Consumer Commission – Michmutters
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Google fined $60m for misleading Australian Android users about location data after ACCC court action

Google has been with a massive $60m fine after it was found the tech giant mislead Australian Android users about how it used their data in order to target them with advertising.

The fine comes as a result of Australia’s consumer watchdog taking the tech giant to court in 2019.

The Australian Competition and Consumer Commission alleged that Android phone settings were misleading.

It accused Google of storing the location data of some users even if they had “Location History” turned off.

The Federal Court ordered the tech giant to pay the $60m penalty after it found it had breached Australian consumer laws by misleading some Android owners between January 2017 and December 2018.

The court found that another setting titled “Web & App Activity” also allowed location data to be shared with Google.

The ACCC says its best estimate, based on available data, is that the users of 1.3 million Google accounts in Australia may have viewed a screen found by the court to have breached Australian consumer laws.

Google took remedial steps and had addressed all of the contravening conduct by 20 December 2018, meaning that users were no longer shown the misleading screens, the ACCC said.

ACCC chair Gina Cass-Gottlieb said the court’s decision sent a strong message to digital platforms and other businesses about using people’s data.

“Personal location data is sensitive and important to some consumers,” she said in a statement.

“Some of the users who saw the representations may have made different choices about the collection, storage and use of their location data if the misleading representations had not been made by Google.”

Ms Cass-Gottlieb said the penalty was the first instance of public enforcement to come from the ACCC’s digital inquiry platforms.

A spokesman for Google confirmed the company had agreed to settle the matter with the ACCC.

“We’ve invested heavily in making location information simple to manage and easy to understand with industry-first tools like auto-delete controls, while significantly minimizing the amount of data stored,” he spokesman said.

“As we’ve demonstrated, we’re committed to making ongoing updates that give users control and transparency, while providing the most helpful products possible.”

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Egg shortage: Reason free-range cartons missing in Woolworths, Coles

If you have been struggling to find a carton of eggs at your local supermarket, you are certainly not alone.

Shoppers have been left frustrated by yet another staple item disappearing from supermarket shelves, with Coles even introducing a two-carton limit for customers.

Australia is in the midst of a national egg shortage, meaning supply is patchy and prices are on the rise.

But what is behind the egg supply crisis?

Suppliers have claimed part of the problem stems from lockdowns, when farmers had to decrease their chicken numbers.

However, Edith Cowan University senior lecturer and WA president of the Australasian Supply Chain Institute (ASCI), Flavio Macau, said the shortage is a reflection of customers preferring free-range eggs over caged eggs.

The production of free-range eggs is more affected by the colder and short days of winter, I have explained in an article for The Conversation.

Sales of free-range eggs have shot up over the years, leading many farmers to invest heavily in increasing their free-range production.

“Like many agricultural industries where farmers respond to price signals and predictions, this led to overproduction, leading to lower prices and profits,” Associate Professor Macau said.

NSW’s total flock size peaked in 2017-18 but the overproduction and lower profits led to a 10 per cent drop in egg production the following year.

Then came increased compliance costs, with the Australian Competition and Consumer Commission (ACCC) in 2018 introducing rules around what is classified as free range.

Under the rules, hens need to have “meaningful and regular access” to an outdoor area during the daylight hours of their laying cycle.

“This experience has likely influenced farmers’ reluctance to increase their flocks based on predictions of higher demand,” Associate Professor Macau explained.

It isn’t only the increased land requirements that make producing free-range eggs more expensive, it is also the less consistent laying.

Unlike cage or barn hens, free-range hens don’t live in optimized conditions to stimulate laying, such as consistent temperatures and being exposed to 16 hours of light every day.

“Free-range hens are affected by hot or cold temperatures, wind and rain, and length of daylight,” Associate Professor Macau said.

“In winter months they have less energy and produce (on average) 20 per cent fewer eggs than a chicken confined indoors in controlled conditions.”

He said economic and environmental events in 2022 have made things difficult for farmers, who are facing time lags and cost pressures.

“Increasing a laying flock takes about four months. An egg takes about three weeks to hatch. Under ideal conditions, chicks need another 17 weeks before they are ready to begin laying,” he said.

“Any farmer who has begun this process in the past month will be producing more eggs by December. But then it will be summer, when they won’t need 20 per cent more hens to make up for their winter slump.”

