Australian Consumer Law

Australian Consumer Law is complex and changing regularly. There is a national ‘Australian Consumer Law’ (contained in Schedule 2 of the Competition and Consumer Act 2010) but more broadly consumer protection comprises an extensive mix of national and state legislation. The following provides a very broad overview of some of the types of conduct regulated under these laws.

Misleading conduct

A statutory prohibition on misleading or deceptive conduct in trade or commerce is contained in s 18 of the Australian Consumer Law. It is one of the most litigated provisions in the country.

Consumer guarantees

The Australian Consumer Law includes a series of guarantees relating to the supply or acquisition of goods or services by consumers. With limited exceptions they cannot be excluded. They include guarantees as to acceptable quality, fitness for purpose, matching description, sample or demonstration, title, the rendering of services with due care and skill and within a reasonable time.

Unfair terms

The Australian Consumer Law prohibits unfair terms in standard form consumer and small business contracts. A term is unfair if it would ‘cause significant imbalance in the parties’ rights and obligations under the contract’ and ‘it is not reasonably necessary in order to protect the legitimate interests of the party who would be advantaged by the term’ and ‘it would cause detriment ... to a party if it were to be applied or relied on’ (section 24). It does not include the upfront ‘price’ of goods or services.

Unconscionable conduct

The Australian Consumer Law prohibits unconscionable conduct in trade or commerce (t is not restricted to consumers)