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Corporate Performance - Fair Trading
Office of Fair Trading
Commerce Goal 2 – Simplify processes for dealing with government
Commerce Goal 3 – Promote a fair marketplace for consumers and traders
Regulatory changes brought significant improvements for the community in the areas of:
- motor vehicle repairs - with the introduction of a mandatory code of practice between smash repairers and insurers
- real estate - with more open dealings at property auctions
- small business - with tighter controls on false-billing
- home building – with clearer, standard qualification requirements and the opportunity for licensees to take advantage of new three-year licences.
The Office of Fair Trading (OFT) continued to respond to a vast number of requests from the community for service – well over 6 million in 2006/07. These were handled through phone, counter and electronic channels. Independent surveys demonstrated a high level of accuracy for the information provided and customer satisfaction levels continued to be well above the suggested Australian Standard target. More than 34,000 disputes between consumers and traders were handled and over 85 per cent of these were successfully negotiated at an informal level. Over 41,000 compliance related activities – ranging from inspections through to more complex action in the Supreme Court, were carried out to ensure fairness in the marketplace.
A comprehensive review process involving more than 40 separate pieces of legislation continued to ensure NSW's fair trading laws remain up-to-date and reflect the needs of Parliament, the community and a broad range of stakeholders. Over 900 community information sessions were presented to more than 27,000 people around the State.
People seeking affordable housing will now benefit from an initiative that provided $10.4 million of Rental Bond Board investment funds to the Department of Housing for capital and to establish the vehicle model for affordable housing. In June 2007, OFT provided Housing with an additional $30 million to provide grants for the development or acquisition of up to 250 units of affordable rental housing.
An Enforcement Action Report is now being published each quarter on the OFT website. It details the names of offenders, their offences and the penalties imposed for breaches of fair trading law. It sends a warning to individuals who might consider flouting the law, as well as encouraging honest traders who value the reputation and integrity of their industries.
Commerce objectives
-
Fair Trading legislation simplifies service provision for consumers and traders
-
Fair marketplace regulation with minimal red tape
Corporate performance
|
Result |
Result indicator |
03/04 |
04/05 |
05/06 |
06/07 Actual |
Target 07/08 |
Comment |
|
Fair Trading legislation simplifies service provision for consumers and traders |
% of customers who agree services are simple and uncomplicated |
- |
- |
- |
87% |
85%* |
The initial result for this new indicator is an encouraging sign the community is generally not burdened by complex services. |
|
Fair marketplace regulation with minimal red tape |
% traders who believe they are unduly burdened by fair trading laws |
- |
- |
- |
34% |
35%* |
A low result is a good result for this new indicator. It is an encouraging sign the majority of traders don't believe they are unduly burdened by fair trading laws. |
Service Group Performance Measure 03/04 04/05 05/06 06/07 Actual Target 07/08 Comment Policy development and regulatory review % Office of Fair Trading regulatory proposals that meet Better Regulation Office requirements without further amendment - - - n/a 60% Unable to measure during 2006/07. Better Regulation Office is yet to disclose its service measure requirements. The target is purely speculative.
* Note: the target has been rounded to the nearest five per cent but is speculative until at least three year's data allows trend analysis to set a firmer target
Three-year home building licences
A review into licensing in the NSW home building industry was conducted in 2005 to consider a range of issues, including the type of work that should be covered by licensing; whether licensing should cover individuals, partnerships and companies; training and education standards; and owner builders. A total of 29 recommendations for reform were made and the Government sought feedback from consumers, building contractors, industry associations and other interested parties. The Government indicated early in 2007 that it would implement two of the key recommendations in the report. As a result, licensees under the Home Building Act are being given the option from 1 July 2007 to renew their licences on a three-yearly basis, providing substantial savings over annual renewal fees.
A review into licensing in the NSW home building industry was conducted in 2005 to consider a range of issues, including the type of work that should be covered by licensing; whether licensing should cover individuals, partnerships and companies; training and education standards; and owner builders. A total of 29 recommendations for reform were made and the Government sought feedback from consumers, building contractors, industry associations and other interested parties. The Government indicated early in 2007 that it would implement two of the key recommendations in the report. As a result, licensees under the Home Building Act are being given the option from 1 July 2007 to renew their licences on a three-yearly basis, providing substantial savings over annual renewal fees.
