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Fair Trading (Australian Consumer Law) Amendment Bill 2010
Fair Trading (Australian Consumer Law)
Amendment Bill 2010
Explanatory Notes for Amendments to be
Moved During Consideration In Detail by The
Honourable Peter Lawlor MP
Title of the Bill
Fair Trading (Australian Consumer Law) Amendment Bill 2010
Objectives of the Amendments
The objectives of the amendments to be moved during consideration in
detail are set out below:
· These amendments will, in effect, retain the current prohibited
hours under section 63 of the Fair Trading Act 1989 for
unsolicited consumer agreements where the total price paid is
$100 or less. Also, where the total price paid or is payable is
$100 or less and the unsolicited consumer agreement contravenes
the prohibited hours provisions, the consumer should have the
right to terminate the agreement during the termination period.
· These amendments will also ensure that Part 2-3 of the
Australian Consumer Law (ACL), as applied as a law of
Queensland, will not apply to consumer contracts entered into,
varied or renewed before the date on which the provision
commences.
Achievement of the Objectives
The objectives are achieved by amending the definition of unsolicited
consumer agreement in section 69 of the Australian Consumer Law
(Queensland), as it applies to permitted hours in section 73 of the
Australian Consumer Law (Queensland), by not including section 69,
subsection (1), paragraph (d) which provides that an unsolicited consumer
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Fair Trading (Australian Consumer Law) Amendment Bill 2010
agreement under the Australian Consumer Law (ACL) must have a total
price paid or payable of over $100.
Due to the definition of an unsolicited consumer agreement under the ACL,
it is possible that a dealer in Queensland could sell goods door-to-door or in
a non-retail environment, if the total price paid for the goods is $100 or
less, without regard to the prohibited hours currently in Queensland.
The amendments will give a person the right to the termination of a
contract for a breach of section 73 for a contract of under $100 where the
agreement is made outside the permitted hours. The amendment will also
make persons who breach section 73 for a contract of $100 or less liable to
the same enforcement remedies as those for contracts over $100.
These amendments will also clarify the application of Part 2-3 of the ACL
(Queensland) to contracts entered into prior to the commencement of the
Bill. The amendment will clarify that Part 2-3 of the ACL (Queensland), as
applied as a law of Queensland, will only apply to contracts entered into,
renewed or varied on or after the commencement day.
Alternative Ways of Achieving Policy Objectives
There is no alternative way of achieving the policy objectives other than to
amend the Bill.
Estimated Cost for Government Implementation
There is no cost associated with these amendments.
Consistency with Fundamental Legislative Principles
There is no breach of fundamental legislative principles of the Legislative
Standards Act 1992.
Consultation
Consultation has occurred with the Department of the Premier and Cabinet.
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Fair Trading (Australian Consumer Law) Amendment Bill 2010
Notes On Provisions
Clause 18 - Replacement of pt 3 (Trade practices)
Section 53A - Interpretation of unsolicited consumer
agreement permitted hours provisions and
termination period provision
Section 53A provides that for the Australian Consumer Law (Queensland),
section 69, subsection (1) of that section is taken not to include paragraph
(d). Paragraph (d) provides that an unsolicited consumer agreement must
have a total price paid or payable of over $100. The intention is to prohibit
dealers approaching consumers in an unsolicited manner outside of the
permitted hours where the unsolicited consumer agreement is $100 or less.
Section 53A also gives a consumer the right to terminate an unsolicited
consumer agreement, where the agreement is an unsolicited consumer
agreement under section 69 (Meaning of unsolicited consumer agreement),
but for the total price paid or payable, and the agreement is in contravention
of the permitted hours of section 73 (Permitted hours for negotiating an
unsolicited consumer agreement) of the ACL. The intention is to provide
Queensland consumers with the right to terminate in certain circumstances.
Clause 57 - Insertion of new pt 10
Section 123 - Unfair contract terms
Clause 57 will insert section 123 into the Fair Trading Act 1989. The
intention is to clarify the application of Part 2-3 of the ACL (Queensland)
to existing consumer contracts. Section 123 explains that Part 2-3 of the
ACL (Queensland) does not apply to existing consumer contracts unless
such a contract is:
· renewed on or after that commencement, in which case Part 2-3
of the ACL (Queensland) applies to the contract as renewed on
and from the day on which takes effect (the renewal day) in
relation to conduct that occurs on or after the renewal day; or
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Fair Trading (Australian Consumer Law) Amendment Bill 2010
· varied on or after that commencement, in which case Part 2-3 of
the ACL (Queensland) will apply to the contract as varied on and
from that day on which the variation takes effect (the variation
day), in relation to conduct that occurs on or after the variation day.
© State of Queensland 2010
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