THE Australian Small Business and Family Enterprise Ombudsman has written to Amazon to ensure the company complies with Australia’s unfair contract terms legislation.

Ombudsman Kate Carnell said the pending arrival of Amazon Marketplace in Australia represented an opportunity for many small businesses to compete online and extend their reach.

But Ms Carnell also wants to remind the company of its obligation to treat small businesses fairly in accordance with Australian law.

“Some businesses are concerned about the threat of competition while others are excited to embrace the opportunity that Amazon offers,” Ms Carnell said.

“For consumers the Amazon Marketplace promises to expand choice and put downward pressure on prices.

“I’m interested to see how Australian small businesses can accelerate sales and broaden their customer base though the Amazon platform.”

Ms Carnell said analysis of the Amazon Marketplace contract terms in the United States suggested they would have to be changed in Australia to comply with federal legislation.

“From 12 November 2016, changes to the Australian Consumer Law protect small business from unfair terms in standard-form contracts,” Ms Carnell said.

“A standard-form contract is one that has been prepared by one party and where the other party has little or no opportunity to negotiate the terms.

“An unfair term is one that causes a significant imbalance in the parties’ rights and obligations and causes detriment to a small business if it were applied or relied upon.” 

Ms Carnell said in Amazon’s United States terms and conditions, the company reserves the right to refuse service, terminate accounts, terminate rights to use Amazon services, remove or edit content, or cancel orders at its sole discretion.

“This may be considered unfair as action can be taken by one party, Amazon, but not the other party, the vendor, to terminate the contract,” she said.

“I’ve requested that Amazon review the terms and conditions in use for standard form contracts in its Australian operations to ensure they comply with the unfair contracts terms legislation.”

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DIABETES Australia Walk to Work Day is just four weeks away and organisers are saying “no more excuses!”. With one Australian diagnosed with type 2 diabetes every eight minutes there has never been a better time to get walking and start on the path to a healthier workplace and a healthier you.

Now in its 19th year, Walk to Work encourages employees and employers to build walking into their everyday lives – not just on Friday 6 October 2017, but every day.

Walking meetings, walking to and from work, taking a walk at lunchtime, and using the stairs instead of the escalator or elevator are just some of the ways you can start. You also have the opportunity to help raise vital funds for Diabetes Australia.

Diabetes Australia CEO Professor Greg Johnson said while family history and cultural background play a strong role in risk of type 2 diabetes - the risk is greatly increased if people are inactive, sedentary or overweight.

"With around 280 Australians developing diabetes every day – diabetes is the single biggest challenge facing Australia’s health system. Walking is one of the best ways to help people reduce their risk of developing type 2 diabetes. It also helps people who have type 2 diabetes manage their condition,” he said.

Prof Johnson said employers can play an important role in encouraging their staff to build walking into their daily routine.

“Employees who walk regularly are generally more productive, have less stress and are less likely to be sick or absent. Companies like Energizer Australia have partnered with us this year to demonstrate their dedication to the health of their employees. We hope more will follow,” he said.

Pedestrian Council Chairman Harold Scruby said: “Taking positive steps to reduce sedentary behaviour and prevent type 2 diabetes can also reduce other risk factors like stroke, heart disease and various types of cancer.

“Let’s not make any more excuses - no more ‘due to a previous engagement’. Most of us can walk at least 1km to and from work, set the alarm 30 minutes earlier and create a great example for all Australians. Regular walking helps relieve feelings of depression or anxiety and improves our environment by reducing car dependency and traffic jams - best of all walking is free!”

Start raising money for Diabetes Australia. It’s easy to get involved:

• Go to www.walk.com.au and donate directly or fundraise vital funds for Diabetes Australia.
• Donate or collect $12 for each hour you walk to represent the 12 Australians developing diabetes every hour. Download your digital Walk to Work fundraising guide from here.

ENDS

THE Ombudsman and Chief Executive of the Credit and Investments Ombudsman (CIO), Raj Venga, today excoriated the government’s move to introduce legislation into the Senate to create a ‘one-stop-shop’ ombudsman, the Australian Financial Complaints Authority (AFCA). 

