ACCC’s Class Exemption for Small Business
From early 2021 the Australian Competition and Consumer Commission (ACCC) will have in place a new class exemption to allow small businesses to collectively negotiate with their suppliers or customers without first having to seek ACCC approval. This new path by the ACCC will promote a balance transfer of power between buyer and seller with a free flow of information between them.
Business or independent contractors with an aggregated turnover of less than $10 million in the preceding financial year, will be eligible to form or join a collective bargaining group to negotiate with suppliers or customers about the supply or acquisition of goods or services.
To exercise this new provision, bargaining groups will only have to fill out and submit to the ACCC a simple, one-page form, without incurring a fee. Legal protection from competition laws will then commence automatically.
The class exemption does not require anyone to join a collective bargaining group or require a customer or supplier to deal with the bargaining group if they don’t want to.
For more information about the ACCC class exemption, visit their website.