New consumer protection laws now in force

Retailers should familiarise themselves with the new Australian Consumer Law (ACL) reforms, first of which came into effect on April 15.

The laws give the Australian Competition and Consumer Commission (ACCC) new enforcement powers to protect consumers, including the ability to seek or issue monetary penalities, infringement notices and refunds for consumers.

Under the new laws, the ACCC can seek financial penalties of up to $1.1 million for corporations and $220,000 for individuals for unconscionable conduct, pyramid selling and sections of the law dealing with false or misleading conduct.

The ACCC will now be able to use substantiation notices to require traders to justify claims they make about products they promote.

These will provide a fast-track way to identify if a potentially harmful misrepresentation has been made. Examples could include was/now advertising and claims about food, health, environmental impact and business opportunities.

The second part of the ACL reforms, dealing with unfair contract terms, will come into effect on July 1. Further amendments to the ACL are also expected later this year.