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Fair Trading and Another Act Amendment Bill 2002
FAIR TRADING AND ANOTHER ACT
AMENDMENT BILL 2002
EXPLANATORY NOTES
GENERAL OUTLINE
Objectives of the legislation
The major objective of the Fair Trading and Another Act Amendment
Bill 2002 is to implement certain National Competition Policy reforms by
amending the Fair Trading Act 1989. The other objective is to implement
recommendations made by a Red Tape Reduction Task Force Committee
review of the business name registration process under the Business Names
Act 1962. The amendments to both Acts will provide further protections
for business and consumers alike.
Administrative Cost
Any expenditure associated with implementation of the
recommendations contained in the Bill will be met through existing
appropriations. No additional budgetary expenditure is anticipated.
Fundamental Legislative Principles
The Bill does not infringe any Fundamental Legislative Principles.
Consultation
Significant consultation on the proposed changes to the Fair Trading Act
1989 and Regulation 2001 occurred as part of the National Competition
Policy review process.
Extensive consultation was conducted on the amendments to the
Business Names Act 1962, as part of a wider government review of the Act.
Community and industry stakeholders have been supportive of the
proposals.
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Fair Trading and Another Act Amendment Bill 2002
Community
During the National Competition Policy review process the following
key industry associations were consulted: Real Estate Institute of
Queensland, National Council of Women in Queensland, the Australian
Direct Marketing Association, the Direct Selling Association of Australia,
Legal Aid Queensland, Optus, A Better Chance Pty Ltd and the Office of
Fair Trading Product Safety Branch.
As part of the Policy Review on the amendments to the Business Names
Act 1962 the following key industry associations were consulted:
Australian Consumers' Association, Australian Industry Group, Commerce
Queensland, Queensland Law Society, Institute of Chartered Accountants,
National Institute of Accountants, Australian Insurance Institute, Australian
Institute of Banking and Finance, Australian Finance Conference,
Queensland Association of Permanent Building Societies, Financial
Planning Association of Australia, Queensland Retail Traders and
Shopkeepers Association, Retailers Association of Queensland, Real Estate
Institute of Queensland, Motor Trades Association of Queensland, Master
Plumbers Association of Queensland, Queensland Master Builders
Association, Queensland Hotels Association, Queensland Newsagents
Federation and Queensland Tourism Industry Corporation.
Government
Key government stakeholders involved in consultation with the draft Bill
include the Department of the Premier and Cabinet, Department of Justice
and Attorney-General, Queensland Treasury, Queensland Transport,
Department of Main Roads, Queensland Police Service, Department of
Employment and Training, Department of Primary Industries (Office of
Rural Communities), Department of Housing and the Building Services
Authority.
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Fair Trading and Another Act Amendment Bill 2002
NOTES ON PROVISIONS
PART 1--PRELIMINARY
Clause 1 sets out the short title of the Act.
Clause 2 provides for commencement of the Act (other than clause 4
which will commence on assent) on a day to be fixed by proclamation.
PART 2--AMENDMENT OF BUSINESS NAMES ACT
1962
Clause 3 provides that Part 2 of the Bill amends the Business Names Act
1962.
Clause 4 amends the penalty for failing to register a business name under
the Business Names Act 1962. The penalty has been increased from 4
penalty units to 40 penalty units (from $300 to $3,000).
Clause 5 amends the registration process for a business name by
inserting the requirement, where an applicant is an individual (a natural
person), to provide proof of identity when submitting an application for
registration of a business name. The form of identification will be
prescribed by regulation.
Clause 6 provides that an application for a business name is not made
until both the prescribed fee and proof of the applicant's identity has been
provided. This only applies to applicants that are individuals (that is:
natural persons).
Clause 7 amends section 12 of the Business Names Act 1962, so that
where a business name is registered under that Act, and a change occurs in
relation to the proprietorship of the business, all new proprietors, who are
individuals, must provide proof of identification.
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Fair Trading and Another Act Amendment Bill 2002
PART 3--AMENDMENT OF FAIR TRADING ACT 1989
Clause 8 provides that Part 3 of the Bill amends the Fair Trading Act
1989.
Clause 9 amends section 58A to require contracts relating to emergency
repairs as a result of major incidents such as natural disasters to be made
subject to some of the door-to-door provisions of the Fair Trading Act
1989.
These contracts were originally exempted to ensure emergency repairs
were not delayed at a time when they are most needed; however consumers
in such situations miss out on any of the protections provided by the door-
to-door provisions.
The specific aim of the amendment is to make door-to-door contracts for
emergency repairs subject to the door-to-door provisions of the Act, with
the exception of the requirements for:
� a 10 day cooling off period;
� payment of consideration during the cooling off period;
� no attendance at consumers' homes except during specified
hours; and
� other minor related amendments arising as a result of the
amendment of section 58A.
Therefore, subject to these exceptions, emergency repairers will be
bound by the door-to-door provisions of the Act, in particular the
requirements to:
� provide written contracts in the prescribed form;
� provide identification; and
� not engage in harassing or coercive behaviour towards the
householder.
This is to provide consumer protection without subjecting dealers to
provisions that are too onerous or might dissuade them from offering
emergency repairs.
The amendment will only apply to contracts not already regulated by the
Domestic Building Contracts Act 2000.
Clause 10 amends subsection 60(4) by increasing the threshold at which
the door-to-door provisions apply to contracts from $50 to $75. The
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Fair Trading and Another Act Amendment Bill 2002
threshold has not been altered since the Act was introduced in 1987. It is
considered that $75 will more accurately reflect the price of goods that are
being offered by door-to-door traders and will ensure that many services
such as lawn mowing and household cleaning will not be subject to the
door-to-door provisions.
� State of Queensland 2002