Australian Consumer Law

BME 11 ATAR

What is Australian Consumer Law (ACL) and why was it put in place.

A national law that explains consumer rights and business obligations for all businesses operating in Australia. The ACL is based on the Competition and Consumer Act (2010). It was introduced to put in place national consumer protection laws and to allow the ACCC protect consumers across Australia.

What does the ACL cover?

Unfair contract terms, consumer right, warranties, product safety, direct marketing, lay-by agreements and penalties/remedies.

What does ACCC stand for and what is its purpose.

Australian Competition and Consumer Commission. Government organisation that enforces the ACL.

4 Examples of penalties if a business breaches the ACL

1. Fines - Monetary penalties
2. Injunctions to force a business to stop the conduct
3. Damages - Compensation given to the customer
4. Orders for businesses to correct issues such as repairs.

What is Misleading conduct? e.g.?

Statements that are incorrect or create a false impression in relation to the quality, value, price or benefits of a product. in the form of print, radio, television, social media, online. E.g. Bait advertising, country of origin and scientific claims.

What is Bait Advertising as an example of misleading and deceptive conduct?

Advertise products at a discounted price but lack a reasonable supply to fulfil the advertised offer, often with the intention of luring customers to the store and then redirecting them to similar, higher-priced items.

What are Country of origin claims as an example of misleading and deceptive conduct?

Making false claims about the origin of products or their ingredients.

When can the label 'product of' be used by businesses?

It can only be used if each significant component comes from that place.

When can the label 'made in' be used by businesses?

It can only be used if all of the manufacturing occurs in that place.

What are Scientific claims as an example of misleading and deceptive conduct? e.g.?

Scientific statements made by businesses with no evidence to back up any claims made. E.g. Recycled, reduces wrinkles, eases pain.

Examples of Consumer rights and protection and what is their aim?

Guarantees/ Warranties/refunds, product safety and repair & replace. The aim of these requirements is to provide consumers with a level of protection when they make purchases

What are Guarantees?

Guarantees are legal protections ensuring goods and services meet set standards, giving consumers a legal right to redress if businesses fail to comply. Consumers are legally entitled to have them.

Consumer action for a guarantee. 4 Steps

1. Resolve with the business
2, Complain in writing
3. Contact consumer protection
4. Go to court

What are warranties?

Voluntary promises made by a company in addition to the guarantees, promising repair or replacements of goods and services. 3 types: Voluntary (manufacturer), extended and statutory warranties.

voluntary (manufacturer) warranties

Provided by the manufacturer on top of the required statutory warranty to show their confidence in their product

Extended warranties

Usually purchased as an extra cost by the consumer if they want the product to be guaranteed for longer

Statutory warranties

Warranty provided by the ACL and is applied regardless of the other warranties

Refunds

The return of a customers full payments, usually when the customer is dissatisfied with the product or service.

What is Product Safety

legal duty for businesses to only sell products and services that are safe under the ACL which covers the safety of services related to products such as installation, maintenance, repair and delivery.

Consequences of a business selling unsafe products

Causing an injury to the customer, products being removed from stores, recall of all products (returned to the manufacturer and refunds are given), fines and damages, affects BPI negatively.

Mandatory safety standards for products

1. Products must meet standards such as; manufacturing process, ingredients & components and usage must be safe
2. warnings are required for potential unsafe products
3. illegal for a business to sell products that don't meet these standards

Repair and replace

Under ACL there is a statutory guarantee that gives, a consumer the right to take a faulty or unsafe product back to the seller and ask the business to fix it or get a refund.

When do consumers have the right to a refund

If a product is; not of acceptable quality, not fit for the purpose, does not match the description.