International Law

In a speech today Consumer Affairs Minister Chris Bowen MP announced a review of statutory implied conditions and warranties by the Commonwealth Consumer Affairs Advisory Council (CCAAC).

The review is to examine the adequacy of existing laws on conditions and warranties implied into contracts for goods or services under the Trade Practices Act 1974 and state and territory fair trading legislation, and propose enhancements, where necessary.

The review will also examine the need for a 'lemon law' in Australia and whether or not they would provide an effective mechanism for consumers to seek the appropriate redress when purchasing motor vehicles that fail to meet their reasonable expectations.

The Council will also look at the issues around the sale of extended warranties which offer customers potentially less than they received automatically at no additional cost under their statutory rights.

CCAAC is to undertake targeted consultations with relevant industry stakeholders, and provide a report to the Minister by 31 July 2009. It is intended that any changes commence by the beginning of 2011.