International Law

The Ministerial Council on Consumer Affairs (MCCA) has agreed that all Australian governments should adopt a new national consumer law, which will operate in all Australian jurisdictions and remains consistent. (Joint Communique)

The Ministerial Council has agreed to propose to the Business Regulation and Competition Working Group (BRCWG) that all Australian jurisdictions agree to adopt a national consumer law based on the consumer protection provisions of the Trade Practices Act.

The Council of Australian Governments (COAG) will consider an enhanced consumer policy framework at its October meeting.

Key features of the new national consumer law:

• It will be based on the current consumer protection provisions of the Trade Practices Act 1974 (TPA) and also incorporate appropriate amendments reflecting best practice in state and territory legislation;
• The new law should be developed by the agreement of all Australian governments and made law through an application legislation scheme with the Commonwealth as the lead legislator;
• The new generic consumer provisions should apply to all sectors of the economy, with the exception of the financial services sector that will need to retain a distinct legislative framework, however, to the extent that it is practicable, the Australian Government is committed to maintaining consistency between the two laws;
• It will include a provision that addresses unfair contract terms, based on the model outlined by the Productivity Commission;
• Amendments to the national consumer law must be agreed by governments according to an Inter-Governmental Agreement, which will provide, among other things, for the amendments to be agreed by the Commonwealth plus four other state and territory governments, of which three must be states; 
• Joint enforcement of the national consumer law between the ACCC and the State and Territory offices of fair trading, with ASIC retaining responsibility for administering the consumer law that applies to financial services.

It is anticipated that the national consumer law will be fully implemented by 2011.

At its meeting on 3 July 2008, the Council of Australian Governments endorsed the model for reform of product safety regulatory arrangements that was recommended by MCCA at its May 2008 meeting. The revised regulatory arrangements will be implemented by mid-2010.