Federal and State Government Organisations
There are various bodies within or organised by the government that deal with customer complaints, regulation of industries and protect consumer rights.
Organisations
NSW Fair Trading
https://www.fairtrading .nsw.gov.au/
Fair Trading Act 1987
NSW
Roles
This government body is a division of the New South Wales Department of Finance, Services and Innovation, whose role is to manage consumer laws, safeguard the rights of consumers and advise businesses and traders regarding fair and ethical practice. The legislative framework that this body oversees sets the rules for fairness in the daily transactions between consumers and traders. It investigates unfair practices and administers the licensing of operators in a range of industries, including home building, the automotive trades, real estate, business and retail, and retirement villages.
Effectiveness
The NSW Fair trading public warning from fraudulent and deceptive business practices ensure consumer’s rights are protected.
“Do not deal with Shervin Kalimi Chadorchi, presently Director of the Car Buying Agency Pty Ltd” - Consumers are warned not to deal with Mr Shervin Kalimi Chadorchi, presently the sole Director, Secretary and shareholder of The Car Buying Agency Pty Ltd (ACN 635785625) (the Trader) which operates as a broking service, sourcing motor vehicles for consumers via its website thecarbuyingagency.com.au. The complainants received invoices purporting to be from large car dealerships which included Mr Chadorchi’s personal bank account number. Consumers made payments to this account believing it to be the suppliers bank account.
NSW Ombudsman - a statutory ‘watchdog’ body dealing with complaints againstthe NSW govt
- complaints about organisations delivering community services in NSW
- NSW Department of Community Services, Department of Ageing, Disability and Home Care, non-govt services that receive funding from these departments
- conducts reviews of people in care and monitors community service issues
- assist anyone who receives or is eligible to receive community services in NSW
A single father living with his two autistic sons complained of difficulty getting significant maintenance issues fixed in his Housing NSW property. The floor throughout was rotted from water damage and weakened by white ants. The only bathroom in the house also needed significant and urgent work. We contacted the Land and Housing Corporation, and an area director inspected the property within 48 hours. As a result, he raised additional orders to the already approved works as the bathroom was found to be in a very poor condition. All works to the property were completed Jive weeks after the father first contacted our office.
- effective in inducing response from businesses → providing protection for vulnerable/disadvantaged people
- effective in responding to consumer complaints in order to protect their consumer rights
https://www.pc.gov/inquiries/completed/accessjustice/submissions/submissionstest2/submission-counter/subdr295-accessjustice.pdf
Legal Aid NSW - an independent statutory body established under the Legal Aid Commission Act 1979 (NSW)
- provides legal advice and assistance to socially and economically disadvantaged people, incl court representation - can help with consumer law issues, ie matters relating to thepurchase of g/s, credit matters, matters relating to unconscionable contracts and unfair contract terms
CCPD of the CDT(Competition and Consumer Policy Division of the Commonwealth Department of the Treasury)
This division of the Treasury provides advice to the Commonwealth Government on the consumer policy framework contained in federal legislation and on how to promote competitive and informedmarkets. This includes advice on the policy and regulatory frameworks for promoting competition, and for consumer protection.
Fairfield Legal Aid acted for a wife in mortgage repossession proceedings that started in December 2006. The client’s husband made an investment in some property in Queensland which involved what is known as Mezzanine financing. The investment was made in 2004 using $250,000 equity taken from the family home. The company to which the investment monies were given and other associated companies went into liquidation late 2005. The client, her husband and four children can now stay in the family home with only a $200,000 mortgage instead of facing a claim for $700,000 from the lender.
Consultation paper - Improving the effectiveness of the Consumer Product Safety System
GSP CRIS - June 2019 versionTreasuryconsult.treasury.gov.au › consultation › download
ftnforcement Action against Thermomix for supplying unsafe products
Enforcement Action against Thermomix for supplying unsafe products In legal proceedings brought by the ACCC, Thermomix admitted to contravening the false or misleading representation and misleading or deceptive conduct provisions in relation to their TM31 appliances in a number ofrespects. Thermomix continued to supply and promote the TM31 product after it had become aware of a safety issue with the lid that had the potential to cause, and had caused, injury, without disclosing the
CCAACCommonwealth Consumer Affairs Advisory Council
The CCAAC provides independent advice to the Minister for Competition Policy and Consumer Affairs on consumer policy issues. Tasks include:
● receive reports, papers and issues from the minister and advise on the implications for consumer policy
● investigate and report on consumer issues referred to it by the minister – for example, it compiled a report on statutoryimplied conditions and warranties in 2009 to inform the development of the ACL in 2010
● Advise the minister of any emerging issues that could affect Australian markets and consumers
ASIC Independent Commonwealth body that regulates Australia’s corporate and financial services sectors and ensures that Australia’s financial markets are fair and efficient. Laws are found in the Australian Securities Investment Commission Act 2001 (Cth) and Corporation Act 2001 (Cth). Their enforcements power:
● commencing prosecutions, usually conducted by the Commonwealth Department of Public Prosecutions
● seeking civil penalties from the courts
They can license financial services businesses, conduct public education initiatives for consumers, provide information to businesses to help them fulfil their obligations, and monitor compliance through surveillance.
safety issue and consequent potential risk of injury. That Court held that this amounted to a misrepresentation through silence that the TM31 appliance was safe to use, was fit for purpose and was of a particular standard or quality. The court ordered Thermomix to pay $4.6million in penalties
“The Commonwealth Consumer Affairs Advisory Council 2012report, Gift Cards in the Australian Market, details a sample of587 complaints, 90 percent of which related to insolvency. This is not a matter extra legislation is likely to change. Some businesses will go broke”.
