Schedule 1—The Schedule version of Part IV
Part 1—Schedule version of Part IV
Note: See section 150A.
Division 1—Cartel conduct
Subdivision A—Introduction
45AA Simplified outline
The following is a simplified outline of this Division:
• This Division sets out parallel offences and civil penalty provisions relating to cartel conduct.
• A person must not make, or give effect to, a contract, arrangement or understanding that contains a cartel provision.
• A cartel provision is a provision relating to:
(a) price‑fixing; or
(b) restricting outputs in the production and supply chain; or
(c) allocating customers, suppliers or territories; or
(d) bid‑rigging;
by parties that are, or would otherwise be, in competition with each other.
45AB Definitions
In this Division:
annual turnover, of a body corporate during a 12‑month period, means the sum of the values of all the supplies that the body corporate, and any body corporate related to the body corporate, have made, or are likely to make, during the 12‑month period, other than:
(a) supplies made from any of those bodies corporate to any other of those bodies corporate; or
(b) supplies that are input taxed; or
(c) supplies that are not for consideration (and are not taxable supplies under section 72‑5 of the A New Tax System (Goods and Services Tax) Act 1999); or
(d) supplies that are not made in connection with an enterprise that the body corporate carries on; or
(e) supplies that are not connected with Australia.
Expressions used in this definition that are also used in the A New Tax System (Goods and Services Tax) Act 1999 have the same meaning as in that Act.
benefit includes any advantage and is not limited to property.
bid includes:
(a) tender; and
(b) the taking, by a potential bidder or tenderer, of a preliminary step in a bidding or tendering process.
evidential burden, in relation to a matter, means the burden of adducing or pointing to evidence that suggests a reasonable possibility that the matter exists or does not exist.
knowledge has the same meaning as in the Criminal Code.
likely, in relation to any of the following:
(a) a supply of goods or services;
(b) an acquisition of goods or services;
(c) the production of goods;
(d) the capacity to supply services;
includes a possibility that is not remote.
obtaining includes:
(a) obtaining for another person; and
(b) inducing a third person to do something that results in another person obtaining.
party has a meaning affected by section 45AC.
production includes manufacture, processing, treatment, assembly, disassembly, renovation, restoration, growing, raising, mining, extraction, harvesting, fishing, capturing and gathering.
45AC Extended meaning of party
For the purposes of this Division, if a body corporate is a party to a contract, arrangement or understanding (otherwise than because of this section), each body corporate related to that body corporate is taken to be a party to that contract, arrangement or understanding.
45AD Cartel provisions
(1) For the purposes of this Act, a provision of a contract, arrangement or understanding is a cartel provision if:
(a) either of the following conditions is satisfied in relation to the provision:
(i) the purpose/effect condition set out in subsection (2);
(ii) the purpose condition set out in subsection (3); and
(b) the competition condition set out in subsection (4) is satisfied in relation to the provision.
Purpose/effect condition
(2) The purpose/effect condition is satisfied if the provision has the purpose, or has or is likely to have the effect, of directly or indirectly:
(a) fixing, controlling or maintaining; or
(b) providing for the fixing, controlling or maintaining of;
the price for, or a discount, allowance, rebate or credit in relation to:
(c) goods or services supplied, or likely to be supplied, by any or all of the parties to the contract, arrangement or understanding; or
(d) goods or services acquired, or likely to be acquired, by any or all of the parties to the contract, arrangement or understanding; or
(e) goods or services re‑supplied, or likely to be re‑supplied, by persons or classes of persons to whom those goods or services were supplied by any or all of the parties to the contract, arrangement or understanding; or
(f) goods or services likely to be re‑supplied by persons or classes of persons to whom those goods or services are likely to be supplied by any or all of the parties to the contract, arrangement or understanding.
Note 1: The purpose/effect condition can be satisfied when a provision is considered with related provisions—see subsection (8).
Note 2: Party has an extended meaning—see section 45AC.
Purpose condition
(3) The purpose condition is satisfied if the provision has the purpose of directly or indirectly:
(a) preventing, restricting or limiting:
(i) the production, or likely production, of goods by any or all of the parties to the contract, arrangement or understanding; or
(ii) the capacity, or likely capacity, of any or all of the parties to the contract, arrangement or understanding to supply services; or
(iii) the supply, or likely supply, of goods or services to persons or classes of persons by any or all of the parties to the contract, arrangement or understanding; or
(iv) the acquisition, or likely acquisition, of goods or services from persons or classes of persons by any or all of the parties to the contract, arrangement or understanding; or
(b) allocating between any or all of the parties to the contract, arrangement or understanding:
(i) the persons or classes of persons who have acquired, or who are likely to acquire, goods or services from any or all of the parties to the contract, arrangement or understanding; or
(ii) the persons or classes of persons who have supplied, or who are likely to supply, goods or services to any or all of the parties to the contract, arrangement or understanding; or
(iii) the geographical areas in which goods or services are supplied, or likely to be supplied, by any or all of the parties to the contract, arrangement or understanding; or
(iv) the geographical areas in which goods or services are acquired, or likely to be acquired, by any or all of the parties to the contract, arrangement or understanding; or
(c) ensuring that in the event of a request for bids in relation to the supply or acquisition of goods or services:
(i) one or more parties to the contract, arrangement or understanding bid, but one or more other parties do not; or
(ii) 2 or more parties to the contract, arrangement or understanding bid, but at least 2 of them do so on the basis that one of those bids is more likely to be successful than the others; or
(iii) 2 or more parties to the contract, arrangement or understanding bid, but not all of those parties proceed with their bids until the suspension or finalisation of the request for bids process; or
(iv) 2 or more parties to the contract, arrangement or understanding bid and proceed with their bids, but at least 2 of them proceed with their bids on the basis that one of those bids is more likely to be successful than the others; or
(v) 2 or more parties to the contract, arrangement or understanding bid, but a material component of at least one of those bids is worked out in accordance with the contract, arrangement or understanding.
Note 1: For example, subparagraph (3)(a)(iii) will not apply in relation to a roster for the supply of after‑hours medical services if the roster does not prevent, restrict or limit the supply of services.
Note 2: The purpose condition can be satisfied when a provision is considered with related provisions—see subsection (9).
Note 3: Party has an extended meaning—see section 45AC.
Competition condition
(4) The competition condition is satisfied if at least 2 of the parties to the contract, arrangement or understanding:
(a) are or are likely to be; or
(b) but for any contract, arrangement or understanding, would be or would be likely to be;
in competition with each other in relation to:
(c) if paragraph (2)(c) or (3)(b) applies in relation to a supply, or likely supply, of goods or services—the supply of those goods or services in trade or commerce; or
(d) if paragraph (2)(d) or (3)(b) applies in relation to an acquisition, or likely acquisition, of goods or services—the acquisition of those goods or services in trade or commerce; or
(e) if paragraph (2)(e) or (f) applies in relation to a re‑supply, or likely re‑supply, of goods or services—the supply of those goods or services in trade or commerce to that re‑supplier; or
(f) if subparagraph (3)(a)(i) applies in relation to preventing, restricting or limiting the production, or likely production, of goods—the production of those goods in trade or commerce; or
(g) if subparagraph (3)(a)(ii) applies in relation to preventing, restricting or limiting the capacity, or likely capacity, to supply services—the supply of those services in trade or commerce; or
(h) if subparagraph (3)(a)(iii) applies in relation to preventing, restricting or limiting the supply, or likely supply, of goods or services—the supply of those goods or services in trade or commerce; or
(i) if subparagraph (3)(a)(iv) applies in relation to preventing, restricting or limiting the acquisition, or likely acquisition, of goods or services—the acquisition of those goods or services in trade or commerce; or
(j) if paragraph (3)(c) applies in relation to a supply of goods or services—the supply of those goods or services in trade or commerce; or
(k) if paragraph (3)(c) applies in relation to an acquisition of goods or services—the acquisition of those goods or services in trade or commerce.
Note 1: Party has an extended meaning—see section 45AC.
Note 2: Trade or commerce is defined in section 4 to mean trade or commerce within Australia or between Australia and places outside Australia.
Immaterial whether identities of persons can be ascertained
(5) It is immaterial whether the identities of the persons referred to in paragraph (2)(e) or (f) or subparagraph (3)(a)(iii) or (iv) or (b)(i) or (ii) can be ascertained.
Recommending prices etc.
(6) For the purposes of this Division, a provision of a contract, arrangement or understanding is not taken:
(a) to have the purpose mentioned in subsection (2); or
(b) to have, or be likely to have, the effect mentioned in subsection (2);
by reason only that it recommends, or provides for the recommending of, a price, discount, allowance, rebate or credit.
Immaterial whether particular circumstances or particular conditions
(7) It is immaterial whether:
(a) for the purposes of subsection (2), subparagraphs (3)(a)(iii) and (iv) and paragraphs (3)(b) and (c)—a supply or acquisition happens, or a likely supply or likely acquisition is to happen, in particular circumstances or on particular conditions; and
(b) for the purposes of subparagraph (3)(a)(i)—the production happens, or the likely production is to happen, in particular circumstances or on particular conditions; and
(c) for the purposes of subparagraph (3)(a)(ii)—the capacity exists, or the likely capacity is to exist, in particular circumstances or on particular conditions.
Considering related provisions—purpose/effect condition
(8) For the purposes of this Division, a provision of a contract, arrangement or understanding is taken to have the purpose, or to have or be likely to have the effect, mentioned in subsection (2) if the provision, when considered together with any or all of the following provisions:
(a) the other provisions of the contract, arrangement or understanding;
(b) the provisions of another contract, arrangement or understanding, if the parties to that other contract, arrangement or understanding consist of or include at least one of the parties to the first‑mentioned contract, arrangement or understanding;
has that purpose, or has or is likely to have that effect.
Considering related provisions—purpose condition
(9) For the purposes of this Division, a provision of a contract, arrangement or understanding is taken to have the purpose mentioned in a paragraph of subsection (3) if the provision, when considered together with any or all of the following provisions:
(a) the other provisions of the contract, arrangement or understanding;
(b) the provisions of another contract, arrangement or understanding, if the parties to that other contract, arrangement or understanding consist of or include at least one of the parties to the first‑mentioned contract, arrangement or understanding;
has that purpose.
