Commonwealth To Take Control Of Consumer Protection

The Commonwealth is likely to take control of consumer protection following proposals to amend the Trade Practices Act and hand over responsibility for many areas covered by the state's Fair Trading Acts. Importantly, the proposals include the power to review unfair contract terms, including terms in loan contracts.

Following a review of Australia's consumer policy framework by the Productivity Commission, all Australian governments agreed to a new consumer policy framework, comprising a single national consumer law and streamlined enforcement arrangements. Any new legislation is likely to commence in 2010.

A consultation paper (125 pages) has been released that can be accessed at http://www.treasury.gov.au/contentitem.asp?ContentID=1484&NavID=037. Submissions can be made until 17 March 2009.