Forum

 
  Back to OzPolitic.com   Welcome, Guest. Please Login or Register
  Forum Home Album HelpSearch Recent Rules LoginRegister  
 

Page Index Toggle Pages: 1
Send Topic Print
Woolworths hauled over the coals (Read 802 times)
bogarde73
Gold Member
*****
Offline


Anti-Global & Contra Mundum

Posts: 18443
Gender: male
Woolworths hauled over the coals
Jul 24th, 2014 at 10:39am
 
Woolworths reminded it isn't a bank
 
DateJuly 24, 2014 - 8:18AM



Jared Lynch

Business reporter



Woolworths might offer financial services but it can't call itself a bank.
Woolworths might offer financial services but it can't call itself a bank.


Woolworths has been forced to stop using the word ‘‘banking’’ in the marketing of its financial services after it fell foul of regulators.

The move is a setback for the retailer as it steps up its aggressive push into financial services, including credit cards and insurance.

Use of words related to banking is tightly controlled under financial industry laws.
Use of words related to banking is tightly controlled under financial industry laws.

It is illegal for companies to use the words "bank", "banker" or "banking" to describe their businesses unless they hold a banking licence from the Australian Prudential Regulation Authority (APRA).



Fairfax Media understands that APRA is probing Woolworths, which doesn’t have a banking licence, after it labelled its credit card business as a banking service on its website.

A Woolworths spokeswoman conceded the company had made a mistake.

“We acknowledge we were using the wrong term and this will be rectified,” the spokeswoman said.

The admission came as rival Coles said it was considering becoming a member of the Financial Services Council, giving it a seat at the table among the nation’s leading wealth managers. Coles announced earlier this month that it planned to start issuing personal loans within the next 12 months as part of its own push into financial services.

APRA aggressively polices use of the word ‘bank’, launching several legal actions in recent years to either shut down operations or freeze funds.

The most famous occured when receivers took control of about $5 million raised by David Siminton after the Federal Court found he had set up an unregistered bank in his self-proclaimed "principality of Camside".

The regulator has also been tightening its guidelines about who can be called a bank after rural lender Banksia collapsed in late 2012, owning $660 million to thousands of mum-and-dad investors.

'Careless' claim

Consumer advocate group CHOICE described Woolworths’ actions as “careless” and said they were concerning if they signalled the way the Fortune 500 company would handle its foray into financial services.

“We have seen supermarkets moving aggressively into financial products and they need to be careful as they do that," CHOICE director of campaigns and communication Matthew Levey said.

"It’s a highly regulated environment with a lot of consumer protections that exist for very good reasons.

“The risks associated with a financial product, particularly a credit product, are very different to those associated with buying food and groceries at a supermarket.”

But Mr Levey was far from critical of the supermarkets’ plans to ramp up financial services.

"There is a certain irony in having players from arguably the most concentrated sector in Australia turn their attention to one of the next most concentrated, to have the big two take on the big four [banks]," he said. "But if they bring good products to the market that could bring a whole range of benefits.”

No blurring

Greens’ consumer affairs spokesman Senator Peter Whish-Wilson said he was concerned.

He slammed Woolworths for describing its credit card business as a banking service.

“A bank is a bank is a bank,” the former investment banker said. “There should be no blurring.”

Senator Whish-Wilson said the supermarkets’ expansion into financial services could lead to sales-driven advice, particularly after the federal government weakened consumer protection provided by the Future of Financial Advice laws.

“I am worried about customers being pushed products that aren't in their interest. We want to see more independent financial planners, not vertically-integrated sales-based businesses.

“I am also worried that supermarkets will be using financial services to cross-subsidise their grocery business and increase their market power in this sector further.”

Senator Whish-Wilson called on the Australian Competition and Consumer commission to “be watchful in this area, like they were with petrol discounts”.

Competition warning

The boss of Metcash’s $9 billion grocery division - which includes IGA, Foodland, Foodworks and Lucky 7 branded stores – this week warned Coles and Woolworths’ moves into financial services posed a serious threat to competition.

“Why would they be allowed to do that?" he asked.

"Are they going to use that to leverage across the market? Of course it’s a concern,” said Fergus Collins, who in December was elevated from running wholesaler Metcash’s liquor distribution arm to head its flagship supermarkets business.



Back to top
 

Know the enemies of a civil society by their public behaviour, by their fraudulent claim to be liberal-progressive, by their propensity to lie and, above all, by their attachment to authoritarianism.
 
IP Logged
 
bogarde73
Gold Member
*****
Offline


Anti-Global & Contra Mundum

Posts: 18443
Gender: male
Re: Woolworths hauled over the coals
Reply #1 - Jul 24th, 2014 at 10:41am
 
Made a mistake my bum! They knew they could get away with it for a while, by which time their advertising would have registered with a lot of consumers.

