1.
Procter & Gamble P&G Australia Pty Limited engaged in the distribution and selling of the personal care and consumer products in Australia and New Zealand, as this company was formed in 1956 and situated in the Macquarie Park, Australia. P&G in Australia operates in the form of subsidiary of The Procter & Gamble Company (Procter & Gamble, n.d.].
This organization serves number of products to its customers and it mainly focus on providing the branded consumer packaged goods to all the consumers across the globe. As organization mainly offer the Skin and Personal Care products under different type of brands such as Olay, Old Spice, Safeguard and SK-II.
2.
The regulatory framework which affects the Procter & Gamble Australia Pty Limited is the Australia consumer law. The ACL is defined as the single, national law which applies in the similar manner at national level, and in states or territory of Australia. It is deemed as the principal consumer protection law of the Australia (Business, 2018]. ACL ensures the similar type of protection to the consumers in Australia against the business conduct of the organizations. In other words, those organizations which are conducted their business in Australia have number of obligations and responsibilities towards the customers of the organization. Following are the important features of the ACL-
Chapter 2 of the ACL introduce number general standards for regulating the conduct and actions of the business. Some of these general standards which need to be complied by the Procter & Gamble Australia Pty Limited are stated below-
Misleading or deceptive conduct- ACL mainly restricts the misleading or deceptive conduct in terms of the trade and commerce. It imposed obligation on the organization to not enter into any such conduct which is misleading or deceptive in nature. It is not lawful for the business organizations to conduct any such activity or represent any such facts which mislead the consumers or might mislead or deceive the consumers. In case organization fails to disclose the necessary information then it deemed as the misleading or deceptive conduct. This obligation is stated under section 18 of the Competition and Consumer Act 2010.
Unconscionable conduct- ACL also restricts the business from conducting any action which is not conscionable in nature in terms of consumers and other business organizations. In the year 2010, government amended the ACL for providing the fact that court decided number of matters in this context in which they determine whether unconscionable conduct is there in terms of supply or acquisition of goods or services. These matters generally include the relative strengths of bargaining positions, but they are not limited to these strengths. Unconscionable conduct mainly includes the undue influence, pressure or unfair tactics by the stronger party, and it also includes the will of the stronger party for negotiating the terms and conditions of the contract for supply, and also the extent in which each and every party of the country consider it. Section 21 of the Competition and Consumer Act 2010 defines the provisions related to this.
Unfair contract terms- ACL also restrict the business organizations in terms of the unfair contract terms, which means any term which is not fair under the standard form consumer contracts are void in nature. Any consumer contract which related to the supply of goods or services falls in the context of these provisions. It must be noted that term is defined as the unfair term if-
Unfair Practices- ACL further states the particular protections against the particular defined business activities. This is not considered as the general protection to the consumers, as it impose some specific obligations on the business and some of these activities are stated below-
Consumer guarantees- this is the another important concept which is generated by the ACL, as ACL provides the statutory guarantees to the consumers in terms of all the goods and services taken by them. These guarantees includes following things in its ambit-
3.
Procter & Gamble Company serves number of products to its customers and it mainly focus on providing the branded consumer packaged goods to all the consumers across the globe. As organization mainly offer the Skin and Personal Care products under different type of brands such as Olay, Old Spice, Safeguard and SK-II. Following are the treaties and conventions which affects the consumer goods and services provided by the company-
Australia signed the agreement with the Canada and New Zealand, and this agreement named as Cooperation agreement between The Commissioner of Competition (Canada), the Australian Competition & Consumer Commission & New Zealand Commerce Commission regarding the application of their competition & consumer laws. As this agreement creates the framework related to the announcement, synchronization and cooperation related to the enforcement activities in terms of the competition and consumer protection. It also includes the information exchange and conflict avoidance. This treaty directly affects the goods served by the selected organization, as it impose obligation on the organization to ensure that all the relevant information related to the product and use of product is given to the customers and organization also ensure the protection of the consumer. Procter & Gamble needs to comply with the provisions of this agreement, as this agreement ensures the effective protection of the consumers in all three countries. As this treaty recognize the cooperation and coordination in some relevant cases, and ensure effective and efficient resolutions for the parties in terms of the competition and consumer law issues. As it indirectly affects the products and services of the organization, this treaty can result in the changes in the Trade practices Act of Australia also in the ACL which impose direct or indirect obligations on the organization such as to meet any specific requirements while selling the product (Government of Canada, n.d.].