The rising cost of living also means feed, electricity and transport costs have shot up, forcing many farmers to be careful about how they conduct their business.

“It is preferable to undersupply than to go bankrupt through oversupply,” Associate Professor Macau said.

The notion of the winter slump has been backed up by farmers.

Last week Xavier Prime, owner of Chooks at the Rooke, a free-range egg farm southwest of Melbourne, told 3AW that “to lay the optimum”, hens needs 15-16 hours of daylight every day, but at the moment they are experiencing just 10-11 hours.

“Free-range eggs, in that sort of space the birds are open to the elements, and with the daylight hours being shorter, that has a lot to do with how many eggs the chickens lay,” he explained.

Associate Professor Macau said a short-term fix to the supply issues seemed “unlikely”, noting wet weather forecasts from August to October were not favorable laying conditions.

However, once the weather warms up, production should return to normal levels.

“Unless consumers are willing to pay more to ensure a constant supply in winter months, our shift to free-range eggs carries a higher likelihood of winter shortages,” he said.

“We must do what we have done through every disruption in recent times: endure, adapt and prepare for the next crisis.”

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Sydney Pork Rolls charging customers 20 cents to cut roll in half

The rising cost of living has reached new heights at a Sydney pork roll store, after a customer spotted an unusual surcharge on the sandwich bar’s menu.

A photo posted to Reddit shows Vietnamese restaurant Sydney Pork Rolls’ extensive list of surcharges for extra fillings and a bag.

A roll from the store ranges from $5.50 and $8.50 in price with additional meat, ham or an egg to set the customer back an extra $1.50 while a second bag costs 10 cents.

But at the bottom of the list is an odd surcharge for a standard request, with the Haymarket shop charging customers an extra 20 cents if they request to have their roll “half cut”.

It’s a menu item that has baffled pork roll fans as some question why there’s an extra cost for a “two-second” service.

“Which way to cut in half?” one Reddit user commented. “Longways? Sideways? Across ways? So many questions here.”

“50 cents to ask why it costs 20 cents to cut,” posted another.

Meanwhile others thought of ways to get around the additional expense.

“Ask for it to be cut into thirds, must be free as it’s not on the price list,” one comment read.

Another said they might consider halving it themselves with their own butter knife.

The uncanny surcharge also had commenters crunching the numbers to see how much extra money the business could make in an hour.

“With a two-second cut … that equals $360p/hr. I’m getting into the sandwich biz,” one comment read.

“They should ask ‘would you like to cut it in half?’ like a fast food worker upselling (by) asking if ‘you want fries with that’,” said another.

Others have justified the additional cost explaining it could be due to the restaurant using more packaging to divide the roll.

“Getting it cut in half means the two halves are wrapped and packaged separately. It’s completely reasonable to charge extra,” a Reddit user posted, defending the expense.

Sydney Pork Rolls in Haymarket has been contacted for comment.

The roll half-cut surcharge joins a list of several other odd additional costs Sydneysiders have spotted around the state recently.

A Sydney airport cafe was reportedly charging $1.50 extra if a customer wanted more tomato in a toastie while others have noticed the price of babychino’s increase from $1 to $2.50 in other cafes across the state.

Some hospitality services and small businesses are also charging their customers extra by a small percentage if they pay for their items by tapping their debit or credit card opposed to inserting or swiping.

“Local cafe great before lockdown (sic) in Western Sydney, now surcharges if you pay with debit card,” one Sydneysider tweeted.

Venues can also charge a public holiday surcharge or weekend fee where prices are increased by a percentage on those days.

According to Australia’s consumer watchdog, the Australian Competition and Consumer Commission (ACCC), businesses can charge surcharges at their own discretion so long as the terms surrounding the surcharge are explicitly stated and don’t come as a surprise to the customer.

“The menu (or price list) must include the words ‘a surcharge of [percentage] applies on [the specified day or days]’ and these words must be displayed at least as prominently as the most prominent price on the menu (or price list),” the ACCC said.

There is no limit as to how much extra a business can charge in additional costs.

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Business

Product recall: Visionary blinds create choking risk for kids

An urgent warning has been issued for people who had a particular kind of blind installed by a Victorian company this year following child safety fears.

