Professional services

The Australian Council of Professions defines a profession as:

'A disciplined group of individuals who adhere to high ethical standards and uphold themselves to, and are accepted by, the public as possessing special knowledge and skills in a widely recognised, organised body of learning derived from education and training at a high level, and who are prepared to exercise this knowledge and these skills in the interest of others.

Inherent in this definition is the concept that the responsibility for the welfare, health and safety of the community shall take precedence over other considerations.'

Examples of professions include:

health related—doctors, dentists, physiotherapists, podiatrists, pharmacists
non-health related—architects, engineers, veterinarians, surveyors, lawyers.

Consumer protection and professions

There are consumer laws in place to protect you from false, misleading and deceptive practices and unconscionable conduct.

You have the right to receive accurate and truthful messages about the goods and services that are offered to you.

These laws apply to professional service providers as they do to all other traders.

Examples of potential areas of misleading or deceptive conduct include statements made:

in brochures, letters or advertisements in magazines, on television or on radio that relate to the professional or their services
directly to consumers

Disclosure of financial interest

Professionals should disclose their commercial or financial interest in other professionals' practices that they refer clients to, or any inducements they receive from suppliers whose products they recommend or use.

The failure to obtain informed financial consent from consumers may raise issues under the misleading conduct provisions in the Australian Consumer Law (contained in a schedule to the Competition and Consumer Protection Act 2010).

Unconscionable conduct and the professions

Professionals generally know much more about the goods and services that they provide to consumers. If a professional unfairly takes advantage of this knowledge, this may amount to unconscionable conduct which is prohibited.

Unconscionable conduct occurs when a business (or professional) is unreasonable, bullying, oppressive and lacking good faith. In general, the conduct must be more than just unfair; it must be so harsh or unreasonable that it goes beyond the kind of behaviour acceptable in everyday business.

Rather than specifically defining what conduct will be unconscionable, the ACL lists factors that the courts may take into account when deciding whether unconscionable conduct has occurred.

In consumer transactions, these include:

whether the business (or professional) used undue influence, undue pressure or unfair tactics
whether you were able to understand the documentation used
the relative bargaining strengths of the business (or professional) and you
the price and terms on which the goods or services could have been acquired elsewhere
whether one party required the other to comply with conditions not 'reasonably necessary' to protect their legitimate business interests

Conduct may not automatically be unconscionable if only one of these factors exists. Only a court can determine whether unconscionable conduct has occurred and the court may take into account any factors it deems relevant.

Due care and skill

Under the consumer protection provisions of the ACL, consumer guarantees apply every time you acquire professional—or any other—services. The guarantees require professionals to provide services with due care and skill. You can visit our section on Consumer Guarantees to learn more about your rights when purchasing services.

Competition and the professions

The Competition and Consumer Act 2010 does not regulate the fees charged by professionals. However, it is unlawful if the fees and charges are arranged by agreement with other competing professionals. This conduct is also known as price fixing.

Price variation between providers is normal depending on the service provided, if you think a professional has acted in an anti-competitive way, you should report your concerns.

If you have concerns about being overcharged by a professional you should contact the relevant industry body to check how you can make a complaint.

If you would like to know more about how the Act applies to the professions, visit Professions & competition in the For business section of our website.

Dealing with Professionals

Before you go agree to the service, check the professional’s qualifications, permits, registrations and licenses.
Beware of irrelevant qualifications or memberships used as a marketing tool.
Ask yourself whether comparisons they make against other services or service providers appear fair and accurate.
Be cautious of testimonials or endorsements. A testimonial from one satisfied customer is not a guarantee that you will achieve the same outcome.
Talk to someone you trust, especially when large amounts of money are involved or the services relate to your health.
Do some research so you understand your options. Get quotes and opinions from several providers so you can make an informed decision.
If you are not confident with the person you are dealing with, find someone else who you feel you trust.
Make sure the provider has disclosed the full costs and limitations of goods or services.
Make sure that you understand any risks that might be associated with the service.
Ask about any insurance the provider has and what options you have if things do not go as well as you planned.
Ask them if there may be a financial conflict of interest that could be influencing their advice.

Need help?

If you have a complaint, contact the professional first – see the ACCC’s how to complain page for guidance.
If you are unable to resolve your complaint directly, you can contact the ACCC or your local consumer protection agency for more information on your consumer rights and options. Your local office may also be able to conciliate (help you negotiate with the professional).
For financial services contact the Australian Securities and Investment Commission (ASIC) on 1300 300 630 or visit FIDO, ASIC's consumer website.

Professional services