ACCC warns WA businesses to be vigilant

The competition watchdog has urged small businesses in Western Australia to be vigilant during the economic downturn, as larger firms could feel the pressure to cut corners.

The warning comes from the Australian Competition and Consumer Commission deputy chairman Michael Schaper, which met with industry bodies and small business related agencies in Perth today.

"When there is a greater incentive to cut costs, it is important small operators know where they stand in dealing with other businesses and customers," Mr Schaper said.

"Small businesses need to be vigilant that they don't fall victim to unconscionable dealings by larger suppliers and franchisors which may be feeling the pressure of the current economic climate.

"Equally, small businesses feeling the pinch must not cut corners by being less than truthful in their advertising and dealings with customers.

"All too often, many small operators are still unaware that it is illegal to enforce fixed prices, or make unsubstantiated green claims. When this happens, both small firms and consumers lose out."