Rules to Protect Consumers

The Consumer Protection and Business Practices Act consolidates several consumer protection laws. It sets out obligations for suppliers in their interactions with consumers, as well as obligations for consumers. Consumers, for example, are required to make reasonable effort to minimize any losses and to attempt to resolve disputes with suppliers before taking further action.

For information about consumer protection laws select from the options below.

 

• Unfair practices
• Warranties
• Unsolicited Goods
• Consumer Contracts
• Adminstration 
• Penalties

 

Unfair practices

The Act makes it an offence for a supplier (retailer, manufacturer, or distributor) to engage in an unfair practice. An unfair practice includes making a false claim or doing or saying anything, or failing to do or say anything, that might reasonably deceive or mislead a consumer. It also prohibits taking advantage of consumers who cannot protect their own interests.

While not a complete list, some examples of unfair practices are listed here.

 

Warranties

Except as specifically excluded by legislation, suppliers must offer minimum warranties, known as “statutory warranties,” whenever they sell a new or used consumer product.

Statutory warranties include the following requirements:

• The seller has the right to sell the product
• the product sold is free from  undisclosed liens or other claims;
• the product is of acceptable quality;
• the product is reasonably durable;
• the product is  fit for the use intended as well as for any specific purpose stated by the retailer;
• the product matches its description and the quality of any samples shown to the consumer.

 

Unsolicited Goods

The Act provides that when consumers receive unsolicited good, they have no legal obligation to pay for the goods, unless they acknowledge, in writing, that they intend to accept the goods.

 

Consumer Contracts

Consumer contracts are contracts for goods and services between consumers and suppliers.

Consumer contracts include:

• contracts made over the internet;
• contracts where the goods or services will be provided in the future;
• personal development services contracts (health, fitness, dieting, modelling, talent, martial arts, sports, dancing or similar activities that require payment in advance);
• travel club contracts (club memberships that provide discounts, or other benefits, on travel-related purchases); and
• remote contracts, which are entered into from a distance, such as by telephone or internet.

 

Administration

The Director has the power to conduct inspections and investigations under The Act, including the right to enter premises and to search and seize documents.

When people fail to comply with The Act, the Director may order them:

• to stop or begin an action;
• to comply with The Act; and
• to do or stop doing any other thing the Director considers necessary.

The Director may also take a supplier to court to force compliance with The Act. A consumer who has suffered a loss may commence an action in court against a supplier.

 

Penalties

It is an offence to contravene any provision of the legislation. The penalties are:

• A fine of not more than $5,000 for an individual for a first offence;
• A fine of not more than $10,000 for an individual for a subsequent offence;
• In both cases, a jail term of up to one year;
• A fine of not more than $100,000 for a corporation for a first offence;
• A fine of not more than $500,000 for a corporation for a subsequent offence;
• Equal punishment for a director, officer, or agent of a corporation who participated in the offence.

Corporations, of course, cannot be jailed. Prosecutions must be commenced within three years of the Director learning the facts of the offence.