Select Committee and was reported back in early June. The committee has recommended it be passed with amendments. The purpose of this Bill is to implement three main policy changes aimed at making it easier for lines companies to invest in generation by removing unnecessary barriers to investment without creating opportunities for the rise of unwarranted market power. This is done in three ways:

• by making it easier for owners of lines businesses to sell the output of the generation they were permitted to own under the 2001 and 2004 amendments to the Electricity Industry Reform Act;

• by narrowing the scope of ownership separation requirements to focus on the geographic areas of operation of the lines business and the supply business; and

• by amending the definition of "renewables" to include all renewables. Previously the definition included only new renewable technologies, and excluded hydro and geothermal generation using traditional technologies.

For further Bell Gully commentary on the Bill click here. The main changes proposed by the Select Committee include:

• making it clear that in determining a business's involvement in connected generation above the 10MW threshold for the purpose of the connected generation cap rule and the connected customer selling cap rule, only the proportion of generation that is owned by the lines business is counted towards its connected generation. There was some concern that as written the Bill could be read to refer to the entire quantity of connected generation even if the lines business owned only a proportion of that generation for these rules. It is also recommended that the Bill be amended to make it clear that only generation with a total capacity greater than 5MW is counted towards the connected generation cap rule;

• amending the Bill to disregard generation and conveyance of less than 5GWh per annum (in place of the 2.5GWh threshold in the current wording of the Bill) and retail sales of less than that amount, to allow for load growth in smaller networks since the principal Act's introduction; and

• providing that a lines business that is involved in 5MW of connected generation and selling more that 5GWh per annum of electricity to connected customers must have a comprehensive, written use of systems agreement with its retail arm. The agreement should not discriminate in favour of that business, and it must be published on the generator's internet site. Failure to comply with these requirements would be an offence.

Click here to read the report

Companies Office

Important changes to the way you do business with the Companies Office
From 1 July 2008 it became mandatory to file the majority of company administration documents via the Companies Office's online services. The introduction of this policy has seen the removal of many of the manual processes that the Companies Office previously supported.
Click here for more

Securities Commission

Australian and New Zealand Securities Commissions welcome new regime for Trans-Tasman Securities Offerings
The New Zealand Securities Commission and the Australian Securities and Investments Commission have welcomed the announcement of the Mutual Recognition of Securities Offerings regime. The agencies have published joint guidance to New Zealand and Australian issuers offering shares, debentures or managed or collective investment schemes in both countries. The guide explains what issuers have to do under the trans-Tasman mutual recognition scheme for offers of securities and the role of the regulators in both countries in relation to an offer. Read more...
Click here to access the Guide
Click here for Bell Gully commentary on the new regime

Securities Commission publishes annual oversight review of New Zealand Exchange Limited
The Securities Commission's third annual oversight review has found NZX's performance as a registered exchange continues to be good. The Commission's overall conclusion is that NZX is satisfying its obligation to operate its markets in accordance with its conduct rules. The Commission reviewed NZX's performance of its regulatory functions as a registered exchange under the Securities Markets Act 1988 and focused on NZX's arrangements in the 2007 calendar year for discharging its obligations.
Click here for more
Click here to read the Report

Securities Act Exemption Notices

The following Securities Act Exemption Notices have been published for this period:

Securities Act (Superannuation Schemes – Summary of Financial Statements) Exemption Amendment Notice 2008
This notice extends the expiry date of the Securities Act (Superannuation Schemes – Summary of Financial Statements) Exemption Notice 2006 from 30 June 2008 to 30 September 2012.

Securities Act (Certificates for Securities Transferred Electronically) Exemption Amendment Notice 2008
This notice extends the expiry date of the Securities Act (Certificates for Securities Transferred Electronically) Exemption Notice 2003 from 30 June 2008 to 30 September 2012.

Securities Act (Independent News & Media PLC) Exemption Notice 2008
This notice exempts Independent News & Media PLC (INM), a company incorporated in the Republic of Ireland, from section 53E(1) of the Securities Act 1978. The effect of the exemption is to relieve INM from the requirement to have its financial statements re-audited by a qualified auditor. The exemption allows INM to have its specified financial statements audited by a person qualified under the laws of the Republic of Ireland. The exemption complements exemptions granted to INM from certain provisions in the Financial Reporting Act 1993.

