Submission: Scams Prevention Framework Bill 2024
This is a joint submission made on behalf of:
• Consumer Action Law Centre
• CHOICE
• The Australian Communications Consumer Action Network
• Financial Rights Legal Centre
• Super Consumers Australia
• Financial Counselling Australia
• Westjustice
• Consumer Credit Legal Service WA
Our organisations are pleased to have the opportunity to provide our feedback to the Senate Economics Legislation Committee.
We support the urgent passage of the Scams Prevention Framework Bill 2024 (SPF Bill) but with a key amendment to give effect to the Assistant Treasurer’s stated intention that regulated entities will compensate victims if they fail to meet their SPF obligations. Without this amendment we are deeply concerned that the SPF Bill will introduce a burdensome regime that fails to ensure fair outcomes for scam victims.
Consumer advocates and scam victims have long campaigned for an effective scams prevention and response framework modelled on the United Kingdom’s scam reimbursement rules. Australia could introduce a world-leading, modified reimbursement approach that apportions liability for scam losses across the banking, telco and digital platform sectors. Based on our extensive experience supporting scam victims, this would be international best practice to protect consumers from devastating losses and drive industry investment in preventing scams.
However, we find ourselves in a difficult position. We are asked to take a leap of faith that consumers will be protected by the SPF Bill, Rules and sector Codes (together, the Framework) when the SPF Bill contains only high-level provisions. Yet we also see the real potential that passing an amended SPF Bill could have to improve industry’s investment in scam prevention measures. The ACCC continues to report billions in losses to scams each year and victims bear 96% of losses. This equation isn’t changing for Australians in the absence of laws mandating industry action on scam prevention—we need substantial change, and urgently.
Read the full submission (PDF).
Submission - Scams Prevention Framework Bill 2024 submission