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ARTICLE · 06 MAY 2015

Councils can be found guilty of misleading or deceptive conduct

Colin Biggers & Paisley
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Local councils are not exempt from the misleading or deceptive conduct provisions of the Competition and Consumer Act.

AustraliaConsumer Protection
Mathew Deighton
Mathew Deighton

In brief - Councils not exempt from operation of Competition and Consumer Act (CCA)

It has long been considered that local councils (like trade unions) are not engaged in trade or commerce and therefore are exempt from the operation of the Competition and Consumer Act 2010 (Cth), which replaced the well-known Trade Practices Act. However, that is not the case. Like individuals, partnerships and companies, councils can fall foul of the CCA, including its misleading or deceptive conduct provisions.

Council issues "Expression of Interest" and negotiates with two supermarkets

The application of the CCA to the conduct of local councils was considered in the Supreme Court of NSW case of Fabcot Pty Ltd v Port Macquarie-Hastings Council [2010] NSWSC 726.

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