Tougher consumer law bill ahead

by AAP on October 21, 2009

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Draft laws proposing to establish a single, national consumer law have been passed by the lower house.

Businesses will face greater scrutiny, and penalties, for unfair contracts under the legislation, which aims to protect consumers from unscrupulous deals.

The bill, which also addresses enforcement powers and options for consumer redress, will void any contract deemed unfair.

The coalition has flagged it will try and amend the legislation in the upper house so that it provides greater protection for small business.

Consumer Affairs Minister Craig Emerson on Tuesday welcomed the opposition's broad support for the draft laws.

He said he would consider any amendments the coalition suggested.

The Trade Practices Amendment (Australian Consumer Law) Bill 2009 now goes to the Senate.

© 2009 AAP

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Comments

Domenic Greco - October 21, 2009 at 1:53 PM

Hooray!

...But why exclude Business to Business contracts. Small Businesses need as much protection as consumers and in most cases more, as they do not have the "Legal Firms" protecting their interests and contracts tend to be more significant in nature.

Small Businesses do not have access to Legal Aid like consumers and quite often are forced into contacts with unfair terms just to protect their livelihood.

With 4 million small businesses out there the amendment will have little impact if businesses are excluded from the unfair contracts provisions.

Lets hope the coalition will have more courage than the current government in allowing small businesses to benefit from the amendments.

edward - October 21, 2009 at 5:23 PM

Agree with Domenico Greco..small businesses need protection too.....

Toni - October 21, 2009 at 11:39 PM

Domenic,

I totally agree. I own a small business and in the past had signed a contract with a security installation and monitoring company only to find when there was a problem, (the company didn't do the job properly, the product sold to me was not what I was told I was getting, and the installer caused a lot of damage to my store and stock as he had to qualifications) no help was available to me as a consumer as I was a business, and I had to just "wear it" basically.

I am still locked into paying out a contract for which I never received the full product, and it is quite a useless product too.

I too hope business to business contracts are covered!

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