Welcome to the ACCCFor businessesHot Topic: Important information for solar power system suppliers about the Australian Consumer Law
Important information for solar power system suppliers about the Australian Consumer Law
Published: 21 May, 2012
Under the Australian Consumer Law, businesses have the same consumer protection and fair trading obligations across Australia. The Australian Consumer Law is enforced by the ACCC and each state and territory consumer protection agency.
Amongst other things, the Australian Consumer Law prohibits businesses from misleading or deceiving consumers about the goods and services they sell.
Substantiation of claims and representation in advertising
Businesses should be able to substantiate any claims or representations they make in their advertising. Any claims or representations found to be false or misleading breach the Australian Consumer Law and can have a significant impact on the customer.
The Australian Consumer Law provides regulators with the power to issue substantiation notices to businesses to provide information and documents that respond to the notice. Significant penalties may be ordered by the courts if claims are found to be misleading.
The federal government Small-scale Renewable Energy Scheme
The Small-scale Renewable Energy Scheme is operated by the federal government and administered by the Clean Energy Regulator.
The ACCC urges all suppliers to be fully conversant with the system of rebates and other incentives to ensure they do not mislead or deceive consumers about their rights.
Representations or claims relating to the impact on the price of goods or services due to the ‘carbon price’ also need to be truthful and have a reasonable basis.
The role of the ACCC or other Australian Consumer Law regulators does not include setting or restricting price increases related to the impacts of a carbon price.
You are not generally required to justify or explain why your prices have increased – however, if you choose to claim that price increases are due to a particular cause, you should have confidence in your claim. This includes where you choose to link your price increases to a carbon price.
Should you choose to make a carbon price claim, including comparing any potential advantage of a solar product over energy which may be subject to the carbon prices, make sure you are not exaggerating any comparison or misleading the benefit of one over the other. This means you need to have confidence that your claim is truthful and has a reasonable basis.
