The new Australian Consumer Law came into effect on 1 January 2011. The new laws are enacted under the Competition and Consumer Act 2010 (Cth) (“CCA”), which replaced the Trade Practices Act 1974 (Cth) (“TPA”).
The Australian Consumer Law made the following changes to legislation:
- It introduced a new regime of prohibiting unfair contract terms in standard form consumer contracts;
- It replaced the implied warranties in the TPA with statutory consumer guarantees that cannot be excluded in consumer contracts;
- It introduced a new regime to address warranties against defects;
- It prohibits false and misleading representations with respect to the consumer guarantees; and
- It brought in a mandatory reporting system for serious injury or illness.
All consumer sales prior to 1 January 2011 will continue to be subject to the TPA. Any consumer sales after 1 January will be subject to the new legislation.
So what should suppliers and manufacturers of goods and services do?
- Firstly, be aware of the application of the CCA.
- Determine whether your activities fall within the ambit of the CCA.
- Ensure that all of your consumer contracts and sale terms and conditions are reviewed to be CCA compliant to ensure their enforceability.
- All standard documentation with references to the TPA will need to be reviewed as this reference should be amended to the CCA, and all TPA sections will need to be cross-referenced to the CCA sections.
- Ensure that all employees, including sales staff, are aware of the ACL and ready to implement the necessary steps to accommodate the ACL.
- Review your internal policies to ensure they are consistent with the CCA, particularly when it comes to the mandatory reporting provisions.
- The definition of consumer sales is such that sales of non-consumer goods of a value less than or equal to $40K are caught by the legislation. Hence most business' trading terms need to be reviewed urgently!
The team at Coleman Greig can assist you with the review and update of all of your consumer contracts to make sure that they comply with the provisions of the CCA.
We can also provide you with detailed advice on how the CCA affects your business and deliver training sessions for your relevant staff. If you need assistance with respect to the CCA or review of your contracts, please contact
Matthew Rowe, Principal
Phone: 02 9895 9270
Email mrowe@colemangreig.com.au
or
Dorota Bryks, Lawyer
Phone: 02 9895 9232
Email dbryks@colemangreig.com.au