Australian Competition and Consumer Commission (ACCC) Chairman Rod Sims has slammed the corporate sector as arrogant and warned companies that mislead consumers to expect fines in the hundreds of millions of dollars this year.
Mr Sims also predicted the ACCC will increasingly clash with companies over merger proposals, and accused dealmakers of lying about wider benefits of potential takeovers.
The ACCC chairman said the Hayne royal commission into misconduct in the financial services sector and other scandals had exposed the business community for losing focus on their customers.
“I think there’s an element of arrogance about corporate Australia, that they are in a privileged position and they can do as they like in almost an unfettered way,” Mr Sims told The Australian Financial Review.
“They just need to come down to earth a bit and realise why they exist and what they’re there for. They need to regain control and focus on long-term shareholder value, which means a focus on customers.”
Mr Sims pointed to cases involving Telstra, which was hit with AU$10 million (US$7.1 million) in penalties by the Federal Court last April for misleading consumers about its premium direct billing services, and the Ford Motor Company, which was ordered to pay the same amount after being found to have engaged in unconscionable conduct in relation to a problem with its transmissions.
“In the case of Telstra, you’re getting 10,000 complaints or more a
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