Governments consider consumer protection to be an important issue requiring legal regulation. There are a number of laws that set minimum standards for the suppliers of goods and services. Consumer protection laws exist to assist in the regulation of contracts.

There are a number of different areas which are covered by the new consumer law. These include:

• Avoiding unfair business practices - including misleading or deceptive conduct, unconscionable conduct, false or misleading representations and related offences, information standards and country of origin representations;
• Consumer guarantees – this includes which guarantees apply to goods and services, who is responsible for these guarantees and when remedies, such as refund repair and replacement are available;
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• Product safety – there is a new national product safety regime;
• Sales practices - including unsolicited supplies, unsolicited consumer agreements, pyramid schemes, multiple pricing, lay-by agreements, referral selling and harassment and coercion;
• Unfair contract terms – The unfair contract terms laws do not define what is a ‘standard form contract’ or an ‘unfair contract’, however, in broad terms a standard form contract will typically be one that has been prepared by one party to the contract and is not subject to negotiation between the parties – that is, it is offered on a ‘take it or leave it’ basis.

The first step to resolving a consumer problem is always to approach the person or company you are unhappy with. Explain your problem and outline what the company could do to fix it. Remember that the problem may be solved more quickly and easily if you have kept all the documents you received with your purchase, such as receipts or statements.

The next step to consider is to contact your consumer protection agency such as the Office of Fair Trading. If after following all the above steps your complaint has not been resolved, you may wish to take your matter to a court or tribunal for formal resolution. Courts and tribunals can make decisions that will be legally binding. In NSW, this is the Consumer, Trader & Tenancy Tribunal (CTTT).

The CTTT was established as the specialist dispute resolution forum for consumer, trader and tenancy based matters. It has a relatively small application fee. The CTTT works together with the NSW Office of Fair Trading. It is generally a quick and inexpensive way of resolving consumer problems. Any decision made by the CTTT is binding on both parties.

When operating a business, it is important to understand the laws, codes of practice and service charters that govern your behaviour in the marketplace, and the Office of Fair Trading’s role in creating a level playing field for all businesses by ensuring compliance with the law. Some of these laws include:

It is unlawful to make false claims or misleading descriptions about the supply or possible supply of consumer goods or services or when promoting the supply or use of goods or services.

Business conduct is likely to break the law if it creates a misleading overall impression among the intended audience about the price, value or quality of consumer goods or services. Whether you intended to mislead or deceive is irrelevant; what matters is how your statements and actions - your 'business conduct' – could affect the thoughts and beliefs of a consumer.

Your business must not make false or misleading representations about the country of origin of goods.

You must ensure goods and services you supply comply with relevant information standards, if sold within Australia and be familiar with information standards relevant to those goods and services.

We are able to assist consumers who may require advice on their rights under the consumer protection laws. We can also assist businesses in minimising their risks to consumers and where appropriate drafting terms and conditions of business.

Call one of our Commercial Lawyers for free initial telephone advice on your circumstances on (02) 9525 8688.