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I'm writing to CEOs across Australia as part of the ACCC's
efforts to explain exactly what constitutes cartel activity and its
very serious consequences.
Cartels occur when businesses make agreements with their competitors to fix
prices,
rig bids, share markets
or limits supply in order to maintain or increase their profits.
Businesses and individuals who enter into cartel arrangements with competitors
are breaking the law
and could face up to ten years in jail.
Cartels are against the law because they are anti-competitive
and create an unfair playing field for businesses
and consumers.
Now, there is no excuse for this deceptive and dishonest conduct
including in hard economic times
when some businesses may be struggling to survive.
Starting or joining a cartel is not only illegal
it is immoral
and is viewed by the community as being akin to theft.
For each offence or contravention
companies face penalties
of the greater of
$10 million dollars or
three times the benefit
ganied from the conduct
or where this cannot be determined
10% of the annual turnover of the company or corporate group.
Under the new penalty regime,
individuals face hefty fines and a criminal record
and up to 10 years in jail.
Now according to Melbourne University research
over a third of business people surveyed in 2010
either believed that cartel conduct was legal or were unsure whether it was
against the law
and although 42% of businesses were aware that cartel
conduct is now a criminal offence,
amazingly, almost one in 10 admitted they'd still be likely to join a
cartel if the opportunity arose.
Where cartels exist,
Australians will be paying more for goods and services,
which is a burden they should not have to bear.
When businesses compete fairly on their offers, prices and customer service,
customers and smaller businesses receive the benefits of wider choices on price and
quality.
When businesses cheat by forming cartels however,
they damage the economy,
force other competitors and clients out of businesses
and rip off consumers.
The ACCC wants everyone in business to know that cartel conduct
is illegal and unacceptable in any circumstance.
That's why I'm sending a letter and a copy of our new short film
'The Marker',
which shows the devastating effect that cartel conduct has on individuals and
businesses,
to the CEOs at 300 of Australia's largest companies.
Now I'm urging the CEOs to take steps to ensure
that all their employees understand what constitutes cartel activity
and the very serious consequences they face
if they make under the table deals with competitors.
We're also engaging with business, industry and legal peak
bodies
to distribute links
to the film
and our website
to their staff members and clients.
The ACCC is always seeking out cartels, encouraging people to report
suspicious activities
and urging participants to seek immunity in exchange for helping us
with our investigations.
We use proactive measures to educate businesses and are currently investigating
evidence of several possible cartels operating in Australia.
Where we find sufficient evidence of serious cartel activity we will work
with the Commonwealth Director of Public Prosecutions
to bring criminal proceedings against alleged perpetrators.
We work closely with our international counterparts in the USA, Europe,
Japan and Korea
to deter and
detect global cartels.
I urge anyone with knowledge of cartel activities to contact us.
Anyone currently
or recently involved in cartel activity
should be the first to apply for immunity.
As long as you are not the clear cartel leader
and have not coerced others into a cartel,
any business or person
can apply to the ACCC for immunity
from prosecution in exchange for helping us with our investigations.
As far as the law permits,
we maintain the confidentiality
of immunity applicants.
There is no honour among theives,
so the sooner cartel members contact us for an immunity marker, the safer they
will be.
For details about cartels and how to apply for immunity
go to the ACCC website or call the immunity hotline.