Miscellaneous

The Implementation Plan

On 2 October 2008, the Council of Australian Governments (COAG) agreed to a new consumer policy framework, as proposed by the Ministerial Council on Consumer Affairs (MCCA) on 15 August 2008. The new framework — the Australian Consumer Law — is being developed by the Australian Government with the States and Territories, and will include:

  • A single national consumer law for Australia, based on the consumer protection provisions of the Trade Practices Act 1974 (TPA).
  • A new unfair contract terms law covering standard form contracts.
  • A new national product safety law and enforcement system.
  • A new national law guaranteeing consumer rights when buying goods and services, which replaces existing laws on conditions and warranties.
  • Reforms to enhance the effectiveness of the Australian Consumer Law, drawing on best practice in state and territory consumer laws.
  • New common enforcement powers for Australia’s consumer agencies, including substantiation notices, infringement notices and public warning notices.
  • New civil penalties for breaches of the Australian Consumer Law, including civil pecuniary penalties and disqualification orders.
  • New powers for courts to order redress for consumers affected by breaches of the law.

Stage One

On 17 February 2009 , the Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, the Hon Chris Bowen MP, announced that the Government would move quickly to implement key elements of the Australian Consumer Law.

The Trade Practices Amendment (Australian Consumer Law) Bill 2009, introduced into the House of Representatives on 24 June 2009, delivers key elements of the Australian Consumer Law.

Key Elements:

  • Establishing a single, national consumer law: the Australian Consumer Law.
  • Making provision for the application, administration and amendment of the Australian Consumer Law.
  • Introducing a national provision regulating unfair contract terms.
  • Introducing the new penalties, enforcement powers and consumer redress options.

The States and Territories will be able to apply the unfair contract terms provision from 1 January 2010 (when it becomes effective at national level), should they decide to do so.

Stage Two

The Government will introduce into the Parliament a second Bill in early 2010, which will introduce the bulk of the Australian Consumer Law.

Key elements:

  • Introducing the remainder of the Australian Consumer Law provisions drawn from the existing consumer protection provisions of the TPA.
  • Introducing the new national product safety system.
  • Introducing reforms drawing on best practice in state and territory consumer laws.
  • Introducing the new national law guaranteeing consumer rights when buying goods and services, which replaces existing laws on conditions and warranties.
  • Introducing amendments to the TPA to clarify that protection from unconscionable conduct relates not only to the process of settling a contract but to the terms and conditions of the contract and the ongoing behaviour of the parties to the contract.

Stage Three

  • The States and Territories are to apply the Australian Consumer Law by the end of 2010, in accordance with the timeframe agreed to by COAG in its National Partnership Agreement to Deliver a Seamless National Economy .
  • The Australian Consumer Law will be fully implemented by 1 January 2011. It will apply nationally and in all States and Territories, and to all Australian businesses.