Funeral Industry review
In response to the Legislative Council Standing Committee on Social Issues Inquiry Report into the NSW Funeral Industry, as well as its own research, OFT worked with the funeral industry and consumer groups to develop proposals for an information standard for funeral goods and services. The information standard will require funeral directors to provide specific information to consumers about funeral goods and services, including a breakdown of costs. It will ensure that consumers receive clear and easily comparable information to help them make an informed choice at a time when they are distressed and vulnerable. It will also promote greater competition and transparency within the industry. The Fair Trading Act 1987 was amended in June 2007 to enable an information standard for funeral goods and services to be prescribed. A draft information standard will be released for public consultation later in 2007.
In response to the Legislative Council Standing Committee on Social Issues Inquiry Report into the NSW Funeral Industry, as well as its own research, OFT worked with the funeral industry and consumer groups to develop proposals for an information standard for funeral goods and services. The information standard will require funeral directors to provide specific information to consumers about funeral goods and services, including a breakdown of costs. It will ensure that consumers receive clear and easily comparable information to help them make an informed choice at a time when they are distressed and vulnerable. It will also promote greater competition and transparency within the industry. The Fair Trading Act 1987 was amended in June 2007 to enable an information standard for funeral goods and services to be prescribed. A draft information standard will be released for public consultation later in 2007.
Trade measurement
In April 2007, the Council of Australian Governments (COAG) agreed, having considered the advice of the Ministerial Council on Consumer Affairs, to accept the Commonwealth's offer to take full responsibility for the national trade measurement system from 1 July 2010. The system is responsible for the accurate measurement of transactions which comprise about 50 per cent of Australia's Gross Domestic Product. The Commonwealth's National Measurement Institute will be responsible for the administration of the national system and the development of its legislation and plans to consult with the states, territories and New Zealand to improve harmonisation.
In April 2007, the Council of Australian Governments (COAG) agreed, having considered the advice of the Ministerial Council on Consumer Affairs, to accept the Commonwealth's offer to take full responsibility for the national trade measurement system from 1 July 2010. The system is responsible for the accurate measurement of transactions which comprise about 50 per cent of Australia's Gross Domestic Product. The Commonwealth's National Measurement Institute will be responsible for the administration of the national system and the development of its legislation and plans to consult with the states, territories and New Zealand to improve harmonisation.
The legislation will need to cover the approval, use and inspection of measuring instruments used for trade, including shop scales, petrol flow-meters, tanks and beverage dispensers, packaging and labelling of pre-packaged goods. A national trade measurement system will remove administrative differences between the states and territories. The Commonwealth, NSW and the other states and territories are committed to the development of a national system, supported by legislation, which will, at a minimum, maintain existing service standards and consumer protection.
Personal property securities
COAG agreed in-principle in April 2007 to a national system for the registration of personal property securities by 2009 to be administered by the Commonwealth. This will result in a single national register on which all forms of security over all types of personal property would be registered - the Personal Property Security Register. Personal property includes goods such as motor vehicles, boats, business and manufacturing equipment, as well as 'intangibles' such as copyright, company shares and trademarks.
COAG agreed in-principle in April 2007 to a national system for the registration of personal property securities by 2009 to be administered by the Commonwealth. This will result in a single national register on which all forms of security over all types of personal property would be registered - the Personal Property Security Register. Personal property includes goods such as motor vehicles, boats, business and manufacturing equipment, as well as 'intangibles' such as copyright, company shares and trademarks.
The proposed Personal Property Security Register will have a direct impact on more than 70 pieces of Commonwealth, state and territory legislation. It will involve the consolidation of numerous existing security registers, in particular the company charges register operated by the Australian Securities and Investments Commission and the various state vehicle encumbrance registers, such as the Register of Encumbered Vehicles (REVS). OFT is keen to ensure that the single national register project provides optimal benefits for consumers, business and the NSW Government.
Australian consumer product safety system
The Ministerial Council on Consumer Affairs is considering reform options to improve the effectiveness and consistency of product safety regimes in Australian jurisdictions. Product safety is one of the regulatory 'hot spots' identified by COAG as being in need of cross-jurisdictional regulatory reform to reduce the regulatory burden on business. OFT is participating in a harmonisation project in which the states and territories, in consultation with the Commonwealth, will agree on the principles of the new regime and report to the Ministerial Council late in 2007.