Securities Act (The Hongkong and Shanghai Banking Corporation Limited) Exemption Notice 2008
This notice exempts The Hongkong and Shanghai Banking Corporation Limited (HSBC) and every person acting on its behalf from section 53E(1) of the Securities Act 1978. The effect of the exemption is to relieve HSBC from the requirement to have its financial statements audited by a qualified auditor as defined in section 2C of the Act. The exemption will allow HSBC to have its financial statements audited by its Hong Kong auditors instead. The exemption complements exemptions granted to HSBC from certain provisions in the Financial Reporting Act 1993.

Securities Act (Foodstuffs South Island Limited) Exemption Amendment Notice 2008
This notice amends the Securities Act (Foodstuffs (South Island) Limited) Exemption Notice 2002 (the principal notice) by:

• changing the name of the company exempted by the principal notice from Foodstuffs (South Island) Limited to Foodstuffs South Island Limited and consequentially changing the title to the principal notice; and

• providing for the exemption in the principal notice to apply in respect of an offer of a new class of redeemable preference shares (with the same rights and privileges as a previous issue of preference shares covered by the exemption, except that they are not required to be redeemed within a fixed period after their date of issue) by removing the requirement that redeemable preference shares to which the notice applies must have a redemption date not later than five years after the date of issue.

Financial Reporting Exemption Notices

Under section 35A of the Financial Reporting Act 1993, the Securities Commission has issued the following Financial Reporting Act Exemption Notices:

Financial Reporting Act (World Bank) Exemption Notice 2008
This notice exempts the directors of the World Bank from various provisions of the Financial Reporting Act 1993. The effect of the exemptions is to provide relief to the directors of the World Bank from requirements of the Act relating to the preparation, content, auditing, and filing of financial statements. These exemptions are granted on the conditions that the World Bank prepares and publicly files financial statements that it is required to prepare under the financial reporting requirements of the United States of America (the United States), that these financial statements comply with generally accepted accounting practice in the United States of America (US GAAP) or International Financial Reporting Standards as approved by the International Accounting Standards Board (IFRS), that they include or are accompanied by an approved auditor's report, and that the directors of the World Bank add information or explanations as required to ensure that they give a true and fair view of the matters to which they relate.

Financial Reporting Act (Independent News & Media PLC) Exemption Notice 2008
This notice exempts the directors of Independent News & Media PLC (INM), a company incorporated in the Republic of Ireland that has offered securities to members of the public in New Zealand, from various provisions of the Financial Reporting Act 1993. The effect of the exemptions is to allow the directors of INM to provide the financial statements that INM is required to prepare under financial reporting requirements in the Republic of Ireland.

Financial Reporting Act (The Hongkong and Shanghai Banking Corporation Limited) Exemption Notice 2008
This notice exempts the directors of The Hongkong and Shanghai Banking Corporation Limited (HSBC) from various provisions of the Financial Reporting Act 1993. The effect of the exemptions is to provide relief to the directors of HSBC from the preparation, content, auditing, and filing requirements of the Act. These exemptions are granted on the condition that HSBC prepares and publicly files financial statements that it is required to prepare under the financial reporting requirements of its jurisdiction. The exemption addresses the particular difficulties experienced by HSBC due to it issuing securities in New Zealand.

Takeovers Panel

Code Word 23
In the Takeovers Panel's latest issue of Code Word, the Panel provides commentary on:

• the transactions that gave rise to the Panel's determinations in relation to the actions of certain current and former shareholders of Kerifresh Limited brought to the attention of the Panel by potential takeover suitor Turners and Growers Limited;
• broker handling fees offered to brokers in connection with a takeover offer; and
• two recent appointments to the Panel executive, including the Panel's first Chief Executive Officer.

Click here to read Code Word 23

Takeovers Code Exemption Notices

The following Takeovers Code Exemption Notices have been published for this period:

Takeovers Code (Synlait Limited) Exemption Notice 2008
The present form of Synlait Limited and its subsidiaries arose from the restructuring of a company owned by three shareholders and related entities, principally effected in 2006. There were a number of steps to the restructuring including, on 20 June 2007, further shares being allotted to each of the three shareholders to correct errors that had been made in the calculation of the number of shares to be allotted under the restructuring. The Takeovers Panel has granted exemptions to:

• each of the three shareholders from rule 6(1) the Takeovers Code in respect of any increase in that person's voting control arising from an allotment of voting securities in Synlait on 20 June 2007;
• each of the three shareholders from rule 7(d) of the Takeovers Code in respect of any increase in that person's voting control as a result of the allotment of voting securities in Synlait under an agreement for sale and purchase of shares between the three shareholders and Synlait, to the extent that the notice of meeting of shareholders of Synlait to approve the allotment of those securities does not comply with the requirements of rule 16(b) and (d) of the Takeovers Code; and
• Synlait from rule 16(b) and (d) of the Takeovers Code.

