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ARTICLE · 22 JULY 2012

ACCC Takes Early Action on Carbon Price Claims

The ACCC will ensure businesses do not make misleading claims about price increases as a result of the carbon price.

AustraliaAntitrust/Competition Law

The carbon price commenced in Australia on 1 July 2012. As part of the new regime, the government has directed the ACCC to undertake a compliance and enforcement role in relation to claims made about the impact of the carbon price. The ACCC's focus is to ensure businesses do not make misleading claims about price increases as a result of the carbon price. The ACCC does not have a role in formally monitoring, setting or restricting price increases linked to the carbon price and cannot prevent a business from putting up its prices as a result of the carbon price. Since 1 July, there have been a number of examples where businesses have come under investigation for their pricing claims. For example, on 8 June 2012, the managing director of Brumby's Bakeries distributed a newsletter to approximately 250 Brumby's franchisees which contained the following statement:

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