Reasons for Consumer Protection - Essay Example

Business Law Name: Institution: Date: Introduction Business is an act that involves both the buyer and the seller. When the two parties come together, the seller aims at making more money over a given product while the buyer aims at getting the most affordable price of the product. Many times the buyer is always never certain about the exact value of the product, the amount in which he or she will purchase majorly depends on the stated value of the products. Disagreements do emerge in the process of negotiation and if an agreement is reached, both parties leave satisfied. In many circumstances, only the seller knows the real worth of the product and despite the buyer being satisfied at the end of the negotiation, he or she may have been coned and hence the need for consumer protection. Consumer protection Malbon & Nottage, (2013) state that consumer protection are laws enacted in order to protect consumers from market price exploitation by traders, the law also prohibits false advertisement of products and also impose product safety measures to be observed during debt collection. These laws entail the regulations and statues that seek to create a balance between buyers and sellers by regulating the market prices, ensuring that consumers receive the right information, and prevention of deceptive techniques that could be used by traders. Consumer protection therefore aims at placing consumers on a fair platform with companies or other traders. There are several statues which include both state and federal that work to protect consumers(Griggs, Webb & Freilich, 2008). Reasons for Consumer protection Consumers have always been faced with tough decisions to make in their day to day lives, these choices always affect their lives in one way or another, it tends to determine the progress of their activities and even influence their perception towards business. Many times consumers have limited knowledge over the market industry thus prone to exploitation, under such circumstances; the consumers are always faced with the burden or making the right choices despite the uncertainty of their decisions. There market industry has grown over time, buyers these days have a wide variety of choice to make, and the freedom of decision making however comes with the risk of increased exploitation. Competition has also increased, as a result of competition; manufacturers are trying to find the best means of making their products sale, this entails attractive advertisements, favorable prices and discounts that are being offered (Miller & Miller, 2013). The changes that have taken place in the market currently have led to more complications and uncertainty of certain goods and services being offered in the market. These market forces have even overshadowed legislation and made consumers to be highly disadvantaged. The consumers have placed complete faith in the market ability and its products, under such circumstances, consumers need to be protected and taught the necessary skills in order to make informed decisions. There has been an increase in the promotion of consumption patterns that are not sustainable and consumers have placed faith in the ability of the market to protect them which is dangerous for the consumers. Development of consumer law in Australia Australia is one of the countries that have witnessed tremendous changes in the consumer laws. These reforms are aimed at helping consumers to transact confidently in business and also promote honest business platform that is fair for both the manufacturer or seller and the consumer. On 2nd October 2008, the Australian Government’s council agreed to create an Australian consumer law which was based on the ministerial council on consumer Affairs. The aspects of this law included the creation of a single nation al law on consumer protection and fair trading. The law also contained a national unfair contract terms law and a national production safety regulatory system. Some of the key elements in the Australian consumer law included the observation of unfair contract terms, powers of enforcing this law and the penalties met in case the law is broken. The issue of product safety was also considered and statutory conditions and warranties put in place to regulate the safety of products (Howells, Ramsay, Wilhelmsson & Kraft, 2010). In 2009, the process of making reforms on various laws began; this process went up to 2013 during which the legislative part of the review was done. Some of these laws include consumer guarantee Act 1993, Fair Trading Act 1986, Weights and Measures Act 1987, Carriage of Goods Act 1908, Door to Door sales Act 1967 and Unsolicited Goods and Services Act 1975. The objectives of making the objectives of making these reforms was in order to ensure that the laws are principled based, the laws were also to increase the confidence of the consumers while transacting business, suppliers and consumers were also being protected from market conducts that were not appropriate and also to ensure that those affected by the consumer laws were easily accessible. Operation of Consumer Protection Laws in Australia In the state level, consumer protection law provides a clear explanation on how the laws should be observed and applied in order to ensure the liability of products and safeguard the consumers from exploitation. The law entails a set of consumer protection regulations which have been agreed upon nationally. This law is divided into various parts depending on the mode of operation; the law contains the following aspects (Bruce, 2010); Guarantees These rights apply to products and services all across Australia, the rule states that; The goods sold in the market must be of good and acceptable quality in regard to the purpose in which they were meant for. All goods should be able to match the description indicated in them in that if a given quality is stated or element, it should be present in the product. Manufacturers must ensure that every product produced contains spare parts and servicing means for a considerable period of time. When services are being carried out, they should be performed with due care and required skills so as to achieve the specified result, The law however does not state the duration in which the goods must be functional for because different categories of goods are meant for different duration of time. The law also provides clarification on the remedies of various problems in case they emerge; it states that in extreme cases, the consumer ought not to have purchased the product if they understood the condition in which the products were in before purchase. In