The Parliamentary Secretary to the Treasurer, the Hon Chris Pearce MP, today announced that the amendment to the Trade Practices Act 1974 (TPA) to respond to component pricing has been drafted and released for public consideration.
These amendments are intended to help consumers, assisting them to compare the price of similar products and make informed purchasing decisions said Mr Pearce.
The draft amendments will mean consumers will not have to perform a calculation to determine the total price they will be required to pay for goods or services.
The amendments implement the Australian Government's announcement in April 2005 that it would amend the TPA to respond to the increased use of component pricing. Businesses will be required to include a prominently displayed, single-figure, total minimum price when making price representations.
The Bill has been developed in close consultation with the Australian Competition and Consumer Commission (ACCC) as well as industry stakeholders, and is not expected to impose any unnecessary costs on industry. The Government will undertake further consultation with industry on the basis of the exposure draft Bill and draft explanatory memorandum.
I have written to the Ministerial Council for Corporations in relation to the related amendments to the Australian Securities and Investments Commission Act 2001 (ASIC Act). Amendments are proposed to the ASIC Act to maintain consistency between the investor protection provisions in that Act and the consumer protection provisions in the TPA.
In addition, I have also written to the state and territory members of the Ministerial Council on Consumer Affairs inviting them to consider making a similar amendment to their fair trading legislation to maintain consistency between Commonwealth and state and territory legislation.
A draft of the amendments, which are expected to be a part of the Trade Practices Legislation Amendment Bill (No 3) 2006, are available for public comment, along with a draft explanatory memorandum, at www.treasury.gov.au - the Treasury website.
MELBOURNE
10 March 2006
Media contact:
Gillian Harvey 03 9887 3890 or 0411 567 060