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Client Update: Single national consumer law legislation

24 June 2009

In brief: The Trade Practices Amendment (Australian Consumer Law) Bill 2009 was introduced into Parliament today. The Bill will introduce a single national consumer law (to be known as the Australian Consumer Law), as well as a national unfair contract terms law. Partners David Brewster (view CV) and Jacqueline Downes (view CV) and Lawyer Alexander Gelis report.

The Australian Consumer Law

The Bill will introduce a single national consumer law which will eventually replace existing state and territory consumer laws and the consumer protection provisions in the Trade Practices Act 1974 (Cth) (the TPA). In summary, these are:

  • a national unfair contract terms regime, which will apply to standard form business-to-consumer contracts. Importantly, the Bill does not include provisions to regulate standard form business-to-business contracts (contrary to the Government's initial proposals). The Government has said it will consider the application of the regime to business-to-business contracts once it has concluded a review of the unconscionable conduct provisions of the TPA and the Franchising Code of Conduct;
  • reforms to consumer law enforcement powers to include:
    • civil pecuniary penalties and disqualification orders;
    • substantiation notices;
    • the availability of redress of non-parties;
    • public warning powers to 'name and shame' offenders; and
    • infringement notices;
  • a uniform product safety approach; and
  • the adoption of 'best practices' (such as certain definitions and unfair practice provisions) from existing state and territory legislation.

A second Bill to complete the Australian Consumer Law is scheduled to be introduced in early 2010 and implemented nationally by 1 January 2011. However, the provisions regulating unfair contract terms are proposed to become effective from 1 January 2010.

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In summary

  • There will be a single national consumer law in Australia.
  • The law will regulate unfair terms in standard form in business-to-consumer contracts, but not (at this stage) business-to-business contracts.
  • New civil penalties, new enforcement powers for regulators and a new power for courts to order redress for consumers affected by breaches of the national consumer law.

Published 24 June 2009

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