Click here to access this notice

Takeovers Code (Kerifresh Limited) Exemption Notice 2008
This notice applies to acts or omissions occurring on or after 14 March 2008 and expired on 30 June 2008. The Takeovers Panel granted an exemption to Turners and Growers Horticulture Limited in respect of its failure to send an acquisition notice to the outstanding security holders in Kerifresh Limited within the timeframe specified in rule 54(2) of the Takeovers Code.

Takeovers Code (Tauranga Energy Consumer Trust) Exemption Notice 2008
This notice applies to acts or omissions occurring on or after 29 February 2008 and expires on 28 February 2013. The Takeovers Panel has granted an exemption from rule 6(1) of the Takeovers Code to every person who is appointed a trustee of the Tauranga Energy Consumer Trust and who, as a result of the appointment, becomes the holder or controller of an increased percentage of the voting rights in TrustPower Limited. This notice effectively replaces the Takeovers Code (Tauranga Energy Consumer Trust) Exemption Notice 2003 which expired on 28 February 2008.

The New Zealand Exchange (NZX)

TZ1 appointed global registry
Stock exchange operator NZX's carbon market subsidiary TZ1 has been appointed as a global registry for the Voluntary Carbon Standard (VCS). TZ1 said VCS was recognised as the global leader of voluntary carbon standards. Projects that were approved under the VCS were issued with voluntary carbon units which must be held in an authorised VCS registry.
Click here for more

NZX consults on improvement to the NZX Discipline Rules
NZX Regulation has released a consultation paper relating to proposed amendments to the NZX Discipline Rules targeted at areas to improve the efficiency and operation of NZX Discipline and to address matters raised by the Securities Commission when conducting its annual oversight reviews of NZX. Submissions are due by 25 July 2008.
Click here to access the consultation paper

NZX Discipline Policy Guideline on the Naming of Respondents
NZX Discipline has prepared a Policy Guideline on The Naming of Respondents, following recommendation by the Securities Commission at the conclusion of the 2006 Oversight Review of NZX.
Click here for more
Click here to read the Policy Guideline

New Zealand Commerce Commission (NZCC)

Speeches

Speech to the Electricity Network Association CEO's Meeting
On 19 June 2008, Michael Clark, Director Networks Branch, gave a speech to the Electricity Network Association CEO's meeting. He provided an update of where the NZCC was at on the issue of leading work streams that impact on the ENA membership. In his speech, Mr Clark discussed:

• thresholds; and
• the threshold reset and the work that the NZCC is doing in order to ensure that they are able to establish revised thresholds within timeframes that will enable them to take effect from April 2009.

Click here for more

Convergence and NGNs: Challenges in an All IP World, 9th Annual Telecommunications & ICT Summit
At the 9th annual telecommunications and ICT conference on 23 June 2008, Dr Ross Patterson, Telecommunications Commissioner, gave a speech on Convergence and NGNs. In the speech, Dr Patterson discussed:

• convergence;
• Next Generation Networks – taking the best from the internet and telco models; and
• the Commission Study.

Click here for more

Speech to the DHB Chairs Board of Governance Meeting
On 16 June 2008, Deb Battell, Director Competition Branch, gave a speech on the relevance of the Commerce Act, or competition, for the health sector and DHBs in particular.
Click here for more

Media releases

The NZCC has issued the following media releases:

Industry regulation and regulatory control

• Commerce Commission consults on process guidelines for merger and acquisition clearance applications
  The business community is being asked for input on a set of process guidelines the NZCC plans to publish, giving guidance to businesses seeking clearance for a merger or acquisition. The merger and acquisition clearance regime administered by the NZCC is voluntary. Section 66 of the Commerce Act provides that those proposing to undertake an acquisition may seek clearance from the NZCC for the transaction. The NZCC is inviting submissions on a draft set of process guidelines and revised application form for businesses seeking clearance. Submissions close on 30 July 2008.
  Click here for more
  Click here to access the draft process guidelines and revised application form

