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ARTICLE · 09 SEPTEMBER 2018

Increased Penalties Under The Australian Consumer Law Now In Effect

Dentons
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Increases to the financial penalties under the Australian Consumer Law (ACL) will come into effect on 1 September 2018 following the royal assent of the Treasury Laws Amendment Act 2018 (Act) on 31 August 2018.

AustraliaConsumer Protection
Lynsey Edgar
Lynsey Edgar
Mandi Jacobson
Mandi Jacobson
Angell Zhang
Angell Zhang
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Increases to the financial penalties under the Australian Consumer Law (ACL) will come into effect on 1 September 2018 following the royal assent of the Treasury Laws Amendment (2018 Measures No.3) Act 2018 (Act) on 31 August 2018.

Background

Consumer Affairs Australia and New Zealand commenced a review of the ACL in June 2015 (Review). A final report was issued in March 2017. The Review found that the current maximum penalties were insufficient deterrents, with some companies viewing the penalties as a "cost of doing business."

The ACCC has been pushing for increased penalties under the ACL for a number of years, with the Chairman noting in 2016 that there was a "general concern about penalties under the Australian Consumer Law ... not being adequate to give the right amount of deterrence."

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