Single national consumer law now in force
From January 1, 2011, all Australian businesses trading in Australia will operate under a single, national consumer law: the Australian Consumer Law (ACL).
The ACL will replace different national, State and Territory laws that set out consumer rights and business obligations when selling goods and services with a single, national set of rules.
The ACL is a national consumer law which is to apply to all business sectors. It covers general standards of business conduct, prohibits harmful practices, regulates specific types of business-to-consumer transactions, provides basic consumer rights for goods and services and regulates the safety of consumer products and product-related services.
The ACL will be administered and enforced jointly by the Australian Consumer and Competition Commission (ACCC) and the State and Territory consumer protection agencies, with the involvement of ASIC on relevant matters.
The ACCC says the benefits to business will vary depending on the size of the business and whether they trade locally, nationally or internationally but may include:
- Reduced compliance costs;
- Reduced regulation burden and complexity for business;
- Certainty for business operating under a single national consumer law.
Australia’s consumer protection agencies have a wider range of enforcement powers under the ACL and new pecuniary penalties can apply. The maximum is $220,000 for an individual and $1.1million for a body corporate. Criminal penalties for the same amount may apply.
The consumer guarantees in the ACL are similar to the existing conditions and warranties implied in agreements for goods and services by national, State and Territory consumer laws. They do not create vastly different rights and obligations, but set out the rights and obligations in a clearer way.
Under the ACL, both supplier and manufacturer guarantee the acceptability of the goods sold; and the supplier guarantees the acceptability of the services.