• Commission publishes Methodology Paper: Update on resetting thresholds for electricity distribution businesses from 2009
  The NZCC has released this Methodology Paper as part of the process for resetting the current price-path and quality thresholds applying to EDBs; to take effect from 1 April 2009. The paper sets out the NZCC's preliminary views on various components of the price-path and quality thresholds, the requirement for a mechanism to incentivise network investment and a number of areas where refinements to the thresholds may be appropriate.
  Click here for more

Mergers and acquisitions

• CSR Building Products applies for clearance to acquire assets of Ross Roofing
  The NZCC has received an application from CSR Building Products seeking clearance to acquire the Ross Roofing, Rosscrete Roofing Tiles and the Ross Brick & Pavers businesses of the Ross group of companies.
  Click here for more

• Court of Appeal confirms NZ Bus acquisition of Mana Coach shares breached Commerce Act
  A judgment released by the Court of Appeal on 6 June confirms a High Court ruling that the attempted acquisition of Mana Coach Services by New Zealand Bus Limited was likely to substantially lessen competition in the Wellington regional market for rights to supply subsidised scheduled public and school bus services, in breach of section 47 of the Commerce Act. However, it declined to find the vendors liable as parties to the breach.
  Click here for more
  Click here for Bell Gully commentary on the case

• Commerce Commission seeks leave to appeal in NZ Bus/Mana Coach Services case
  The NZCC is seeking leave to appeal to the Supreme Court against the Court of Appeal decision dismissing a claim for liability against Infratil Limited. The Court of Appeal said that Infratil was not liable for breaching the Commerce Act as an accessory in the attempted acquisition of Mana Coach Services by New Zealand Bus Limited. NZCC Chair Paula Rebstock says, "The Court of Appeal's decision confirmed important principles guiding competition analysis in merger cases. However, the Commission is seeking to clarify the law as to accessory liability under the Commerce Act, which is now unclear following the Court of Appeal decision. This is a significant issue for all parties involved in commercial transactions."
  Click here for more

• Redeal cleared to acquire Egley Electrical
  The NZCC has cleared Redeal Limited to acquire the assets and business of Egley Electrical Co Limited and Egley Electrical Petone Limited. Both Redeal and the Egley companies are involved in the wholesaling of electrical products in the greater Wellington area.
  Click here for more

• Reasons published for decline of DFS Galleria's acquisition of Nuance
  The NZCC has published its reasons for declining to grant clearance for DFS Group Limited to acquire 100% of the shares in The Nuance Group.
  
  NZCC Chair, Paula Rebstock, said that the NZCC was not satisfied that the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in the market for the retail supply of duty free goods at Auckland International Airport to international air travellers, notwithstanding that this impact was unlikely to exceed 16 months, at which time Nuance's licence to operate at the Airport would expire.
  Click here for more

• Shell NZ applies for clearance to acquire certain aviation fuel assets of Mobil Oil NZ
  The NZCC has received an application from Shell New Zealand Limited seeking clearance to acquire Mobil Oil New Zealand Limited's Aerostop network assets. The application concerns specialist aviation fuels. The main suppliers of aviation fuel are BP Oil New Zealand Limited, Shell and Mobil. Shell is not seeking to acquire the entire Mobil aviation fuel business. The acquisition relates only to the supply of aviation fuel to light aircraft and helicopters engaged in a range of general aviation activities including agriculture, flying schools, tourism and recreational flying. These customers are supplied through unattended refuelling facilities (fuel pumps which are activated with customer swipe/fuel cards).
  Click here for more

Telecommunications

• Commerce Commission to conduct Telecommunications Numbering Management Study
  The NZCC has issued the terms of reference for a study into telecommunications numbering. Telecommunications numbers in New Zealand are administrated by an industry body in accordance with the terms of the Number Administration Deed (NAD).
  The Telecommunications Commissioner, Dr Ross Patterson said, "The NAD was signed in 1999. Significant changes in the market, and rapid development in technology, have prompted the need for this study. We want to ensure that the management of this critical resource adequately meets current and future demands of industry and consumers." The NZCC expects to deliver the final report of the numbering management study in September 2008.
  Click here for more