AFCA is intended to replace CIO, the Financial Ombudsman Service (FOS) and the Superannuation Complaints Tribunal (SCT) from 1 July 2018, and is in response to a review of financial sector ombudsman schemes led by Professor Ian Ramsay.

"The one-stop shop is being trumpeted as something entirely new, but the government has simply dusted off and reproduced benchmarks that were first published in 1997, and which already apply to CIO and FOS," says Mr Raj Venga, CEO and Ombudsman, CIO.

"There’s nothing new here.  AFCA will essentially have the same powers and jurisdiction as CIO, FOS and the SCT:

• The SCT already possesses the ‘additional powers’ that are being given to AFCA for superannuation complaints.
   
• CIO and FOS need only amend their existing terms of reference to incorporate those few extra requirements that are to apply to AFCA which do not already apply to CIO and FOS.
   
• The proposal to allow ASIC to issue ‘directions’ to AFCA adds little, if anything, to ASIC’s regulatory oversight. There is already the ability to revoke CIO or FOS’ approval. This is a far greater incentive for CIO and FOS to comply with regulatory requirements than the threat of a direction from ASIC.

"More significantly, since only one scheme will be authorised by the Minister, it is inconceivable that the Minister would revoke AFCA’s authorisation and leave hundreds of thousands of consumers with absolutely no redress against financial firms other than through costly legal proceedings. What then is the sanction for poor performance or non-compliance by AFCA?  A single scheme will result in a weaker system of external dispute resolution.

"We’re being sold a pup. AFCA will have no greater or effective powers than FOS, CIO and the SCT.  It ticks none of the boxes and it fixes nothing.  AFCA is a pitiful attempt to fend off calls for a Royal Commission.

"It also makes absolutely no sense to design a scheme such as AFCA without the benefit of the findings of a Royal Commission’.

"AFCA is not fit for purpose. It will neither provide better consumer outcomes nor be able to address past, or prevent future, financial scandals.

"AFCA is not equipped to weed out poor entrenched corporate culture or address the string of financial scandals that regularly grace the pages of our newspapers. Only a Royal Commission can do this.  Not being able to investigate the root cause of these scandals, AFCA will be powerless to prevent their re-occurrence to the detriment of consumers. 

"Not having statutory powers, AFCA will not be able to redress the power imbalance between big banks and small businesses and primary producer borrowers, or deal effectively with small business claims against banks, even with expanded monetary limits and compensation caps. 

"For example, AFCA will not be able to join, bind or obtain information from third parties that have been appointed by a bank, such as valuers, investigative accountants and receivers.  Nor will it be able to make or enforce decisions against them.

(This was specifically recommended by both the Parliamentary Joint Committee on Corporations and Financial Services (The Impairment of Customer Loans) and the Small Business Loans Inquiry Report by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO)).

"AFCA will not be able to accept complaints from primary producer borrowers who have previously undertaken farm debt mediation, another recommendation of the ASBFEO.

"Nor will AFCA be able to accept small business complaints against commercial lenders that are not required to be licensed. Presently, no licensing is required for commercial lending creating an obvious work-around.

"Consumers will also not be able to enforce AFCA’s decisions or seek a judicial review of an unfavourable AFCA decision.

"AFCA is a rebadging exercise that achieves nothing.  Referring to it as an ‘Authority’ doesn’t magically make this non-statutory body a statutory one.

"AFCA is nothing more than a political announcement and the appearance of action."

* CIO is an alternative dispute resolution scheme approved by the Australian Securities and Investments Commission to provide consumers with an alternative to legal proceedings for resolving financial services-related disputes with members of CIO, which include finance brokers, non-bank lenders, payday lenders, timeshare operators, mutual banks, financial planners and debt purchasers.

ends

WHAT DO do slush funds, smart home safety, smuggling and sport have in common? 

