Tuesday, 03 May 2011
The Australian Consumer Law (ACL) is the new law governing consumer protection and fair trading in Australia which came into force on 1 January 2011. It applies as law of the Commonwealth and as a law of each State and Territory, and replaces nine different State, Territory and Federal consumer protection regimes that existed previously. It represents the largest rewrite ever of Australia’s consumer protection laws.
This summary provides an overview of key aspects and changes of the ACL as they apply to motor vehicle dealers.
What are the key changes relevant to Dealers
Key changes implemented by the ACL that are relevant to motor vehicle dealers are as follows:
Unfair Contracts: A new law on unfair contract terms has been introduced (Part 2‑3). This came into effect at a Commonwealth level and in Victoria and New South Wales on 1 July 2010. The law came into effect as law of other State and Territories on 1 January 2011.
Misleading and Deceptive Conduct Provisions and Provisions regulating other “Unfair Practices” are Removed: The provisions of the Trade Practices Act 1974 (TPA) and state Fair Trading Acts dealing with unfair practices and unfair trading (such as misleading and deceptive conduct) are substantially rewritten and all moved to the ACL (Part 3‑1).
Statutory Warranties: The statutory warranties set out in the TPA and stateFair Trading Acts are replaced by national consumer guarantees (Part 3‑2, Division 1).
Manufacturer’s Warranties: There are new requirements for manufacturer’s warranties (Part 3‑2, Division 4).
Product Safety: A new national product safety legislative regime is set out at Part 3-3. This includes extensive new notification requirements for all dealers.
Unfair Contract Terms (Part 2‑3 ACL)
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