The Ministerial Council on Consumer Affairs is considering reform options to improve the effectiveness and consistency of product safety regimes in Australian jurisdictions. Product safety is one of the regulatory 'hot spots' identified by COAG as being in need of cross-jurisdictional regulatory reform to reduce the regulatory burden on business. OFT is participating in a harmonisation project in which the states and territories, in consultation with the Commonwealth, will agree on the principles of the new regime and report to the Ministerial Council late in 2007.
Australia's consumer policy framework
The Productivity Commission is an independent body which advises the Commonwealth Government on microeconomic policy and regulation. It conducts public inquiries and research into economic and social issues affecting the welfare of the Australian community. The Commission is undertaking an inquiry into Australia's consumer policy framework and its administration. The Commonwealth, state and territory governments share responsibility for consumer policy in Australia. The main legislative provisions are contained in the Trade Practices Act 1974 and the Fair Trading Acts in each state and territory. In addition to this generic legislation, there is a wide array of industry-specific regulation covering, for example, telecommunications, food safety, retail energy suppliers, and vehicle sales.
The consumer policy framework also encompasses various self-regulatory and co-regulatory schemes and non-regulatory approaches such education and information strategies. OFT co-ordinated the NSW Government's submission to the Inquiry. The Commission is required to make a report to the Government by 11 December 2007.
The Productivity Commission is an independent body which advises the Commonwealth Government on microeconomic policy and regulation. It conducts public inquiries and research into economic and social issues affecting the welfare of the Australian community. The Commission is undertaking an inquiry into Australia's consumer policy framework and its administration. The Commonwealth, state and territory governments share responsibility for consumer policy in Australia. The main legislative provisions are contained in the Trade Practices Act 1974 and the Fair Trading Acts in each state and territory. In addition to this generic legislation, there is a wide array of industry-specific regulation covering, for example, telecommunications, food safety, retail energy suppliers, and vehicle sales.
The consumer policy framework also encompasses various self-regulatory and co-regulatory schemes and non-regulatory approaches such education and information strategies. OFT co-ordinated the NSW Government's submission to the Inquiry. The Commission is required to make a report to the Government by 11 December 2007.
Review of qualification requirements
In August 2006, new qualification requirements for 24 building trades (carpenters, bricklayers, painters, concreters, etc) were approved based on a national qualification at Certificate III level. Previously, the qualification requirements were based on a period of experience and an oral assessment. This has been replaced by a clear standard based on a nationally accepted qualification. The new trade work licence assessment criteria is a move toward establishing standardised licence assessment criteria which removes the subjective weight given to an applicant's experience and puts in place an objective assessment criteria for the granting of licences. This is in line with COAG's proposal to address the national skills shortage by removing barriers preventing skilled trades' persons and builders working around the nation. A review of qualification requirements for plumbing occupations commenced in April 2007. A consultation document was circulated and submissions closed on 31 May 2007.
Until now, qualification requirements have been based on a combination of educational courses and/or examinations and a period of practical experience. It is proposed that this will be replaced by qualifications from a national training package based on competency standards.
Mandatory code between smash repairers and insurers
Over the last several years there have been ongoing disputes between smash repairers and insurers over how the two industries interact when dealing with the repairs to insured motor vehicles. Issues of concern include the pricing and timing of repairs, the tendering process and the cost of repairs and the operation of preferred repairers' schemes. In order to address these difficulties, a mandatory Code of Conduct for insurers and smash repairers was introduced on 30 March 2007. It sets out how the parties should act when in dispute over the repair of a vehicle.
Over the last several years there have been ongoing disputes between smash repairers and insurers over how the two industries interact when dealing with the repairs to insured motor vehicles. Issues of concern include the pricing and timing of repairs, the tendering process and the cost of repairs and the operation of preferred repairers' schemes. In order to address these difficulties, a mandatory Code of Conduct for insurers and smash repairers was introduced on 30 March 2007. It sets out how the parties should act when in dispute over the repair of a vehicle.