the situation of minor occurrences, the law provides remedy in form of refund, repair and other decisions to be made by the supplier of the product. Unfair selling practices Various methods through which selling of goods or services are carried out tend to be oppressing to the consumers. Time restrictions have been made and the law clearly states that in the event of door to door selling of products, the sales person is not supposed to show up before 9am and after 6pm during weekdays and before 9am or after 5pm during the weekends. Tale makers are an exception since they have a duration starting from 9am until 8pm. For these sales persons, it is stated that they need to provide a clear written statement of what the product is about, the total price of the product, duration in which the consumer may opt to withdraw from the agreement and the conditions which entail the termination of the contract. This law works in favor of both the consumer and the seller by providing them with adequate time to make a decision and also avoid any wrangles that may emerge in regard to the contract (Griggs, Webb & Freilich, 2008). Unsafe products Safety of the products in the law is governed by the national register. Every consumer or business must notify the Australian Competition and Consumer Commission within a duration of two days after discovering that the products they have been supplied with are unsafe. The laws however do not give the consumers the right to demand a refund due to change of mind over a given product or after damaging the product accidentally, their role is to ensure that one acquires a safe product and incase a problem occurs, there are well defined legal rights on how to handle it. In the federal level, organizations concerned about the rights of the consumers and a fair business platform for both the consumers and retailers also provide solutions to emerging issues that affect consumers. Laws have been enacted in the federal level to provide solutions to these issues, the Completion and Consumer Act 2010 which ensures a fair trade platform for both the business owners and the customers. The CCA majorly focuses on the wholesalers, retailers, competitors and the customers in various states or territories. These agreements made provide a clear guideline on how the consumers and retailers should trade. The manufacturers and retailers are advised on the standard and quality of goods to offer, the relationship between them and their customers. The law states that the consumers should report upon discovery of an offence or breach of contact within a specified period of two days. Manufacturers and retailers are also advised to stick to their term of contract and provided genuine goods which are of the quality stated and required (Legg, 2011). Remedies to dissatisfaction of goods and services The Australian Competition and Consumer Commission is a body put in place to solve matters that may arise between the consumer and the seller or manufacturer. Various ways are involved in provision of remedy to these emerging issues. The ACCC is involved in federal court proceedings concerning consumer protection matters and competition matters and also issues infringement notice (Andenæs & Andersen, 2011). Incase or a breach of law involving the consumer and the retailer or manufacturer, the ACCC is there to listen to both parties. If the consumer feels his or her rights have been violated, he or she should report to ACCC two days after discovery of the offence. The two parties are then summoned by the ACCC to meet the commission and give their plight the commission listens to both parties. Upon discovery that the rights or the consumer have been truly infringed, an out of court agreement is met between the consumers and the manufacturer where the manufacturer is instructed to offer or refund the amount that had been paid by the consumer for a given good or service (Devenney & Kenny, 2012). If the manufacturer does not cooperate with ACCC in terms of solving the conflict that has emerged, the ACCC then proceeds to court in order to seek a significant penalty for the offence committed. The court will listen to both parties, do its investigation and if the manufacturer is found guilty, he or she will have to pay the remedies. In the courts the consumer may claim compensatory damages or seek court injunction. For the sake of defective goods, the consumer may reject the goods and obtain a refund; he or she may ask for repair or replacement of goods or even sue for the damages caused. Conclusion Australian consumer law has faced various reforms over time, the main objectives of these reforms is to create a fair business platform for both the consumers and the retailers or manufacturers. Challenges have emerged in the business field with need well defined laws and regulations in order to ensure continuous and smooth flow of business. The laws are also there to ensure good relationship between the consumers and the retailers. In the end of the negotiation, parties should be satisfied and that there should be no oppression of one party which mostly likely is the consumer in terms of misinformation or purchase of defective goods and buying at exaggerated prices. This step made by the Australian government is important in ensuring growth of business in Australia and the international market at large. New challenges keep emerging hence the need for continuous review of the laws in order to meet the day to day challenges. References Andenæs, M., & Andersen, C. (2011). Theory and practice of harmonisation. Cheltenham, UK: Edward Elgar. Bant, E., & Harding, M. (2010). Exploring private law. Cambridge [U.K.]: Cambridge University Press. Bruce, A. (2010). Consumer protection law in Australia. Chatswood, N.S.W.: LexisNexis Butterworths. Devenney, J., & Kenny, M. (2012). European Consumer Protection. Cambridge: Cambridge University Press. Griggs, L., Webb, E., & Freilich, A. (2008). Consumer protection law. South Melbourne, Vic.: Oxford University Press. Howells, G., Ramsay, I., Wilhelmsson, T., & Kraft, D. (2010). Handbook of research on international consumer law. Cheltenham: Edward Elgar. Legg, M. (2011). Regulation, litigation and enforcement. Pyrmont, N.S.W.: Thomson Reuters (Professional) Australia. Malbon, J., & Nottage, L. (2013). Consumer law & policy in Australia & New Zealand. Annandale, N.S.W.: Federation Press. Miller, R., & Miller, R. (2013). Miller's Australian Competition and Consumer Law annotated. Pyrmont, N.S.W.: Thomson Reuters (Professional) Australia. Paterson, J. (2011). Unfair contract terms law in Australia. Pyrmont, N.S.W.: Thomson Reuters (Professional) Australia. Read More