Consumers to lose from negligence review proposals: ACCC

The Australian Competition and Consumer Commission believes consumers would lose important rights if certain recommendations of the first report of the Review of the Law of Negligence were implemented, ACCC Chairman, Professor Allan Fels, said today.

"The ACCC is particularly concerned by the panel's recommendation that section 52 of the Trade Practices Act 1974, which prohibits misleading and deceptive conduct, should no longer apply to persons whose conduct causes personal injury or death.

"As the ACCC pointed out in its two submissions to the panel, it can conceive of no circumstance in which it is, or should be, acceptable for a supplier to mislead or deceive a consumer".

"The panel's rationale for the removal of such an important consumer protection provision appears to be based on a fear of what may happen in the future rather than any existing problems with the way the protection operates. The panel recognises this, but says that if such provisions are left unchanged, they could have an adverse effect on other recommended reforms.

"The panel has also recommended that actions under other provisions of the Act for personal injury damages should be subject to capping and other restrictions, which are yet to be specified. It is difficult to assess these changes until the panel provides its second report.

"The ACCC is also concerned with the panel's recommendations relating to risky recreational services. If the panel's recommendations were implemented, service providers would not be liable for personal injury or death caused by 'obvious risks'. The panel has said that 'obvious risks' may include a risk that a person will be negligent. This means that providers of risky recreational services would rarely, if ever, be liable for personal injuries they cause.

"The ACCC notes that this report is the first of two under the panel's terms of reference and looks forward to further details of the recommendations made to date".