The COAG Legislative and Governance Forum on Consumer Affairs (CAF) held its first formal vote under the Intergovernmental Agreement for the Australian Consumer Law on 1 November 2011. CAF agreed to amend the Australian Consumer Law (ACL) to allow a supplier under an unsolicited consumer agreement to deliver goods with a price of up to $500 to a consumer as soon as an agreement is entered into.
Following the conclusion of transitional arrangements on 1 January 2012, under section 86 of the ACL consumers are entitled to a 10-day cooling off period during which neither goods nor services can be supplied or payment made.
The amendment agreed to by CAF allows consumers to immediately take receipt of goods they have consented to buy. This amendment does not allow the supply of services or payment for goods within the cooling off period.
If a consumer invokes their right to terminate the unsolicited agreement during the cooling off period, suppliers have an obligation to collect the goods within 30 days or the goods become the consumer's property.
The ACL commenced on 1 January 2011 and transitional provisions allowed suppliers of goods under unsolicited consumer agreements to continue to comply with relevant State or Territory laws until 1 January 2012. Regulations will be made before the end of this year to implement CAF's decision and ensure a seamless transition to the new arrangements on 1 January 2012.
3 November 2011