Key Features of Consumer Law in Australia - Essay Example

ECON300: Key Features of Consumer Law in Australia Student’s Name: Name of Institution: Instructor’s Name: Course Code: Date of Submission: Introduction It is the hope and expectation of manufacturers and suppliers that their goods and services will be needed and bought by consumers. One of the key means by which manufacturers and suppliers create awareness on their goods and services is advertising. But since their main goal is to sell, the representations portrayed in advertising may be false. The goods and services advertised and sold may offer less than the advertisements promise, or may even cause harm. It is the role of governments- through legislations- to protect consumers from such unfair practices and unsafe products (Gibson & Fraser, 2012). The Australian Consumer Law (ACL) came to force on the 1st of January, 2011. Most importantly, the ACL is a national law (i.e. it replaces the state legislations) that governs consumer protection, including unfair terms of contracts, product safety, guarantee consumer rights, etc (ACL, 2010; 2011).This paper focuses on the key features of the Australian Consumer Law. Unfair Practices Unfair practices here refer to a range of issues on the part of manufacturers and/or suppliers: giving false or misleading information on goods and services; corporations offering false gifts, rebates and prizes; unconscionable conduct, etc (ACL, 2011; Gibson & Fraser, 2012). False/deceptive and misleading information or representation, outlined in Section 29 of ACL involves a variety of actions. These include giving deceptive or misleading information: regarding quality and standard, grade, value, style, composition and model, amongst others, of goods and services. Regarding the goods’ or service history, including how they have been used previously. Regarding age of the goods, e.g. saying goods are old, when they actually are not. Giving false or misleading information that the goods and services in question have been endorsed by a particular party or person, e.g. claiming a certain brand of sports kit have been endorsed by a celebrity sports personality. False gifts, rebates and prizes, provided for in Section 32, occur in situations where corporations do not honor their promises for benefits. The ACL provides for punishing corporations for engaging ins unscrupulous behavior, or demanding that they fulfill their promises ACL (2011). The ACL (2011) provides a legal framework that protects consumers from such actions. Legislative provisions for such misleading conducts are outlined under Section 18 of the Australian Consumer Law, and provide for both civil and criminal liabilities. Moreover, Part 3-1 of the ACL prohibits various business practices that it views as deceptive or misleading. There is a comprehensive and complex criteria laid out by the ACL for determining if a particular action is misleading. While this paper will not look deeply into this matter, it should be noted that the ACL views the deceptiveness or ‘misleadingness’ of a representation in relation to the reasonable target audience. This is in relation to audience age, location, familiarity with the subject matter and level of sophistication (i.e. higher accuracy levels/standards are expected when advertising for less sophisticated audience, e.g. children). Any consumer who thinks he/she has suffered damage or loss due to the corporate actions in Section 29 and 32 can initiate legal action for compensation, injunction or damages under the Australian Consumer Law. However, before the consumer’s legal action(s) succeed(s), they must be able to prove that the corporation in question has actually conducted unfair practices. Unsafe Products The Australian Consumer Law laid out and permanently banned specific characteristics upon which products would be declared unsafe. Some of these products and characteristics include: products for children of upto 36 months containing over 1 percent DEHP (diethylhexyl phthalate); combustible candle holders that flame for more than five seconds; inflatable novelties, toys and furniture that contain tiny pellets and beads that may be inhaled when inflating or deflating; miniature bikes not certified by the RVCS (Road Vehicle Certification System) or that do not meet certain safety requirements regarding foot pegs, breaking system, throttle, steering, etc; imitation/toy cigarettes that may appeal to children of five years and below; undeclared knives and cutters in children’s sets for arts and craft, etc (The Monitor News Brief , 2011). The ACL demands the observation of these products and characteristics by traders who import consumer goods into Australia. In the same light, the ACL provides for the prosecution and fining of up to $1.1 million for the suppliers of goods found to breach these bans. Further, these suppliers may be ordered to pay for the recall of these goods from the market (The Monitor News Brief, 2011). Consumer Guarantees The ultimate goal of the ACL in addressing unfair practices and unsafe products is to provide consumer guarantees. Beyond just these two aspects, the ACL also introduces three major changes in pursuit of consumer guarantees. One, reducing consumer confusion and minimizing costs/prices for consumers. Two, insisting that goods must meet ‘acceptable’ standards. Previously, emphasis was on ‘merchantable’ quality, which was judged on the nature of the goods vis-à-vis price, statements regarding the quality of the goods found on labels or packaging and representations by manufacturer or supplier. The ACL now insists on ‘acceptable qualities, i.e. they have to be fit, free from any defects and durable. Three, consumers can now depend on the ACL statutory remedies to resolve issues regarding breach of their guarantees. For example, if a particular breach can be remedied but it is thought not to be a major failure, the consumer has the right to be remedied through repair, refund or replacement. Should the supplier fail to remedy the breach, then the consumer has the right to demand recovery of the costs incurred in the process, reject the goods, or terminate the supply contract. Equally, consumer can terminate any supply contract related to any rejected goods in case the supplier is expected to provide refund (Allens, 2010). These examples show how the ACL fights to protect the consumer guarantees from possible breaches by manufacturers and suppliers. Conclusion In conlusion, this paper does not explore the consumer protection provisions in the ACL. However, it provides a crucial summary of the ACL. Indeed, the ACL has marked a paradigm shift in the protection of Consumers in the whole of Australia. The national stance of the ACL is key step towards harmonizing laws across states. References Allens, (2010). Focus: Consumer guarantees under the Australian Consumer Law. Retrieved 18th May, 2012, http://www.allens.com.au/pubs/ldr/foprodoct10.htm Australian Consumer Law. (2011). Retrieved 18th May, 2012, http://www.consumerlaw.gov.au/content/Content.aspx?doc=fact_sheets/FAQ.htm Gibson, A. & Fraser, D. (2012). Business Law, 6th ed., Pearson, Frenchs Forest, N.S.W. The Australian Consumer Law. (2010). Retrieved 18th May, 2012, http://australia.gov.au/topics/economy-money-and-tax/consumer-protectionThe The Monitor News Brief. (2011). Unsafe Products Permanently Banned under Australian Consumer Law. STR, March 2011. Retrieved 18th May, 2012, http://www.strhk.com/newsletter/2011/STRNBMar2011_AP_News_Brief- Australian_consumer_law.pdf Read More