consumer law in australia
...ade Practices Act. Originally these acts were about effectively controlling and preventing unfair business practices, promoting business competition and for protecting consumers. 2.2 Development and Application of Consumer laws The Fair Trading Act is a development of the Sales of Goods Act and the Trade Practices Act, but placing more obligations on the firms to consumers. There can be seen to be a promise that the consumer now becomes owner of the new goods, that the consumer is buying these goods on the promise that the goods match the account provided, that the goods are correspondent to their purpose, that the goods are of merchantable ‘as fit for the purpose or purposes which goods of that kind are commonly bought as it is a reasonable to expect having regard to the description, the price and all other relevant circumstances’( Trade Practices Act Section 66(2)) and if a sample of a good has been provided than the good must match exactly up to that sample. These conditions have been revised by the government to be monitored by the ACCC (Australian Competition and Consumer Commission), which work to; prevent anti-competitive conduct, as a provider of safeguards to the consumers, to educate Australians about the Trade Practices Act and their rights and to promote competitive pricing. 3.1 Negative Aspects Of Consumer laws Although the introduction of new consumer protection laws is regarded as a way to help consumers and is viewed by the majority of society as a positive there are many restrictions imposed by the laws and uneducated consumers about their rights. The laws can also be ambiguous and therefore can be misinterpreted, misconstruing the intentional meanings, not really providing the protection intended. The restrictions which are imposed by the laws can often blockade the entry of new producers into markets as they have to reach set guidelines. An example of restrictions which can block the new entry of producers is having entry of a competitive electrical power company established or for the privatisation of a new transport system. Laws have been established which prevent these things so that all people can still have equal access to a service but in doing so takes away some possible opportunities for competitive pricing, the ability to have complete technical efficiency and for a completely fair freedom of choice to whom consumers can buy from and for people to be able to sell what they choose, beneficiating specific groups in the market. An argument can be sustained that this does not provide Australia with the completely fair trading that we claim to provide in the market, due to these restrictive trade practices. The other negative about consumer laws can be the lack of education about consumer rights, only being printed in the Gazette, which is not a newspaper frequented by most Australians. Another addition is there is only one support group to handle the complaints made under the Trade Practices Act 1974 and the Prices Surveillance Act 1983 which becomes an even bigger responsibility because of the new tax system, the GST. (Reference from press release Nov. 2000). 3.2 Positive Aspects of Consumer law In any country, even in America with a more relaxed and free trade environment, there are many consumer laws which protect consumer’s rights. These laws are designed to provide safety standards- requiring goods to meet certain design or construction rules or to display certain warning signs, information standards- a level of prescribed information to be with certain goods, quality standards- requirements for construction, testing and labeling of specific materials and packaging standards- the restriction of misleading packaging and to make certain convenience to the consumer. These laws, and the formation of the protection group the ACCC, make it easier for consumers to defend themselves and to not get taken advantage of. The control of the government over the economy also is able to mean a control over any inflation rates, maintaining stability in pricing, preventing misuse of market power, anti-competitive agreements, exclusionary provisions and price fixing, exclusive dealing, third-line-forcing, the resale price maintenance and a maintained high level of consumer sovereignty. Another positive aspect of this act are the very harsh punishments if it were ...