Purpose/effect of a provision
(10) For the purposes of this Division, a provision of a contract, arrangement or understanding is not to be taken not to have the purpose, or not to have or to be likely to have the effect, mentioned in subsection (2) by reason only of:
(a) the form of the provision; or
(b) the form of the contract, arrangement or understanding; or
(c) any description given to the provision, or to the contract, arrangement or understanding, by the parties.
Purpose of a provision
(11) For the purposes of this Division, a provision of a contract, arrangement or understanding is not to be taken not to have the purpose mentioned in a paragraph of subsection (3) by reason only of:
(a) the form of the provision; or
(b) the form of the contract, arrangement or understanding; or
(c) any description given to the provision, or to the contract, arrangement or understanding, by the parties.
45AE Meaning of expressions in other provisions of this Act
In determining the meaning of an expression used in a provision of this Act (other than this Division, subsection 6(2C), paragraph 76(1A)(aa) or subsection 93AB(1A)), this Division is to be disregarded.
Subdivision B—Offences etc.
45AF Making a contract etc. containing a cartel provision
Offence
(1) A person commits an offence if:
(a) the person makes a contract or arrangement, or arrives at an understanding; and
(b) the contract, arrangement or understanding contains a cartel provision.
(2) The fault element for paragraph (1)(b) is knowledge or belief.
Penalty
(3) An offence against subsection (1) committed by a body corporate is punishable on conviction by a fine not exceeding the greater of the following:
(a) $10,000,000;
(b) if the court can determine the total value of the benefits that:
(i) have been obtained by one or more persons; and
(ii) are reasonably attributable to the commission of the offence;
3 times that total value;
(c) if the court cannot determine the total value of those benefits—10% of the body corporate’s annual turnover during the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence.
(4) An offence against subsection (1) committed by a person other than a body corporate is punishable on conviction by a term of imprisonment not exceeding 10 years or a fine not exceeding 2,000 penalty units, or both.
Indictable offence
(5) An offence against subsection (1) is an indictable offence.
45AG Giving effect to a cartel provision
Offence
(1) A person commits an offence if:
(a) a contract, arrangement or understanding contains a cartel provision; and
(b) the person gives effect to the cartel provision.
(2) The fault element for paragraph (1)(a) is knowledge or belief.
Penalty
(3) An offence against subsection (1) committed by a body corporate is punishable on conviction by a fine not exceeding the greater of the following:
(a) $10,000,000;
(b) if the court can determine the total value of the benefits that:
(i) have been obtained by one or more persons; and
(ii) are reasonably attributable to the commission of the offence;
3 times that total value;
(c) if the court cannot determine the total value of those benefits—10% of the body corporate’s annual turnover during the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence.
(4) An offence against subsection (1) committed by a person other than a body corporate is punishable on conviction by a term of imprisonment not exceeding 10 years or a fine not exceeding 2,000 penalty units, or both.
Pre‑commencement contracts etc.
(5) Paragraph (1)(a) applies to contracts or arrangements made, or understandings arrived at, before, at or after the commencement of this section.
Indictable offence
(6) An offence against subsection (1) is an indictable offence.
45AH Determining guilt
(1) A person may be found guilty of an offence against section 45AF or 45AG even if:
(a) each other party to the contract, arrangement or understanding is a person who is not criminally responsible; or
(b) subject to subsection (2), all other parties to the contract, arrangement or understanding have been acquitted of the offence.
Note: Party has an extended meaning—see section 45AC.
(2) A person cannot be found guilty of an offence against section 45AF or 45AG if:
(a) all other parties to the contract, arrangement or understanding have been acquitted of such an offence; and
(b) a finding of guilt would be inconsistent with their acquittal.
45AI Court may make related civil orders
If a prosecution against a person for an offence against section 45AF or 45AG is being, or has been, heard by a court, the court may:
(a) grant an injunction under section 80 against the person in relation to:
(i) the conduct that constitutes, or is alleged to constitute, the offence; or
(ii) other conduct of that kind; or
(b) make an order under section 86C, 86D, 86E or 87 in relation to the offence.
Subdivision C—Civil penalty provisions
45AJ Making a contract etc. containing a cartel provision
A person contravenes this section if:
(a) the person makes a contract or arrangement, or arrives at an understanding; and
(b) the contract, arrangement or understanding contains a cartel provision.
Note: For enforcement, see Part VI.
45AK Giving effect to a cartel provision
(1) A person contravenes this section if:
(a) a contract, arrangement or understanding contains a cartel provision; and
(b) the person gives effect to the cartel provision.
Note: For enforcement, see Part VI.
(2) Paragraph (1)(a) applies to contracts or arrangements made, or understandings arrived at, before, at or after the commencement of this section.
Subdivision D—Exceptions
45AL Conduct notified
(1) Sections 45AF, 45AG, 45AJ and 45AK do not apply to a person in relation to a contract, arrangement or understanding containing a cartel provision, in so far as:
(a) the cartel provision:
(i) has the purpose, or has or is likely to have the effect, mentioned in subsection 45AD(2); or
(ii) has the purpose mentioned in a paragraph of subsection 45AD(3) other than paragraph (c); and
(b) the person has given the Commission a collective bargaining notice under subsection 93AB(1A) setting out particulars of the contract, arrangement or understanding; and
(c) the notice is in force under section 93AD.
(2) A person who wishes to rely on subsection (1) bears an evidential burden in relation to that matter.
45AM Cartel provision subject to grant of authorisation
(1) Sections 45AF and 45AJ do not apply in relation to the making of a contract that contains a cartel provision if:
(a) the contract is subject to a condition that the provision will not come into force unless and until the person is granted an authorisation to give effect to the provision; and
(b) the person applies for the grant of such an authorisation within 14 days after the contract is made.
(2) A person who wishes to rely on subsection (1) bears an evidential burden in relation to that matter.
45AN Contracts, arrangements or understandings between related bodies corporate
(1) Sections 45AF, 45AG, 45AJ and 45AK do not apply in relation to a contract, arrangement or understanding if the only parties to the contract, arrangement or understanding are bodies corporate that are related to each other.
(2) A person who wishes to rely on subsection (1) bears an evidential burden in relation to that matter.
45AO Joint ventures—prosecution
(1) Sections 45AF and 45AG do not apply in relation to a contract, arrangement or understanding containing a cartel provision if the defendant proves that:
(a) the cartel provision is:
(i) for the purposes of a joint venture; and
(ii) reasonably necessary for undertaking the joint venture; and
(b) the joint venture is for any one or more of the following:
(i) production of goods;
(ii) supply of goods or services;
(iii) acquisition of goods or services; and
(c) the joint venture is not carried on for the purpose of substantially lessening competition; and
(d) in a case where subparagraph 4J(a)(i) applies to the joint venture—the joint venture is carried on jointly by the parties to the contract, arrangement or understanding; and
(e) in a case where subparagraph 4J(a)(ii) applies to the joint venture—the joint venture is carried on by a body corporate formed by the parties to the contract, arrangement or understanding for the purpose of enabling those parties to carry on the activity mentioned in paragraph (b) jointly by means of:
(i) their joint control; or
(ii) their ownership of shares in the capital;
of that body corporate.
Note: For example, if a joint venture formed for the purpose of research and development provides the results of its research and development to participants in the joint venture, it may be a joint venture for the supply of services.
(2) A defendant who wishes to rely on subsection (1) must prove that matter on the balance of probabilities.
45AP Joint ventures—civil penalty proceedings
(1) Sections 45AJ and 45AK do not apply in relation to a contract, arrangement or understanding containing a cartel provision if the defendant proves that:
(a) the cartel provision is:
(i) for the purposes of a joint venture; and
(ii) reasonably necessary for undertaking the joint venture; and
(b) the joint venture is for any one or more of the following:
(i) production of goods;
(ii) supply of goods or services;
(iii) acquisition of goods or services; and
(c) the joint venture is not carried on for the purpose of substantially lessening competition; and
(d) in a case where subparagraph 4J(a)(i) applies to the joint venture—the joint venture is carried on jointly by the parties to the contract, arrangement or understanding; and
(e) in a case where subparagraph 4J(a)(ii) applies to the joint venture—the joint venture is carried on by a body corporate formed by the parties to the contract, arrangement or understanding for the purpose of enabling those parties to carry on the activity mentioned in paragraph (b) jointly by means of:
(i) their joint control; or
(ii) their ownership of shares in the capital;
of that body corporate.
Note: For example, if a joint venture formed for the purpose of research and development provides the results of its research and development to participants in the joint venture, it may be a joint venture for the supply of services.
(2) A defendant who wishes to rely on subsection (1) must prove that matter on the balance of probabilities.
45AQ Resale price maintenance
(1) Sections 45AF, 45AG, 45AJ and 45AK do not apply in relation to a contract, arrangement or understanding containing a cartel provision, in so far as the cartel provision relates to:
(a) conduct that contravenes section 48; or
(b) conduct that would contravene section 48 but for the operation of section 88; or
(c) conduct that would contravene section 48 if this Act defined the acts constituting the practice of resale price maintenance by reference to the maximum price at which goods or services are to be sold or supplied or are to be advertised, displayed or offered for sale or supply.
(2) A person who wishes to rely on subsection (1) bears an evidential burden in relation to that matter.
45AR Exclusive dealing
(1) Sections 45AF and 45AJ do not apply in relation to the making of a contract, arrangement or understanding that contains a cartel provision, in so far as giving effect to the cartel provision would, or would but for the operation of subsection 47(10) or section 88 or 93, constitute a contravention of section 47.
(2) Sections 45AG and 45AK do not apply in relation to the giving effect to a cartel provision by way of:
(a) engaging in conduct that contravenes, or would but for the operation of subsection 47(10) or section 88 or 93 contravene, section 47; or
(b) doing an act by reason of a breach or threatened breach of a condition referred to in subsection 47(2), (4), (6) or (8), being an act done by a person at a time when:
(i) an authorisation under section 88 is in force in relation to conduct engaged in by that person on that condition; or
(ii) by reason of subsection 93(7), conduct engaged in by that person on that condition is not to be taken to have the effect of substantially lessening competition within the meaning of section 47; or
(iii) a notice under subsection 93(1) is in force in relation to conduct engaged in by that person on that condition.
