consumer laws

• TODO consumer laws notes 📅 2024-04-18

The Australian Consumer Law (ACL)

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• A national law that aims to protect consumers and ensure fair trading in Australia.
• A part of the Competition and Consumer Act 2010

Competition and Consumer Act 2010 (Cth)

• purpose:
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• monitors and regulates marketing practices, with two major purposes:

  • To protect consumers against undesirable practices
  • To regulate certain trade practices that restrict competition

• enforced by : the Australian Competition and Consumer Commission (ACCC)

• Breaches can provoke civil or criminal proceedings

  • (fines & incarceration)

• In 2018, the maximum penalties per breach of the ACL were increased, including for unconscionable conduct

• unconscionable conduct is :: any practice by a business that is not reasonable and often illegal

Deceptive and misleading advertising

• Businesses must ensure advertisements do not use deceptive words or make false claims regarding their product

• The two main misleading and deceptive advertising techniques:
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• Bait-and-switch advertising

  • advertising products which are unavailable or limited in stock at reduced prices to attract customers (the bait)
    • when said products quickly run out, customers are directed to higher priced items (the switch)

• Dishonest advertising

  • when businesses use words that are deceptive or falsely make claims of a product’s qualities/features.

• Other (less prominent) misleading and deceptive advertising techniques include:
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• Fine print and qualifications

  • important (contradicting) conditions written in a small font

• misleading Comparative advertising

  • compares products/services to others on the market in a misleading and/or inaccurate manner

• false Environmental (‘green’) claims

• falsely Country of origin claims

  • is especially illegal in regards to Local content rules

• false Premium (or credence) claims

  • (e.g. unsubstantiated ‘fat free’, ‘100% recyclable’ claims)

• ambiguous Prize giveaways and competitions

  • must state chances and details of each item in a giveaway

Price discrimination

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• Price discrimination is : the setting of different prices for the same product in different markets.
  • also includes favourable treatment towards certain customers
• Differences in prices may arise if markets are geographically separated
  • price discrimination is prohibited if it reduces competition

Implied conditions

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• Implied conditions are : the unspoken and unwritten terms of a contract.

  • These conditions are assumed to exist, regardless if mentioned in a contract

• Following the Australian Consumer Law, new national ==consumer guarantees== were introduced

• Customer guarantees are :: a comprehensive set of rights and remedies for defective goods and services.

  • most importantly, that products must be of Acceptable quality

• products of acceptable quality are :: safe, lasting and with no faults, look acceptable and do all the things someone would normally expect them to do.

Warranties

• Warranties are :: promises made by businesses that they will correct any defects in the goods that they produce or the services that they deliver.

Refunds and exchanges (returns)

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• A business is required by law to offer a refund if the product(s):
  • are faulty
  • do not match the description or sample
  • fail to perform their intended job
• ‘no refunds given’ etc. signs are meaningless
  • the Competition and Consumer Act 2010 (Cth) gives customers access to certain rights and remedies as per the above conditions