The mandatory code, which is based upon a national voluntary code negotiated between the two principal industry associations, provides a balanced framework for fair business between insurers and repairers - consumers benefit from openness and accountability required by the code. Areas covered include an external dispute resolution mechanism; allowing businesses to retain preferred smash repairers status even after sale; openness and transparency for preferred repairer schemes and in quoting and paying for work and a requirement that up-front disclosure for consumers on whether their insurer allows choice of repairer when making a claim.
Property, stock and business agents
On 1 March 2007 amendments to the Property, Stock and Business Agents Act came into force to increase transparency in auctions and make miscellaneous amendments to improve consumer protection. Under the new laws, consumers benefit from more open dealings at auctions and with agents. The changes to auctions are designed to increase consumer confidence that the auction is both fair and transparent.
On 1 March 2007 amendments to the Property, Stock and Business Agents Act came into force to increase transparency in auctions and make miscellaneous amendments to improve consumer protection. Under the new laws, consumers benefit from more open dealings at auctions and with agents. The changes to auctions are designed to increase consumer confidence that the auction is both fair and transparent.
Changes included:
- Tightening vendor bid requirements and the creation of an explicit dummy bidding offence
- Improving disclosure in the subsequent marketing of properties which have been passed in at auction
- Allowing co-owners and executors to bid on a property if they are seeking to buy another owner's interest, as long as the intention to bid is announced to people at the auction and the bidder registration number of the co-owner, executor or their representative is also provided at the start.
A number of minor amendments clarifying certain issues in relation to an agent's business were also included in the package of reforms. These include clarification of disclosure requirements for agents in relation to benefits received when referring clients or prospective buyers to third parties, improvements to trust account identification and increases in penalties for breaches of the rules of conduct.
Controlling unfair behaviour
Changes to the Fair Trading Act that commenced on 20 October 2006 extend application of the Act to conduct which occurs outside NSW that has a relevant link with NSW. The changes also provide the power to obtain information relevant to the investigation of a complaint; investigation or other matters affecting the interests of consumers; order the sale, and destruction or disposal of items which were obtained under the authority of a search warrant or in the course of an investigation that are no longer needed as evidence and cannot be returned. Amendments to the act also rationalised the number of advisory councils furnishing advice to the Minister and provide for flexibility in membership of the councils. Changes relating to strengthening controls on false billing commenced on 1 July 2007. It is now prohibited to demand payment for publishing an advertisement without written authority to publish it or send a document stating the price unless it prominently states "This is not a bill. You are not required to pay any money".
Changes to the Fair Trading Act that commenced on 20 October 2006 extend application of the Act to conduct which occurs outside NSW that has a relevant link with NSW. The changes also provide the power to obtain information relevant to the investigation of a complaint; investigation or other matters affecting the interests of consumers; order the sale, and destruction or disposal of items which were obtained under the authority of a search warrant or in the course of an investigation that are no longer needed as evidence and cannot be returned. Amendments to the act also rationalised the number of advisory councils furnishing advice to the Minister and provide for flexibility in membership of the councils. Changes relating to strengthening controls on false billing commenced on 1 July 2007. It is now prohibited to demand payment for publishing an advertisement without written authority to publish it or send a document stating the price unless it prominently states "This is not a bill. You are not required to pay any money".
Other legislative change information is listed in Appendix 16 - Legislation.
