ACCC Update Issue 13

Issue 13 June 2003 SAMUEL SET TO SUCCEED anaccc ount ACCC a look at us now consumer protection fair trading for business regulated industries + farewell Allan Fels AFLLAN ELS After much reflection I've decided that I will not seek renewal of my position as chairman of the Commission. memories Allan Fels AO ‘Allan Fels, in the last BEc(Hons) LLB PhD few years, has become 'The highlights of my tenure here a brand name, and his have been getting exciting results. Professor Allan Fels is probably critics would probably Australia's best known regulator. I was really pleased with the big say how do you replace With a craggy, media-friendly a brand?’ cases; when we broke the cartels, face, Fels speaks out regularly on Mayne Nickless/TNT, building behalf of the consumer, leading Fred Brenchley, codes, vitamins, power the organisation affectionately The Bulletin transformers, some of the known as the consumer watchdog. consumer protection cases Perhaps mistakenly, he has not always been seen as a similarly including life assurance and the and director at the graduate school close friend of big business. of management from 1984–90 and Aborigines and quite a few others. was made honorary professor of the They were fantastic experiences He leaves his post as chairman of the ACCC as arguably one of the most faculty of business and economics at with great results. influential men in the country and Monash University in 1997. He will certainly one of the most be returning to teaching in his new I was really pleased that we got controversial. position at the Australia and New the merger law changed in 1993 Zealand School of Government. from dominance to substantial As chairman of the Prices lessening of competition—that's Surveillance Authority from March something that will have an 1989, Professor Fels was responsible abiding effect on the Australian for keeping a check on petrol prices 'Before I retire I'd like during the Gulf War. He served economy and competition. to come back and as Trade Practices Commission impart some of that Personally I was always deeply knowledge to a new chairman from July 1991. Major involved in the question of generation and to, consumer protection cases included the sale of life insurance policies to whether there should be parallel perhaps, future leaders in the public service.’ indigenous Australians and the imports of compact discs and I was AMP life insurance case which led unbelievably pleased when that Allan Fels Fels 1969 to refunds of more than $50 million went through the Senate by one to consumers. vote at 2am on a Sunday morning. Professor Fels was appointed I am pleased with the other parallel the first chairman of the ACCC in import cases although I'd like November 1995. From July 1999 the new tax system pricing laws books to go further. Allan Fels was born in 1942. He were enforced by the Commission studied law and economics at the for three years. It was an enormous More generally making the University of Western Australia before task. The ACCC's role was to ensure Commission a very effective gaining a PhD in economics at Duke that prices reflected reductions in enforcer of the Trade Practices Act University in North Carolina. It was indirect taxes and that consumers while studying for his doctorate in and quite an effective regulator of were not exposed to unnecessary America that he met his wife Marie- public utilities. price rises. Initial work included the Isabel Cid, who was teaching development and interpretation of Spanish there. Fels pursued Marie- Finally I was really worried about the GST guidelines, price monitoring Isabel back to Spain and the couple the GST challenge and its impact and some enforcement activity. married with Spanish ceremony in There was a major campaign to on our organisation. But we Madrid in 1969. They have two educate business about its handled that really well; a lot of daughters Isabella and Teresa. obligations and the public about dedicated people resolved that and Allan Fels first job was in academia their rights. In the month after the ACCC came out with an as a lecturer at Melbourne University implementation of the new tax the enhanced reputation.’ in 1972. Soon after he became ACCC help line received 30 000 calls. senior lecturer at Monash University A survey showed 98 per cent of Allan Fels April 2003 and then professor of administration price reductions had been made. 2 ACCC update 13 January 2003 The ACCC could rightly claim that the organisation helped make sure that consumer exploitation and 'Allan Fels….. excessive profit-taking did not occur competition tsar Update far because of the new tax system. and media tart.' During his tenure at the ACCC Terry McCrann, Professor Fels has sought to benefit News Limited consumers and small business, in particular, through sound 'He is media friendly, enforcement of the law and sometimes to a fault, ewells Allan Fels associated regulatory activities. but the alternative is a While it is an enforcement agency, consumer watchdog the Commission cannot directly who lies sleeping penalise companies or individuals on the mat.' breaking the law but has to take Greg Turnbull, them to court to prove any Channel 10 allegations it makes. At present there are 80 cases before After he leaves Allan Fels will for a the federal court. This compares with time maintain chairmanship of the five in the year that Professor Fels OECD trade and competition became chairman of the Trade committee. Practices Commission in 1991. In his most recent campaign for the This edition of Update says On the international stage, Professor protection of consumers, Professor goodbye to Allan Fels. He leaves Fels has been deputy chairman of Fels advocated to the Dawson the OECD competition committee Inquiry the adoption of criminal as chairman of the Australian and since 1996 co-chairman of the sanctions under the Trade Practices Competition and Consumer trade and competition committee, Act for hard core business collusion, an important post for an Australian a practice already in place in the Commission (ACCC) on 30 June to hold. United States, Canada, Japan, South 2003 to become the first dean Korea, and Britain. Under his guidance the ACCC has of the new Australia and New sought to make competition law and His recreational interests include Zealand School of Government. policy more effective by establishing reading, music… and physical a high profile. Professor Fels' pivotal fitness. This review of Professor Fels' role in keeping the issues before the public, particularly through the achievements is not intended as media, has not been achieved 'He yields the same a formal tribute—many of those without criticism. sort of power in the will come later and be delivered 'I have sought and maintained gym as he does out a high media profile because I in the corporate more personally. It is a chance, world. He's a strong believe my statements and media though, for Update to say interviews help build a general man, metaphorically culture of understanding and and physically. He'd farewell to the chairman with support for competition law. put a lot of 20-year- best wishes for his future. Accusations from some quarters of olds to shame.’ being a media tart are a small price James Hatzi, gym manager to pay for raising business and consumer confidence in competition Update acknowledges the assistance of ABCtv Australian Stor law. The more people who realise 'We think the ACCC and their obligations and rights, the Allan Fels are probably greater the degree of genuine the best friends that competition within the economy.' consumers have. He's become something of Allan Fels a Robin Hood for Australia.’ Louise Sylvan Australian Consumer Association I don't regard myself as a hero but as someone determined to do the right thing. y ACCC update 13 January 2003 3 81319 consumer protection fair trading for business regulated industries 8 what we do 13 what we do 19 what we do 9 how we do it 15 how we do it 21 how we do it 11 the law 16 the law 22 the law 11 what to read 17 what to read 22 what to read in this issue.......... 4 Professor Fels leaves and Graeme Samuel arrives with the ACCC in fine shape; an ideal time for Update to take a look at the organisation that has grown so much in stature and authority since Allan Fels became the founding chairman in 1995. In a milestone edition Update takes stock on where the ACCC is now and where it's going. This edition summarises what the organisation exactly does, tells how we achieve results, outlines the legal basis of our work, suggests the benefits that are achieved and lets you know how to become involved. The text is designed to be useful rather than all-inclusive. Linked web sites are provided throughout the text for readers who seek more detail. For those without the internet, more information on any ACCC matter can be obtained by calling the Infocentre on 1300 302 502. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 2 2 farewell Allan Fels 26 who we are 5 ACCC an acccount 26 the commission 5 review of the Trade Practices Act 26 regional directors 6 what we do 27 the infocentre 6 what we don't do 27 publications 24 why we do it 27 Geoffrey Robertson hypothetical Graeme Samuel appointed to head the ACCC Graeme Samuel AO will be acting chairman of the Australian Competition and Consumer Commission from 1 July 2003 for a period of 12 months.

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