I wrote to the ACCC on October 28 asking it to investigate the arrangement whereby a national supermarket chain receives 16% commission from Vodafone and 30 day trading terms for remitting monies collected for Vodafone product while newsagents get 5% commission and remit monies every night.
The ACCC responded to me yesterday saying that it does not consider the matter warrants further consideration.
Newsagents use the same technology provider to issue the over the counter recharge product and therefore offer the same level of compliance; newsagents offer the service in around 1,000 more outlets; newsagents sell, I suggest; around 20% more product than the supermarket.
I don’t know whether the supermarket group, Vodafone and/or the third party technology provider have done anything unconscionable or in contravention of any other provisions of the Trade Practices Act. I would have thought that based on the significant commission and terms of trade difference the ACCC would have at least investigated the matter. I offered evidence and they did not pursue it.
Small business needs organisations like the ACCC to be vigilant in ensuring that big business mates don’t do deals which are grossly unfair to small business and/or deals which are funded by poor deals for small business. We do not have the financial or organizational resources to protect ourselves. This is the job of the ACCC.
The 16% commission being paid to this supermarket chain is offensive compared to the 5% paid to newsagents.
Does anyone care?