It will mean that businesses only have to comply with one fair trading law, regardless of where they are located in Australia.
The Australian Consumer Law (ACL) replaces the Commonwealth Trade Practices Act 1974 and large sections of Queensland’s Fair Trading Act 1989. The new Commonwealth Act will be called the Competition and Consumer Act 2010.
The ACL is designed to:
reduce costs to business, as they will only need to comply with one set of national laws
enable the confident participation of consumers in markets in which both consumers and businesses trade fairly
improve consumer wellbeing through consumer empowerment and protection
foster competition.
It is essential that businesses and legal practitioners familiarise themselves with the new legislation to ensure compliance from 1 January 2011.
A series of guides are available, covering:
consumer guarantees – an updated set of rights and remedies, similar to Queensland’s current refund and warranty laws
sales practices – provisions relating to door-to-door trading, telemarketing, the unsolicited supply of goods and services, lay-by agreements and how goods and services are priced
avoiding unfair business practices – advice on avoiding activities that constitute misleading or deceptive conduct and false or misleading representations
product safety – a new national regime will commence as part of the ACL
unfair contract terms – a court will be able to void unfair terms in standard form consumer contracts.
The provisions of the ACL are drawn from Australia’s existing fair trading laws, so most businesses will already be familiar with many parts of the ACL.
For Queensland businesses, there are a few significant changes:
Lay-by agreements must now be in writing and clearly expressed in plain language. If a consumer terminates a lay-by agreement, the business may only charge a reasonable termination fee (one that covers its costs).
A business cannot display a price that is only part of the total cost of an item, without also displaying the total cost as prominently as the part cost. For example, if a consumer must sign a two year contract to qualify for a particular deal, you must display the minimum cost over the two years of the contract, not just a monthly cost.
The provisions for door-to-door sales have changed. A consumer is now entitled to a 10 business day cooling-off period. To assist businesses with the transition to these new rules, a business may comply with either the ACL or the pre-existing Queensland laws, up to 30 June 2011.
A national regime for product safety will be introduced. Governments will have increased power to issue safety warning notices to the public, issue temporary or permanent bans on unsafe products and compel a business to recall an unsafe product. Anyone involved in the supply chain of a product who becomes aware that it has caused death or serious injury/illness must notify the ACCC.
Seminars
In early 2011, fair trading experts will be conducting seminars for businesses and consumers throughout Queensland.
Business’ new obligations under the law will be discussed, and fair trading experts will be available to answer your questions.
The seminars are free and open to anyone. Places are limited, so please RSVP by filling in the online form.
Date
Town/Suburb
Location
Time
Mon 31 Jan
Brisbane
Ground Floor, Primary Industries Building
80 Ann St, Brisbane City
Businesses: 5:15pm and 7:15pm
Wed 2 Feb
Cairns
Holiday Inn Cairns
Cnr Esplanade and Florence Street
Consumers: 5:30pm
Businesses: 7:00pm
Mon 7 Feb
Brisbane North
Kedron/Wavell RSL
375 Hamilton Road, Chermside
Consumers: 5:30pm
Businesses: 7:00pm
Wed 9 Feb
Mt Isa
All Seasons Verona Hotel
Cnr Marian Street and Camooweal Street
Consumers: 5:30pm
Businesses: 7:00pm
Thu 10 Feb
Townsville
The Shoredrive Motel
118 The Strand
Consumers: 5:30pm
Businesses: 7:00pm
Mon 14 Feb
Brisbane South
Pacific Golf Club
430 Pine Mountain Road, Carindale
Consumers: 5:30pm
Businesses: 7:00pm
Wed 16 Feb
Rockhampton
Rockhampton Leagues Club
Cnr Cambridge Street and George Street
Consumers: 5:30pm
Businesses: 7:00pm
Mon 21 Feb
Toowoomba
Shamrock Hotel Motel
4 Ruthven Street
Consumers: 5:30pm
Businesses: 7:00pm
Tue 22 Feb
Gold Coast
Quality Hotel
Sunshine Boulevard, Mermaid Waters
Consumers: 5:30pm
Businesses: 7:00pm
Wed 23 Feb
Caboolture
Centenary Lakes Function Centre
Riverview Street
Consumers: 5:30pm
Businesses: 7:00pm
Mon 28 Feb
Sunshine Coast
Maroochydore Surf Club
34-36 Alexandra Parade, Alexandra Headland
Consumers: 5:30pm
Businesses: 7:00pm
Tue 1 Mar
Hervey Bay
Hervey Bay RSL and Services Memorial Club
11 Torquay Road, Pialba
Consumers: 5:30pm
Businesses: 7:00pm
Fri 4 Mar
Ipswich
Metro Hotel Ipswich International
43 South Street
Consumers: 5:30pm
Businesses: 7:00pm
Mon 7 Mar
Mackay
Quest Mackay
38 Macalister Street
Consumers: 5:30pm
Businesses: 7:00pm
Thu 10 Mar
Longreach
Longreach Civic Centre
96A Eagle Street
Consumers: 5:30pm
Businesses: 7:00pm
Mon 14 Mar
Roma
Roma Explorers Inn
Warrego Highway
Consumers: 5:30pm
Businesses: 7:00pm
Video resources
A general introduction to the ACL, focusing on consumer guarantees and sales practices, was presented on 26 October. Click here to watch the video.
A product safety presentation, discussing mandatory reporting and recalls, was hosted on 12 November. Click here to watch the video.
A training module for businesses, focusing on consumer guarantees, has been produced by the Australian Competition and Consumer Commission. Watch or download the video here.
Stay up-to-date
You will soon be able to keep up-to-date with OFT by following us on Twitter and Facebook. In the meantime, ensure your home is safe for young children by watching our new furniture safety video on YouTube.
To keep up-to-date with the latest business news and tips, subscribe to Smart Business Bulletin at www.fairtrading.qld.gov.au/sbb.
For our current readers - don't forget, the survey is still open. We would appreciate it if you could take a few minutes to complete the following survey, as your responses will help us shape future issues of Smart Business Bulletin. Once you’ve completed the survey, enter the email address used to subscribe to Smart Business Bulletin to enter the draw. Completed surveys received by the closing date of Friday 10 December 2010 will go into the running to win a $100 Coles Group and Myer gift voucher.
For more information, visit the Office of Fair Trading website or the Australian Consumer Law website. From 1 January 2011, the information on the Office of Fair Trading website will reflect the changes to marketplace rules that are introduced by the ACL.
