Announcement date
31 August 2023
Link to announcement
Unfair trading practices - Consultation Regulation Impact Statement
Problem being addressed
Unfair trading practices are particular types of commercial conduct which are not prohibited by existing provisions of Australia’s consumer laws, but which can nevertheless distort competition and result in significant consumer and small business harm. Immediate impacts of this conduct may include consumers incurring financial losses or obtaining unsuitable goods or services. Longer-term impacts could include consumers being reluctant to access or take advantage of new technologies, innovations or business relationships. Further evidence is sought through this consultation process on the extent of harms caused by unfair trading practices.
Proposal
This Consultation Regulation Impact Statement (Consultation RIS) seeks stakeholder feedback on the policy options it canvasses, including their possible costs and benefits. This paper provides an overview of how unfair trading practices are currently regulated, identifies issues for consumers and small businesses posed by gaps in existing protections, and provides a preliminary impact analysis of the policy options being considered.
The Protecting consumers from unfair trading practices Consultation RIS considers the following options:
- Option 1 Status quo (no change)
- Option 2 Amend statutory unconscionable conduct
- Option 3 Introduce a general prohibition on unfair trading practices
- Option 4 Introduce a combination of general and specific prohibitions on unfair trading practices
Assessed Impact Analysis outcome
Compliant Consultation RIS