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Consumer groups have welcomed the decision by Consumer Affairs Ministers to progress major reforms that will make unfair business practices illegal and introduce enforceable consumer guarantees, the most significant strengthening of the Australian Consumer Law (ACL) since it was established in 2011.

Consumer Policy Research Centre (CPRC) CEO Erin Turner said the reforms will deliver long-needed protections for Australians facing increasingly complex and unfair business practices.

“This is a historic moment. Australians are being harmed every day by business models designed to manipulate, like businesses that make it easy to sign up to subscriptions but make it hard for customers to stop paying. These reforms will shift the balance back towards fairness.

“A general prohibition on unfair trading will finally empower regulators to stop harmful conduct, and enforceable consumer guarantees will make it easier for people to get basic remedies without navigating complex, drawn-out complaints processes,” Ms Turner said.

CPRC research has demonstrated the scale of the problem:

• 75% of Australians have struggled to cancel a subscription, and 1 in 10 gave up and continued paying.
• 83% have been negatively affected by digital design tactics (“dark patterns”) that steer people into choices that are not in their best interests.
• Deceptive online practices cost Australians an estimated $46 million every year.
• 54% of recent car buyers reported faults, yet many did not pursue their rights due to the complexity, cost and stress involved.

Consumer Action Law Centre (CALC) CEO, Stephanie Tonkin, said the decision is a vindication of years of advocacy for change after hearing complaints from callers to the organisations Legal and National Debt Helplines.

“I am delighted by these reforms as we hear from people every day who are trapped in dodgy deals and unfair sales models, struggling to enforce their rights. Once implemented and enforced, we are certain the reforms will drive better business behaviour that helps all consumers and especially people experiencing vulnerability,” Ms Tonkin said.

CHOICE CEO, Ashley de Silva, said the reforms are essential to modernising Australia’s consumer protections and addressing real harms.

“Unfair trading practices have been allowed to flourish for too long. These changes bring Australia closer to global best practice and will help ensure markets work for people, not against them,” Mr de Silva said.

The three consumer organisations said they look forward to working with governments on the next stage of reform, including the practical design and implementation of the new laws.

“This is the biggest uplift to the ACL in more than a decade. It will help people, support honest businesses and strengthen confidence in the market. We commend Ministers for taking decisive action and we’re ready to support the next steps,” Ms Turner said.

ENDS

Media contact:  Mark Pearce  Ph: 0413 299 567