• Commission releases March quarterly report on telecommunications
  The NZCC has released its March quarterly monitoring report containing key statistics on telecommunications markets in New Zealand and overseas.
  Click here for more

• Commerce Commission releases first report on broadband quality
  The first quarterly report on New Zealand broadband performance has been released by the NZCC. Commissioned from broadband measurement consultancy Epitiro and ICT analyst firm IDC, the report examines the relative performance of New Zealand's internet service providers.
  Click here for more

• Commission releases draft paper on accounting separation of Telecom
  The NZCC has issued a draft paper on the principles and regulatory reporting requirements for the accounting separation of Telecom. The draft paper outlines the financial information that Telecom must provide and the guidelines it must follow.
  Under accounting separation, Telecom will be required to prepare financial information about several of its business units including the Retail, Wholesale, Chorus (fixed network access) and other fixed network services. This information will be publicly available and is designed to inform a wide audience about the operation and behaviour of these business units.
  Click here for more

• Telecommunications Commissioner consults on Next Generation Networks study
  Telecommunications Commissioner Dr Ross Patterson has released a questionnaire which seeks feedback on a number of issues likely to be relevant to the NZCC's study into Next Generation Networks (NGN). This follows the release of the NGN Study terms of reference in May 2008.
  Click here for more

• Final determinations for backhaul services
  The NZCC has released its final determinations on the price and non-price terms for the backhaul services that support the unbundled copper local loop and unbundled bitstream broadband services. These services will allow Telecom's competitors to get access to transmission capacity between Telecom's local exchanges or data switches, and the competitors' networks.
  Click here for more

Consumer issues

• 'Greenwashing' can be misleading - taxi company warned
  The NZCC has warned a Wellington taxi company that it may be misleading consumers with its 'going green' campaign. The NZCC began investigating the claims being made by Wellington Combined Taxis, the largest operator in the capital, in March this year after receiving a complaint that the company was breaching the Fair Trading Act by publishing false and misleading information on its website.
  Click here for more

• Commerce Commission urges caution over holiday vouchers
  The NZCC has warned that consumers should be wary of telemarketers selling vouchers for free or discounted holidays, hotels and flights. Adrian Sparrow, the Commission's Director of Fair Trading has said, "Our contact centre is getting an increasing number of calls from consumers who are concerned that they will not be able to claim the services offered by the vouchers." Consumers should be cautious and resist pressure to buy vouchers that offer discounts and services that seem too good to be true, especially those that come via 'cold call' telemarketing, without first determining whether the offer is legitimate.
  Click here for more

• Geneva Finance refunds customers after Commerce Commission investigation
  Customers of Geneva Finance Limited have received more than $500,000 in refunds, following an out-of-court settlement with the Commerce Commission. Under the settlement, Geneva Finance has refunded $510,966 to 3700 customers. The finance company admitted that it breached the Credit Contracts and Consumer Finance Act 2003 (CCCF Act) by not providing a large number of debtors with rebates on payment protection insurance premiums when loans were repaid between April 2005 and December 2007.
  Click here for more

• Commerce Commission appeals Avanti Finance decision
  The Commerce Commission is appealing a recent Auckland District Court decision in which Avanti Finance was found not guilty of breaching the Credit Contracts and Consumer Finance Act.
  Click here for more
  Click here to read Bell Gully commentary on the decision

Australian Competition and Consumer Commission (ACCC)

ACCC media releases

The ACCC has issued the following media releases:

Mergers

• ACCC seeks banking customers' views on Westpac's proposed acquisition of St George
  The ACCC has begun market inquiries on the proposed acquisition of St George Bank Limited by Westpac Banking Corporation. The ACCC would like to obtain a broad range of views from competitors, banking customers and interested parties on this proposed acquisition.
  Click here for more

• ACCC calls for comment on proposed Flinders Ports / DP World (SA) Pty Ltd joint venture
  The ACCC has issued a Statement of Issues on a proposed joint venture between Flinders Ports Pty Ltd, the manager and operator of Port Adelaide and six regional ports in South Australia, and DP World (SA) Pty Ltd. The Statement of Issues seeks further information on certain competition issues which have arisen from the ACCC's market inquiries to date.
  Click here for more