If the left want to get on somebody's back, why don't you have a go at this crowd? They are a threat to Australian competition and consumer freedom.
But I guess it's big unions/ big business OK.
Back to top
 

Know the enemies of a civil society by their public behaviour, by their fraudulent claim to be liberal-progressive, by their propensity to lie and, above all, by their attachment to authoritarianism.
 
IP Logged
 
BatteriesNotIncluded
Gold Member
*****
Offline


MediocrityNET: because
people died for this!

Posts: 26966
Re: Woolworths hauled over the coals
Reply #2 - Jul 24th, 2014 at 10:42am
 
lol, it's frightening...
Back to top
 

*Sure....they're anti competitive as any subsidised job is.  It wouldn't be there without the tax payer.  Very damned difficult for a brainwashed collectivist to understand that I know....  (swaggy) *
 
IP Logged
 
buzzanddidj
Gold Member
*****
Offline


Australian Politics

Posts: 14243
Eganstown, via Daylesford, VIC
Gender: male
Re: Woolworths hauled over the coals
Reply #3 - Jul 25th, 2014 at 1:17pm
 
bogarde73 wrote on Jul 24th, 2014 at 10:41am:

If the left want to get on somebody's back, why don't you have a go at this crowd?





As one of
"the left"
- I'm a great supporter of wholly Australian owned companies - who maximise profit in the best interist of shareholders


Australian SUPERANNUATION FUNDS - in particular - being the biggest shareholders


It's appallingly "un-Australian" - the number of people that would see these Australian icons CRUSHED to make way for foreign interests such as Aldi and Tesco - to ensure all this profit and wealth leave our shores

I will never be such a TRAITOR to this country





Back to top
« Last Edit: Jul 25th, 2014 at 1:27pm by buzzanddidj »  

'I like your Christ, I do not like your Christians.
Your Christians are so unlike your Christ.'


- Mohandas Karamchand Gandhi
 
IP Logged
 
bogarde73
Gold Member
*****
Offline


Anti-Global & Contra Mundum

Posts: 18443
Gender: male
Re: Woolworths hauled over the coals
Reply #4 - Jul 25th, 2014 at 1:29pm
 
That's such an insular view buzz.
You don't mind Qantas flying round the world picking up business. Do you object to Westfield building & operating shopping malls around the world, bringing profits home to Australian investors?
It's a global economy.
If Aldi or anyone else can operate their business here in such a way as gives employment and a fair deal on groceries to both consumers and Australian producers, then I say that is a good thing and it is not being a traitor.
Woolworths & Coles, but especially the former, have done a lot of damage to this country in pursuit of monopolistic gains. They have put a whole range of small businesses into extinction, not least of which are the independent service station operators.
And in their supermarket operations they continue, in spite of all their advertising to the contrary, to suck the blood out of stupefied consumers with prices that are unbelievably bloated.
But their day is coming.

PS And you continue to believe this fallacy that they are wholly Australian owned. There are few large companies here that can claim that.
Back to top
 

Know the enemies of a civil society by their public behaviour, by their fraudulent claim to be liberal-progressive, by their propensity to lie and, above all, by their attachment to authoritarianism.
 
IP Logged
 
Andrei.Hicks
Gold Member
*****
Offline


Australian Politics

Posts: 23818
Carlsbad, CA
Gender: male
Re: Woolworths hauled over the coals
Reply #5 - Jul 26th, 2014 at 12:48pm
 
buzzanddidj wrote on Jul 25th, 2014 at 1:17pm:
bogarde73 wrote on Jul 24th, 2014 at 10:41am:

If the left want to get on somebody's back, why don't you have a go at this crowd?





As one of
"the left"
- I'm a great supporter of wholly Australian owned companies - who maximise profit in the best interist of shareholders


Australian SUPERANNUATION FUNDS - in particular - being the biggest shareholders


It's appallingly "un-Australian" - the number of people that would see these Australian icons CRUSHED to make way for foreign interests such as Aldi and Tesco - to ensure all this profit and wealth leave our shores

I will never be such a TRAITOR to this country







I quite like Tesco actually.
Superb supermarket chain and much better value than Coles and Woolworths.

Your sense of patriotism is quite misguided.
Back to top
 

Anyone who lives within their means suffers from a lack of imagination - Oscar Wilde
 
IP Logged
 
buzzanddidj
Gold Member
*****
Offline


Australian Politics

Posts: 14243
Eganstown, via Daylesford, VIC
Gender: male
Re: Woolworths hauled over the coals
Reply #6 - Jul 26th, 2014 at 12:54pm
 
Andrei.Hicks wrote on Jul 26th, 2014 at 12:48pm:
buzzanddidj wrote on Jul 25th, 2014 at 1:17pm:
bogarde73 wrote on Jul 24th, 2014 at 10:41am:

If the left want to get on somebody's back, why don't you have a go at this crowd?





