If you own or manage a comparator website, you will be aware that the ACCC last year carried out a review of the comparator website industry in Australia. Whilst on the whole the review concluded that comparator websites can provide important benefits to both consumers and businesses, there was concern that poor conduct by some website operators could undermine those benefits and breach obligations under the Competition and Consumer ACT 2010 in relation to potentially misleading or deceptive conduct.

As a result, the ACCC has issued a Comparator Websites guide for comparator website operators and suppliers which highlights three key principles:-

Principle 1 – Facilitate honest, like for like comparisons
Principle 2 – Be transparent about commercial relationships
Principle 3 – Clearly disclose who and what is being compared.

The full guide offers extremely useful guidance for comparator website operators and their suppliers and can be found here https://www.accc.gov.au/publications/comparator-websites-a-guide-for-comparator-website-operators-and-suppliers. The ACCC has also issued guidance for consumers of comparator websites here https://www.accc.gov.au/consumers/online-shopping/comparator-websites

Citymove Pty Limited, a removalist, has been required to pay a fine of $30,600 to the ACCC in respect of the posting of false testimonials online. The ACCC has reiterated time and again that consumers must be able to trust that testimonials posted online, including on review websites are genuine. The ACCC’s deputy chairman stated “Fake testimonials can mislead consumers and disadvantage competing businesses. Falsely generated ratings may lead a consumer to purchase a business’s product or service under a mistaken belief about the popularity and perceived popularity of the business’’. To bear this out with a significant fine gives a very clear message to business about the integrity of their online presence under the Australian Consumer Law and the action which the ACCC has and will take if they believe businesses have got it wrong.

The ACCC can issue an infringement notice where it has reasonable grounds to believe a person has contravened consumer protection laws.

None of us can have missed the news over the past few weeks about MPs’ parliamentary entitlements. I am certainly not going to comment on what the MPs are entitled to in contrast to what the taxpayer finds acceptable but it does raise an interesting point which I often discuss with my clients. There is a world of difference between what the law requires or enables you to do and what your customers expect and makes them feel comfortable. Sticking to the letter of the law is rarely enough to keep your customers happy.

What’s more, going the extra mile with your customers on the ‘legals’, such as through transparent, easy to read contract terms on your website or by employing well trained customer service staff who understand consumer law, can really help you stand out from your competitors.