CONSUMER PROTECTION LEGISLATION

Gerard Brody, Senior Manager - Financial Inclusion, Brotherhood of St Laurence

AUSTRALIAN CONSUMER LAW
UNSOLICITED CONSUMER AGREEMENTS
PRICING
LAY-BY SALES
OTHER PROVISIONS OF THE ACL

On 1 January 2011, the new Australian Consumer Law (ACL) commenced. The full text of the ACL is set out in Schedule 2 of the Competition and Consumer Act 2010 ("C&CA") which is the new name for the Trade Practices Act 1974 (Cth) ("TPA"). Broadly, the ACL applies to consumer transactions for all goods and services entered into after 1 January 2011, except financial services. Consumer protections in relation to financial services are found in the Australian Securities and Investments Commission Act 2001 (Cth) ("ASICA") and the Corporations Act 2001 (Cth). For transactions that occurred up to 31 December 2010, the previous national, State and Territory consumer laws will continue to apply.

In summary, the ACL:

replaces a wide range of existing national, state and territory consumer laws, and aims to clarify understanding of the law by both consumers and businesses;
is a schedule to the Competition and Consumer Act 2010 (Cth) ("C&CA"), the new name given to the TPA to more accurately reflect its purpose and scope;
is applied as a law of the Commonwealth. Each state and territory had made the provisions of the ACL a law of its jurisdiction so that the same laws apply across Australia;
can be enforced by all courts and tribunals, including the courts and tribunals of the states and territories;
is administered by the Australian Competition and Consumer Commission (ACCC) and, in Victoria, by Consumer Affairs Victoria (CAV); and
is generally reflected in similar provisions in the ASICA, so that financial products and services are treated in the same way.

In Victoria, section 9 of the Fair Trading Act 1999 (Vic) ("FTA)" applies the Australian Consumer Law in Schedule 2 to the C&CA as a law of the State of Victoria.

This reform follows the Productivity Commission's 2008 "Review of Australia's Consumer Policy Framework", which found that many minor variations exist in different consumer laws across Australia and those differences create additional costs for business and increase uncertainty for consumers. It also states that an inconsistent and complex enforcement regime deterred consumers from pursuing their rights and regulators from pursuing breaches of the law.

This chapter contains a brief description of the main consumer protection legislation that applies in Victoria, under the ACL.

Note: This chapter provides only an introduction to the subject. Legal advice should always be obtained in relation to individual facts.