Consumer paragraphs

• Product certification


  The process of approving goods and services to be sold to consumers
• Product certification


  • Critical component of consumer law
  • Aimed to protect consumers by ensuring products are safe and reliable
  • Passing certain tests
  • Reaching certain standards
  • Receiving a "stamp of approval"
• ACL


  Competition and Consumer Act 2010
• ACL


  • Sets out requirements including safety warning notices and product recalls for unsafe products
  • Enforced by bodies such as the Australian Competition and Consumer Commission (ACCC)
• ACCC


  • Enforces the Competition and Consumer Act 2010 and other legislation promoting competition and fair trading
  • Regulates national infrastructure, for the benefit of all Australians
• Businesses non-compliant with statutory requirements on the safety of their products


  Held accountable by statutory bodies such as the ACCC
• Thermomix's knowledge on the safety issue of the appliance demonstrated non-compliance with the law and acted negligent towards customers for not complying with consumer safety requirements</b>
• The involvement of the ACCC acted in compliance with the law as they held Thermomix accountable for their negligent behaviour
• If the ACCC had not held Thermomix accountable, it would have reflected that other companies can avoid accountability for their products' safety, potentially leading to a market where consumer rights, such as the right to safety and redress, are ignored
• The legal system is taking into account the best interests of consumers and protecting them, highlighting the importance of this accountability as it reflects that the law is enforceable
• Compliance with the law is limited in regards to the role of non-government organisations (NGOs) such as CHOICE and the media in ensuring the protection of consumers as they are not enforceable
• TV programs such as A Current Affairs can draw attention to consumer issues including product quality and safety, but present "information in a sensationalised and biassed manner" which can distort the consumers perception rather than promote balanced awareness
• When consumers are presented with sensationalised stories, it creates an environment where consumers may develop unrealistic expectations or unwarranted fear about products and services, leading to misguided consumer behaviour
• The lack of enforceable power of the media can influence business practices as a result of unbalanced consumer awareness, thus compliance with the law can be moderately difficult to achieve as business prioritise managing public perception over strictly adhering to legal requirements
• CHOICE, an independent agency, is able to make a 'Super Complaint' about a business and then give NSW Fair Trading a 90-day limit to respond, encouraging compliance with the law as CHOICE is trusted by consumers and the time limit means that the government has to give a response
• Controversy on CHOICE's independence is questioned as stated in ABC News (2011) 'Greens criticise CHOICE over new program with NSW government'
• The introduction of the Super Complaints were not effective in achieving justice for consumers as the responses given by Fair Trading were lengthy and the information given was irrelevant as CHOICE had already advised consumers with the same information, thus demonstrating non-compliance with the law as NSW Fair Trading are not investigating the areas that are required of them
• Compliance with the law can be moderately difficult to achieve as businesses who are non-compliant with statutory requirements on the safety of their products are being held accountable by statutory bodies such as the ACCC
• Contract


  An agreement made between two or more people that is recognised by the courts as being legally binding on the parties
• Objective of contracts


  • To protect the legal rights of consumers when purchasing goods or services, while supporting an effective marketplace
• Australian Consumer Law (ACL)

  Regulates contractual relationships between buyers and sellers, especially 'unfair' contract terms
• Unjust contracts


  Instances where the consumer is at a significant disadvantage, thus undermining their rights
• Consumer rights


  • Ability to make informed decisions
  • Engage in fair and transparent transactions
  • Be free from exploitation and undue pressure
• Competition and Consumer Act 2010


  Provides guidelines such as businesses must not engage in conduct that is deemed to be unconscionable, which includes taking advantage of a party, such as lack of understanding or bargaining power, that protects consumer rights
• Compliance with the law can be moderately difficult to achieve in regards to unjust contracts as one party has significantly more power over another, leading to terms that are unfair or exploitation that disregards the best interests of the consumer
• The court's decision required ByteCard to amend its contracts, in which they did not, showcasing the ineffectiveness of compliance with the law and contradicting what the law defines as 'unfair terms'
• ByteCard faced no substantial financial penalties as well, proving the ineffectiveness of compliance with the law to deter further misconduct from this business and other businesses
• Rod Sims' critique in the Sydney Morning Herald (SMH) regarding the ACL's limitations in addressing unfair contract terms highlights the challenges in achieving compliance with consumer law
• Sims' argument about the ineffectiveness of current penalties in deterring unfair practices highlights a critical gap in the legal framework that takes into account the best interest of the consumer
• When substantial penalties are not put in place, businesses may perceive minimal risk in exploiting consumers through unjust contracts, thus undermining efforts to achieve compliance
• Sim's call for legislative change reflects recognition that existing laws may not sufficiently protect consumers, indicating a need for stricter enforcement measures to ensure compliance and take into account the best interests of consumers
• Failure to update these laws could suggest a broader issue of non-compliance, where legal standards fail to effectively safeguard consumer rights against unfair contractual practices
• This ongoing debate illustrates the complexities in enforcing consumer protection law, revealing how achieving compliance can be particularly challenging when regulatory measures do not adequately address evolving market practices and consumer vulnerabilities
• ACCC Chairman Rod Sims: 'The case exposed behaviour which exploited the vulnerabilities of consumers and was "probably the worst case of unconscionable conduct the competition regulator has seen to date"'
• Such enforcement actions underscores a growing intolerance towards unfair contractual terms that harm consumers, reflecting efforts to hold businesses accountable and protect consumer rights effectively in the marketplace
• Competition and Consumer Act 2010 (Cth)


  Codifies consumer protection into statute law, protects consumers from deceptive and misleading conduct including exaggerated product statements and failure to disclose all information about a product
• Fair Trading Act 1987 (NSW)


  Complements the Australian Consumer Law (ACL), providing additional measures and mechanisms for statutory and non-statutory protection in regards to the best interests of consumers, ensuring that businesses adhere to legal standards of honesty in their marketing and advertising efforts
• The regulation of marketing and advertising in achieving consumer protection is moderately effective
• Australian Competition and Consumer Commission (ACCC)

  • Works to ensure businesses comply with laws, protecting consumer's rights in regards to product safety
• Ongoing challenge of misleading or deceptive conduct in the marketplace

  Limits the overall effectiveness of consumer protection