Commerce Objective - Community able to access information and services
Corporate performance
|
Result |
Result indicator |
03/04 |
04/05 |
05/06 |
06/07 Actual |
Target 07/08 |
Comment |
|
Community able to access information and services |
% of public who know where to go to get help |
73% |
73% |
70% |
66% |
65-70% |
Within target range |
|
Service Group |
Performance Measure |
03/04 |
04/04 |
05/06 |
06/07 |
Target 07/08 |
Comment |
|
Information for consumers and traders |
Customer satisfaction meets or exceeds the benchmark |
89% |
87% |
90% |
90% |
=90% |
Target met |
|
|
Community take-up rate: average number of services requested per 1000 people in NSW |
509 |
557 |
653 |
734 |
Est.700 |
Estimate exceeded |
|
|
% accuracy of information provided |
99% |
83% |
93% |
89% |
=90% |
Close to target |
|
|
% complaints finalised within 30 days |
95% |
90% |
95% |
96% |
=80% |
Target exceeded |
|
|
% complaints resolved to satisfaction of both parties |
67% |
74% |
81% |
85% |
=70% |
Target exceeded |
|
|
% of telephone enquiries answered where published standards met |
80% |
81% |
79% |
83% |
=85% |
Close to target |
|
Business licensing and registration services |
% of licensing and registration services where published standards are met |
100% |
100% |
100% |
100% |
100% |
Target met |
|
Rental bonds custody |
% of bond refunds where published standards met |
100% |
100% |
100% |
100% |
100% |
Target met |
|
Tribunal services |
% of Consumer Trader and Tenancy Tribunal matters finalised prior to or at first hearing |
78% |
77% |
77% |
78% |
75% |
Target met |
Fair Trading Week
This year OFT's special week-long promotion, Fair Trading Week, focused on the processes and pitfalls of buying, selling and renting property. The theme was Home Sweet Home: your keys to buying, selling and renting. At the launch of Fair Trading Week the findings of an online survey we conducted in September and October 2006 were released. The survey tested the confidence level of people making real estate transactions and knowledge of their rights and obligations. One thousand nine hundred and fifty four people participated in the survey. The results highlighted wide gaps between how much people think they know and their actual level of knowledge. For example, only one in ten sellers of property first checked to see if their real estate agent was licensed. Only one in three buyers knew that the five-day cooling-off period was the last opportunity to change their mind during a purchase.
Financial literacy program
OFT has developed a financial literacy package which aims to assist various groups experiencing financial hardship. The package was promoted and delivered to a range of groups including TAFE, Cultural and Linguistically Diverse (CALD) communities and Aboriginal and Torres Strait Islander (ATSI) communities.
OFT has developed a financial literacy package which aims to assist various groups experiencing financial hardship. The package was promoted and delivered to a range of groups including TAFE, Cultural and Linguistically Diverse (CALD) communities and Aboriginal and Torres Strait Islander (ATSI) communities.
Information programs
OFT is committed to ensuring that NSW is a fair marketplace for consumers and traders, tenants and landlords. During 2006/7, OFT delivered over 900 information sessions, talks and seminars on all aspects of Fair Trading legislation that were attended by 27,000 people across the State.
OFT is committed to ensuring that NSW is a fair marketplace for consumers and traders, tenants and landlords. During 2006/7, OFT delivered over 900 information sessions, talks and seminars on all aspects of Fair Trading legislation that were attended by 27,000 people across the State.
Aboriginal Access Program
It is acknowledged that the style of service delivery to the Aboriginal community needs to be different from the non-Aboriginal community if it is to succeed. Our staff, in particular dedicated Aboriginal Customer Service Officers, provide information through many presentations and seminars during the year on topics as diverse as tenancy, consumer rights, door-to-door sales, credit and buying a car, ensuring Aboriginal communities have a good knowledge of their rights and responsibilities and the services we have to offer. OFT actively continues to produce a range of consumer educational and promotional material for NSW Indigenous communities focusing on a wide range of issues. Culturally appropriate material includes an Indigenous youth package, a series of fact sheets, fliers and posters on issues such as tenancy, REVS, toy safety and credit, all of which are major issues identified from research and consultation with NSW Indigenous communities.
To reach Aboriginal communities, OFT provided information at a range of events across the state, including Crock Festival, the Annual Aboriginal Rugby League Carnival, NAIDOC Week activities, Harmony Day celebrations, Indigenous Family Fun days and Survival Day. In conjunction with other Government agencies we run forums such as Good Services and Do it Right. The Tenancy Information sessions that OFT runs continued to be the main focus. In secondary schools, presentations on Kooris and cars and our Revved Up-purchasing a car program were very successful.
It is acknowledged that the style of service delivery to the Aboriginal community needs to be different from the non-Aboriginal community if it is to succeed. Our staff, in particular dedicated Aboriginal Customer Service Officers, provide information through many presentations and seminars during the year on topics as diverse as tenancy, consumer rights, door-to-door sales, credit and buying a car, ensuring Aboriginal communities have a good knowledge of their rights and responsibilities and the services we have to offer. OFT actively continues to produce a range of consumer educational and promotional material for NSW Indigenous communities focusing on a wide range of issues. Culturally appropriate material includes an Indigenous youth package, a series of fact sheets, fliers and posters on issues such as tenancy, REVS, toy safety and credit, all of which are major issues identified from research and consultation with NSW Indigenous communities.
