LESSON 16.7 What responsibilities do businesses, producers and government have to you? LEARNING INTENTION By the end of this lesson you should be able to describe the legal responsibilities of businesses to consumers. This includes rules about product safety and recalls. Tune in As consumers, we want goods and services that are good value for money. When many producers compete, it helps keep prices fair and quality high. FIGURE1 McDonald’s is permitted to have an exclusive deal with Coca-Cola, and KFC can have an exclusive deal with Pepsi, because the market for soft drinks is still competitive.
Look at FIGURE1 and discuss the following questions: 1. How do Coca-Cola and Pepsi compete? 2. What are the beneýts of their competition for consumers? 3. What are some negatives related to their competition for consumers?
16.7.1 The beneýts of competition A market with many sellers is good for consumers. The laws of demand and supply will often work better if there is competition for consumers. Competition helps keep prices lower. However, not all businesses will operate fairly or treat consumers honestly and so consumers need protection. The Competition and Consumer Act 2010 (Cth) makes sure businesses compete fairly. It is illegal for businesses to cheat or gain an unfair advantage. The Australian Competition and Consumer Commission (ACCC) enforces these rules to support fair competition. 16.7.2 Banned anti-competitive practices The Competition and Consumer Act has rules against unfair business practices. These include price ýxing, misuse of power and unfair pricing. Each of these practices is outlined in the following subsections.
572 Jacaranda Humanities Alive 7 Victorian Curriculum Third Edition
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