(3) A person who wishes to rely on subsection (1) or (2) bears an evidential burden in relation to that matter.
45AS Dual listed company arrangement
(1) Sections 45AF and 45AJ do not apply in relation to the making of a contract, arrangement or understanding that contains a cartel provision, in so far as:
(a) the contract, arrangement or understanding is a dual listed company arrangement; and
(b) the making of the contract, arrangement or understanding would, or would apart from section 88, contravene section 49.
(2) Sections 45AG and 45AK do not apply in relation to the giving effect to a cartel provision, in so far as:
(a) the cartel provision is a provision of a dual listed company arrangement; and
(b) the giving effect to the cartel provision would, or would apart from section 88, contravene section 49.
(3) A person who wishes to rely on subsection (1) or (2) bears an evidential burden in relation to that matter.
45AT Acquisition of shares or assets
(1) Sections 45AF, 45AG, 45AJ and 45AK do not apply in relation to a contract, arrangement or understanding containing a cartel provision, in so far as the cartel provision provides directly or indirectly for the acquisition of:
(a) any shares in the capital of a body corporate; or
(b) any assets of a person.
(2) A person who wishes to rely on subsection (1) bears an evidential burden in relation to that matter.
45AU Collective acquisition of goods or services by the parties to a contract, arrangement or understanding
(1) Sections 45AF, 45AG, 45AJ and 45AK do not apply in relation to a contract, arrangement or understanding containing a cartel provision, in so far as:
(a) the cartel provision has the purpose, or has or is likely to have the effect, mentioned in subsection 45AD(2); and
(b) either:
(i) the cartel provision relates to the price for goods or services to be collectively acquired, whether directly or indirectly, by the parties to the contract, arrangement or understanding; or
(ii) the cartel provision is for the joint advertising of the price for the re‑supply of goods or services so acquired.
(2) A person who wishes to rely on subsection (1) bears an evidential burden in relation to that matter.
Division 2—Other provisions
45 Contracts, arrangements or understandings that restrict dealings or affect competition
(1) A person must not:
(a) make a contract or arrangement, or arrive at an understanding, if a provision of the proposed contract, arrangement or understanding has the purpose, or would have or be likely to have the effect, of substantially lessening competition; or
(b) give effect to a provision of a contract, arrangement or understanding, if that provision has the purpose, or has or is likely to have the effect, of substantially lessening competition; or
(c) engage with one or more other persons in a concerted practice that has the purpose, or has or is likely to have the effect, of substantially lessening competition.
(2) Paragraph (1)(b) applies in relation to contracts or arrangements made, or understandings arrived at, before or after the commencement of this section.
(3) For the purposes of this section, competition means:
(a) in relation to a provision of a contract, arrangement or understanding or of a proposed contract, arrangement or understanding—competition in any market in which:
(i) a person who is a party to the contract, arrangement or understanding, or would be a party to the proposed contract, arrangement or understanding; or
(ii) any body corporate related to such a person;
supplies or acquires, or is likely to supply or acquire, goods or services or would, but for the provision, supply or acquire, or be likely to supply or acquire, goods or services; or
(b) in relation to a concerted practice—competition in any market in which:
(i) a person who is a party to the practice; or
(ii) any body corporate related to such a person;
supplies or acquires, or is likely to supply or acquire, goods or services or would, but for the practice, supply or acquire, or be likely to supply or acquire, goods or services.
(4) For the purposes of the application of this section in relation to a particular person, a provision of a contract, arrangement or understanding or of a proposed contract, arrangement or understanding shall be deemed to have or to be likely to have the effect of substantially lessening competition if that provision and any one or more of the following provisions, namely:
(a) the other provisions of that contract, arrangement or understanding or proposed contract, arrangement or understanding; and
(b) the provisions of any other contract, arrangement or understanding or proposed contract, arrangement or understanding to which the person or a body corporate related to the person is or would be a party;
together have or are likely to have that effect.
(5) This section does not apply to or in relation to a provision of a contract, arrangement or understanding or of a proposed contract, arrangement or understanding, or to or in relation to a concerted practice, in so far as the provision or practice relates to:
(a) conduct that contravenes section 48; or
(b) conduct that would contravene section 48 if subsection 48(2) did not apply; or
(c) conduct that would contravene section 48 if it were not authorised under section 88; or
(d) conduct that would contravene section 48 if this Act defined the acts constituting the practice of resale price maintenance by reference to the maximum price at which goods or services are to be sold or supplied or are to be advertised, displayed or offered for sale or supply.
(5A) The making of a contract, arrangement or understanding does not constitute a contravention of this section because the contract, arrangement or understanding contains a provision the giving effect to which would, or would apart from subsection 47(10) or section 88 or 93, constitute a contravention of section 47.
(6) This section does not apply to or in relation to the giving effect to a provision of a contract, arrangement or understanding, or to or in relation to engaging in a concerted practice, by way of:
(a) engaging in conduct that contravenes, or would but for the operation of subsection 47(10) or section 88 or 93 contravene, section 47; or
(b) doing an act by reason of a breach or threatened breach of a condition referred to in subsection 47(2), (4), (6) or (8), being an act done by a person at a time when:
(i) an authorization under section 88 is in force in relation to conduct engaged in by that person on that condition; or
(ii) by reason of subsection 93(7) conduct engaged in by that person on that condition is not to be taken to have the effect of substantially lessening competition within the meaning of section 47; or
(iii) a notice under subsection 93(1) is in force in relation to conduct engaged in by that person on that condition.
(6A) The following conduct:
(a) the making of a dual listed company arrangement;
(b) the giving effect to a provision of a dual listed company arrangement;
does not contravene this section if the conduct would, or would apart from section 88, contravene section 49.
(7) This section does not apply to or in relation to:
(a) a contract, arrangement or understanding to the extent that the contract, arrangement or understanding directly or indirectly provides for; or
(b) a proposed contract, arrangement or understanding to the extent that the proposed contract, arrangement or understanding would directly or indirectly provide for; or
(c) a concerted practice to the extent that the practice directly or indirectly involves;
the acquisition of any shares in the capital of a body corporate or any assets of a person.
(8) This section does not apply to or in relation to:
(a) a contract, arrangement or understanding, or
(b) a proposed contract, arrangement or understanding; or
(c) a concerted practice;
the only parties to which are or would be bodies corporate that are related to each other.
(8AA) This section does not apply to or in relation to a concerted practice if the only persons engaging in it are or would be:
(a) the Crown in right of the Commonwealth and one or more authorities of the Commonwealth; or
(b) the Crown in right of a State or Territory and one or more authorities of that State or Territory.
(8A) Subsection (1) does not apply to a person engaging in conduct described in that subsection if:
(a) the person has given the Commission a collective bargaining notice under subsection 93AB(1) describing the conduct; and
(b) the notice is in force under section 93AD.
(9) The making by a person of a contract that contains a provision in relation to which the person intends to apply for an authorisation under section 88 is not a contravention of subsection (1) of this section if:
(a) the contract is subject to a condition that the provision will not come into force unless and until the person is granted an authorization to give effect to the provision; and
(b) the person applies for the grant of such an authorization within 14 days after the contract is made;
but nothing in this subsection prevents the giving effect by a person to such a provision from constituting a contravention of subsection (1).
45D Secondary boycotts for the purpose of causing substantial loss or damage
(1) A person must not, in concert with a second person, engage in conduct:
(a) that hinders or prevents:
(i) a third person supplying goods or services to a fourth person (who is not an employer of the first person or the second person); or
(ii) a third person acquiring goods or services from a fourth person (who is not an employer of the first person or the second person); and
(b) that is engaged in for the purpose, and would have or be likely to have the effect, of causing substantial loss or damage to the business of the fourth person.
Note 1: Conduct that would otherwise contravene this section can be authorised under section 88.
Note 2: This section also has effect subject to section 45DD, which deals with permitted boycotts.
(2) A person is taken to engage in conduct for a purpose mentioned in subsection (1) if the person engages in the conduct for purposes that include that purpose.
45DA Secondary boycotts for the purpose of causing substantial lessening of competition
(1) A person must not, in concert with a second person, engage in conduct:
(a) that hinders or prevents:
(i) a third person supplying goods or services to a fourth person (who is not an employer of the first person or the second person); or
(ii) a third person acquiring goods or services from a fourth person (who is not an employer of the first person or the second person); and
(b) that is engaged in for the purpose, and would have or be likely to have the effect, of causing a substantial lessening of competition in any market in which the fourth person supplies or acquires goods or services.
Note 1: Conduct that would otherwise contravene this section can be authorised under section 88.
Note 2: This section also has effect subject to section 45DD, which deals with permitted boycotts.
(2) A person is taken to engage in conduct for a purpose mentioned in subsection (1) if the person engages in the conduct for purposes that include that purpose.
Note: This version of Part IV does not contain an equivalent of section 45DB of the Competition and Consumer Act 2010.
45DC Involvement and liability of employee organisations
Certain organisations taken to be acting in concert
(1) If 2 or more persons (the participants), each of whom is a member or officer of the same organisation of employees, engage in conduct in concert with one another, whether or not the conduct is also engaged in in concert with another person, then, unless the organisation proves otherwise, the organisation is taken for the purposes of sections 45D and 45DA:
(a) to engage in that conduct in concert with the participants; and
(b) to have engaged in that conduct for the purposes for which the participants engaged in it.
Consequences of organisation contravening subsection 45D(1) or 45DA(1)
(2) The consequences of an organisation of employees engaging, or being taken by subsection (1) to engage, in conduct in concert with any of its members or officers in contravention of subsection 45D(1) or 45DA(1) are as set out in subsections (3), (4) and (5).
Loss or damage taken to have been caused by organisation’s conduct
(3) Any loss or damage suffered by a person as a result of the conduct is taken, for the purposes of this Act, to have been caused by the conduct of the organisation.
Taking proceedings if organisation is a body corporate
(4) If the organisation is a body corporate, no action under section 82 to recover the amount of the loss or damage may be brought against any of the members or officers of the organisation in respect of the conduct.
