April 23, 2023

Consumer Protection Law In the Australian Context 

This article has been written by Ms. Khushi Patel, a 3-year BBA LLB Student from Auro University. 

Introduction: 

In any country’s economic system, the consumers play a vital and important role and form a fundamental part of any country. The consumer protection law is necessary because it protected the right of consumers against the making of a good and services, which are hazardous to life and property.  The right to be informed about the quantity, quality, purity standard, and price of a good or the service as the case may be so as to protect the consumer against unfair trade practices. Consumer Protection makes the market work for both businesses as well as the consumers,  it’s the fundamental right of the consumer to know about the goods and services that they are purchasing,  through the consumer protection Law, empowers the Consumers to make the best choice based on their interests and prevent them from being the mislead by the businesses. In India, the consumer protection act of 1986 provides protections to Indian Consumer against unfair trade practices,  same as that Australian consumer law are the domestic law that protects the interest of Australian consumer against unfair trade practices of businesses. The purpose behind enacting the Australian consumer law is to Welfare of Australians by promoting fair trade practices and promoting positive competition in the Australian markets, It covers broadly;  product safety and labeling,  prevent unfair market practices, prevention of monopolies and price controlling by businesses, stopping the mergers and acquisitions which had an adverse effect on the market competition.  ACL( Australian consumer law) Was pertaining to anyone conducting business in Australia, which includes Overseas businesses also. In Australia at the time of selling the good or the services, the business must meet some of the basic rights called a consumer guarantee, This consumer guarantee cannot be taken away by any of the businesses in Australia, Example: Business is cannot say that the refunds are not available,  or by saying that they aren’t responsible for the problem of the product or service. As per schedule 2 of the Australian consumer law “ misleading or deprive conduct,  unconsolable conduct,  unfair practices,  condition and warranties, product safety, and information liability of the manufacturer for a good with the safety defects offense,  country of origin representation”.  In Australia  regulation of consumer protection law is governed by both Central  laws as well as state laws, Consumer Protection legislation in Australia 

  • Federal legislation: 
  1.  competition and consumer act of 2010
  2.  competition and consumer regulation of 2010
  •  Territorial-based legislation: 
  1.  fair trading ( Australian consumer law) Act of 1992 (ACT)
  2.  fair trading act of 1987 (NSW)
  3.  consumer affairs and fair trading act of 1990  (NT)
  4. Fair trading act of 1989 (QLD)
  5.  fair trading act of 1987 (SA)
  6.  Australian consumer law (Tasmania) Act 2010 (Tas)
  7.  Australian consumer law and fat trading act 2012 (VIC)
  8.  fare trading act of 2010 (WA) 

 

Australian Regulatory Body and Their Power & Function & Composition: 

 

ACL( Australian consumer law) is essential or fundamental legislation that governs consumer protection in Australia,  Australian consumer is the central law that came into effect on the 1st of January 2011,  Australian consumer law repeals previous state and territory Consumer Protection laws. 

Composition Of Australian Competition and Consumer Commission: 

  • Australian consumer law is Supritended by the Australian competition and consumer Commission ACCC, Established in 1995 to administrate the practices act of 1974 and other statuary Acts, in ACCC includes Chair, Deputy chair, Commissioner, and Associate members,  the appointment of ACC members by the state or a territorial government. 
  • Australian Consumer Commission has 7 sub-committees, to help the commission’s decision-making, this sub-committee has composed of full-time members and Associate members who have expertise in specified matters. 
  • Seven sub-committees include an enforcement committee, mergers review committee, communication committee, infrastructure committee, competition exceptions committee, consumer data rights committee, Compliance and product safety committee. 
  • The enforcement committee oversees the enforcement program and ensure compliance and enforcement of the competition and consumer act of 2010 and its recommendation are referred to the commission for the decision. 
  • The communication committee is the main forum to consider the regulatory and competition issue arising in the communication sector. 
  • The infrastructure committee’s work includes price monitoring transport and the water regulatory issue. 
  • The consumer data writing committee is responsible for executing the government consumer data rights policy and compliant and product safety comedies such as policy and strategy direction for the ACCC’s contact sets decisions about the policy recommendation law reforms personnel and the due compliance of the relevant statutory powers and the function and oversee the strategy compile and the educational function that relates to the consumer’s Mall business and the products safety programs. 

Power And Function Of the Australian Competition And Consumer Commission: 

  • The ACCC exercises its power as a competition, consumer, and regulatory agency in the transplant and the account table manner. ACC manages and reports its tender in accordance with the public governance, performance, and accountability act of 2013. ACCC is responsible for promoting fair and positive competition and promoting a consumer’s interest in the  Australian market. The Australian competition and consumer commission is an independent body that regulates fair trading practices and market competition. It enforces the competition and consumer act of 2010 in Australia, the same as to Australian competition and consumer Commission Australian energy regulator,  Australia’s National energy market regulator. The functions and responsibilities of AER and ACCC  are very similar in nature. ACCC and AER Two bodies share many common objectives both work to protect the strength and supplement the comparative market process, ACCC makes its decision through the commission meeting, on the other hand, AER makes its decision through the Independence board. ACCC’s role in the market is to provide information and when necessary well-regulated market leads to lower prices and better quality products and services, This increases the prosperity and welfare of all Australians.  ACCC  also provides services to the national competition Council, including advice and support concerning NCC recommendation decisions and reports and Administrative Services. 
  • The key points about ACL: 
  1. The Australian consumer law set out the scope for a consumer guarantee that applied to the goods and services trading in markTradinge in the market. 
  2. ACL prohibits businesses from engaging in any kind of anti-comparative agreements or in combination which has an appreciable adverse effect on the market competition.
  3. Australian consumer law prohibits businesses from entering into unfair contract terms, To ensure product safety and consumer rights
  4.  in Australia each Territory has its own Consumer Protection law, and ACCC Takes a proactive approach to enforcing and securing the interest of the consumer. 

 

Conclusion: 

 

As per the current scenario in Australia, the Consumer protection law is considered to be well-built and effective.  The Australian Consumer Protection laws aim to ensure fairness and transparency in the commercial transaction by promoting fair competition in the marketplace And preventing all anti-competitive agreements and combinations which were has an appreciable adverse effect on the marketplace and on the consumer. ACL which provides a bunch of statutory rights to the consumer against unfair trade practices in the market. Australian competition and consumer Commission force the Australian consumer law and promote fair competition.  Australian competition and consumer Commission has a broad power to investigate and prosecute businesses that breach Consumer Protection loss and its works closely with the regulatory bodies to ensure compliance with the law. In the conclusion, we can say that Australian Consumer Protection laws not only promote fair competition but it also protects the interest of consumers by giving them such statutory rights which exercise against unfair trade practices in the marketplace.

References: 

https://business.gov.au/legal/fair-trading/australian-consumer-law#:~:text=The%20ACL%20is%20a%20national,include%20businesses%20that%20are%20overseas

https://www.accc.gov.au/about-us/australian-competition-and-consumer-commission/about-the-accc 

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