New South Wales Minister for Innovation and Better Regulation Matt Kean
Coming Clean On Kickbacks With Better Business Reforms
Victor P Taffa
Businesses that make product and service recommendations will be forced to come clean on commissions, referral fees and kickbacks under new Better Business Reforms.
Minister for Innovation and Better Regulation Matt Kean said it would put buying power back in the hands of consumers and small businesses.
“Consumers are increasingly relying on referrals from third parties, including agents and price comparison websites when deciding what to buy.” Minister Kean said.
“Not everyone knows that these referral businesses often receive a financial incentive for recommending specific products or services.”
“I want to see people getting ahead because they offer the best products and services, not the biggest commission or kickback. Under my reforms, referral businesses will need to be clear up front about any commissions they’re receiving.” Minister Kean said.
A recent report by the Australian Competition and Consumer Commission highlighted problems in the electricity sector and called for a crackdown on comparison websites to make recommendations based on what is best for the customer, not business bottom lines.
Proposal is part of Minister Kean’s Better Business Reforms, the biggest shakeup of New South Wales consumer laws in three decades, which are designed to get the economy working for shoppers, not shonks.
Reforms will also help create greater transparency around extended warranties. Consumers may not know their rights are sometimes already protected by the Australian Consumer Law and buying an extended warranty may be a waste of their hard-earned cash.
“Some shonky businesses are ripping New South Wales families off by selling them warranties that actually give consumers no extra protection. It’s a total rort.” Minister Kean said.
“My Better Business Reforms are all about giving consumers the tools they need to make informed decisions and helping good businesses compete.”
“These reforms are a win-win: empowering consumers and helping small businesses that put consumers first.” Minister Kean said.
Minister Kean will introduce the Better Business Reforms into Parliament later this month.