Taking proceedings if organisation is not a body corporate
(5) If the organisation is not a body corporate:
(a) a proceeding in respect of the conduct may be brought under section 77, 80 or 82 against an officer of the organisation as a representative of the organisation’s members and the proceeding is taken to be a proceeding against all the persons who were members of the organisation at the time when the conduct was engaged in; and
(b) subsection 76(2) does not prevent an order being made in a proceeding mentioned in paragraph (a) that was brought under section 77; and
(c) the maximum pecuniary penalty that may be imposed in a proceeding mentioned in paragraph (a) that was brought under section 77 is the penalty applicable under section 76 in relation to a body corporate; and
(d) except as provided by paragraph (a), a proceeding in respect of the conduct must not be brought under section 77 or 82 against any of the members or officers of the organisation; and
(e) for the purpose of enforcing any judgment or order given or made in a proceeding mentioned in paragraph (a) that was brought under section 77 or 82, process may be issued and executed against the following property or interests as if the organisation were a body corporate and the absolute owner of the property or interests:
(i) any property of the organisation or of any branch or part of the organisation, whether vested in trustees or however otherwise held;
(ii) any property in which the organisation or any branch or part of the organisation has a beneficial interest, whether vested in trustees or however otherwise held;
(iii) any property in which any members of the organisation or of a branch or part of the organisation have a beneficial interest in their capacity as members, whether vested in trustees or however otherwise held; and
(f) if paragraph (e) applies, no process is to be issued or executed against any property of members or officers of the organisation or of a branch or part of the organisation except as provided in that paragraph.
45DD Situations in which boycotts permitted
Dominant purpose of conduct relates to employment matters—conduct by a person
(1) A person does not contravene, and is not involved in a contravention of, subsection 45D(1) or 45DA(1) by engaging in conduct if the dominant purpose for which the conduct is engaged in is substantially related to the remuneration, conditions of employment, hours of work or working conditions of that person or of another person employed by an employer of that person.
Dominant purpose of conduct relates to employment matters—conduct by employee organisation and employees
(2) If:
(a) an employee, or 2 or more employees who are employed by the same employer, engage in conduct in concert with another person who is, or with other persons each of whom is:
(i) an organisation of employees; or
(ii) an officer of an organisation of employees; and
(b) the conduct is only engaged in by the persons covered by paragraph (a); and
(c) the dominant purpose for which the conduct is engaged in is substantially related to the remuneration, conditions of employment, hours of work or working conditions of the employee, or any of the employees, covered by paragraph (a);
the persons covered by paragraph (a) do not contravene, and are not involved in a contravention of, subsection 45D(1) or 45DA(1) by engaging in the conduct.
Dominant purpose of conduct relates to environmental protection or consumer protection
(3) A person does not contravene, and is not involved in a contravention of, subsection 45D(1) or 45DA(1) by engaging in conduct if:
(a) the dominant purpose for which the conduct is engaged in is substantially related to environmental protection or consumer protection; and
(b) engaging in the conduct is not industrial action.
Note 1: If an environmental organisation or a consumer organisation is a body corporate:
(a) it is a “person” who may be subject to the prohibitions in subsections 45D(1) and 45DA(1) and who may also be covered by this exemption; and
(b) each of its members is a “person” who may be subject to the prohibitions in subsections 45D(1) and 45DA(1) and who may also be covered by this exemption.
Note 2: If an environmental organisation or a consumer organisation is not a body corporate:
(a) it is not a “person” and is therefore not subject to the prohibitions in subsections 45D(1) and 45DA(1) (consequently, this exemption does not cover the organisation as such); but
(b) each of its members is a “person” who may be subject to the prohibitions in subsections 45D(1) and 45DA(1) and who may also be covered by this exemption.
Meaning of industrial action—basic definition
(4) In subsection (3), industrial action means:
(a) the performance of work in a manner different from that in which it is customarily performed, or the adoption of a practice in relation to work, the result of which is a restriction or limitation on, or a delay in, the performance of the work, where:
(i) the terms and conditions of the work are prescribed, wholly or partly, by a workplace instrument or an order of an industrial body; or
(ii) the work is performed, or the practice is adopted, in connection with an industrial dispute; or
(b) a ban, limitation or restriction on the performance of work, or on acceptance of or offering for work, in accordance with the terms and conditions prescribed by a workplace instrument or by an order of an industrial body; or
(c) a ban, limitation or restriction on the performance of work, or on acceptance of or offering for work, that is adopted in connection with an industrial dispute; or
(d) a failure or refusal by persons to attend for work or a failure or refusal to perform any work at all by persons who attend for work.
For this purpose, industrial body and workplace instrument have the same meanings as in the Fair Work Act 2009.
Meaning of industrial action—further clarification
(5) For the purposes of subsection (3):
(a) conduct is capable of constituting industrial action even if the conduct relates to part only of the duties that persons are required to perform in the course of their employment; and
(b) a reference to industrial action includes a reference to a course of conduct consisting of a series of industrial actions.
Subsections (1), (2) and (3) do not protect people not covered by them
(6) In applying subsection 45D(1) or 45DA(1) to a person who is not covered by subsection (1), (2) or (3) in respect of certain conduct, disregard the fact that other persons may be covered by one of those subsections in respect of the same conduct.
Note: Section 415 of the Fair Work Act 2009 limits the right to bring actions under the Competition Code in respect of industrial action that is protected action for the purposes of that section.
45E Prohibition of contracts, arrangements or understandings affecting the supply or acquisition of goods or services
Situations to which section applies
(1) This section applies in the following situations:
(a) a supply situation—in this situation, a person (the first person) has been accustomed, or is under an obligation, to supply goods or services to another person (the second person); or
(b) an acquisition situation—in this situation, a person (the first person) has been accustomed, or is under an obligation, to acquire goods or services from another person (the second person).
Note : For the meanings of accustomed to supply and accustomed to acquire, see subsections (5) and (7).
Prohibition in a supply situation
(2) In a supply situation, the first person must not make a contract or arrangement, or arrive at an understanding, with an organisation of employees, an officer of such an organisation or a person acting for and on behalf of such an officer or organisation, if the proposed contract, arrangement or understanding contains a provision included for the purpose, or for purposes including the purpose, of:
(a) preventing or hindering the first person from supplying or continuing to supply such goods or services to the second person; or
(b) preventing or hindering the first person from supplying or continuing to supply such goods or services to the second person, except subject to a condition:
(i) that is not a condition to which the supply of such goods or services by the first person to the second person has previously been subject because of a provision in a contract between those persons; and
(ii) that is about the persons to whom, the manner in which or the terms on which the second person may supply any goods or services.
Prohibition in an acquisition situation
(3) In an acquisition situation, the first person must not make a contract or arrangement, or arrive at an understanding, with an organisation of employees, an officer of such an organisation or a person acting for and on behalf of such an officer or organisation, if the proposed contract, arrangement or understanding contains a provision included for the purpose, or for purposes including the purpose, of:
(a) preventing or hindering the first person from acquiring or continuing to acquire such goods or services from the second person; or
(b) preventing or hindering the first person from acquiring or continuing to acquire such goods or services from the second person, except subject to a condition:
(i) that is not a condition to which the acquisition of such goods or services by the first person from the second person has previously been subject because of a provision in a contract between those persons; and
(ii) that is about the persons to whom, the manner in which or the terms on which the second person may supply any goods or services.
No contravention if second person gives written consent to written contract etc.
(4) Subsections (2) and (3) do not apply to a contract, arrangement or understanding if it is in writing and was made or arrived at with the written consent of the second person.
Meaning of accustomed to supply
(5) In this section, a reference to a person who has been accustomed to supply goods or services to a second person includes (subject to subsection (6)):
(a) a regular supplier of such goods or services to the second person; or
(b) the latest supplier of such goods or services to the second person; or
(c) a person who, at any time during the immediately preceding 3 months, supplied such goods or services to the second person.
Exception to subsection (5)
(6) If:
(a) goods or services have been supplied by a person to a second person under a contract between them that required the first person to supply such goods or services over a period; and
(b) the period has ended; and
(c) after the end of the period, the second person has been supplied with such goods or services by another person and has not also been supplied with such goods or services by the first person;
then, for the purposes of the application of this section in relation to anything done after the second person has been supplied with goods or services as mentioned in paragraph (c), the first person is not to be taken to be a person who has been accustomed to supply such goods or services to the second person.
Meaning of accustomed to acquire
(7) In this section, a reference to a person who has been accustomed to acquire goods or services from a second person includes (subject to subsection (8)):
(a) a regular acquirer of such goods or services from the second person; or
(b) a person who, when last acquiring such goods or services, acquired them from the second person; or
(c) a person who, at any time during the immediately preceding 3 months, acquired such goods or services from the second person.
Exception to subsection (7)
(8) If:
(a) goods or services have been acquired by a person from a second person under a contract between them that required the first person to acquire such goods or services over a period; and
(b) the period has ended; and
(c) after the end of the period, the second person has refused to supply such goods or services to the first person;
then, for the purposes of the application of this section in relation to anything done after the second person has refused to supply goods or services as mentioned in paragraph (c), the first person is not to be taken to be a person who has been accustomed to acquire such goods or services from the second person.
Note: Conduct that would otherwise contravene this section can be authorised under section 88.
45EA Provisions contravening section 45E not to be given effect
A person must not give effect to a provision of a contract, arrangement or understanding if, because of the provision, the making of the contract or arrangement, or the arriving at the understanding, by the person:
(a) contravened subsection 45E(2) or (3); or
(b) would have contravened subsection 45E(2) or (3) if:
(i) section 45E had been in force when the contract or arrangement was made, or the understanding was arrived at; and
(ii) the words “is in writing and” and “written” were not included in subsection 45E(4).
Note: Conduct that would otherwise contravene this section can be authorised under section 88.
45EB Sections 45D to 45EA do not affect operation of other provisions of Part
Nothing in section 45D, 45DA, 45DC, 45DD, 45E or 45EA affects the operation of any other provision of this Part.
46 Misuse of market power
(1) A person who has a substantial degree of power in a market must not engage in conduct that has the purpose, or has or is likely to have the effect, of substantially lessening competition in:
(a) that market; or
(b) any other market in which that person, or a body corporate that is related to that person:
(i) supplies goods or services, or is likely to supply goods or services; or
(ii) supplies goods or services, or is likely to supply goods or services, indirectly through one or more other persons; or
(c) any other market in which that person, or a body corporate that is related to that person:
(i) acquires goods or services, or is likely to acquire goods or services; or
(ii) acquires goods or services, or is likely to acquire goods or services, indirectly through one or more other persons.
