National consumer law set for New Year

The biggest overhaul of Australia's fragmented consumer protection laws in 35 years is set to land on January 1 and the  Australian Competition and Consumer Commission has released a guide to help resellers through the changes.

The Trade Practices Act, in force since 1974, will change to the Competition and Consumer Act and the new Australian Consumer Law, which is a part of it, will replace 17 national, state and territory laws.

"The consumer guarantees are based on the same principles as the current implied terms, but provide more clarity for businesses and consumers about the circumstances where businesses are required to provide a remedy," ACCC deputy chairman Michael Schaper said.

"It is vital that businesses and their staff understand both the rights of consumers under the new guarantees, as well as their own rights.”

Schaper said the consumer watchdog wrote the education guide with state and territory consumer protection agencies and industry to explain how the new law applies to the supply of goods and services.

Last month, the parliamentary secretary to the Treasurer, David Bradbury said the new consumer law "represents one of the most significant reforms in the history of Australian consumer protection".

Most importantly for resellers, the new law introduces:

• new consumer guarantees regime;
• new unfair contract terms regime;
• new national product safety and enforcement system;
• national laws covering a sales practices;
• new national rules for lay-by agreements;
• new powers for the ACCC and other agencies investigating breaches and
• new penalties for courts to award.

The ACCC has released video guidelines of product safety and enforcement aspect of the law. 

The ACCC reminded business owners that consumers are not entitled to a remedy if they misused a good, changed their mind, or the good lasted for a reasonable period of time.

Next: ACCC's Myth busting 

The ACCC provided scenarios in its guide for businesses to follow. 

• Original packaging it doesn’t matter what the seller’s terms say, the consumer’s course of action is unaffected by whether the packaging exists or was destroyed. 
• No exchange without receipt Resellers must honour valid, alternative proofs such as a credit card statement or lay-by agreement.
• Back to base You must send the good back to the supplier at the request of the customer.
• Refund or exchange A contentious issue may be the type of remedy that a consumer is entitled to. If there is a "major" problem with the goods then the consumer is entitled to demand a refund. If the problem isn’t major then the seller may choose to repair or replace the goods. 
• No refunds or exchanges after 14 days signs If a consumer guarantee hasn’t been complied with then the consumer is entitled to a remedy. Signs such as these likely breach the Australian Consumer Law because they mislead consumers about their rights