• ACCC opposes the proposed acquisition of Karabar Supermarket by Woolworths Limited
  The ACCC has announced that it intends to oppose the proposed acquisition of the Karabar Supermarket, in Queanbeyan, NSW, by Woolworths Limited.
  Click here for more

• ACCC calls for comment on Pact Group's proposed acquisition of Viscount Plastics
  The ACCC has issued a Statement of Issues on Pact Group Pty Ltd's acquisition of Viscount Plastics. The Statement of Issues seeks further information on certain competition issues which have arisen from the ACCC's market inquiries to date.
  Click here for more

Market behaviour

• ACCC accepts undertaking from Godfreys over dual pricing practice
  The ACCC has accepted court enforceable undertakings from Godfreys Franchise Systems Pty Ltd over price representations of its Nilfisk A100 vacuum cleaners. Godfreys is a franchisor and retailer of vacuum cleaners throughout Australia. Godfreys has acknowledged that the half-price representations for the product in circumstances where it had not previously been offered for sale may be misleading and deceptive in contravention of section 52 the Trade Practices Act 1974.
  Click here for more

• Hoover overstates the power output of vacuum cleaners
  The ACCC has accepted court enforceable undertakings from Hoover Floorcare Asia Pacific Pty Ltd concerning the overstatement of the power output of two of its vacuum cleaners. Hoover has acknowledged that the represented power ratings of both vacuum cleaners was potentially misleading under The consumer protection provisions of the Trade Practices Act 1974 and has offered to compensate consumers affected by its conduct.
  Click here for more

• 'Time right' for third wave of competition, consumer law reform
  The climate is now right for Australia to embark on a third wave of competition and consumer policy law reform, said ACCC Chairman, Mr Graeme Samuel. The proposed reforms already foreshadowed to the Trade Practices Act 1974, include changes to the misuse of market power and predatory pricing provisions, legislating against so-called creeping acquisitions, the introduction of criminal sanctions for cartel conduct and reforms to the whole framework of consumer protection.
  Click here for more

• 'Reality check' needed on commentary on ACCC decision-making
  The time had come for a 'reality check' on commentary on ACCC decision-making processes, ACCC Chairman, Mr Graeme Samuel, said on June 25.
  Click here for more

Telecommunications

• Telecommunications access disputes
  Macquarie Telecom Pty Ltd and Optus Networks Pty Ltd have each notified a telecommunications access dispute concerning supply of the Unconditioned Local Loop Service by Telstra Corporation Limited under Part XIC of the Trade Practices Act 1974. With these notifications, the ACCC is now arbitrating a total of 35 access disputes. In addition, final determinations made in 18 concluded arbitrations are under judicial review.
  Click here for more

• Gotalk addresses concerns about misleading and harassing telemarketing
  Telecommunications provider Gotalk Ltd will offer to compensate consumers who suffered a loss as a result of certain telemarketing practices. The ACCC has accepted court enforceable undertakings from Gotalk concerning the conduct of its overseas telemarketing agents.
  Click here for more

• ACCC telecommunications reports show continued investment and lower prices for consumers
  Two annual statutory reports prepared by the ACCC on telecommunications competitive safeguards, and changes in the prices paid for telecommunications services were tabled in Parliament. "These reports show that end users continue to reap the benefits of competition through increased carrier investments, product innovation and lower prices," ACCC Chairman, Mr Graeme Samuel, said.
  Click here for more

• Telecommunications access disputes
  The ACCC has recently received notification of six telecommunications access disputes under Part XIC of the Trade Practices Act 1974. Primus Telecommunications Pty Ltd, Optus Networks Pty Ltd, XYZed Pty Ltd, Request Broadband Pty Ltd, PowerTel Limited and Chime Communications Pty Ltd separately have notified the ACCC of six separate access disputes relating to the supply of the Unconditioned Local Loop Service by Telstra Corporation Limited in the past few weeks.
  Click here for more

• ACCC issues Telstra accounting separation report for March quarter 2008
  The ACCC has issued its report for the quarter ending 31 March 2008 under the enhanced accounting separation regime for Telstra. The report tests whether there is systematic discrimination in the price or non-price terms offered to Telstra's retail and wholesale customers, and so provides general guidance on the potential for competing service providers to supply consumers. It is not intended to detect all forms of potentially anti-competitive conduct.
  Click here for more

