Why this matters.
The Australian Consumer Law (ACL), contained in Schedule 2 to the Competition and Consumer Act 2010 (Cth), applies nationally and sets a comprehensive framework of consumer rights. Key protections include automatic consumer guarantees for goods and services (which cannot be excluded by contract or policy), prohibitions on misleading or deceptive conduct (Section 18), unfair contract terms provisions (expanded in 2023 to apply to standard form contracts with small businesses), and mandatory product safety standards and recall obligations. The ACCC and state fair trading offices actively investigate and pursue enforcement.
Penalty reforms in 2022 dramatically increased maximum fines: for serious contraventions, the greater of A$50 million, three times the value of the benefit obtained, or 30% of adjusted turnover during the breach period. The unfair contract terms regime became a civil penalty regime from November 2023, meaning businesses can now face substantial fines (not just voidance of terms) for including unfair terms in standard form contracts with consumers or small businesses. The ACCC’s digital economy enforcement focus means online businesses face heightened scrutiny.