Consumers and small business are now better protected from unscrupulous business practices, according to Australian Competition and Consumer Commission Acting Chairman, Mr Sitesh Bhojani.
This follows recent amendments to the Trade Practices Act 1974 coming into force.
"Penalties for breaches of the consumer protection provisions are raised to $1.1 million for corporations and to $220,000 for individuals. This should deter businesses from misleading consumers or supplying dangerous goods.
"These greater penalties show that the Parliament is determined to protect consumers from being ripped off by unscrupulous businesses" Mr Bhojani said. "The ACCC is similarly determined, and will continue to strongly enforce the consumer protection laws.
"Courts will now be able to make community service orders, adverse publicity orders and probation orders for breaches of the Act", Mr Bhojani said. "Adverse publicity orders will mean a business must run public notices in which they explain their behaviour and the penalty they have received."
Courts will be able to ensure that consumers and small business are compensated for breaches of the Act. If a person who has breached the Act is required to pay a penalty and compensation, but are unable to pay both, the court may order that they pay the compensation first.
"Small business will be better protected from unscrupulous conduct at the hands of big business. Small business will be protected when doing deals worth up to $3 million from unconscionable conduct by a stronger party.
"The ACCC now has broader powers to take class actions. This will better protect small business and consumers from anti-competitive conduct.
"Time limits for bringing an action under the Act have been increased to six years. This will help all those who have suffered the consequences of a breach of the Act by giving them more time to organise a court action. The change will be of most significance in cases where the problem does not become apparent immediately. The previous time limit often meant that once a small business identified that it was a victim of a breach of the Act, it was out of time to act.
"Small business will benefit from the States and Territories adoption of the unconscionable conduct provisions of the Act. This will provide small business that becomes the victim of unconscionable conduct with the cost-effective option of state/territory tribunals instead of going through the Courts.
"The ACCC will now be able to seek declarations from a Court about the operation of a particular section of the Act. Declarations are relatively quick and inexpensive and provide authoritative statements on the operations of the Act.
"Such declarations will prevent many disputes as they would clarify what is and what is not a contravention of the Act.
"The ACCC will have an increased opportunity to intervene in private cases where the issues involved are of public interest. This will allow the ACCC to lend its support to those who have begun cases privately".
"There is added support to regional small business by the new definition of a 'market' for the mergers and acquisitions test.
"The new definition is amended to include a substantial market in regional Australia. This will mean that mergers and acquisitions that substantially reduce competition in these areas will be reviewed closely by the ACCC.
"The ACCC will be required to provide greater detail of its activities in its annual report, following the amendments. This will allow the Australian community and business alike, to understand what the ACCC has achieved in the previous year.
"The changes emphasise Parliament's recognition of the need to support small business and protect consumers. The ACCC welcomes its broadened role in providing that support.
"The changes will be included in the ACCC’s Summary of the Trade Practices Act 1974 booklet, which should be available by mid-August for $10".