Understanding Australian Consumer Law

This article provides an overview of the Australian Consumer Law (ACL) and its impact on consumers and businesses. It discusses the rights and remedies available to consumers under the ACL, as well as the penalties incurred by defaulters. The article also explores the importance of consumer protection and its impact on society.

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Executive Summary
The Australian consumer law is a federal law that's strives to protect the consumers in
Australia, as it is the main consumer protection legislation in the country. The consumers are
protected equally by this law throughout Australia while businesses are vested with the same
obligations and duties throughout Australia. It includes laws relating to unfair contract terms,
consumer guarantee rights, product safety, unsolicited consumer agreements including door
to door and telephonic sale, lay by agreements, remedies and penalties pertaining to dispute.
Australian Consumer Law (ACL) being a part of the Australian Competition and Consumer
Act (CCA) protects the misuse of market power also along with protecting the consumers. It
makes sure that the businesses a protected by anti competitive agreements and exclusive
dealings. The law protects the market from Cartels, thereby ensuring that the business is free
from any malicious activities. The ACL along with the CCA helps in mergers and
acquisitions along with pointing out to the unfair business conducts affecting the small
businesses. The paper gives a clear picture of the consumer law of Australia, along with a
note on its impact on the society.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
1. ‘Consumer’......................................................................................................................3
2. Rights and remedies of consumer in under Common Law of Tort.................................4
3. Remedies of a consumer under Australian consumer law..............................................5
4. Penalties incurred by a defaulter.....................................................................................6
5. Impact of consumer law in Australia..............................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
The Australian consumer law is a federal law that's strives to protect the consumers in
Australia, as it is the main consumer protection legislation in the country (Corones, 2011).
The consumers are protected equally by this law throughout Australia while businesses are
vested with the same obligations and duties throughout Australia. It includes laws relating to
unfair contract terms, consumer guarantee rights, product safety, unsolicited consumer
agreements including door to door and telephonic sale, lay by agreements, remedies and
penalties pertaining to dispute (Consumerlaw.gov.au, 2019). Therefore, it is to be clarified
before moving forward that whether the consumer law issue is related to purchase of a goods
or a service, both of which are covered by the Australian consumer law. After deciding that it
needs to be understood that the person reporting the dispute is a consumer or not for there are
several criteria to meet to become a consumer. This paper discusses the different aspect of the
consumer law along with a reference to the given case study.
Discussion
1. ‘Consumer’
Section 3 of the Australian Consumer Law (ACL) states that a person who have acquired
a goods or a service of more than $40,000 or a greater amount only if the goods were
acquired for personal or domestic purpose and consumption. Section 3(3) specifies the
consumers who acquire services from a trader in exchange of monetary consideration.
Businesses providing goods (by way of selling renting or leasing) and services to the
consumers under the purview of the Australian Consumer Law and therefore must comply
with the consumer guarantees. Businesses that provide services must provide them with due
care skill, which is apt for a specific purpose and required to be provided within a reasonable
time (Business.gov.au, 2019).

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Therefore, it can be applied in the given scenario that Sally was a consumer for she
had purchased a Myki ticket from public transport authority for a smooth and hassle-free
travel around Adelaide on public transport like train, bus and tram. The ticket provides a
service to the passengers who buy it for travelling purpose on a day to day life. Therefore
sally was a consumer as per the Australian consumer law
2. Rights and remedies of consumer in under Common Law of Tort
As per the English common law of tort, a person has a duty of care towards another, who
is in such a position subservient to the other person to take care of him by way of his
superiority over such person. A person must be protected from any probable injury buy
another that has the capability to foresee such probable danger for being in approximate
relation with such other person. It is the right of a person of inferior position to be protected
by a person of superior status. If the person fails to carry out his duty of care and such breach
of duty e causes damage or injury to such other person, then the person breaching his duty of
care shall be held responsible for a tort of negligence (Australian Competition and Consumer
Commission, 2019).
In this case Sally can bring charges against the Public Transport Authority for not
taking care of their duty of care towards the computers who passes daily through the dug up
road. The public service authority breached their duty of care as it did not take care of the
computers by putting a sign of warning in the dug up road. A warning at the beginning of the
dug up road could have warned sally about the probable danger which was easy to be
foreseeable, had she known about it. While the probable danger that a commuter may face
was quite foreseeable on the part of public transport authority and therefore it could have
taken an action to avoid any such probable danger or injury.

