Nature of Consumer Law

Nature of Consumer Law

Why do consumers need protection?

• Consumers are in a disadvantaged position when it comes to bargaining power

• Consumers often need to rely upon the expertise of others (for example, shop assistants or financial advisers) when purchasing products such as electrical equipment or superannuation products.

Why do consumers need protection?

For many purchases, a highly specialised level of product knowledge is required in the marketplace of the twenty-first century. 

"your serpentine belt's cracked!"

Open Ended

Why do consumers need protection now, more than ever?

What is the aim of consumer law?

The primary objective of consumer law is to protect the legal rights of consumers when purchasing goods or services, while supporting an effective marketplace. 

The role of the ACCC

• the ACCC is the primary regulator in the area of consumer law. They ensure that consumers are protected by:

• promoting competition among business

• promoting fair trading by business

• protecting consumers in their dealings with business.

The role of the ACCC

• The ACCC is not a complaint handling body. They rarely become involved in individual consumer or small business disputes.

• So how do they help protect consumers?

Open Ended

What is the role of the ACCC?

Multiple Choice

What is the primary aim of consumer law?

• To protect the legal rights of consumers when purchasing a good or service

• To protect consumers from exploitation using the criminal law

• To ensure that consumers purchase the best products available, at the best price

• To put consumers at an advantage over business wherever possible

Strategies used by the ACCC- non legal measures

1. Education and campaigns

Prevention is better than cure. The ACCC uses targeted education campaigns to provide information and advice to businesses and consumers, and to encourage compliance with the Act.

Strategies used by the ACCC- non legal measures

1. Education and campaigns

The ACCC provides information, tips and tools to help consumers via a wide range of channels, including their website, radio, social media, and tv programs such as the Checkout.

Multiple Select

Which of the following are good reasons for the ACCC using its resources for education and campaigns?

• Education and knowledge can help businesses to avoid mistakenly breaking the ACL

• consumers to avoid being exploited by sellers, and make better decisions

• Education and knowledge are guaranteed to prevent harm and exploitation of consumers

• Education and knowledge give consumers the power to exploit legal loopholes to gain an advantage over sellers

ACCC Strategies - non legal measures

2. Scams prevention

The ACCC aims to prevent Australians from falling victim to scams by raising awareness, sharing intelligence and working with government and the private sector to reduce opportunities for scams to occur. They also analyse data collected through their Scamwatch service.

Multiple Choice

How could the ACCC best protect the rights of consumers in the area of scams?

• By prosecuting scammers through the courts in order to deter potential offenders

• By publicly warning scammers of the consequences of braking the law

• By educating and improving awareness via Scamwatch and the media (e.g. the Checkout)

• By levying fines to scammers

Open Ended

Why is education the best way to protect consumers in this area?

ACCC Strategies - non legal measures

3. Community and industry engagement

The ACCC maintains relationships with many industry groups or associations and assists them in queries they may have about the Act, as well as attending events, giving presentations and hosting webinars

ACCC Strategies - non legal measures

4. Research and advocacy

The ACCC conducts research to help them to identify potential consumer issues and to make recommendations to government about changes to the law.

Open Ended

Describe 2 non legal measures used by the ACCC

The ACCC's strategies to protect consumers

1.

Other objectives of consumer law

How effective is consumer law?

• A typical essay question?

• Assess the effectiveness of both legal and non-legal measures in achieving justice for consumers.

How effective is consumer law?

• To answer say how effective the law is, it's useful to know what its objectives are.

• (What is it trying to achieve?)