“Far from the first time consumers have been stung” Sydney Morning Herald Article
Far from the first time consumers have been stung
Following an ASIC review, Prospa Advance Pty Limited (Prospa) has changed loan terms in its standard form small business loan contract to address terms being unfair under the unfair contract terms provisions of the ASIC Act. The changes include addressing problematic terms outlined in ASIC Report 565: Unfair contract terms and small business loans, and changes to other terms which could have operatedunfairly for borrowers and guarantors. Prospa will be communicating these changes into effect in early October
18-262MR Prospa removes unfair load terms for small business borrowers and guarantors
ACCC
The ACCC is the independent statutory authority that administers the ACL. Its role is to promote competition and fair trade in the marketplace and ensure that businesses do not take advantage of
consumers with their superior stance and power over them. The ACCC thus has an important responsibility: ensuring that businesses and individuals comply with laws on fair trading and consumer protection. They also complement state consumer affairs agencies, provide education to consumers and businesses about the relevant laws, and regulate national infrastructure industries, such as energy, water, post, communications and transport.
An example of a high-profile prosecution initiated by the ACCC involved the packaging and recycling group Visy Industries Pty Ltd. The company received a $36 million fine in
CAF (Consumer Affairs Forum)
(Formerly the Ministerial Council on Consumer Affairs)
Consists of the Commonwealth, state and territory ministers responsible for fair trading, consumer protection and credit laws, along with the New Zealand ministers with those portfolios.
Its role is to assess consumer policy issues of national significance and develop a consistent approach to those issues, and it facilitates communication and cooperation between Australia and New Zealand in those areas
Industry organisations
November 2008 for price-fixing in the market for cardboard cartons. The penalty handed down in the Federal Court followed an ACCC investigation that found Visy breached the then Trade Practices Act by engaging in illegal cartel behaviour with rival packaging company Amcor Ltd.
In 2018, Ministers endorsed the Strategic Agenda 2018 – 2022 which sets out key priorities that are centred on empowered consumers, responsible traders, forward-looking co-ordinated regulatory activity and implementing the CAF endorsed ACL review agenda.
https://consumerlaw.gov/consumer-affairsforum
There are a number of industry organisations that deal with consumer complaints and assist with remedies.
Organisations
Roles
ndustry-based dispute resolution Industry groups have developed complaint handling and dispute resolution schemes designed to provide
Effectiveness
They are resource efficient as the dispute is resolved between the consumer and the specific
Customer-focussed corporate compliance programs
- consumer remedies
- enhance business reputation
- support claims that these industries are self-regulating
Eg. Master Builders Australia is an employers’ group that represents and protects businesses in the building and construction industry. Consumers can make a complaint to the master builders’ association in their state, but the association’s primary duty is to its members.
Internal self regulatory program aims to ensure that a business meets its legal obligations to consumers, and to remedy any breach. Industries that adopt this approach embrace measures that improve relations with their customers
Some companies adopt simple programs with a complaints handling system and training for all staff members, while others have a team dedicated to compliance, regular risk assessments and reviews, detailed guidelines, and staff education programs. Compliance programs are often linked to companies’ strategic goals.
industry, and the hassle of involving courts is eliminated.
Industry-based ombudsman
- takes complaints from citizens or consumers about companies, workplaces or providers and investigates those complaints in order to reach a resolution that is fair to both sides.
- provide affordable dispute resolution for consumers whowould face considerable cost and complexity if they had to take matters to court.
- Some independent dispute resolution schemes are voluntary, but the main ones are part of licensing requirements for providers in a particular industry.
(similar cases)
https://www.accc.gov.au/publications/debtcollection-
guideline-for-collectors-creditors/debt-collectionguideline-for-collectors-and-creditors/part-2practical- guidance/23-compliance-programs
The court does not consider the mere existence of a program as a cause to reduce penalties: A well drafted setof policies and procedures will mean little if there is no follow-up in terms of training company officers (including directors) and, where appropriate, refresher training (Case)
www8.austlii.edu/cgi-
bin/viewdoc/au/cases/cth/FCA/2006/936.html
Energy and Water Ombudsman NSW investigate and resolve complaints from customers regarding their electricity and gas. However, thy fail to address complaints they are facing from increasing electricity bills whereby customers are saying that they are paying too much.
