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Clubs Australia to bargain collectively with ATM suppliers

13 September 2013 4:09PM
Clubs Australia has received the blessing of the competition regulator to negotiate and enter into contracts with automatic teller machine suppliers on behalf of its members.The Australian Competition and Consumer Commission granted an interim authorisation this week, allowing Clubs Australia to bargain collectively with ATM suppliers over price, terms of supply, product development and joint advertising and marketing.Authorisation provides protection from legal action for conduct that might otherwise breach the competition provisions of the Competition and Consumer Act.Clubs Australia requested the authorisation on the basis that it needed to commence negotiations on behalf of members to ensure they are compliant with the requirements of the National Gambling Reform Act, which takes effect in February next year.The new law introduces a A$250 per day ATM withdrawal limit for premises with gaming machines (excluding casinos).Clubs Australia represents 6500 member clubs. It said in its application: "Allowing Clubs Australia to bargain collectively on behalf of clubs will reduce the likelihood of manifestly unfair contract terms and conditions which often arise when individual clubs engage directly with large-scale or monopoly suppliers."By way of example, [the] current contracts many member clubs hold with a particular provider of ATMs contain an automatic rollover clause of six years. Any breach results in significant financial penalties. "Conversely, suppliers can remove ATMs from clubs within seven days. Allowing Clubs Australia to participate in direct negotiations with suppliers such as these will allow member clubs to have increased input into contracts."Any cost savings or gains in efficiency as a result of the negotiations would give rise to a public benefit."

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