Misleading Carbon Price Claims

The Federal Government’s decision to implement a carbon pricing regime comes with a warning attached: businesses seeking to “gouge” customers when passing on the cost by making misleading claims will be investigated and prosecuted by the Australian Competition and Consumer Commission (ACCC).

Earlier this week the Government announced it will fund the ACCC with an additional $12.8 million over four years, directing it to target this issue specifically by investigating businesses that make false or misleading claims to customers about the impact of the carbon price.
Misleading and deceptive conduct and false and misleading representations are prohibited by the Australian Consumer Law (ACL).  The ACL, which came into full effect earlier this year, introduced significant new investigatory powers for the ACCC and substantially increased the penalties it can seek.  Corporations found to have made misleading carbon price claims could be penalised up to $1.1 million, and individuals up to $220,000.
If you consider that the proposed carbon pricing regime is going to impact the prices you charge consumers, or you are unsure as to how it will affect your advertising practices, please contact Merridy Woodroffe.
This report does not comprise legal advice and neither Gadens Lawyers nor the authors accept any responsibility for it.


This update does not constitute legal advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of the content.