Consumer Law Report: Consumer Rights and Breaches in Australia

This report analyzes Australian Consumer Law, focusing on the rights and remedies available to consumers under the Competition and Consumer Act 2010. It examines legal recourse for aggrieved consumers, including injunctions, rectification orders, and damages, while also considering defenses available to retailers and manufacturers. The report delves into the prospects of success for consumers like Lin, emphasizing the prohibition of misleading or deceptive conduct. It outlines consumer rights such as guarantees, repairs, refunds, and compensation, and assesses breaches of Section 29 of the Australian Consumer Law regarding false and misleading claims. The report references relevant case law, including ACCC v Leahy Petroleum Pty Ltd, ACCC v Coles Supermarkets Australia Pty Ltd, and ACCC v A Whistle & Co, to illustrate key concepts and legal principles. The report also covers penalties for breaches of the law and provides a comprehensive overview of consumer protection in Australia.

RUNNING HEAD: CONSUMER LAW
Australian Consumer Law

Consumer Law
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Contents
Answer 1...............................................................................................................................................2
Answer 2...............................................................................................................................................2
Answer 3...............................................................................................................................................3
Answer 4...............................................................................................................................................3
Answer 5...............................................................................................................................................4
References.............................................................................................................................................5

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Answer 1.
The legal rights provided to the aggrieved consumer (Lin) under the Competition and
Consumer Act 2010 is a right to seek damages or rescission in case of breach of the statutory
provision of the implied condition or warranty.
The following legal remedies provided under Competition and Consumer Act 2010 is:
 As per the provision of s.80 (1) of an Act, the aggrieved may apply for the remedy of
an injunction in order to prevent the misleading or deceptive advertising of the
negligent company.
 Further, the provision of s.86 D of an Act states that the authority of Australian
commission on competition and consumer (ACCC) may direct order to rectify the
misleading information of the negligent company.
 S.87 of an Act states the wide authority of court to vary any prejudiced nature of
contractual relationship between consumer and a trader.
 The provision of s. 236 of an Act permits the aggrieved consumer to take action
against damages results by the breach of the company.
It is noted that the aggrieved consumer is liable to prove the result of contravention by the act
of the trader in case of claiming legal remedies by the court (Griggs, 2011).
Answer 2.
The following defences are available in favour of retailer (Bing’s Appliances Private Ltd) and
manufacturer (ANCO Ltd) is that the provision of the Australian Competitive and Consumer
Act the defence of the “state of the art” discusses the knowledge of technical knowledge
inbuilt in any product. Such defence determines by the court with an issue whether the
elements of “scientific” knowledge and “technical” knowledge are identified or not.
Moreover, the retailer and manufacturer proves that the product is lack in all statutory
requirement of “safety defect” according to the provision of Part 3 to 5 of the Australian
Consumer Law (Corones, 2011).
In case of ACCC v Leahy Petroleum Pty Ltd [2007] FCA 794 where the retailer or
manufactures proves all the three C’s of consumer law that is Communication, Consensus
and Commitment then those 3C’s grounds supports the defence of retailer or manufacturer
against their anti-competitive conduct.

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Answer 3.
The Lin’s success prospects deal with the general support of the consumer law on the factor
of fair trade practices. The act of business is unlawful if there is a presence of any element of
misleading or deceptive conduct or who having any intention to commit any misleading or
deceptive conduct against any innocent consumer. The instances of misleading or deceptive
conduct are failing to disclose any necessary information about the product to the buyer
(Naude, 2009).
The court also favours the innocent consumer like Lin in most of the following verdicts
where advertisement published by retailer or manufacturer in minor disclaimers does not
excuse their deceptive conduct against innocent consumer (Goldring, Maher and McKeough,
2009).
In case of Australian Competition and Consumer Commission v Coles Supermarkets
Australia Pty Ltd [2015] FCA 330 where court held that if any company misled the
consumers then such company is liable to make declaration that such act shall not be repeated
and also direct an order of injunction together with a penalty.
Answer 4.
Not only the aggrieved consumer Lin but every other consumer is entitled to bring a cause of
action against Bing’s Appliances Private Ltd and ANCO Ltd and include following consumer
rights under Australian Consumer Law:
 Right to guarantee in case of default discovered in the product after purchase.
 Right to repair, replace and refund arises in a case when product or service does not
meet the basic requirement of consumer guarantee.
 The consumer law also provide the right to cancelling a service in case purpose or
object of the product fails.
 Every consumer is entitled to compensation in case of any reasonable problem arises
by the damage or loss of the product or services.
 Same as guarantee, the consumer is also eligible to warranty in case of default arise in
product or services after sale (Smith, 2008).

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Answer 5.
Yes, there is a breach of section 29 of the Australian Consumer Law in this present problem.
The provision of section 29 deals with prohibition on false and misleading claims made by
any retailer or manufacturer in order to sell their product or service by influencing or forcing
to an innocent consumer. The provision of s 29 considered as a grave offence under
Australian law to prompt innocent consumer to enter into an agreement by using deceitful or
misrepresentative conduct. No sellers are permitted to make any false or deceptive claims or
to influence any consumer to enter into a agreement for purchase of product (Webb, 2016).
The provision of breach of s 29 of an Act, 2010 enumerates in s 151 Competition and
Consumer Act 2010 (Cth) Schedule 2. The penalty for breach of s 29 is fine up to $1,100,000
in a case of a body corporate and $220,000 in a case of individuals.
In case of Australian Competition and Consumer Commission v A Whistle & Co (1979) Pty
Limited [2015] FCA 1447 federal court held that advertising to increase customer
testimonials and favourable interest reviews constitute an act of false or misleading and also
ordered liable party to pay pecuniary penalty according to s 151 of Competition and
Consumer Act 2010 (Cth) Schedule 2. Also in case of ACCC v Cadbury Schweppes Pty
Ltd (2004) FCA 516 states another instance of a misleading or deceptive representation for
advertising of an amiable claiming in a fruit comprehends extracts of the fruit but in reality
there was no fruit extract in fruit.
In the recent time, the case of Harvey Norman franchisee ordered by court to compensate
sum of total $52,000 penalty for misrepresenting the rights of consumer guarantee by
supplying a defective products to its customers- Australian Competition and Consumer
Commission v Bunavit Pty Ltd [2016] FCA 6.
.

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References
Griggs, L.D., 2011. Australian Consumer Law-An overview, unfair contracts, consumer
guarantees and remedies. In Australian Consumer Law (pp. 1-9).
Corones, S.G., 2011. The Australian Consumer Law. Thomson Reuters Lawbook Co.
Webb, E., 2016. Unfair terms and small businesses. Australian consumer law, 31(1).
Smith, R.L., 2008. When competition is not enough: consumer protection. Australian
Economic Papers, 39(4), pp.408-425.
Naude, T., 2009. The consumer's' Right to Fair, Reasonable and Just Terms' under the new
Consumer Protection Act in comparative perspective. South African Law Journal, 126(3),
pp.505-536.
Goldring, J., Maher, L.W. and McKeough, J., 2009. Consumer protection law in Australia.
Butterworths.