(3) A person (the first person) is taken for the purposes of this section to have a substantial degree of power in a market if:
(a) a body corporate that is related to the first person has, or 2 or more bodies corporate each of which is related to the first person together have, a substantial degree of power in that market; or
(b) the first person and a body corporate that is, or the first person and 2 or more bodies corporate each of which is, related to the first person, together have a substantial degree of power in that market.
(4) In determining for the purposes of this section the degree of power that a person (the first person) or bodies corporate have in a market:
(a) regard must be had to the extent to which the conduct of the first person or of any of those bodies corporate in that market is constrained by the conduct of:
(i) competitors, or potential competitors, of the first person or of any of those bodies corporate in that market; or
(ii) persons to whom or from whom the first person or any of those bodies corporate supplies or acquires goods or services in that market; and
(b) regard may be had to the power the first person or bodies corporate have in that market that results from:
(i) any contracts, arrangements or understandings that the first person or bodies corporate have with another party or other parties; or
(ii) any proposed contracts, arrangements or understandings that the first person or bodies corporate may have with another party or other parties.
(5) For the purposes of this section, a person may have a substantial degree of power in a market even though:
(a) the person does not substantially control that market; or
(b) the person does not have absolute freedom from constraint by the conduct of:
(i) competitors, or potential competitors, of the person in that market; or
(ii) persons to whom or from whom the person supplies or acquires goods or services in that market.
(6) Subsections (4) and (5) do not limit the matters to which regard may be had in determining, for the purposes of this section, the degree of power that a person or bodies corporate have in a market.
(7) To avoid doubt, for the purposes of this section, more than one person may have a substantial degree of power in a market.
(8) In this section:
(a) a reference to power is a reference to market power; and
(b) a reference to a market is a reference to a market for goods or services; and
(c) a reference to power in relation to, or to conduct in, a market is a reference to power, or to conduct, in that market either as a supplier or as an acquirer of goods or services in that market.
47 Exclusive dealing
(1) Subject to this section, a person shall not, in trade or commerce, engage in the practice of exclusive dealing.
(2) A person (the first person) engages in the practice of exclusive dealing if the first person:
(a) supplies, or offers to supply, goods or services;
(b) supplies, or offers to supply, goods or services at a particular price; or
(c) gives or allows, or offers to give or allow, a discount, allowance, rebate or credit in relation to the supply or proposed supply of goods or services by the first person;
on the condition that the person (the second person) to whom the first person supplies, or offers or proposes to supply, the goods or services or, if the second person is a body corporate, a body corporate related to that body corporate:
(d) will not, or will not except to a limited extent, acquire goods or services, or goods or services of a particular kind or description, directly or indirectly from a competitor of the first person or from a competitor of a body corporate related to the first person;
(e) will not, or will not except to a limited extent, re‑supply goods or services, or goods or services of a particular kind or description, acquired directly or indirectly from a competitor of the first person or from a competitor of a body corporate related to the first person; or
(f) in the case where the first person supplies or would supply goods or services, will not re‑supply the goods or services to any person, or will not, or will not except to a limited extent, re‑supply the goods or services:
(i) to particular persons or classes of persons or to persons other than particular persons or classes of persons; or
(ii) in particular places or classes of places or in places other than particular places or classes of places.
(3) A person (the first person) also engages in the practice of exclusive dealing if the first person refuses:
(a) to supply goods or services to a second person;
(b) to supply goods or services to a second person at a particular price; or
(c) to give or allow a discount, allowance, rebate or credit in relation to the supply or proposed supply of goods or services to a second person;
for the reason that the second person or, if the second person is a body corporate, a body corporate related to that body corporate:
(d) has acquired, or has not agreed not to acquire, goods or services, or goods or services of a particular kind or description, directly or indirectly from a competitor of the first person or from a competitor of a body corporate related to the first person;
(e) has re‑supplied, or has not agreed not to re‑supply, goods or services, or goods or services of a particular kind or description, acquired directly or indirectly from a competitor of the first person or from a competitor of a body corporate related to the first person; or
(f) has re‑supplied, or has not agreed not to re‑supply, goods or services, or goods or services of a particular kind or description, acquired from the first person to any person, or has re‑supplied, or has not agreed not to re‑supply, goods or services, or goods or services of a particular kind or description, acquired from the first person:
(i) to particular persons or classes of persons or to persons other than particular persons or classes of persons; or
(ii) in particular places or classes of places or in places other than particular places or classes of places.
(4) A person (the first person) also engages in the practice of exclusive dealing if the first person:
(a) acquires, or offers to acquire, goods or services; or
(b) acquires, or offers to acquire, goods or services at a particular price;
on the condition that the person (the second person) from whom the first person acquires or offers to acquire the goods or services or, if the second person is a body corporate, a body corporate related to that body corporate will not supply goods or services, or goods or services of a particular kind or description, to any person, or will not, or will not except to a limited extent, supply goods or services, or goods or services of a particular kind or description:
(c) to particular persons or classes of persons or to persons other than particular persons or classes of persons; or
(d) in particular places or classes of places or in places other than particular places or classes of places.
(5) A person (the first person) also engages in the practice of exclusive dealing if the first person refuses:
(a) to acquire goods or services from a second person; or
(b) to acquire goods or services at a particular price from a second person;
for the reason that the second person or, if the second person is a body corporate, a body corporate related to that body corporate has supplied, or has not agreed not to supply, goods or services, or goods or services of a particular kind or description:
(c) to particular persons or classes of persons or to persons other than particular persons or classes of persons; or
(d) in particular places or classes of places or in places other than particular places or classes of places.
(6) A person (the first person) also engages in the practice of exclusive dealing if the first person:
(a) supplies, or offers to supply, goods or services;
(b) supplies, or offers to supply, goods or services at a particular price; or
(c) gives or allows, or offers to give or allow, a discount, allowance, rebate or credit in relation to the supply or proposed supply of goods or services by the first person;
on the condition that the person (the second person) to whom the first person supplies or offers or proposes to supply the goods or services or, if the second person is a body corporate, a body corporate related to that body corporate will acquire goods or services of a particular kind or description directly or indirectly from another person not being a body corporate related to the first person.
(7) A person (the first person) also engages in the practice of exclusive dealing if the first person refuses:
(a) to supply goods or services to a second person;
(b) to supply goods or services at a particular price to a second person; or
(c) to give or allow a discount, allowance, rebate or credit in relation to the supply of goods or services to a second person;
for the reason that the second person or, if the second person is a body corporate, a body corporate related to that body corporate has not acquired, or has not agreed to acquire, goods or services of a particular kind or description directly or indirectly from another person not being a body corporate related to the first person.
(8) A person (the first person) also engages in the practice of exclusive dealing if the first person grants or renews, or makes it known that the first person will not exercise a power or right to terminate, a lease of, or a licence in respect of, land or a building or part of a building on the condition that another party to the lease or licence or, if that other party is a body corporate, a body corporate related to that body corporate:
(a) will not, or will not except to a limited extent:
(i) acquire goods or services, or goods or services of a particular kind or description, directly or indirectly from a competitor of the first person or from a competitor of a body corporate related to the first person; or
(ii) re‑supply goods or services, or goods or services of a particular kind or description, acquired directly or indirectly from a competitor of the first person or from a competitor of a body corporate related to the first person;
(b) will not supply goods or services, or goods or services of a particular kind or description, to any person, or will not, or will not except to a limited extent, supply goods or services, or goods or services of a particular kind or description:
(i) to particular persons or classes of persons or to persons other than particular persons or classes of persons; or
(ii) in particular places or classes of places or in places other than particular places or classes of places; or
(c) will acquire goods or services of a particular kind or description directly or indirectly from another person not being a body corporate related to the first person.
(9) A person (the first person) also engages in the practice of exclusive dealing if the first person refuses to grant or renew, or exercises a power or right to terminate, a lease of, or a licence in respect of, land or a building or part of a building for the reason that another party to the lease or licence or, if that other party is a body corporate, a body corporate related to that body corporate:
(a) has acquired, or has not agreed not to acquire, goods or services, or goods or services of a particular kind or description, directly or indirectly from a competitor of the first person or from a competitor of a body corporate related to the first person;
(b) has re‑supplied, or has not agreed not to re‑supply, goods or services, or goods or services of a particular kind or description, acquired directly or indirectly from a competitor of the first person or from a competitor of a body corporate related to the first person;
(c) has supplied goods or services, or goods or services of a particular kind or description:
(i) to particular persons or classes of persons or to persons other than particular persons or classes of persons; or
(ii) in particular places or classes of places or in places other than particular places or classes of places; or
(d) has not acquired, or has not agreed to acquire, goods or services of a particular kind or description directly or indirectly from another person not being a body corporate related to the first person.
(10) Subsection (1) does not apply to the practice of exclusive dealing by a person unless:
(a) the engaging by the person in the conduct that constitutes the practice of exclusive dealing has the purpose, or has or is likely to have the effect, of substantially lessening competition; or
(b) the engaging by the person in the conduct that constitutes the practice of exclusive dealing, and the engaging by the person, or by a body corporate related to the person, in other conduct of the same or a similar kind, together have or are likely to have the effect of substantially lessening competition.
(11) Subsections (8) and (9) do not apply with respect to:
(a) conduct engaged in:
(i) by a registered charity; and
(ii) for or in accordance with the purposes or objects of that registered charity; or
(b) conduct engaged in in pursuance of a legally enforceable requirement made by a registered charity, being a requirement made for or in accordance with the purposes or objects of that registered charity.
(12) Subsection (1) does not apply with respect to any conduct engaged in by a body corporate by way of restricting dealings by another body corporate if those bodies corporate are related to each other.