To reach Aboriginal communities, OFT provided information at a range of events across the state, including Crock Festival, the Annual Aboriginal Rugby League Carnival, NAIDOC Week activities, Harmony Day celebrations, Indigenous Family Fun days and Survival Day. In conjunction with other Government agencies we run forums such as Good Services and Do it Right. The Tenancy Information sessions that OFT runs continued to be the main focus. In secondary schools, presentations on Kooris and cars and our Revved Up-purchasing a car program were very successful.
Affordable housing grants
OFT provided two one-off grants to the Department of Housing to establish the Affordable Housing Innovations Fund to provide funds to registered community housing providers for affordable renting housing projects. This initiative will address the need to provide more affordable rental opportunities for very low to moderate income households in stress and expand the capacity of community housing providers to deliver affordable housing. In 2006, we provided $10.4 million to the Department of Housing for capital and to establish the vehicle model for the Affordable Housing initiative. In June 2007, we provided an additional $30 million to provide grants for the development or acquisition of up to 250 affordable rental dwellings. This represents a total contribution of $40.4 million. The funds are drawn from Rental Bond Board investment earnings on tenants' rental bonds.
OFT provided two one-off grants to the Department of Housing to establish the Affordable Housing Innovations Fund to provide funds to registered community housing providers for affordable renting housing projects. This initiative will address the need to provide more affordable rental opportunities for very low to moderate income households in stress and expand the capacity of community housing providers to deliver affordable housing. In 2006, we provided $10.4 million to the Department of Housing for capital and to establish the vehicle model for the Affordable Housing initiative. In June 2007, we provided an additional $30 million to provide grants for the development or acquisition of up to 250 affordable rental dwellings. This represents a total contribution of $40.4 million. The funds are drawn from Rental Bond Board investment earnings on tenants' rental bonds.
Home warranty insurance
The private home warranty insurance scheme continues to be monitored by the independent Home Warranty Insurance Scheme Board. From 1 March 2007, the minimum cover that must be provided by insurers to homeowners under the home warranty insurance scheme was increased from $200,000 to $300,000. It is the responsibility of the building contractor to obtain home warranty insurance before taking any money or commencing work where the residential building work is valued at over $12,000. On 1 June 2007, the home warranty insurance business of Australian International Insurance Limited (AIIL) was integrated into that of Lumley General Insurance Limited following the purchase of AIIL's parent company by Lumley's parent company – Wesfarmers Limited.
The private home warranty insurance scheme continues to be monitored by the independent Home Warranty Insurance Scheme Board. From 1 March 2007, the minimum cover that must be provided by insurers to homeowners under the home warranty insurance scheme was increased from $200,000 to $300,000. It is the responsibility of the building contractor to obtain home warranty insurance before taking any money or commencing work where the residential building work is valued at over $12,000. On 1 June 2007, the home warranty insurance business of Australian International Insurance Limited (AIIL) was integrated into that of Lumley General Insurance Limited following the purchase of AIIL's parent company by Lumley's parent company – Wesfarmers Limited.
Home building licences
All new applicants for building licences and certificates are now required to present themselves in person at a Fair Trading Centre or a Government Access Centre and undergo a proof of identity check. This is part of the Government's continuous drive to offer better protection to consumers. Further improvements to licensing administration, including the potential for on-line renewals will be delivered when home building licensing migrates to the Government Licensing System in 2007/08. On 21 August 2006, new licensing assessment criteria for 24 existing trade/building categories were introduced and two new building categories for contractor licences commenced for kitchen, bathroom and laundry renovation and erection of pre-fabricated metal-framed home additions and structures.
All new applicants for building licences and certificates are now required to present themselves in person at a Fair Trading Centre or a Government Access Centre and undergo a proof of identity check. This is part of the Government's continuous drive to offer better protection to consumers. Further improvements to licensing administration, including the potential for on-line renewals will be delivered when home building licensing migrates to the Government Licensing System in 2007/08. On 21 August 2006, new licensing assessment criteria for 24 existing trade/building categories were introduced and two new building categories for contractor licences commenced for kitchen, bathroom and laundry renovation and erection of pre-fabricated metal-framed home additions and structures.
