Rod Sims said in a speech to the Committee for Economic Development of Australia this week that the ACCC is targeting the payment giants as one of its key enforcement priorities, which should benefit small retailers that can avoid higher fees charged by Visa and Mastercard.
He noted that one of the core issues affecting competition in the payments markets is least-cost routing that enables businesses to choose which network will process their debit card transactions, and which now makes up around 75 per cent of all card payments in Australia.
Other measures that will support small business were also on the ACCC’s priorities list, Mr Sims said, with the aim of ensuring they receive the protections available under the competition and consumer laws.
“We will continue to update and promote our online resources on key consumer protections for small businesses, including business-to-business unfair contract terms, industry codes and consumer guarantees,” he said.
“And where we see unlawful conduct by larger businesses is causing significant harm to small businesses, we will take enforcement action.
“The ACCC continues to hear concerns about the lack of transparency in agreements between essential service providers and small businesses and consumers, misleading advertising claims, and recurring mis-selling of essential service products.”
Mr Sims also highlighted another concern in the manipulative advertising from the digital platforms, stemming from the ACCC’s concern that more targeted advertising increases the risks for small business and consumers.
“We are hearing growing concerns that some businesses are falsely promoting environmental or green credentials to capitalise on these consumer preferences,” Mr Sims said.
“The ACCC continues to hear concerns about the lack of transparency in agreements between essential service providers and small businesses and consumers, misleading advertising claims, and recurring mis-selling of essential service products.”
