What has changed?
On 23 August 2018, the Treasury Laws Amendment (2018 Measures No. 3) Bill 2018 was passed in Federal Parliament. The Bill amended the Competition and Consumer Act 2010 such that the consumer law penalty regime now mirrors the competition law civil penalty provisions.
The changes in relation to penalties, which came into effect on 1 September 2018, are set out in the table below.
| Changes to Penalties | Former Maximum Penalty | Current Maximum Penalty |
| Individuals | $220,000 | $500,000 |
| Body Corporate | $1.1 million | The greater of:
· $10 million; or · If a court can determine the value of the benefit that the body corporate, and any body corporate related to the body corporate, have obtained directly or indirectly and that is reasonably attributable to the commission of the offence—3 times the value of that benefit; or · If the court cannot determine the value of the benefit received; 10% of the annual turnover of the body corporate during the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence. |
What does this mean?
The changes mean that if you are not complying with your consumer law obligations, you can now face a much higher penalty.
False or misleading representations about goods or services and unfair practices (such as pyramid schemes and bait advertising) are some examples of conduct which is now subject to the higher penalty regime.
How do you manage your risk?
Any existing business policies should be reviewed and updated where necessary to ensure that they align with the obligations imposed by the Australian Consumer Law. These policies should be made available to all client facing personnel and training provided where necessary.
If you have any questions about the changes or wish to review your policies, you can contact us on 1300 941 900.