Commerce objective - Compliance with fair trading laws
Corporate performance
|
Result |
Result indicator |
03/04 |
04/05 |
05/06 |
06/07 Actual |
Target 07/08 |
Comment |
|
Compliance with fair trading laws |
% of consumers confident in fair operation of marketplace |
70% |
71% |
69% |
73% |
68-74% |
Target met |
|
Service Group |
Performance Measure |
03/04 |
04/05 |
05/06 |
06/07 Actual |
Target 07/08 |
Comment |
|
Compliance |
% inspections where compliance evident |
96% |
96% |
97% |
98% |
=90% |
Above target |
|
|
Proportion of prosecutions successful |
91% |
94% |
86% |
95% |
=90% |
Above target |
Enforcement reporting
A compliance initiative for 2006/07 involved the publication of a quarterly Enforcement Action Report through the OFT website. The report sets out the full range of enforcement action taken each quarter under 17 different acts, including penalty notices, licence suspensions and formal prosecutions. The strategy sends a warning to individuals who might consider flouting the law and encouragement to honest traders who value the integrity of their industries.
A compliance initiative for 2006/07 involved the publication of a quarterly Enforcement Action Report through the OFT website. The report sets out the full range of enforcement action taken each quarter under 17 different acts, including penalty notices, licence suspensions and formal prosecutions. The strategy sends a warning to individuals who might consider flouting the law and encouragement to honest traders who value the integrity of their industries.
Inspection programs
The first line of defence in the fair trading compliance program is an active state-wide inspection program. During the year, OFT inspectors carried out more than 28,000 inspections throughout New South Wales. These focused on estate agents, builders and tradespeople, travel agents, motor dealers and repairers, auto dismantlers, second hand dealers, pawnbrokers, the safety of various products including electrical items, packaged items at supermarkets and other retail outlets, liquor dispensing units and glassware at licensed premises and petrol, gas and LPG fuel pumps. Some of the larger programs involved 2,166 product and electrical safety inspections, 3,391 building industry inspections and 11,813 trade measurement inspections. In the home building area, operations: Mortar, Nail, Dumpy and Ripsaw involved targeted visits to well over 600 building sites and interviews with some 1,800 traders. Resulting fines for a range of offences totalled more than $180,000.
The first line of defence in the fair trading compliance program is an active state-wide inspection program. During the year, OFT inspectors carried out more than 28,000 inspections throughout New South Wales. These focused on estate agents, builders and tradespeople, travel agents, motor dealers and repairers, auto dismantlers, second hand dealers, pawnbrokers, the safety of various products including electrical items, packaged items at supermarkets and other retail outlets, liquor dispensing units and glassware at licensed premises and petrol, gas and LPG fuel pumps. Some of the larger programs involved 2,166 product and electrical safety inspections, 3,391 building industry inspections and 11,813 trade measurement inspections. In the home building area, operations: Mortar, Nail, Dumpy and Ripsaw involved targeted visits to well over 600 building sites and interviews with some 1,800 traders. Resulting fines for a range of offences totalled more than $180,000.
Enforcement action
Offences against fair trading legislation are detected through inspections, intelligence gathering and as a consequence of formal complaint investigations. During the year, more than 960 defendants were issued with penalty notices in relation to 1,288 offences - resulting in financial penalties of more than $940,000. Formal prosecutions, where 95 per cent of cases were successful, resulted in $825,178 in fines and penalties. The cases involved 120 defendants, one of whom received a custodial sentence in connection with contempt in the Supreme Court for a home building matter.
Offences against fair trading legislation are detected through inspections, intelligence gathering and as a consequence of formal complaint investigations. During the year, more than 960 defendants were issued with penalty notices in relation to 1,288 offences - resulting in financial penalties of more than $940,000. Formal prosecutions, where 95 per cent of cases were successful, resulted in $825,178 in fines and penalties. The cases involved 120 defendants, one of whom received a custodial sentence in connection with contempt in the Supreme Court for a home building matter.
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Page last updated on: Wednesday, 9 January 2008
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