Australian Consumer Law (ACL) helps ensure businesses act responsibly in their dealings with consumers and it has been in force since 2011.

ACL replaced previous Commonwealth, state and territory consumer protection legislation. It is contained in the Competition and Consumer Act 2010. Aspects of ACL are also reflected in the Australian Securities and Investments Commission Act 2001 (ASIC Act) to protect consumers dealing with the financial products and services sectors.

Let’s consider the three main areas of this law.

Misleading and deceptive conduct

Businesses must not engage in conduct that could mislead consumers about their goods or services. A business can break the law by failing to disclose relevant facts to a consumer. Whether silence is deceptive or misleading will depend upon the circumstances of each case. Descriptions, promotions and advertisements must accurately represent:​

Along with this, any additional warranties or conditions should be clearly stated.

Unconscionable conduct 

This is best defined as a statement or action so unreasonable that it defies good conscience. A business must not act unconscionably when selling or supplying goods to a consumer or supplying or acquiring goods and services to or from a business. This could include using high-pressure sales tactics, taking advantage of a consumer with a disability, exploiting age, sickness, gender, or financial difficulties.

Unfair terms in consumer contracts

This has been a subject of much discussion and constant review since the introduction of ACL. A consumer contract is an agreement between business and consumer for the supply of goods or services for the consumers’ personal, domestic, or household use. These contracts should not allow the business to change the contract without notifying the customer, avoid liability for negligence, avoid responsibility for any shortcomings or allow fees and charges not related to costs to be incurred. In general, unfair terms will be treated in a dispute as though they never existed.

 

Words: John Caine, VACC Business & Consumer Affairs.