THE Federal Court has ordered that Equifax Australia Information Services and Solutions Pty Ltd (Equifax) pay penalties totalling $3.5 million for misleading and deceptive conduct and unconscionable conduct in relation to credit report services following joint submissions by Equifax and the ACCC.
 
Equifax admitted it breached the Australian Consumer Law (ACL) in 2016 and 2017, when its representatives made false or misleading representations to consumers during phone calls.
 
Equifax told consumers that its paid credit reports were more comprehensive than free reports it had to provide under the law, when in fact they contained the same information.
 
“Equifax’s conduct caused people to buy credit reporting services in situations when they did not have to. Consumers have the legal right to obtain a free credit report under the law,” ACCC Commissioner Sarah Court said.
 
Equifax also admitted it told consumers they would be charged a single ‘one-off’ or ‘one-time’ payment, but failed to disclose that payments for its paid credit report packages would automatically renew unless consumers opted out.
 
“We considered it unacceptable that consumers were denied the knowledge and proper opportunity to opt out of recurring charges from Equifax,” Ms Court said.
 
Equifax also told consumers that the credit score provided in its paid credit reports was the same credit score used by credit providers when that was not always the case.
 
In respect of three vulnerable consumers, Equifax also admitted that it acted unconscionably by using unfair sales tactics and making misleading representations during telephone calls.
 
“It is appalling that Equifax used unfair sales tactics on consumers who were vulnerable,” Ms Court said.
 
“Consumers have a right to receive accurate information from credit reporting companies when they seek advice or services.”
 
“This result sends a strong message to businesses that making misrepresentations and acting unconscionably against consumers will not be tolerated,” Ms Court said.
 
The court also ordered, by consent, that Equifax establish a consumer redress scheme which will allow affected consumers to seek refunds for a 180 day period.
 
Affected consumers should contact Equifax directly by phone on 1800 958 378 or at www.equifax.com.au/contact to seek a refund.
 
The penalties ordered were based on admissions made by Equifax and joint submissions on penalty made by Equifax and the ACCC.
 
According to the Privacy Act 1988, consumers are entitled to access their credit reporting information for free once a year, or if they have applied for, and been refused, credit within the past 90 days, or where the request for access relates to a decision by a credit reporting body or a credit provider to correct information included in the credit report.

The Court has ordered, by consent, that Equifax contribute $100,000 towards the ACCC’s legal costs
 
More information on how to access free credit report can be found on the Office of the Australian Information Commissioner’s webpage: https://www.oaic.gov.au/.
 
BACKGROUND
 
Equifax is Australia’s largest consumer credit reporting agency, holding an estimated 85 percent market share in the consumer credit reporting market.
 
In February 2016, Veda Advantage Pty Ltd was acquired by Equifax Inc. (NYSE:EFX) and its Australian operations were subsequently rebranded under the Equifax name.
 
On March 16, 2018, the ACCC instituted proceedings against Equifax Australia.

www.accc.gov.au

ends

THE CONTRAST between resources-friendly Queensland and the Southern States has deepened, with yet more investment in the local gas industry while other states remain locked up according to the Queensland Resources Council (QRC).

QRC chief executive Ian Macfarlane has welcomed Queensland Resources Minister Anthony Lynham’s announcement that another four companies would explore for gas on more than 6600 square kilometres in the Surat and Bowen Basins, and the Eromanga and Adavale Basins.

“We back our resources industry in Queensland, and that means we’re in the box seat to supply local gas users and support local jobs,” Mr Macfarlane said.

“This latest release of land from the Queensland Government, with the condition that gas developed be used to supply the domestic market, will further entrench Queensland’s role as the state keeping the East Coast gas market afloat.

“How much longer will NSW and Victoria rely on Queensland to make the investments that keep their industries supplied with gas and keep their economies ticking?

“Reliable and affordable gas is a must-have for Australian industries, including refining and manufacturing. Given transport costs add at least an extra $2 a gigajoule to the price of gas, it’s time for Australian businesses and manufacturers who are based in either NSW or Victoria to consider a move to the Sunshine State.

