Who will this affect?

  • All businesses that transact with consumers

What should you do?

  • If any of the new laws brought about by this reform is likely to affect your business, contact us for advice tailored for your business before they commence on 1 January 2011.

Following on from our e-alerts of 23 March 2010 and 7 June 2010, the second tranche of the Australian Consumer Law reforms have passed Parliament and will come into effect on 1 January 2011.

The passing of the Trade Practices Amendment (Australian Consumer Law) Act (No.2) 2010 (Cth) completes a major reform unifying Australia's consumer protection legislation.

The changes it will bring about include:

  • new statutory consumer guarantees to replace the existing sale of goods implied " conditions and warranties, including a new guarantee of "acceptable quality"
  • new national consumer product safety laws and strengthening of ACCC's powers of enforcement, including to undertake product recalls
  • new national law regulating cold calling sales door to door and by telephone, making, employers vicariously liable for breaches by their employees or agents
  • national regulation of lay-by sales to replace current state laws
  • introduction of infringement notices to be issued by ACCC for breaches
  • strengthening the enforcement powers of ACCC in relation to industry codes like the Franchising Code of Conduct
  • The Trade Practices Act 1974 will be renamed the Competition and Consumer Act 2010.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.