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ARTICLE · 06 JULY 2015

Consumer laws do apply to state authorities: Is the Crown in business?

This decision provides guidance as to when governments and their agencies could be said to be carrying on a business.

AustraliaConsumer Protection

As governments increasingly involve themselves in commercial enterprises, it is important to be aware of the requirements of Australian consumer laws and how they apply to public and private sector entities. Section 18 of the Australian Consumer Law (ACL), contained in Schedule 2 to the Competition and Consumer Act 2010 (Cth) (CCA), prohibits misleading or deceptive conduct in trade or commerce.

The Commonwealth and the states and territories have legislated to bind the Crown in its various manifestations to the ACL so far as the Crown "carries on a business", either directly or by an authority of the jurisdiction concerned.

The Victorian Supreme Court decision in Murphy v State of Victoria and Linking Melbourne Authority provides guidance as to when governments and their agencies can be said to be carrying on a business. It also sheds light about when government's activities are taken to be in "trade or commerce".

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