A Comprehensive Report on Small Businesses & Australian Consumer Law

This report critically evaluates the Australian Consumer Law (ACL) and its implications for small businesses in Australia. Introduced in 2010, the ACL aimed to improve consumer protection and fair trading. While it primarily protects consumers, small businesses also have obligations and rights under the ACL. The report highlights that many Australian businesses resemble individual consumers in terms of resources and sophistication, warranting extended protections. It discusses general protections, including unconscionable conduct, and emphasizes the ACL's broad scope beyond individual consumers. The ACL replaced numerous state and federal laws, addressing business conduct, harmful practices, and consumer rights. The Australian Competition and Consumer Commission (ACCC) enforces the ACL, ensuring fair contract terms, honoring consumer guarantees, and maintaining product safety. The report also covers pricing, discounts, and prohibitions against unconscionable conduct and anti-competitive agreements. Ultimately, the report provides a comprehensive overview of how the ACL affects small businesses, covering their obligations as suppliers and their rights as purchasers, referencing relevant legislation and case law.

Small Business and working with the Australian consumer law
The Australian Consumer Law has proved to be a successful reform. That was introduced with a
view to improve the operation and clarity of consumer protection and fair trading legislation in
Australia. These reforms were introduced in 2010, and were considered as a major step forward.
It had improved the operating environment for consumers as well as the businesses as major fair
trading legislations throughout Australia have been consolidated and harmonized by this
legislation. It is important to recognize that in case of small businesses there are regulated
businesses, which owe obligations to consumers and businesses and are the beneficiaries of
several consumer protections provided in the ACL (Harris, 2016).
As a matter of principle, good reasons are present to extend the protections provided by the ACL
business-to-business transactions. More than 60% of all businesses in Australia do not have any
employees. For the 28% small businesses have only one to four employees. In this way, it is
clear that a large number of businesses in Australia are similar to individual consumers regarding
their resources and sophistication while entering into transactions. Moreover, there are a large
number of small businesses run by non-English-speaking individuals and having education levels
that are equal to the general population as compared to the boards and legal departments that are
available with the large business entities (Carvan, 2015).
Although, Australian Consumer Law is considered as a set of consumer protection legislations, it
needs to be noted that the objective and application of ACL much wider than only protecting the
individual consumers (ACCC v Zanok Technologies Pty Ltd., 2009).
General protections provided by the ACL:

Unconscionable conduct is generally considered as being too difficult to establish in order to
help small businesses who are facing unreasonable or unfair conduct from other business (Miller,
2002). This view is present even if several amendments have been made to the provisions over
the years with a view to improve the usability of unfair conduct provision and increasing the
scope of protection provided by this provision of the ACL.
Therefore a person running a business in Australia is affected by the provisions of Australian
Consumer Law. The ACL took the place of 17 federal, state and territory consumer legislation
which were related with standards of business conduct, harmful business practices, unfair
complex legislation, basic rights of consumers regarding goods and services, regulation of
specific types of business and consumer convictions and regulating consumer product safety
(Sweeney, O’Reilly and Coleman, 2013). These laws are jointly administered in imposed by the
Australian Competition and Consumer Commission (ACCC) and also the consumer protection
agencies of States and Territories. For example, ACL will come into action if a consumer asks
for bill, the businesses require provided free of charge. Similarly if the business is selling goods
or services more than $75, said business is required to give a bill to the customer. Similarly, the
business give receipts, the receipt should identify the supplier, the ABN or the ACN of the
business, date of supply and price and what was supplied (Graw, 2011). In case there is a
problem with the goods and services provided by the business, the customer has a right to ask for
compensation. Such compensation may include full refund even if the business has put a sign
claiming "no refunds".
In this way, the relationship suppliers, wholesalers, retailers and customers is covered by the
Competition and Consumer Act, 2010 (CCA). The purpose of this legislation is to promote
competition and fair trading, and also to provide protection to consumers (Harris, Hargovan and

Adams, 2015). In this way the provisions of CCA are related with product labeling and safety,
price monitoring, unfair market practices industry regulation, industry codes and mergers and
acquisitions. The Australian Consumer Law is present in a schedule to the CCA. This legislation
contains particular clauses relate with the treatment of consumers. The responsibility of
enforcing the provisions of CCA has been given the Australian Competition and Consumer
Commission. In this way, the relevant provisions in this regard include making sure that there are
no unfair terms mentioned in standard form contracts (Vermeesch and Lindgren, 2011). Similarly
consumer guarantees are also required to be honored. The safety of products and services also
needs to be ensured. It is also significant that comply with the rules related with sales practices
like price, consumer information and unsolicited consumer agreements (Lipton, Herzberg and
Welsh, 2016).
Under the ACL and the CCA, there are certain obligations of the businesses as supplier and also
certain rights in their capacity as the purchaser of goods or services. Therefore, an unfair term
present in the standard form contract of a small business can be declared void by the courts. It is
possible for small businesses to elect a bargain along with other businesses against a larger
business, however the prior approval of ACCC may be required in such a case (ACCC v TPG
Internet Pty Ltd., 2013). The businesses are free to set their own prices and give discounts on
their goods and services as they deem fit. Therefore the supplies cannot force the businesses
achieve the recommended retail price (Four Square Stores (Qld) Ltd v A B E Copiers Pty Ltd.,
1981). At the same time, the ACL requires that small businesses should not involved in
unconscionable conduct. In the same way, other businesses should also refrain from engaging in
unconscionable conduct while dealing with small businesses. Similarly there are certain
circumstances where it can be held illegal for other businesses to refuse to supplied to a small

business. However, the business should not collude with their competitors. As a result, the
businesses should not enter into or tried to enter into arrangements, contracts are in the standings
with their competitors regarding matters like price, goods or services or where the goods will be
sold or to whom they will be sold (Trade Practices Commission v Radio World Pty Ltd., 1989).
A number of guarantees are also provided by the ACL to the consumers while their purchase
goods or services. Therefore, businesses should honor these guarantees and should not mislead
the consumers regarding the presence, exclusion or the effect of these guarantees. These
guarantees may also protect small businesses when they purchase goods or services as a
consumer.

References
Harris, J. Hargovan, A. Adams, M. 2015, Australian Corporate Law LexisNexis Butterworths 5th
edition
James Miller, 2002, Getting into law, Butterworths Australia
John Carvan, 2015, Understanding the Australian Legal System, Thomson Lawbook Co. 7th ed
Lipton P, Herzberg A and Welsh, M, 2016, Understanding Company Law, 18th edition Thomson
Reuters.
Phil Harris, 2016, An Introductions to Law, Cambridge University Press, 8th ed
Stephen Graw, 2011, An Introduction to the Law of Contract, 7th Ed., Thomson Reuters.
Sweeney, O’Reilly & Coleman, 2013, Law in Commerce, 5th Ed., LexisNexis.
Vermeesch,R B, Lindgren, K E, 2011, Business Law of Australia Butterworths, 12th Edition
Case law
ACCC v TPG Internet Pty Ltd (2013) 250 CLR 640
ACCC v Zanok Technologies Pty Ltd [2009] FCA 1124
Four Square Stores (Qld) Ltd v A B E Copiers Pty Ltd (1981) ATPR 40-232
Trade Practices Commission v Radio World Pty Ltd (1989) 16 IPR 407