(13) In this section:
(a) a reference to a condition shall be read as a reference to any condition, whether direct or indirect and whether having legal or equitable force or not, and includes a reference to a condition the existence or nature of which is ascertainable only by inference from the conduct of persons or from other relevant circumstances;
(b) a reference to competition, in relation to conduct to which a provision of this section other than subsection (8) or (9) applies, shall be read as a reference to competition in any market in which:
(i) the person engaging in the conduct or any body corporate related to that person; or
(ii) any person whose business dealings are restricted, limited or otherwise circumscribed by the conduct or, if that person is a body corporate, any body corporate related to that body corporate;
supplies or acquires, or is likely to supply or acquire, goods or services or would, but for the conduct, supply or acquire, or be likely to supply or acquire, goods or services; and
(c) a reference to competition, in relation to conduct to which subsection (8) or (9) applies, shall be read as a reference to competition in any market in which the person engaging in the conduct or any other person whose business dealings are restricted, limited or otherwise circumscribed by the conduct, or any body corporate related to either of those persons, supplies or acquires, or is likely to supply or acquire, goods or services or would, but for the conduct, supply or acquire, or be likely to supply or acquire, goods or services.
48 Resale price maintenance
(1) A person shall not engage in the practice of resale price maintenance.
(2) Subsection (1) does not apply to a person engaging in conduct that constitutes the practice of resale price maintenance if:
(a) the person has given the Commission a notice under subsection 93(1) describing the conduct; and
(b) the notice is in force under section 93.
49 Dual listed company arrangements that affect competition
(1) A person must not:
(a) make a dual listed company arrangement if a provision of the proposed arrangement has the purpose, or would have or be likely to have the effect, of substantially lessening competition; or
(b) give effect to a provision of a dual listed company arrangement if that provision has the purpose, or has or is likely to have the effect, of substantially lessening competition.
Note: Conduct that would otherwise contravene this section can be authorised under section 88.
Exception
(2) The making by a person of a dual listed company arrangement that contains a provision that has the purpose, or would have or be likely to have the effect, of substantially lessening competition does not contravene this section if:
(a) the arrangement is subject to a condition that the provision will not come into force unless and until the person is granted an authorisation to give effect to the provision; and
(b) the person applies for the grant of such an authorisation within 14 days after the arrangement is made.
However, this subsection does not permit the person to give effect to such a provision.
Meaning of competition
(3) For the purposes of this section, competition, in relation to a provision of a dual listed company arrangement or of a proposed dual listed company arrangement, means competition in any market in which:
(a) a person that is a party to the arrangement or would be a party to the proposed arrangement; or
(b) any body corporate related to such a person;
supplies or acquires, or is likely to supply or acquire, goods or services or would, apart from the provision, supply or acquire, or be likely to supply or acquire, goods or services.
(4) For the purposes of the application of this section in relation to a particular person, a provision of a dual listed company arrangement or of a proposed dual listed company arrangement is taken to have, or to be likely to have, the effect of substantially lessening competition if that provision and any one or more of the following provisions:
(a) the other provisions of that arrangement or proposed arrangement;
(b) the provisions of any other contract, arrangement or understanding or proposed contract, arrangement or understanding to which the person or a body corporate related to the person is or would be a party;
together have or are likely to have that effect.
50 Prohibition of acquisitions that would result in a substantial lessening of competition
(1) A person must not directly or indirectly:
(a) acquire shares in the capital of a body corporate; or
(b) acquire any assets of a person;
if the acquisition would have the effect, or be likely to have the effect, of substantially lessening competition in any market.
Note: The person will not be prevented from making the acquisition if the corporation is granted an authorisation for the acquisition under section 88.
(3) Without limiting the matters that may be taken into account for the purposes of subsection (1) in determining whether the acquisition would have the effect, or be likely to have the effect, of substantially lessening competition in a market, the following matters must be taken into account:
(a) the actual and potential level of import competition in the market;
(b) the height of barriers to entry to the market;
(c) the level of concentration in the market;
(d) the degree of countervailing power in the market;
(e) the likelihood that the acquisition would result in the acquirer being able to significantly and sustainably increase prices or profit margins;
(f) the extent to which substitutes are available in the market or are likely to be available in the market;
(g) the dynamic characteristics of the market, including growth, innovation and product differentiation;
(h) the likelihood that the acquisition would result in the removal from the market of a vigorous and effective competitor;
(i) the nature and extent of vertical integration in the market.
(4) Where:
(a) a person has entered into a contract to acquire shares in the capital of a body corporate or assets of a person;
(b) the contract is subject to a condition that the provisions of the contract relating to the acquisition will not come into force unless and until the person has been granted an authorization to acquire the shares or assets; and
(c) the person applied for the grant of such an authorization before the expiration of 14 days after the contract was entered into;
the acquisition of the shares or assets shall not be regarded for the purposes of this Act as having taken place in pursuance of the contract before:
(d) the application for the authorization is disposed of; or
(e) the contract ceases to be subject to the condition;
whichever first happens.
(5A) For the purposes of subsection (4), an application for an authorisation is taken to be disposed of 14 days after the day the Tribunal makes a determination on the application.
(6) In this section:
market means a market for goods or services in:
(a) Australia; or
(b) a State; or
(c) a Territory; or
(d) a region of Australia.
51 Exceptions
(1) In deciding whether a person has contravened this Part, the following must be disregarded:
(a) anything that is disregarded for the purposes of Part IV of the Competition and Consumer Act 2010 because of subsection 51(1) of that Act;
(b) anything done in a State, if the thing is specified in, and specifically authorised by:
(i) an Act passed by the Parliament of that State; or
(ii) regulations made under such an Act;
(c) anything done in the Australian Capital Territory, if the thing is specified in, and specifically authorised by:
(i) an enactment as defined in section 3 of the Australian Capital Territory (Self‑Government) Act 1988; or
(ii) regulations made under such an enactment;
(d) anything done in the Northern Territory, if the thing is specified in, and specifically authorised by:
(i) an enactment as defined in section 4 of the Northern Territory (Self‑Government) Act 1978; or
(ii) regulations made under such an enactment;
(e) anything done in another Territory, if the thing is specified in, and specifically authorised by:
(i) an Ordinance of that Territory; or
(ii) regulations made under such an Ordinance.
(1A) Without limiting subsection (1), conduct is taken to be specified in, and authorised by, a law for the purposes of that subsection if:
(a) a licence or other instrument issued or made under the law specifies one or both of the following:
(i) the person authorised to engage in the conduct;
(ii) the place where the conduct is to occur; and
(b) the law specifies the attributes of the conduct except those mentioned in paragraph (a).
For this purpose, law means a State Act, enactment or Ordinance.
(1B) Subsections (1) and (1A) apply regardless of when the State Acts, enactments, Ordinances, regulations or instruments referred to in those subsections were passed, made or issued.
(1C) The operation of subsection (1) (other than paragraph (1)(a)) is subject to the following limitations:
(a) in order for something to be regarded as specifically authorised for the purposes of subsection (1), the authorising provision must expressly refer to the Competition Code;
(b) paragraphs (1)(b), (c), (d) and (e) do not apply in deciding whether a person has contravened section 50;
(c) regulations referred to in subparagraph (1)(b)(ii), (c)(ii), (d)(ii) or (e)(ii) do not have the effect of requiring a particular thing to be disregarded if the thing happens more than 2 years after those regulations came into operation;
(d) regulations referred to in subparagraph (1)(b)(ii), (c)(ii) or (d)(ii) do not have the effect of requiring a particular thing to be disregarded to the extent that the regulations are the same in substance as other regulations that:
(i) were made for the purposes of the subparagraph concerned; and
(ii) came into operation more than 2 years before the particular thing happened.
(2) In determining whether a contravention of a provision of this Part other than section 45D, 45DA, 45E, 45EA or 48 has been committed, regard shall not be had:
(a) to any act done, or concerted practice, to the extent that it relates to the remuneration, conditions of employment, hours of work or working conditions of employees; or
(aa) to:
(i) the making of a contract or arrangement, or the entering into of an understanding; or
(ii) any provision of a contract, arrangement or understanding;
to the extent that the contract, arrangement, understanding or provision relates to the remuneration, conditions of employment, hours of work or working conditions of employees; or
(b) to any provision of a contract of service or of a contract for the provision of services, being a provision under which a person, not being a body corporate, agrees to accept restrictions as to the work, whether as an employee or otherwise, in which he or she may engage during, or after the termination of, the contract; or
(c) to:
(i) any provision of a contract, arrangement or understanding; or
(ii) any concerted practice;
to the extent that the provision or concerted practice obliges a person to comply with or apply standards of dimension, design, quality or performance prepared or approved by Standards Australia or a prescribed association or body; or
(d) to:
(i) any provision of a contract, arrangement or understanding; or
(ii) any concerted practice;
between partners none of whom is a body corporate, to the extent that the provision or concerted practice relates to:
(iii) the terms of the partnership; or
(iv) the conduct of the partnership business; or
(v) competition between the partnership and a party to the contract, arrangement, understanding or concerted practice, while the party is, or after the party ceases to be, a partner; or
(e) in the case of a contract for the sale of a business or of shares in the capital of a body corporate carrying on a business—to any provision of the contract that is solely for the protection of the purchaser in respect of the goodwill of the business; or
(g) to:
(i) any provision of a contract, arrangement or understanding; or
(ii) any concerted practice;
to the extent that the provision or concerted practice relates exclusively to:
(iii) the export of goods from Australia; or
(iv) the supply of services outside Australia;
if full and accurate particulars of the provision or concerted practice were given to the Commission no more than 14 days after the day the contract or arrangement was made or the understanding or concerted practice was entered into, or before 8 September 1976, whichever was the later.
(2AA) For the purposes of paragraph (2)(g), the particulars to be given to the Commission:
(a) need not include particulars of prices for the goods or services; but
(b) must include particulars of any method of fixing, controlling or maintaining such prices.
(2A) In determining whether a contravention of a provision of this Part other than section 48 has been committed, regard shall not be had to any acts done, otherwise than in the course of trade or commerce, in concert by ultimate users or consumers of goods or services against the suppliers of those goods or services.
Chapter 1—Introduction
1 Application of this Schedule
This Schedule applies to the extent provided by:
(a) Part XI of the Competition and Consumer Act; or
(b) an application law.
2 Definitions
(1) In this Schedule:
ABN has the meaning given by section 41 of the A New Tax System (Australian Business Number) Act 1999.
acceptable quality: see sections 54(2) to (7).
