Whopping fine for carbon tax lie

APRIL 08, 2015
News.com.au
A GAS wholesaler has been ordered to pay more than half a million dollars for jacking up its prices and blaming the carbon tax.
Actrol Parts Pty Ltd, a supplier of HFC refrigerant gas, will pay a penalty of $520,000 for making the false and misleading representations in mid-2012.
The Federal Court, in proceedings brought by the Australian Competition and Consumer Commission, found Actrol made false or misleading representations in a letter sent to approximately 8000 of its customers and posted on its website concerning the reasons for significant increases in the price of certain refrigerants.
In the letter, Actrol claimed that the price increases were due to the introduction of the carbon tax scheme and changes in input costs and general market conditions.
In fact, Actrol increased its prices to increase its margins and earnings on these HFC refrigerants and to take into account changes in its costs of supplying those HFCs, the court found.
Actrol is the only company to have been sued by the consumer watchdog over carbon tax claims. Others have been issued infringement notices.
After the repeal of the carbon tax in 2014, the ACCC was tasked with monitoring the prices of relevant goods and taking action against businesses engaging in price exploitation.
“The proceedings arose from the ACCC’s role in investigating false or misleading claims about the impact of the introduction of the carbon tax scheme,” ACCC Chairman Rod Sims said in a statement.
“The letter misled Actrol’s customers about the impact of the introduction of the carbon tax scheme on the price of HFC refrigerant gas, which is used widely in domestic and commercial refrigeration and air conditioning applications throughout Australia.
“Actrol’s price increases for HFC refrigerant gas were not introduced to cover the cost of the Carbon Tax, but instead were made to increase its margins and to take into account increased supply costs on these products.”
The court also ordered Actrol to write to each recipient of the original letter advising them of the outcome, publish the letter on its website, and publish a corrective notice in The Australian newspaper.
News.com.au has contacted Actrol for comment.