OFT primed for industry and marketplace regulation

Dodgy backyard motor dealers, funeral pricing and trust account fraud are among the Office of Fair Trading’s (OFT) compliance and enforcement priorities for the next 12 months.

Commissioner for Fair Trading, Victoria Thomson said the OFT’s proactive program for 2021-22 identifies emerging consumer and marketplace issues; aiming to get in and stop them in the early stages.

“Industry and marketplace regulation is not just about prosecutions and fines, it’s also about education, engagement and awareness activities, to ensure the best possible outcomes for Queensland consumers,” Ms Thomson said.

“Taking a strategic approach to achieving compliance ensures that the OFT strikes a balance between protecting consumers and allowing business and economy to flourish.

“The OFT’s Proactive Regulation of Industry and Marketplace Entities (PRIME) program is a multi-tiered strategy to help ensure a fair and safe marketplace for all Queenslanders.”

Some of the priority areas are unique to Queensland and based on identified risks and marketplace analysis. Others have been identified for inclusion in the program through the agency’s work at a national level with other consumer agencies and the Commonwealth’s Australian Consumer and Competition Commission (ACCC).

The Commissioner said that one of the national priorities the OFT has adopted is around consumer needs in the funeral services sector.

“The OFT will review the results of the ACCC’s recent survey into the funeral services sector to identify and address consumer issues, with a focus on price transparency,” Ms Thomson said.

“Arranging a funeral can be a difficult and emotionally-fuelled task and we want all Queenslanders to have a fair and equitable experience.

“Queensland priority areas are wide-ranging; focusing on consumer law, motor dealers, real estate and registered associations - to name a few.

“We will also shine a spotlight on product safety, where preventative regulatory work is vital to protect consumers from dangers that can lie in some products.

“All PRIME activities over the next 12 months will address a particular issue or risk that has been identified. The OFT will draw on its state-wide resources and expertise to roll out approaches that fall into one of three tiers.

“Based on the associated risk and the reach required, approaches will include education, specific sector engagement, and proactive compliance visits to individual businesses.”

The Commissioner said the OFT’s work on PRIME activities showcased the agency as a modern and dynamic regulator, using data and analytics to identify targets for proactive visits.

“The OFT has developed a computer program that identifies property agent trust accounts that may be ‘at risk’. Any accounts identified by the system triggers a response from our compliance area,” Ms Thomson said.

“A recent proactive operation saw 53 licensees referred for investigation after being flagged by this program. Although many of these matters are ongoing, OFT investigations confirmed these predicted irregularities and froze several trust accounts to protect consumer money.

“The program identified a Brisbane property manager who, despite having her licence suspended in 2019, was still managing a property of 25 units in Brisbane with an account that held over $50,000.

“Three infringements were issued to the unlicensed property manager, but most importantly the trust account was frozen and put into receivership ensuring that the money was safe.”

The OFT’s actions are not solely determined by the PRIME program. The OFT can and will change in focus to respond to other emerging priorities and trends as they arise.

More information on the OFT’s PRIME program and the 2021-22 priorities is available online.