16 October 2024

LANDMARK BAN ON UNFAIR BUSINESS PRACTICES SET TO SAVE AUSTRALIANS TIME, MONEY AND BOOST WELLBEING

The Consumer Policy Research Centre (CPRC) welcomes the Albanese Government’s commitment today to legislate a ban on unfair business practices.

CPRC CEO Erin Turner said this is a watershed moment for Australian consumer rights.

“This commitment from the Federal Government will close a major gap in our consumer protections by making sure businesses can’t take advantage of customers through trickery, manipulation or other unfair tactics,” Turner said.

“A ban on unfair business practices will save Australians millions in money, countless hours, and immeasurable wellbeing.

“It puts an end to practices like subscription traps, where a company makes it easy to sign up to a service but very hard to stop payments,” Turner said.

In August this year, CPRC found that:

• 75% of Australians with subscriptions have had some form of negative experience when trying to cancel.

• 10% of Australians have kept paying for a product or service they no longer need or want because of a subscription trap.
• 48% of Australians lost excessive amounts of time trying to cancel a subscription

“Another example we expect to see captured by this law reform is unfair customer service practices, where companies fail to accept complaints or spend so long avoiding customers that it causes harm.

“The ACCC recently took car company Mazda to court for giving customers the run around and evading their responsibility to fix faulty cars.

“The court found that Mazda caused customers to lose time, money and caused major frustrations but shockingly the behaviour didn’t breach current consumer laws,” Turner said.

The reform isn’t just a win for consumers however, it is also a victory for ethical business.

“It levels the playing field, ensuring that companies committed to treating customers fairly aren’t undercut by those resorting to unscrupulous tactics. It’s a clear signal that Australia is committed to advancing better business practices.”

The urgency and impact of this legislation is underscored by CPRC’s research demonstrating why Australia needs to ban unfair business practices:

• CPRC compares laws in the UK, EU, US and Singapore to show how an unfair trading ban could work in Australia https://cprc.org.au/report/how-australia-can-stop-unfair-business-practices/

• Consumer organisations identify over 50 examples of unfair business practices https://cprc.org.au/submission/make-unfair-illegal
• CPRC research into subscription traps in Australia https://cprc.org.au/report/let-me-out

“An unfair trading prohibition for Australia marks a new era for consumer rights. We look forward to working with the government to ensure this legislation protects Australians and leads to a fairer marketplace for all,” Turner said.

Erin Turner is available for comment on request contact CPRC media@cprc.org.au or ph: 0493 539 466.

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Media contact:  Liliana Campos, CPRC Communication Manager 0493 539 466