At the Ministerial Council on Consumer Affairs (MCCA) meeting today in Canberra Australia's consumer affairs Ministers discussed the final steps in the introduction of a single national consumer law for Australia: the Australian Consumer Law (ACL).
Ministers looked forward to the start of the ACL on 1 January 2011. They noted that the ACL is a priority element of COAG's reform agenda to deliver a seamless national economy, and it will be delivered in full and on schedule. It completes the reforms first recommended by the Productivity Commission in May 2008.
A single consumer law for all Australians
A single national consumer law will provide all Australians with real benefits. Indeed, the Productivity Commission found that implementing a national consumer law would provide between $1.5 and $4.5 billion in benefits to the economy each year.
The ACL will provide consumer protection and promote fair trading and a competitive national market for goods and services. It will empower consumers by making their rights clear and strengthen their ability to enforce those rights. It will give them greater confidence when they buy goods and services.
The best enforcers of consumer laws are consumers themselves. To reinforce this, the ACL provides more effective redress and enforcement mechanisms when they are needed, and enhances the tools available to Australia's consumer agencies to take effective action against those who harm or exploit consumers.
Ministers also welcomed the significant reductions in business compliance created by the ACL, which replaces nearly 900 substantive provisions in 20 national, state and territory Acts.
Ministers expressed their thanks to all of those who have participated in the development of the ACL, and particularly those stakeholders who have provided their views and input in the development of the Law and in its implementation.
Building awareness of consumer rights and business obligations
The effectiveness of consumer laws is greatly enhanced when consumers and businesses are aware of their rights and obligations. MCCA welcomed the recent publication of joint guides on key elements of the ACL by Australia's consumer agencies, which will provide advice to businesses about how they can comply with the new laws. These guides cover unfair contract terms, sales practices, consumer guarantees, product safety and unfair practices.
All Australian consumer agencies are actively raising awareness of the ACL and these efforts will intensify in the lead-up to 1 January 2011 and afterwards. Two new websites have been established to provide information about the ACL— www.consumerlaw.gov.au — and, in relation to the product safety parts of the ACL, www.productsafety.gov.au.
A new consumer policy framework
The ACL represents a major change in the way consumer laws are developed, administered and enforced in Australia, reducing the time needed to change laws and maintaining consistency across the country.
To ensure this occurs, MCCA has reformed its processes to support the new policy, enforcement and administration framework created by the ACL, and noted that these new arrangements have been in place for the implementation of the ACL and will continue after 1 January 2011.
A joint system for enforcement and administration
A key feature of the ACL is that consumers will have the same rights, businesses will face the same rules and the law will be enforced and administered in the same way regardless of where an issue arises.
MCCA commended the efforts of Australia's consumer agencies in implementing a joint national enforcement and administration system for the ACL and looked forward to receiving a report on the implementation process at their next meeting.
The ACCC, ASIC and each State and Territory consumer agency, along with the New Zealand Ministry of Consumer Affairs and the New Zealand Commerce Commission, have entered into a memorandum of understanding to guide joint enforcement and administration of the ACL, and have developed a wide range of practical mechanisms to support their work together in enforcing the new law.
Consumers and businesses with concerns or questions about their rights or obligations under the ACL can contact the ACCC, ASIC or any State and Territory consumer agency to have their question addressed.
More effective enforcement and redress
Ministers expressed their expectation that the ACL will give consumers and businesses greater confidence in addressing consumer problems nationwide.
Ministers welcomed the implementation of systems by consumer law agencies to share information and data about consumer problems and enforcement issues, giving consumers confidence that their concerns will be dealt with by the right agency. Businesses should have confidence that any issues under the ACL will be dealt with in a consistent way across the country.
Consumers will be able to enforce their rights under the ACL in national, State and Territory courts and tribunals.
New Zealand
MCCA welcomed the work being done in New Zealand to modernise its consumer laws. One of the objectives of this work is to pursue greater harmonisation with Australia's laws where appropriate.
Ministers also welcomed the steps being taken to improve trans-Tasman enforcement. The New Zealand Ministry of Consumer Affairs and the New Zealand Commerce Commission (NZCC) are also signatories to the ACL Memorandum of Understanding, to emphasise the cooperative relationship between Australian and New Zealand consumer agencies.
To further support Australia-New Zealand cooperation, during November 2010 cross appointments were made between the ACCC and NZCC. The NZCC chair, Dr Mark Berry has been appointed as an associate member of the ACCC and ACCC member Dr Jill Walker has been appointed as an associate member of the NZCC.
3 December 2010