ACN has the meaning given by section 9 of the Corporations Act 2001.
acquire includes:
(a) in relation to goods—acquire by way of purchase, exchange or taking on lease, on hire or on hire‑purchase; and
(b) in relation to services—accept.
Note: Section 5 deals with when receipt of a donation is an acquisition.
adverse publicity order: see section 247(2).
affected person, in relation to goods, means:
(a) a consumer who acquires the goods; or
(b) a person who acquires the goods from the consumer (other than for the purpose of re‑supply); or
(c) a person who derives title to the goods through or under the consumer.
agreement document: see section 78(2).
annual turnover, of a body corporate during a 12‑month period, means the sum of the values of all the supplies that the body corporate, and any body corporate related to the body corporate, have made, or are likely to make, during the 12‑month period, other than:
(a) supplies made from any of those bodies corporate to any other of those bodies corporate; or
(b) supplies that are input taxed; or
(c) supplies that are not for consideration (and are not taxable supplies under section 72‑5 of the A New Tax System (Goods and Services Tax) Act 1999); or
(d) supplies that are not made in connection with an enterprise that the body corporate carries on; or
(e) supplies that are not connected with Australia.
Expressions used in this definition that are also used in the A New Tax System (Goods and Services Tax) Act 1999 have the same meaning as in that Act.
applicable industry code has the meaning given by section 51ACA(1) of the Competition and Consumer Act.
application law has the same meaning as in section 140 of the Competition and Consumer Act.
article includes a token, card or document.
ASIC means the Australian Securities and Investments Commission.
assert a right to payment: see section 10(1).
associate regulator:
(a) for the purposes of the application of this Schedule as a law of the Commonwealth—means a body that is, for the purposes of the application of this Schedule as a law of a State or a Territory, the regulator within the meaning of the application law of the State or Territory; or
(b) for the purposes of the application of this Schedule as a law of a State or a Territory—means:
(i) the Commission; or
(ii) a body that is, for the purposes of the application of this Schedule as a law of another State or a Territory, the regulator within the meaning of the application law of that other State or Territory.
authority, in relation to a State or a Territory (including an external Territory), means:
(a) a body corporate established for a purpose of the State or the Territory by or under a law of the State or Territory; or
(b) an incorporated company in which the State or the Territory, or a body corporate referred to in paragraph (a), has a controlling interest.
authority of the Commonwealth means:
(a) a body corporate established for a purpose of the Commonwealth by or under a law of the Commonwealth or a law of a Territory; or
(b) an incorporated company in which the Commonwealth, or a body corporate referred to in paragraph (a), has a controlling interest.
banker has the same meaning as in section 4(1) of the Competition and Consumer Act.
ban period for an interim ban: see section 111(1).
business includes a business not carried on for profit.
business day, in relation to an unsolicited consumer agreement, means a day that is not:
(a) a Saturday or Sunday; or
(b) a public holiday in the place where the agreement was made.
business or professional relationship includes a relationship between employer and employee, or a similar relationship.
call on, in relation to negotiating an unsolicited consumer agreement, does not include call by telephone.
Commission has the same meaning as in section 4(1) of the Competition and Consumer Act.
Commonwealth mandatory standard, in relation to goods, means a mandatory standard in respect of the goods imposed by a law of the Commonwealth.
Commonwealth Minister means the Minister who administers Part XI of the Competition and Consumer Act.
Competition and Consumer Act means the Competition and Consumer Act 2010.
consumer: see section 3.
consumer contract: see section 23(3).
consumer goods means goods that are intended to be used, or are of a kind likely to be used, for personal, domestic or household use or consumption, and includes any such goods that have become fixtures since the time they were supplied if:
(a) a recall notice for the goods has been issued; or
(b) a person has voluntarily taken action to recall the goods.
continuing credit contract: see section 14(1).
contravening conduct: see section 239(1)(a)(i).
court, in relation to a matter, means any court having jurisdiction in the matter.
covering includes a stopper, glass, bottle, vessel, box, capsule, case, frame or wrapper.
credit card: see section 39(5).
credit provider means a person providing, or proposing to provide, in the course of a business carried on by the person, credit to consumers in relation to the acquisition of goods or services.
dealer: see section 71.
debit card: see section 39(6).
declared term: see section 239(1)(a)(ii).
defective goods action means an action under section 138, 139, 140 or 141, and includes such an action because of section 138(3) or 145.
disclosed purpose: see section 55(2).
displayed price: see sections 47(2) to (5).
document means any record of information, and includes:
(a) anything on which there is writing; and
(b) anything on which there are marks, figures, symbols or perforations having a meaning for persons qualified to interpret them; and
(c) anything from which sounds, images or writings can be reproduced with or without the aid of anything else; and
(d) a map, plan, drawing or photograph.
egg has the meaning given by subsection 137A(3).
enforcement proceeding means:
(a) a proceeding for an offence against Chapter 4; or
(b) a proceeding instituted under Chapter 5 (other than under sections 237 and 239).
evidential burden, in relation to a matter, means the burden of adducing or pointing to evidence that suggests a reasonable possibility that the matter exists or does not exist.
express warranty, in relation to goods, means an undertaking, assertion or representation:
(a) that relates to:
(i) the quality, state, condition, performance or characteristics of the goods; or
(ii) the provision of services that are or may at any time be required for the goods; or
(iii) the supply of parts that are or may at any time be required for the goods; or
(iv) the future availability of identical goods, or of goods constituting or forming part of a set of which the goods, in relation to which the undertaking, assertion or representation is given or made, form part; and
(b) that is given or made in connection with the supply of the goods, or in connection with the promotion by any means of the supply or use of the goods; and
(c) the natural tendency of which is to induce persons to acquire the goods.
financial product has the meaning given by section 12BAA of the Australian Securities and Investments Commission Act 2001.
financial service has the meaning given by section 12BAB of the Australian Securities and Investments Commission Act 2001.
free item includes a free service.
free range egg has the meaning given by subsection 137A(4).
gift card: see section 99A.
goods includes:
(a) ships, aircraft and other vehicles; and
(b) animals, including fish; and
(c) minerals, trees and crops, whether on, under or attached to land or not; and
(d) gas and electricity; and
(e) computer software; and
(f) second‑hand goods; and
(g) any component part of, or accessory to, goods.
grown: see section 255(7).
GST has the meaning given by section 195‑1 of the A New Tax System (Goods and Services Tax) Act 1999.
industry code has the meaning given by section 51ACA of the Competition and Consumer Act.
information provider: see sections 19(5) and (6).
information standard: see sections 134(1) and 135(1).
inner container includes any container into which goods are packed, other than a shipping or airline container, pallet or other similar article.
interest, in relation to land, means:
(a) a legal or equitable estate or interest in the land; or
(b) a right of occupancy of the land, or of a building or part of a building erected on the land, arising by virtue of the holding of shares, or by virtue of a contract to purchase shares, in an incorporated company that owns the land or building; or
(c) a right, power or privilege over, or in connection with, the land.
interim ban: see sections 109(1) and (2).
involved: a person is involved, in a contravention of a provision of this Schedule or in conduct that constitutes such a contravention, if the person:
(a) has aided, abetted, counselled or procured the contravention; or
(b) has induced, whether by threats or promises or otherwise, the contravention; or
(c) has been in any way, directly or indirectly, knowingly concerned in, or party to, the contravention; or
(d) has conspired with others to effect the contravention.
joint liability proceedings means proceedings relating to the joint and several liability under section 278 of a linked credit provider and a supplier of goods or services.
label includes a band or ticket.
lay‑by agreement: see section 96(3).
linked credit contract: see section 278(2).
linked credit provider, in relation to a supplier of goods or services, means a credit provider:
(a) with whom the supplier has a contract, arrangement or understanding relating to:
(i) the supply to the supplier of goods in which the supplier deals; or
(ii) the business carried on by the supplier of supplying goods or services; or
(iii) the provision to persons to whom goods or services are supplied by the supplier of credit in respect of payment for those goods or services; or
(b) to whom the supplier, by arrangement with the credit provider, regularly refers persons for the purpose of obtaining credit; or
(c) whose forms of contract, forms of application or offers for credit are, by arrangement with the credit provider, made available to persons by the supplier; or
(d) with whom the supplier has a contract, arrangement or understanding under which contracts, applications or offers for credit from the credit provider may be signed by persons at premises of the supplier.
loan contract means a contract under which a person in the course of a business carried on by that person provides or agrees to provide, whether on one or more occasions, credit to a consumer in one or more of the following ways:
(a) by paying an amount to, or in accordance with the instructions of, the consumer;
(b) by applying an amount in satisfaction or reduction of an amount owed to the person by the consumer;
(c) by varying the terms of a contract under which money owed to the person by the consumer is payable;
(d) by deferring an obligation of the consumer to pay an amount to the person;
(e) by taking from the consumer a bill of exchange or other negotiable instrument on which the consumer (whether alone or with another person or other persons) is liable as drawer, acceptor or endorser.
major failure: see sections 260 and 268.
mandatory standard, in relation to goods, means a standard:
(a) for the goods or anything relating to the goods; and
(b) that, under a law of the Commonwealth, a State or a Territory, must be complied with when the goods are supplied by their manufacturer, being a law creating an offence or liability if there is such non‑compliance;
but does not include a standard which may be complied with by meeting a higher standard.
manufacturer: see section 7.
market has the same meaning as in section 4E of the Competition and Consumer Act.
materials, in relation to goods, means:
(a) if the goods are unmanufactured raw products—those products; and
(b) if the goods are manufactured goods—all matter or substances used or consumed in the manufacture of the goods (other than matter or substances that are treated as overheads); and
(c) in either case—the inner containers in which the goods are packed.
mixed supply: see section 3(11).