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Therefore after the occurrence of damage or an injury the aggrieved party that is Sally
here would be liable to seek remedies before the court of law in the form of damages or
monetary compensation for not being able to work at Tranmere grocery shop as well as for
missing about the ACA academy.
3. Remedies of a consumer under Australian consumer law
According to the Australian consumer law, an aggrieved party can claim for several
remedies other than a remedy involving payment of damages only. Section 224 of the
pecuniary penalties are imposed upon a person who has exhibited unconscionable conduct,
unfair practices, and a few other misconduct letting down by the consumer law of Australia.
The court while determining the exact pecuniary penalty is considered the nature of the
actions by the defaulter along with the evaluation of loss, damage or injury that has been
suffered by the claimant.
In addition to pecuniary penalties, an aggrieved party may also pray for injunction before
the court. By way of the injunction the aggrieved party may have an order of the court that
would ask the breaching party, if not complete, to oblige the terms of the contract and execute
it accordingly. An aggrieved party may also claim for damages from the defendant.
In this case Sally can call for damages or monetary compensation from the Public
Transport Authority for they were being negligent to put up a warning before the dug up
road. The public transport authority had a duty of care towards the commuters which they
have breached. Therefore the authority shall be held liable for the damages sustained by
Sally, making her eligible for remedy under punitive penalties as well as the regular monetary
compensation. However the court shall look into the matter that it was the practical preach
that cost the specific injury for which Sally could not work at Tranmere Grocery Shop along

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with missing the ACA academy. Therefore the court may either brunt pecuniary penalties for
damages to Sally.
4. Penalties incurred by a defaulter
On establishing the fact that the seller had breached his duty as a seller towards the
consumer, he should be prosecuted and would be granted certain penalties that would mark as
a sign of sanction for him. It needs to be proved that the seller had breached his duty towards
the consumer and had failed him his rights as a consumer. Penalties differentiated on the
basis of different breaches which may be categorised from one circumstances to the other.
Every form of penalty has its own special purpose that it delivers unique message to the
defaulter for the particular default of carrying out his duty towards the consumer (Gray,
2013). Pecuniary penalties, damages, injunction, non punitive orders, advance publicity
orders and orders that disqualified person to manage corporations are the penalties that are
imposed upon the defaulter.
In the given case Sally can approach the court for taking an action against the Public
Transport Authority who had failed to carry out their duty as the authority in charge of the
dug up road. The public transport authority should have taken care of the dug up road which
needed a warning sign for commuters to understand the condition of the road and therefore
would have ensured their own safety. Sally can request the court to impose a penalty of
damages (monetary compensation) or pecuniary penalties over public transport authority
for making her suffer the loss of job as well as the study (Gray, 2013)
5. Impact of consumer law in Australia
A trader running a business is Australia would be affected by the Australian consumer
law somehow if he breaches any of his duty as a trader or seller, affecting a consumer. The
Australian consumer law requires a trader to provide a bill for free when asked by the

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customer; it becomes mandatory to provide a bill when the traders is providing a goods or
services which is more than $75. The bill or the receipt must provide the name of the trader
along with his ABN or ACN number to identify him in case any dispute arises pertaining to
such sale. The ACL empowers a consumer to ask for a refund or even compensation when a
problem arises with the goods or service that he had acquired from the trader (Trading, 2002).
Australian Consumer Law (ACL) being a part of the Australian Competition and
Consumer Act (CCA) protects the misuse of market power also along with protecting the
consumers. It makes sure that the businesses a protected by anti competitive agreements and
exclusive dealings. The law protects the market from Cartels, thereby ensuring that the
business is free from any malicious activities. The ACL along with the CCA helps in mergers
and acquisitions along with pointing out to the unfair business conducts affecting the small
businesses (Paterson, 2009).
Conclusion
Therefore, the consumers are protected equally by ACL throughout Australia while
businesses are vested with the obligations and duties throughout Australia. It includes laws
relating to unfair contract terms, consumer guarantee rights, product safety, unsolicited
consumer agreements including door to door and telephonic sale, lay by agreements,
remedies and penalties pertaining to dispute. Therefore, it is to be clarified before moving
forward that whether the consumer law issue is related to purchase of a goods or a service,
both of which are covered by the Australian consumer law. The ACL protects the consumers
as well as businesses by way of the Australian Competition and Consumer Act.

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References
Australian Competition and Consumer Commission. (2019). Consumers' rights &
obligations. Retrieved from
https://www.accc.gov.au/business/treating-customers-fairly/consumers-rights-obligations
Business.gov.au. (2019). Australian Consumer Law and your business. Retrieved from
https://www.business.gov.au/products-and-services/fair-trading/australian-consumer-law-
and-your-business
Consumerlaw.gov.au. (2019). The Australian Consumer Law – Australian Consumer Law.
Retrieved from http://consumerlaw.gov.au/the-australian-consumer-law/
Corones, S. G. (2011). The Australian Consumer Law. Thomson Reuters Lawbook Co
Gray, A. (2013). Contractual penalties in Australian law after Andrews: An opportunity
missed. Deakin L. Rev., 18, 1
Paterson, J. (2009). The Australian Unfair Contract Terms Law: The Rise of Substantive
Unfairness as a Ground for Review of Standard Form Consumer Contracts. Melb. UL
Rev., 33, 934.
The Australian Competition and Consumer Act 2010
The Australian Consumer Law
Trading, F. (2002). Australian Competition and Consumer Commission