Federal Register of Legislation - Australian Government

Primary content

A Bill for an Act to amend the Competition and Consumer Act 2010, and for related purposes
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Registered 24 Nov 2010
Introduced HR 22 Nov 2010

2010

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

Competition and Consumer (Price Signalling) Amendment Bill 2010

 

No.      , 2010

 

(Mr Billson)

 

 

 

A Bill for an Act to amend the Competition and Consumer Act 2010, and for related purposes

  

  


Contents

1  Short title....................................................................................................... 1

2  Commencement............................................................................................. 2

3  Schedule......................................................................................................... 2

Schedule 1—Competition and Consumer Act 2010                                 3

 


A Bill for an Act to amend the Competition and Consumer Act 2010, and for related purposes

The Parliament of Australia enacts:

1  Short title

                   This Act may be cited as the Competition and Consumer (Price Signalling) Amendment Act 2010.

2  Commencement

             (1)  Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3

The day this Act receives the Royal Assent.

 

2.  Schedule 1

The day after this Act receives the Royal Assent

 

Note:          This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

             (2)  Any information in Column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedule

                   The Competition and Consumer Act 2010 is amended as set out in Schedule 1.


 

Schedule 1—Competition and Consumer Act 2010

 

1  After section 45

Insert:

45A  Price signalling

Prohibition of price signalling

             (1)  A corporation must not engage in price signalling.

             (2)  For this section, a corporation engages in price signalling if:

                     (a)  it communicates price-related information to a competitor; and

                     (b)  it does so for the purpose of inducing or encouraging the competitor to vary the price at which it supplies or acquires, offers to supply or acquire, or proposes to supply or acquire, goods or services; and

                     (c)  the communication of that information has, or is likely to have, the effect of substantially lessening competition in the market for those goods or services, or in another market.

Establishing the purpose of a communication

             (3)  Without in any way limiting the manner in which the purpose referred to in paragraph (2)(b) may be established, a corporation may be taken to have communicated price-related information to a competitor even if, after all of the evidence has been considered, the existence of that purpose is ascertainable only by inference from the conduct of the corporation, or of any other person, or from other relevant circumstances.

Defined terms

             (4)  For this section, a corporation communicates price-related information if it announces, transmits or imparts it in any form, and by any means, direct or indirect, public or private, including by way of public announcement.

             (5)  In this section:

price-related information means information that relates to the price or terms and conditions of the supply or acquisition, or proposed supply or acquisition, of goods or services, and that may have a bearing on the price of those goods or services.

             (6)  For this section, a competitor of a corporation is any entity that is in actual or potential competition in a market with the corporation or a related body corporate of the corporation.

             (7)  For this section, a competitor varies its prices for goods and services after receiving a communication if it offers them, or offers to acquire them, at prices or on terms or conditions that differ materially from those that would have applied if it had not received that communication.

             (8)  For this section, a corporation communicates information for the purpose referred to in paragraph (2)(b) if:

                     (a)  it does so for that purpose or for purposes that include that purpose; and

                     (b)  that purpose is a substantial purpose.

             (9)  For this section, a communication has, or is likely to have, the effect of substantially lessening competition in a market if it has that effect on its own, or in combination with other communications or other acts.

           (10)  In this section:

entity includes a person, corporation, partnership or joint venture.

price includes interest and fees charged, or proposed to be charged, on a loan of money or other financial services.

Exclusions

           (11)  This section does not apply to:

                     (a)  a private communication between related bodies corporate or between parties to a joint venture; or

                     (b)  a communication that is part of conduct that contravenes one of the following sections, or would contravene it but for an authorisation under section 88 or a notification under section 93:

                              (i)  sections 44ZZRF, 44ZZRG, 44ZZRJ or 44ZRK (sections relating to contracts, arrrangements or understandings);

                             (ii)  section 47 (Exclusive dealing);

                            (iii)  section 48 (Resale price maintenance); or

                     (c)  the transmission or re-transmission of price-related information already in the public domain; or

                     (d)  a communication required by law; or

                     (e)  a communication from a corporation to an entity, in its capacity as customer or supplier of that entity, the principal purpose of which is to inform the entity of a variation in price it is to be charged or paid by the corporation.

2  After subsection 88(1)

Insert:

             (2)  Subject to this Part, the Commission may, upon application by or on behalf of a corporation, grant an authorisation to the corporation to engage in conduct to which section 45CA would or might apply, and, while the authorisation remains in force, that section does not prevent the corporation from engaging in that conduct in accordance with the authorisation.

3  Subsection 90(6)

After “(1), ”, insert “(2),”.