Consumer legislation passed

25 March 2010

The Trade Practices Amendment (Australian Consumer Law) Bill 2009 (2009 Bill) has been passed by both Houses of Parliament. When Royal Assent has been received, the Bill will be known as the Trade Practices Amendment (Australian Consumer Law) Act (No. 1) 2010.

The 2009 Bill provides for the introduction of the Australian Consumer Law as a schedule to the Trade Practices Act 1974 (Cth) (Trade Practices Act). It also creates the national unfair contract terms regime and enhances the range of enforcement measures available to the ACCC and ASIC in enforcing consumer laws.

The commencement dates are still to be confirmed by the start date for the unfair contract terms provisions of the 2009 Bill will be no earlier than 1 July 2010. The expected operational date for the remainder of the Australian Consumer Law is 1 January 2011.

This significant progress with stage I of the Australian Consumer Law initiative was partnered with the introduction of stage 2 of the initiative on 17 March 2010. The Trade Practices Amendment (Australian Consumer Law) Bill (No. 2) 2010 (2010 Bill) was introduced into the House of Representatives. The Bill has now been referred to the Senate Economics Committee. A report is due by 21 May 2010.

The 2010 Bill completes the implementation of the remainder of the Australian Consumer Law. It implements general and specific consumer protections, including prohibitions against misleading and deceptive conduct and unconscionable conduct, and provisions covering unfair practices and consumer transactions (such provisions to operate on substantially the same basis as the current Trade Practices Act provisions).

Further, the 2010 Bill introduces:

a new system of statutory consumer guarantees to reform and replace existing Commonwealth, state and territory laws;
a new standard consumer product safety law for consumer goods and product related services;
renames the Trade Practices Act as the Competition and Consumer Act 2010, and
amends a range of amendments to other Acts including the Australian Securities and Investments Commission Act 2001 (Cth) and the Corporations Act 2001 (Cth) where these Acts contain consumer protection provisions.

For further information, please contact:

Chris Hargreaves | Associate
Mullins Lawyers
t +61 7 3224 0232
f +61 7 3224 0333
chargreaves@mullinslaw.com.au