Business Studies - Competition and Consumers Act

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"Discuss the Impact of the Competition and Consumers Act on Marketing Practices for Australian Businesses"

The Competition and Consumers Act (CCA) 2010 aims to enhance the welfare of Australians through the fair-trading of businesses and incorporating provisions to enhance consumer protection. This has a large impact on marketing practices exploited by Australian Businesses.

The Competition and Consumer Act is a major legislation that restricts unethical business marketing practices in Australia. It helps to protect consumers against unethical practices in which they may be misled or discriminated against and also to regulate certain trade practices that restrict competition in the market in order to sustain choice for the consumer. This influences a business’ marketing mix in which certain pricing strategies and advertising techniques can not be enforced.

The Competition and Consumer Act imposes certain penalties for breaching the act, which will impact Australian businesses. Breaching the act can result in being charged for criminal or civil proceedings through the ACCC or another consumer agency. Businesses can expect to receive fines of up to $1.1million for unconscionable conduct (often an act of illegal intent), whilst individuals can be charged up to $220,000. The ACCC is now enabled to issue On-the-spot infringements to manufacturers making false claims about their products. Without court action, the ACCC is allowed to fine a company $6600 and an individual $1329 for each infringement of the CCA. After legal fees and damage to a business’ reputation, the result of breaching the act can see a negative impact on an Australian business.

The Competition and Consumer Act targets practices that are deemed as undesirable and unethical in the eyes of the consumer. These include deceptive and misleading advertising, price discrimination, consumer guarantees, warrantees and refunds.

Deceptive and misleading advertising can be seen as the most...
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