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ASIC, ACCC given stronger unfair contract powers

ASIC, ACCC given stronger unfair contract powers

Adrian Flores
— 1 minute read

The government has assigned both the corporate and competition regulators greater investigative powers in assessing the fairness of standard contract terms.

The Treasury Laws Amendment (Australian Consumer Law Review) Bill 2018 makes amendments to clarify and strengthen consumer protections relating to consumer guarantees, unsolicited consumer agreements, product safety, false billing, unconscionable conduct, pricing as well as unfair contract terms, Treasurer Josh Frydenberg said in a statement.

Mr Frydenberg said this means that both the ACCC and ASIC will have stronger powers to ensure consumers and small and family businesses are given a fair go and protected from the repeated or widespread use of unfair contract terms.

“The new law is one of a series of measures which passed the Parliament yesterday, further protecting consumers, bolstering regulator powers and ensuring the Australian Consumer Law operates as intended,” Mr Frydenberg said.

“The new laws are designed to ensure the Australian Consumer Law delivers effective protection for consumers, while equipping regulators with the tools and teeth they need to address consumer harm.”

Under the legislation, Mr Frydenberg said another key measure focuses on promoting price transparency for consumers shopping online.

He said this change will require the headline price to include charges automatically applied or pre-selected by the seller, even though the buyer may de-select the charge during the transaction.

“For example, if an airline pre-selects a $30 baggage fee for customers booking a $500 flight, this amendment requires the airline to display the headline price as $530 from the beginning of the booking process,” Mr Frydenberg said.

“The passage of these measures follows other significant reform to consumer law, with substantial increases in maximum penalties for breaches coming into effect on 1 September 2018.”

 

ASIC, ACCC given stronger unfair contract powers
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