Stronger consumer protections needed to make our marketplace fairer
The two major consumer protections announced today -the ban on unfair trading and consultation on penalties for breaches by traders and service providers of the consumer guarantees under the Australian Consumer Law- will help create a fairer marketplace for all Australians.
That’s the verdict of Consumer Action Law Centre CEO Stephanie Tonkin who welcomed the announcement from Assistant-Treasurer Stephen Jones and the Albanese Government.
“For years, we have been calling for stronger consumer protections in both these areas as the harms are well documented,” Ms Tonkin said.
“The unfair trading prohibition is a critical missing piece of the Australian Consumer Law, which will drive fairer conduct in Australia’s marketplace.
“It’s a marketplace that becoming increasingly opaque, more concentrated, and less fair for consumers, which makes this announcement so timely, and important,” Ms Tonkin said.
Callers to Consumer Action’s frontline services regularly speak of conduct by businesses that takes advantage of their market power.
“Subscription traps, dark patterns, manipulating choice, unfair and discriminatory pricing and multi-level marketing are just some examples of unfair practices by businesses, and the ongoing harm to consumers is immense,” she said.
‘Unfair conduct’ causes widespread consumer harm – particularly for consumers experiencing vulnerability – without deterrence in the law.
Ms Tonkin said that now, more than ever, consumers are at a substantial disadvantage compared with global businesses, and in many sectors -including essential services- we have limited choices in the companies we have to deal with.
The general prohibition on unfair trading and the specifics in the proposed codes of practice will allow consumers and regulators to demand a fairer marketplace. Australia can learn from the many other jurisdictions that have successfully introduced similar prohibitions years ago.
“In addition to the ban on unfair trading practices, consumer guarantee reforms are very long overdue. The most common presenting issue on Consumer Action’s legal advice lines is businesses failing to meet the consumer guarantees or provide remedies like refunds and repairs,” Ms Tonkin said
Consumers can end up foregoing their rights because there’s been no stick or incentives for business to offer genuine remedies under the law.
“Stronger penalties will incentivise businesses to lift their game and meet the basic rights consumers can expect when buying goods and services. We look forward to contributing to the consultation and seeing the penalties for non-compliance with the consumer guarantees come into force as soon as practicably possible.”
ENDS
Media contact: Mark Pearce, Media and Communications Adviser, 0413 299 567, media@consumeraction.org.au