Another important treaty signed by the Australia in terms of consumer goods and consumer protection is Cooperation agreement between the Australian Competition & Consumer Commission, the New Zealand Commerce Commission, Secretary of State for Trade & Industry & the Office of Fair Trading in the UK regarding the application of competition & consumer laws. The most important aim of this treaty is to promote the effective solutions of the issue related to the competition and consumer law in each country which signed this treaty. As Procter & Gamble Company provides skin care products to its customers and other consumer goods because of which they are also obliged in terms of this treaty. As this treaty can impose additional obligations on the organization if products of the organization are exported in the countries signed this treaty.
As this treaty directly strengthen the laws of consumer protection in Australia, which means, if company fails to complied with the consumer protection laws in Australia then it will definitely affects the organization in adverse manner and leads the organization towards the severe consequences. All the products of the organization are directly consumed by the consumers and in case these products cause any harm to the consumers then organization is liable under ACL. However, this treaty also not affects the products and services of the organization in direct manner, as it also affects the products in indirect manner (ACCC, n.d,].
In this agreement, arties of the treaty share product safety information with each other and any relevant suggestion can be implemented by any party at national level. In other words, if any safety regulation is implemented by the Australia on the recommendation of the other parties of the agreement, then Procter & Gamble Company also binds by this agreement and they need to implement the relevant changes and in their products and services.
Another convention signed by the Australia is the Memorandum of understanding between the Commerce Commission of the Fiji Islands & the Australian Competition & Consumer Commission. This MOU mainly focus on promoting the compliance education related to the consumer protection and research objectives, which means, it impose obligations on the parties to ensure the education related to the consumer protection laws and also enhance the awareness of the consumers in this context. This treaty does not impose any obligation on the organizations in terms of goods and services, but impose social obligation on the organization to take any steps which arrange the education of the consumer protection laws for the consumers of the Australia. In other words, if Australian government accepts any recommendation of any arty then company must implement with that recommendation and ensures best practices on their art.
Above stated facts, make number of things clear, as Australia does not sign any treaty or convention which directly affects the products and services of the organization. However, there are number of treaties which indirectly affect the products and services of the organization. These treaties indirectly affects the goods served by the selected organization, as it impose obligation on the organization to ensure that all the relevant information related to the product and use of product is given to the customers and organization also ensure the protection of the consumer.
References
ACCC. Consumers’ rights & obligations. Available at https://www.accc.gov.au/business/treating-customers-fairly/consumers-rights-obligations. Accessed on 31st August 2018.
ACCC. the Australian Competition & Consumer Commission, the New Zealand Commerce Commission, Secretary of State for Trade & Industry & the Office of Fair Trading in the UK regarding the application of competition & consumer laws. Available at https://www.accc.gov.au/system/files/Cooperation%20agreement%20between%20the%20ACCC%2C%20the%20NZCC%2C%20SSTI%20%26%20the%20OFT%20UK%20regarding%20the%20application%20of%20their%20competition%20and%20%20consumer%20laws.pdf. Accessed on 31st August 2018.
ACCC. Treaties & agreements. Available at https://www.accc.gov.au/about-us/international-relations/treaties-agreements#country-agreements-and-memorandums-of-understanding. Accessed on 31st August 2018.
Business, (2018]. Australian Consumer Law and your business. Available at https://www.business.gov.au/products-and-services/fair-trading/australian-consumer-law-and-your-business. Accessed on 31st August 2018.
Competition and Consumer Act 2010- Section 18.
Competition and Consumer Act 2010- Section 21.
Fair Trading NSW, Consumer guarantees. Available at https://www.fairtrading.nsw.gov.au/buying-products-and-services/guarantees,-contracts-and-warranties/consumer-guarantees. Accessed on 31st August 2018.
Government of Canada. Cooperation arrangement between the Commissioner of Competition (Canada), the Australian Competition and Consumer Commission and the New Zealand Commerce Commission regarding the application of their competition and consumer laws. Available at https://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/01595.html. Accessed on 31st August 2018.
IBIS World, Procter & Gamble Australia Pty Limited. Available at https://www.ibisworld.com.au/australian-company-research-reports/wholesale-trade/procter-gamble-australia-pty-limited-company.html. Accessed on 31st August 2018.
Procter & Gamble. Leadership Team. Available at https://anz.pg.com/en-AU/who-we-are/leadership-team. Accessed on 31st August 2018.
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