All will be put under the legal microscope and scrutinised at the Organised Crime and Corruption Forum (18-21 September) organised by The University of Queensland’s TC Beirne School of Law and the Australian Institute for Business and Economics (AIBE).  

TC Beirne School of Law Deputy Dean (Research) Professor Simon Bronitt said the four-day event aimed to develop practical outcomes for policy development and law reform.

“The Organised Crime and Corruption Forum will see and exchange of new ideas for combatting corporate corruption, technology-enabled domestic violence, cheating in sport, and illegal immigration,” Professor Bronitt said.

“It is about bringing together people from government, industry, the judiciary, legal professions and academia to tackle four topical law issues that Australians are concerned about.

“For example, criminalising migrant smuggling and promoting safe migration poses a complex problem for criminal justice, international relations and human rights which prompts the question – are migrant smugglers criminals or Good Samaritans?”

Another topic to be addressed will be the task of combatting uses of smart technologies and connective devices by domestic violence perpetrators.

Australia’s efforts to plug enforcement gaps and legal loopholes in instances of corporate corruption will also be discussed, as will ensuring fair play triumphs in the $US1.5 trillion global sports industry.

“These are kind of challenges each of the four sessions will pose, and we believe some very innovative solutions will emerge,” Professor Bronitt said.

International experts joining UQ academics and local specialists for the Forum include Dr Federica La Chioma (Procura della Repubblica, Italy); Professor Peter Lewisch and Dr Farsam Salimi (University of Vienna, Austria); Professor Liz Campbell (Durham University, UK); and Dale Sheehan (International Centre for Sport Security, Qatar).

The program includes public lectures, panel discussions, roundtable workshops and a mini hackathon to examine the implications of contemporary organised crime.

The forum is open to the public, with one session each afternoon:

Monday 18 September 2-5 pm –  Criminalising Migrant Smuggling; Promoting Safe Migration

Tuesday 19 September 4-7 pm – The Smart Home as a Safer Space

Wednesday 20 September 2-5 pm – Anti-Corruption in the Company

Thursday 21 September 2-5 pm – Sports Corruption: Transnational Perspectives

To register online, visit https://law.uq.edu.au/occ-forum

ends

THE Joint Committee of Public Accounts and Audit has tabled its report on Commonwealth Procurement based on the following Auditor-General’s reports:

• No. 1 (2016-17), Procurement of the International Centre for Complex Project Management to Assist on the OneSKY Australia Program;
• No. 13 (2016-17), Delivery of Health Services in Onshore Immigration Detention; and
• No. 16 (2016-17), Offshore Processing Centres in Nauru and Papua New Guinea: Procurement of Garrison Support and Welfare Services.

Procurement is core business for Commonwealth agencies and achieving value for money is expected to be a central consideration.

Committee Chair Senator Dean Smith said the Committee had made a number of recommendations in its report to improve procurement management by the agencies under review.

“Effective Commonwealth procurement will continue to be a strong focus of the Joint Committee for Public Accounts and Audit in its role in scrutinising the governance, performance and accountability of Commonwealth agencies,” Senator Smith said.

The report makes nine recommendations, including that:

• Airservices Australia provide the Committee with a post-implementation progress report for each of the audit recommendations; report back on a number of matters to demonstrate its improved management of probity in procurement; and report back on implementation of the audit findings of Audit Report No. 46, Conduct of the OneSKY Tender;
• the Department of the Finance consolidate procurement guidance as it relates to corporate Commonwealth entities, to ensure such entities more strictly apply the Commonwealth Procurement Rules;
• the Australian National Audit Office consider a third-stage audit into the conduct of the OneSKY tender by Airservices and any associated matters; and a performance audit of the next Department of Immigration and Border Protection procurement of garrison support and welfare services; and
• the Department of Immigration and Border Protection provide the Committee with a post-implementation progress report for each of the audit recommendations in Audit Report No. 16 (2016-17); and report back on its implementation of appropriate performance monitoring of the contractor for the provision of health services in onshore immigration detention and implementation of a risk-based remediation plan.