Customers who purchased roller blinds with cords or bead chains installed by Visionary Blinds are being asked to contact the manufacturer immediately.

The Australian Competition and Consumer Commission (ACCC) issued the warning after finding that the blinds do not comply with the mandatory safety standard for the installation of corded internal window coverings.

If the blinds are installed incorrectly, the cord or bead chains can create a strangulation hazard for young children whose heads may get caught in the material.

The warning only relates to binds installed between January 1 and June 30 this year.

Affected consumers are advised to contact Visionary Blinds to make arrangements to have the safety concern remedied.

This will require copies of the correct warning and installation labels to be sent to them for attachment to the blinds or in some cases will require a technician to reaffix the labels.

For further information, Visionary Blinds can be contacted via [email protected] or by phone on 0435 947 106.

Visionary Blinds were contacted for comment.

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China mocks Scott Morrison, Australia’s ‘arrogance’ after ACCC gas report

China has branded Australia “laughable”, mocking the Government and former prime minister Scott Morrison in the wake of a “damning” gas report.

The comments were made as part of a scornful article published by the CCP-controlled Global Times.

The piece mocks a suggestion that Australia could step in and help with supply of liquefied natural gas (LNG) to European allies impacted by the Russia-Ukraine conflict.

At the start of 2022, the then-prime minister Mr Morrison said his government was looking at options that would allow Australia to fill international demand for gas if Russia stops exporting to Europe.

“Awkwardly, some in Australia are now warning of a potential shortage in the country and urging to set aside gas for Australia’s own electricity network before selling to the rest of the world,” the Global Times article noted.

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On Monday, the Australian Competition and Consumer Commission’s (ACCC) gas inquiry 2017-2025 interim report warned businesses could shut down and there could be a record shortage of gas in the southern states next year unless something is done about the nation’s energy crisis.

The ACCC predicted a 56 petajoule shortfall in east coast gas supply by 2023, a figure it called a “significant risk to energy security” that was equivalent to 10 per cent of expected domestic demand.

China said the situation currently facing Australia was both “laughable and serious”.

“Laughable, because this reflects Australian officials’ overconfidence and arrogance in making empty promises it cannot deliver; serious, because a potential move could significantly affect already disrupted global energy supplies, given that Australia is known as one of the world’s top LNG exporters,” the newspaper noted.

Russia’s ongoing invasion of Ukraine has seen international demand for LNG soar, with Beijing claiming a decision from Australia to impose export restrictions could “hurt some of its European and Asian allies the most”.

The article blasted Mr Morrison for his “empty promises” for saying Australia will help its allies when they are in need.

“It is clear that a possible reduction in Australia’s LNG exports would further exacerbate the global energy crisis and push up prices, while increasing the energy anxiety in countries that used to see Australia as a reliable source of supplies,” the Global Times said.

“Some of its allies may also be annoyed by Australia’s inability to actually offer help in areas where it apparently has an advantage.”

The article noted that China has recently made efforts to diversify its energy imports following recent tensions with Australia, with Beijing last year signing new LNG contracts with the US instead.

However, the outlet assured readers that any decision by Australia would not “fundamentally undermine” China’s energy security.

Government reacts to ‘damning’ gas report

Australia’s Resources Minister Madeleine King branded the new ACCC report as “damning” of gas exporters after it found they were not engaging locally “in the spirit” of the heads of agreement.

“We remain concerned that some (liquefied) natural gas LNG exporters are not engaging with the domestic market in the spirit in which the heads of agreement was signed,” the report said.

“LNG producers will need to divert a significant proportion of their excess gas into the domestic market.”

Ms King said gas producers “know” the report is “damning for them”.

“The ACCC report is damning, no doubt about it,” she said.

“It sets out patterns and instances of behavior that are clearly not acceptable in an environment where we do have an international and domestic energy supply crisis.”

The ACCC described the outlook for 2023 as “very concerning” with gas prices likely to increase.

“The outlook for 2023 is very concerning and is likely to place further upward pressure on prices, which could result in some commercial and industry users no longer being able to operate,” the report said.

“It could also lead to demand having to be curtailed.”

This shortfall will mainly affect NSW, Victoria, South Australia, the ACT and Tasmania, where “resources have been diminishing for some time”, though Queensland may also be impacted.

– with NCA NewsWire

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