Competition and Consumer Act 2010 Compliance

Question: Describe about the Competition and Consumer Act 2010 Compliance. Answer: 1 (a). Competition and Consumer Act 2010 (CCA) regulates the relationships between retailers, wholesalers, suppliers and consumers. It promotes fair competition and trading with sole objective of improving welfare of Australian citizens. BHP Billiton is multinational company involved in mining copper, gold, coal, iron and petroleum. It has headquarters in Melbourne. This company welcomes decisions by the government of Australia hence ready to adopt statutory regulations and policies. In doing so some strategies the company adopted are; Addressing Australias productivity challenge Defining objectives of Australias competition policy Addressing regulation undermining Australias productivity BHP Billiton is an international diversified resources company working in 26 countries around the world at 141 locations. It has operation history since 1895. With the high experience, they embrace the opportunity to contribute in the debate to initiate a review of Australias competition law and policy. It works to deliver bigger volume growth with available resources at a low cost per unit. They believe in competitive investment climate, hence outstanding infrastructure and assets. According to BHP Billiton, competition policy should recommend innovation, improvement to productivity, international Australian industry competitiveness; encourage competitive markets and productive investment in long-term projects. Government of Australia should refurbish its devotion to the guiding principle under the agreement to competition principles. Regulations that undermine competition and less production should be scrapped off. 1 (b). Addressing Australias productivity challenge Cool competitive investment climate is vital for any kind of business both large and small. Risk based competition policies in partisan with open competitive practice strengthens economies and societies. Well-regulated competitive atmosphere encourages venture into business hence increasing productivity of a nation. The more businesses venture into a certain field the higher the output. Defining objectives of Australias competition policy Improved innovation, competitive markets, long-term projects and resources, improves economy of a nation. Long term investments increases national income, create jobs, increase productivity and rise revenue generation for governments. Competitive markets determine output and pricing. Overpricing in this case ceases encouraging consumers to buy products that are affordable and pocket friendly. BHP Billiton has long term strong standing structures, long term investment and encourages innovation. Efficient and full capacity use of natural resources minimises cost per unit production hence more profitability. Addressing regulation undermining Australias productivity Thorough assessment of regulations, both existing and proposed can enhance Australias competitiveness magnetism for investments. BHP Billiton recognizes that the best part of the competitiveness and output defy rests are responsibilities of the industry itself. Nevertheless, governments should take action to heighten the countrys dynamic power. This can be done through creating an investment atmosphere that is global competitive and an able policy structure. 1 (c) For BHP Billiton to be fully engaged in competition law compliance, management should ensure provisions of competition and consumer law (CCL) Act 2010 are adhered to by the company. Understanding of competition law and its provisions helps to avoid anticompetitive habits in business strategies. Ensuring BHP Billiton is in good communication with ACCC can increase importance of the law and promote its compliance. This enables dialogues hence putting both institutions in a better position to understand each other. Though companies have a cultural way of ensuring competition law compliance, it would be better for BHP Billiton to try risk-based, four-step approach. This is because the approach is specially designed specific business risks. The four steps include risk identification, risk assessment, risk mitigation and review. Risk identification: point the main competition law risks affecting BHP Billitons operations. These usually vary according to the nature and size of the companys business. Risk assessment: look into the seriousness of realised risks and rate the as either low, medium and high. The company should identify workers in areas of high risk. Department of sales and marketing may fall under this category since they directly have contact with competitors. Risk mitigation: come up with procedures, policies training with intention that identified risks will not occur while making sure that the company is able to act upon them if they happen. Possibility of the occurrence of an identified risk might determine the action to take. Review: with strong commitment review above steps starting the risk identification to risk mitigation for BHP Billiton to be certain that it is compliant competent. Sometimes companies might decide to do compliance review outside their normal routine due to certain abrupt occasions. For example, when there is compliance law investigation or taking over another business. Various companies do this annually while some opt for frequent review basis. Commitment to competition law compliance should be exercised both in junior and senior levels. Proper application of competition rules will make BHP Billiton sustain good reputation to its existing and potential customers. Compliance to this law does not only benefit clients welfare but is also a way to keep the company at its best levels making it remain in the frontline while strengthening its competency. Both management and employees of BHP Billiton should take responsibility to compliance with the law. This way the company will be able to carry out its activities in a fair competitive atmosphere. References Andy Gibson, D. F., 2003. Business Law 2014. New York City: Pearson Higher Education AU. Ghidini, G., 2010. Innovation, Competition and Consumer Welfare in Intellectual Property Law. Cheltenham: Edward Elgar Publishing. Hossein Esmaeili, B. G., 2016. The Boundaries of Australian Property Law. Cambridge, United Kingdom: Cambridge University Press,. John Duns, A. D. B. S., 2015. Comparative Competition Law. Cheltenham: Edward Elgar Publishing. Miller, R. V., 2016. Miller's Australian Competition and Consumer Law Annotated. , New York City : Thomson Reuters Australia, Limited. Nicole Morandin, J. S., 2011. Australian Competition and Consumer Legislation 2011. Macquarie: CCH Australia Limited,.