 Interested members of the public may wish to track the Committee via the website. 

ends

FAIR WORK Ombudsman Natalie James has welcomed new laws protecting vulnerable workers coming into effect today.

After gaining royal assent yesterday, the Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 has now come into effect. This means new, higher penalties for serious contraventions of workplace laws and record keeping breaches start today.

New obligations extending liability for underpayment and other breaches in franchise and subsidiary networks to head offices will start in six weeks on 28 October, 2017.

The changes apply to all employers, companies and employees covered by the Fair Work Act but are particularly important for:

• franchisors and holding companies
• vulnerable employees
• people or companies who do not voluntarily cooperate with Fair Work Ombudsman investigations.

The Fair Work Ombudsman has published a range of information and resources on its website at www.fairwork.gov.au aimed at assisting all workplace participants to understand and comply with their obligations.

This includes information on who the changes affect, what the changes mean for you and what the changes are.

The Act includes a range of measures including an increase in the maximum penalties for employers who deliberately flout the minimum wage and other entitlements under the Fair Work Act 2009.

Ms James says employers also need to make sure they are meeting pay slip and record-keeping obligations.

“Businesses that don’t keep the right records, don’t give proper pay slips, or who make false or misleading records and payslips can face higher penalties,” she said.

Ms James says franchisors and holding companies could be liable if their franchisees or subsidiaries don’t follow workplace laws, so it is important for them to make sure they take reasonable steps to prevent breaches of workplace laws in their networks.

“We will be consulting with businesses about how these laws affect them, starting with a roundtable focusing on the new franchisor liability provisions early next month,” Ms James said.

Ms James said employees should be aware that strengthening of laws relating to cashback schemes means that if their employer requires an employee to use their own money unreasonably, or makes an employee give some of their pay back to their employer or another person, this could be unlawful.

“In passing the new laws, the Parliament has reflected the community’s concerns about deliberate exploitation of vulnerable workers,” Ms James said.

“The Fair Work Ombudsman will apply the laws judiciously and fairly, and work with business to ensure employers understand their obligations under workplace laws. Employers should always check their obligations, either by accessing our free and comprehensive tools on our website, or asking their employer organisation or another qualified workplace relations adviser.

“But for those who are underpaying workers, failing to keep proper records or coercing workers to pay their wages back in cash, we will not hesitate to deploy the full set of tools in our toolbox, including using the new examination powers and seeking maximum penalties from the courts.

Employees can get help resolving workplace issues and also report a workplace concern anonymously on the Fair Work Ombudsman’s website.

The Fair Work Ombudsman’s ‘Record My Hours’ smartphone app is aimed at tackling the persistent problem of underpayment of vulnerable young workers by using geofencing technology to provide workers with a record of the time they spend at their workplace. The app can be downloaded from the App Store and Google Play.

Employers and employees seeking assistance can also contact the Fair Work Infoline on 13 13 94. A free interpreter service is available on 13 14 50.

ends

THE Parliamentary Standing Committee on Public Works will hold public hearings in Canberra tomorrow to examine three proposed projects:

• Construction of the Treloar E Large Technology Objects Store to accommodate the planned acquisition of large technology objects in Mitchell, ACT.  The estimated cost of the project is $16.1 million (excluding GST).
• Delivery of a Satellite Ground Station to provide anchoring of Wideband Global Satellites. This is part of a multi-phase project to provide the requisite range of strategic and tactical satellite communications capabilities. The estimated cost of the project is $33.9 million (excluding GST).
• Building refresh and fit-out of Discovery House in Woden, ACT.  The estimated cost of the project is $39.7 million (excluding GST).

Public hearing details: 9:15 am to 2:30 pm, Friday, 15 September 2017, Committee Room 1R3, Parliament House, Canberra 

9.15 am – 10.00am:     Australian War Memorial
11.15am – 12.00pm:     Department of Defence
1.15pm – 2.00pm:        IP Australia
2:30pm:                          Close

The hearing will be broadcast live at aph.gov.au/live.

ends