Authorisations

• ACCC proposes to allow standard flood definition
  The ACCC has announced its proposal to grant conditional authorisation to the Insurance Council of Australia for a proposed common definition of 'inland flood'.
  Click here for more

• ACCC grants authorisation for WA concrete cartage allocation system
  The ACCC has granted revocation and substitution of authorisation to CEMEX Australia Pty Ltd for the continued operation of its premixed concrete cartage allocation system.
  Click here for more

• ACCC proposes to grant authorisation to IATA tariff coordination system
  The ACCC has issued a draft determination proposing to grant authorisation to the International Air Transport Association for its new passenger tariff coordination system. The ACCC is also proposing to extend authorisation to the current system.
  Click here for more

• ACCC proposes to authorise employment services collective tendering arrangements
  The ACCC proposes to grant authorisation to Job Futures for its collaborative tender arrangements. These arrangements are made on behalf of its members, who are smaller non-profit service providers, for the purposes of bidding for government funding for the provision of employment services.
  Click here for more

Consumer issues

• ACCC acts to remove 'cash for organs' website
  The ACCC has secured the removal of a website, www.cashfororgans.com.au, which claimed to link transplant donors and recipients. "The ACCC was approached on Wednesday 4 June with concerns that the site may be misleading and deceptive", said ACCC Chairman, Mr Graeme Samuel.
  Click here for more

• Strengthened trade practices laws to assist small business
  Small businesses will soon enjoy the greatest protection in 30 years against predatory pricing and misuse of market power as the result of proposed changes to the law, ACCC Chairman, Mr Graeme Samuel, has said. Further, after decades of inconsistent interpretation of the Trade Practices Act predatory pricing and misuse of market power provisions by the courts, the government was now preparing to remove blockages in the law that would allow the regulator to take more effective action on behalf of small businesses.
  Click here for more

• ACCC alleges false, misleading and deceptive conduct in promotion of solarium use
  The ACCC has instituted legal proceedings in the Federal Court, Melbourne, against Tropical Sun Industries Pty Ltd, Body Bronze International Pty Ltd and the Australian Tanning Association for alleged false, misleading and deceptive conduct in contravention of the Trade Practices Act 1974. The ACCC alleges the parties engaged in the contravening conduct by misrepresenting the risks associated with solarium use.
  Click here for more

• ACCC alleges breach of undertakings by ABC Learning Centres
  The ACCC has commenced proceedings in the Federal Court in Melbourne against ABC Learning Centres Ltd. The ACCC alleges that ABC persistently failed to comply with the court-enforceable undertakings it gave to the ACCC in December 2004 following its acquisition of the Peppercorn child care group, by not divesting two child care centres as required.
  Click here for more

• ACCC begins criminal prosecution against Richard Pratt for allegedly providing false or misleading evidence
  The ACCC has begun criminal proceedings in the Federal Court in Melbourne against Mr Richard Pratt for allegedly providing false or misleading evidence in the course of an investigation.
  Click here for more

• Nudie's Cranberry Cloudy and Cranberry Blueberry juice claims misleading
  Following legal action by the ACCC, the Federal Court has declared that Nudie Foods Australia Pty Ltd made misleading claims about two of its juice products, Rosie Ruby and Rosie Blue, and breached the consumer protection provisions of the Trade Practices Act 1974.
  Click here for more

• Federal Court allows Channel Seven's appeal
  A full bench of the Federal Court has reversed an earlier decision by a single judge of the court that Channel Seven had contravened section 52 of the Trade Practices Act 1974 during broadcasts of Today Tonight in late 2003 and early 2004 in stories about a property investment program known as 'the Wildly Wealthy Women mentoring program'.
  Click here for more

• Goodyear Tyres apologises, offers compensation for unsubstantiated environmental claims
  Goodyear Tyres is offering customers partial refunds as part of a court enforceable undertaking accepted by the ACCC. During 2007 and 2008, Goodyear Tyres made a number of representations regarding the environmental benefits of its new Eagle LS2000 range of tyres. Goodyear has since acknowledged that the environment benefits claimed could not be substantiated and has withdrawn all material containing the representations.
  Click here for more

• ACCC addresses carbon claims
  ACCC Chairman, Mr Graeme Samuel, has launched a suite of ACCC guidance materials on carbon offsets claims.
  Click here for more