As part of the budget, the Federal Government has proposed increasing penalties for breach of the Australian Consumer Law.
“Increasing maximum penalties will help to ensure that fines for breaking the law are no longer considered simply a cost of doing business”, said Gerard Brody, CEO of Consumer Action Law Centre. “Substantial fines will also deter bad behaviour.”
The Review of the Australian Consumer Law recommended that the penalty will be increased from $1.1 million to $10 million or three times the value of the benefit the company received or if this cannot be determined then 10 per cent of its annual turnover in the preceding 12 months, whichever is the greater.
“The states and territories should support this proposal from the Federal Government so people across Australia can be better protected,” said Mr Brody.