As one of
"the left"
- I'm a great supporter of wholly Australian owned companies - who maximise profit in the best interist of shareholders


Australian SUPERANNUATION FUNDS - in particular - being the biggest shareholders


It's appallingly "un-Australian" - the number of people that would see these Australian icons CRUSHED to make way for foreign interests such as Aldi and Tesco - to ensure all this profit and wealth leave our shores

I will never be such a TRAITOR to this country







I quite like Tesco actually.
Superb supermarket chain and much better value than Coles and Woolworths.

Your sense of patriotism is quite misguided.




YOUR loyalty lies with BRITISH chains
MINE lies with AUSTRALIAN chains

SURPRISE, SURPRISE !





Back to top
 

'I like your Christ, I do not like your Christians.
Your Christians are so unlike your Christ.'


- Mohandas Karamchand Gandhi
 
IP Logged
 
Andrei.Hicks
Gold Member
*****
Offline


Australian Politics

Posts: 23818
Carlsbad, CA
Gender: male
Re: Woolworths hauled over the coals
Reply #7 - Jul 26th, 2014 at 12:55pm
 
buzzanddidj wrote on Jul 26th, 2014 at 12:54pm:
Andrei.Hicks wrote on Jul 26th, 2014 at 12:48pm:
buzzanddidj wrote on Jul 25th, 2014 at 1:17pm:
bogarde73 wrote on Jul 24th, 2014 at 10:41am:

If the left want to get on somebody's back, why don't you have a go at this crowd?





As one of
"the left"
- I'm a great supporter of wholly Australian owned companies - who maximise profit in the best interist of shareholders


Australian SUPERANNUATION FUNDS - in particular - being the biggest shareholders


It's appallingly "un-Australian" - the number of people that would see these Australian icons CRUSHED to make way for foreign interests such as Aldi and Tesco - to ensure all this profit and wealth leave our shores

I will never be such a TRAITOR to this country







I quite like Tesco actually.
Superb supermarket chain and much better value than Coles and Woolworths.

Your sense of patriotism is quite misguided.




YOUR loyalty lies with BRITISH chains
MINE lies with AUSTRALIAN chains

SURPRISE, SURPRISE !




Hardly!!!
Anyone who has a loyalty to a supermarket chain is quite frankly an idiot.
Back to top
 

Anyone who lives within their means suffers from a lack of imagination - Oscar Wilde
 
IP Logged
 
buzzanddidj
Gold Member
*****
Offline


Australian Politics

Posts: 14243
Eganstown, via Daylesford, VIC
Gender: male
Re: Woolworths hauled over the coals
Reply #8 - Jul 26th, 2014 at 1:19pm
 
Andrei.Hicks wrote on Jul 26th, 2014 at 12:55pm:
buzzanddidj wrote on Jul 26th, 2014 at 12:54pm:
Andrei.Hicks wrote on Jul 26th, 2014 at 12:48pm:
buzzanddidj wrote on Jul 25th, 2014 at 1:17pm:
bogarde73 wrote on Jul 24th, 2014 at 10:41am:

If the left want to get on somebody's back, why don't you have a go at this crowd?





As one of
"the left"
- I'm a great supporter of wholly Australian owned companies - who maximise profit in the best interist of shareholders


Australian SUPERANNUATION FUNDS - in particular - being the biggest shareholders


It's appallingly "un-Australian" - the number of people that would see these Australian icons CRUSHED to make way for foreign interests such as Aldi and Tesco - to ensure all this profit and wealth leave our shores

I will never be such a TRAITOR to this country







I quite like Tesco actually.
Superb supermarket chain and much better value than Coles and Woolworths.

Your sense of patriotism is quite misguided.




YOUR loyalty lies with BRITISH chains
MINE lies with AUSTRALIAN chains

SURPRISE, SURPRISE !




Hardly!!!
Anyone who has a loyalty to a supermarket chain is quite frankly an idiot.




I have a loyalty to my COUNTRY
And to wealth generated in my country - STAYING in my country

YOU'VE only ever had a loyalty to YOURSELF !


( ... and to what ever industry "owns" you - at any given moment)




Back to top
 

'I like your Christ, I do not like your Christians.
Your Christians are so unlike your Christ.'


- Mohandas Karamchand Gandhi
 
IP Logged
 
bogarde73
Gold Member
*****
Offline


Anti-Global & Contra Mundum

Posts: 18443
Gender: male
Re: Woolworths hauled over the coals
Reply #9 - Jul 26th, 2014 at 4:17pm
 
We will obviously never agree on this buzz, we have been through it so many times.
But at least you must concede that Woolworths in this instance has not made a mistake as it claims, but is very likely to have deliberately intended to mislead consumers into believing that it was carrying on the business of banking. It knew it would be able to maintain this deception for long enough to get a message across to a large number of people.
Back to top
 

Know the enemies of a civil society by their public behaviour, by their fraudulent claim to be liberal-progressive, by their propensity to lie and, above all, by their attachment to authoritarianism.
 
IP Logged
 
Page Index Toggle Pages: 1
Send Topic Print