“With a go-slow on gas development, or in the case of Victoria a blanket ban on some types of gas projects, what the Southern States are really saying is they’re not prepared to support local jobs and local industry," Mr Macfarlane said.

“Queensland is putting up its hand for more investment made possible by a strong resources industry that creates jobs, supports regional communities and has paid $387 million in agreements with landholders to develop CSG/LNG projects.”

www.qrc.org.au

ends

WITH the Victorian retail industry contributing $81.5 billion to the national economy, the Australian Retailers Association (ARA) has urged the Victorian Government to shift the Victorian AFL Grand Final public holiday from Friday to Monday, to improve productivity and stimulate local businesses.

Russell Zimmerman, executive director of the ARA, said the Friday before the AFL Grand Final public holiday placed an unnecessary burden on retailers.

“Victorian retailers will really feel the pinch this Friday before the AFL Grand Final, as Fridays are one of the busiest trading days of the week,” Mr Zimmerman said.

“Retailers are constantly battling low sales growth coupled with increased operating costs, so imposing the public holiday on Friday significantly impacts retailers in Victoria.”

With the Australian Industry Group (Ai Group) predicting a loss of $1 billion to industry, the ARA believe the Victorian economy will certainly suffer this Friday.

“The additional public holiday on Friday 28 September will see many retailers choosing to close their doors rather than pay incredibly high penalty rates of up to 150 percent,” Mr Zimmerman said.

“With this public holiday only enforced in Victoria, the lack of trade, foot-traffic and productivity significantly affects the state’s economy.”

The AFL Grand Final public holiday was first introduced in 2015 and has since cost Victorian retailers a valuable day of business, as Victorian consumers usually attend the Grand Final Parade.

“We continually receive feedback from members who do not support this public holiday because they end up paying the price,” Mr Zimmerman said.

“Retailers who choose to open their doors will incur additional labor costs without seeing a boost in trade.”

The ARA will continue to challenge the Victorian Government on AFL Grand Final Day, urging them to move the Labour Day public holiday in March to the Monday after the Grand Final. This will align with other states, increasing productivity, stimulating trade and growing the Australian economy.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

ends

THE Australian Retailers Association (ARA) is crushed with the Fair Work Commission’s (FWC) decision to increase penalty rates for over 350,000 casual retail workers on Saturdays and after 6pm on weekdays, as it claims this increase will create more strain for retailers already working in such an overwrought market.

Russell Zimmerman, executive director of the ARA, said this decision is a grave outcome for Australian retail, as 135,000 independent retailers currently operate under the General Industry Retail Award (GRIA).

“With this decision taking place from November 1 this year, we can be certain retailers will have to re-think their Christmas trading strategy,” Mr Zimmerman said.

“Christmas trade is the biggest trading season for retailers, and these increases to casual workers pay on Saturday’s and weekday evenings will certainly impact on trading hours around the country.”

Although the ARA welcomed the FWC’s decision to reduce Sunday penalty rates for full-time and casual shiftworkers, the ARA is concerned these inconsistent Fair Work decisions bring more complexities to the GRIA.

“The Modern Award system is already complex, and we are concerned the Australian Labor Party’s selective acceptance of Fair Work’s employment decisions will continue to jeopardise the Australian retail industry,” Mr Zimmerman said.

“We are disappointed with the casual employment decision, and would like to remind the Labor Party that the Fair Work Commission was established for a reason, and that they should not try to overturn an independent body when they don’t agree with their decisions.”

Due to the inflexibility around part time employment and the reduced number of Enterprise Bargaining  Agreements (EBAs) the ARA believes this disastrous decision will see many retailers out of pocket at their busiest time of year.

“Retailers usually thrive during the Christmas period, however this year, I’m concerned many retailers will bear the brunt of an unjust and detrimental decision,” Mr Zimmerman said.

“Casual staff are the lifeblood of the retail industry, and instead of seeing our retailers shine this Christmas, we will see them undertake more pressure and have to make serious decisions about their Christmas trade.”

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

ends