ACCC prepares to investigate false carbon tax price hikes

ACCC boss Rod Sims has issued a warning to all businesses who would falsely claim that price rises have been caused by the carbon tax legislation which yesterday passed the House of Representatives.

As previously reported, the Government had provided $12.8M in additional funds to the ACCC specifically for the purposes of dealing with "price gouging" as result of the carbon tax.

Mr Sims claimed that there had already been reports of taxi drivers claiming a "carbon levy" on fares and warned that any price rises would be premature.

He also stated that the ACCC was looking at providing guidelines to businesses so as to elucidate what price rises would be tolerable and which would not.

Given the wide impact that the carbon tax will have on the economy, such guidelines may very well face legal challenges.

The ACCC enjoys an almost 100% success rate at first instance applications against businesses who contravene fair trade practices, although it suffered a defeat at the hands of Metcash last month in its attempt to stop its takeover of Franklin's and then attempt to impose an injunction barring the takeover until an appeal could be heard.  

Related Links

• Google off the hook in Australian Competition and Consumer Commission v Trading Post Australia Pty Ltd

• ACCC loses Metcash takeover case

• ACCC v Metcash Trading Ltd: Undertakings, balance of convenience and damages

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