National Credit Code has the meaning given by section 5(1) of the National Consumer Credit Protection Act 2009.
negotiated by telephone: see section 78(3).
negotiation: see section 72.
new participant: see section 45(2).
non‑linked credit contract: see section 287(5).
non‑party consumer means:
(a) in relation to conduct referred to in section 239(1)(a)(i)—a person who is not, or has not been, a party to an enforcement proceeding in relation to the conduct; and
(b) in relation to a term of a contract referred to in section 239(1)(a)(ii)—a person who is not, or has not been, a party to an enforcement proceeding in relation to the term.
participant, in a pyramid scheme, means a person who participates in the scheme.
participate, in a pyramid scheme: see section 44(3).
participation payment: see section 45(1)(a).
permanent ban: see sections 114(1) and (2).
post‑supply fee: see section 99D(2).
premises means:
(a) an area of land or any other place (whether or not it is enclosed or built on); or
(b) a building or other structure; or
(c) a vehicle, vessel or aircraft; or
(d) a part of any such premises.
price, of goods or services, means:
(a) the amount paid or payable (including any charge of any description) for their acquisition; or
(b) if such an amount is not specified because the acquisition is part only of a transaction for which a total amount is paid or payable:
(i) the lowest amount (including any charge of any description) for which the goods or services could reasonably have been acquired from the supplier at the time of the transaction or, if not from the supplier, from another supplier; or
(ii) if they could not reasonably have been acquired separately from another supplier—their value at the time of the transaction.
prior negotiations or arrangements, in relation to the acquisition of goods by a consumer, means negotiations or arrangements:
(a) that were conducted or made with the consumer by another person in the course of a business carried on by the other person; and
(b) that induced the consumer to acquire the goods, or otherwise promoted the acquisition of the goods by the consumer.
product related service means a service for or relating to:
(a) the installation of consumer goods of a particular kind; or
(b) the maintenance, repair or cleaning of consumer goods of a particular kind; or
(c) the assembly of consumer goods of a particular kind; or
(d) the delivery of consumer goods of a particular kind;
and, without limiting paragraphs (a) to (d), includes any other service that relates to the supply of consumer goods of that kind.
proof of transaction: see section 100(4).
publish, in relation to an advertisement, means include in a publication intended for sale or public distribution (whether to the public generally or to a restricted class or number of persons) or for public display (including in an electronic form).
pyramid scheme: see section 45(1).
recall notice: see section 122(1).
recovery period: see section 41(4).
recruitment payment: see section 45(1)(b).
regulations means regulations made under section 139G of the Competition and Consumer Act.
regulator:
(a) for the purposes of the application of this Schedule as a law of the Commonwealth—means the Commission; or
(b) for the purposes of the application of this Schedule as a law of a State or a Territory—has the meaning given by the application law of the State or Territory.
rejection period: see section 262(2).
related, in relation to a body corporate: see section 6.
related contract or instrument: see section 83(2).
rely on, in relation to a term of a consumer contract or small business contract, includes the following:
(a) attempt to enforce the term;
(b) attempt to exercise a right conferred, or purportedly conferred, by the term;
(c) assert the existence of a right conferred, or purportedly conferred, by the term.
responsible Minister means:
(a) the Commonwealth Minister; or
(b) the Minister of a State who administers the application law of the State; or
(c) the Minister of a Territory who administers the application law of the Territory.
safety defect, in relation to goods: see section 9.
safety standard: see sections 104(1) and 105(1).
sale by auction, in relation to the supply of goods by a person, means a sale by auction that is conducted by an agent of the person (whether the agent acts in person or by electronic means).
send includes deliver, and sent and sender have corresponding meanings.
serious injury or illness means an acute physical injury or illness that requires medical or surgical treatment by, or under the supervision of, a medical practitioner or a nurse (whether or not in a hospital, clinic or similar place), but does not include:
(a) an ailment, disorder, defect or morbid condition (whether of sudden onset or gradual development); or
(b) the recurrence, or aggravation, of such an ailment, disorder, defect or morbid condition.
services includes:
(a) any rights (including rights in relation to, and interests in, real or personal property), benefits, privileges or facilities that are, or are to be, provided, granted or conferred in trade or commerce; and
(b) without limiting paragraph (a), the rights, benefits, privileges or facilities that are, or are to be, provided, granted or conferred under:
(i) a contract for or in relation to the performance of work (including work of a professional nature), whether with or without the supply of goods; or
(ii) a contract for or in relation to the provision of, or the use or enjoyment of facilities for, amusement, entertainment, recreation or instruction; or
(iii) a contract for or in relation to the conferring of rights, benefits or privileges for which remuneration is payable in the form of a royalty, tribute, levy or similar exaction; or
(iv) a contract of insurance; or
(v) a contract between a banker and a customer of the banker entered into in the course of the carrying on by the banker of the business of banking; or
(vi) any contract for or in relation to the lending of money;
but does not include rights or benefits being the supply of goods or the performance of work under a contract of service.
share includes stock.
ship has the meaning given by section 3(1) of the Admiralty Act 1988.
single price: see section 48(7).
small business contract: see subsection 23(4).
standard form contract has a meaning affected by section 27.
substantially transformed, in relation to goods: see section 255(2).
substantiation notice means a notice under section 219.
substantiation notice compliance period: see section 221(2).
supply, when used as a verb, includes:
(a) in relation to goods—supply (including re‑supply) by way of sale, exchange, lease, hire or hire‑purchase; and
(b) in relation to services—provide, grant or confer;
and, when used as a noun, has a corresponding meaning, and supplied and supplier have corresponding meanings.
Note: Section 5 deals with when a donation is a supply.
supply of limited title: see section 51(2).
telecommunications service: see section 65(2).
termination charge: see section 97(2).
termination period, in relation to an unsolicited consumer agreement, means the period within which the consumer under the agreement is, under section 82 or under the agreement, entitled to terminate the agreement.
tied continuing credit contract means a continuing credit contract under which a credit provider provides credit in respect of the payment by a consumer for goods or services supplied by a supplier in relation to whom the credit provider is a linked credit provider.
tied loan contract means a loan contract entered into between a credit provider and a consumer where:
(a) the credit provider knows, or ought reasonably to know, that the consumer enters into the loan contract wholly or partly for the purposes of payment for goods or services supplied by a supplier; and
(b) at the time the loan contract is entered into the credit provider is a linked credit provider of the supplier.
trade or commerce means:
(a) trade or commerce within Australia; or
(b) trade or commerce between Australia and places outside Australia;
and includes any business or professional activity (whether or not carried on for profit).
transparent:
(a) in relation to a document—means:
(i) expressed in reasonably plain language; and
(ii) legible; and
(iii) presented clearly; and
(b) in relation to a term of a consumer contract or small business contract—see section 24(3).
unfair, in relation to a term of a consumer contract or small business contract: see section 24(1).
unsolicited consumer agreement: see section 69.
unsolicited goods means goods sent to a person without any request made by the person or on his or her behalf.
unsolicited services means:
(a) services supplied to a person; or
(b) services purported to have been supplied to a person which have not been supplied;
without any request made by the person or on his or her behalf.
upfront price: see section 26(2).
warranty against defects: see section 102(3).
(2) In this Schedule:
(a) a reference to engaging in conduct is a reference to doing or refusing to do any act, including:
(i) the making of, or the giving effect to a provision of, a contract or arrangement; or
(ii) the arriving at, or the giving effect to a provision of, an understanding; or
(iii) the requiring of the giving of, or the giving of, a covenant; and
(b) a reference to conduct, when that expression is used as a noun otherwise than as mentioned in paragraph (a), is a reference to the doing of or the refusing to do any act, including:
(i) the making of, or the giving effect to a provision of, a contract or arrangement; or
(ii) the arriving at, or the giving effect to a provision of, an understanding; or
(iii) the requiring of the giving of, or the giving of, a covenant; and
(c) a reference to refusing to do an act includes a reference to:
(i) refraining (otherwise than inadvertently) from doing that act; or
(ii) making it known that that act will not be done; and
(d) a reference to a person offering to do an act, or to do an act on a particular condition, includes a reference to the person making it known that the person will accept applications, offers or proposals for the person to do that act or to do that act on that condition, as the case may be.
3 Meaning of consumer
Acquiring goods as a consumer
(1) A person is taken to have acquired particular goods as a consumer if, and only if:
(a) the amount paid or payable for the goods, as worked out under subsections (4) to (9), did not exceed:
(i) $40,000; or
(ii) if a greater amount is prescribed for the purposes of this paragraph—that greater amount; or
(b) the goods were of a kind ordinarily acquired for personal, domestic or household use or consumption; or
(c) the goods consisted of a vehicle or trailer acquired for use principally in the transport of goods on public roads.
(2) However, subsection (1) does not apply if the person acquired the goods, or held himself or herself out as acquiring the goods:
(a) for the following purpose:
(i) for goods other than gift cards—for the purpose of re‑supply;
(ii) for gift cards—for the purpose of re‑supply in trade or commerce; or
(b) for the purpose of using them up or transforming them, in trade or commerce:
(i) in the course of a process of production or manufacture; or
(ii) in the course of repairing or treating other goods or fixtures on land.
Acquiring services as a consumer
(3) A person is taken to have acquired particular services as a consumer if, and only if:
(a) the amount paid or payable for the services, as worked out under subsections (4) to (9), did not exceed:
(i) $40,000; or
(ii) if a greater amount is prescribed for the purposes of subsection (1)(a)—that greater amount; or
(b) the services were of a kind ordinarily acquired for personal, domestic or household use or consumption.
Amounts paid or payable for purchases
(4) For the purposes of subsection (1) or (3), the amount paid or payable for goods or services purchased by a person is taken to be the price paid or payable by the person for the goods or services, unless subsection (5) applies.
(5) For the purposes of subsection (1) or (3), if a person purchased goods or services by a mixed supply and a specified price was not allocated to the goods or services in the contract under which they were purchased, the amount paid or payable for goods or services is taken to be:
(a) if, at the time of the acquisition, the person could have purchased from the supplier the goods or services other than by a mixed supply—the price at which they could have been purchased from the supplier; or
(b) if:
(i) paragraph (a) does not apply; but
(ii) at the time of the acquisition, goods or services of the kind acquired could have been purchased from another supplier other than by a mixed supply;
the lowest price at which the person could, at that time, reasonably have purchased goods or services of that kind from another supplier; or
(c) if, at the time of the acquisition, goods or services of the kind acquired could not have been purchased from any supplier except by a mixed supply—the value of the goods or services at that time.
Amounts paid or payable for other acquisitions
(6) For the purposes of subsection (1) or (3), the amount paid or payable for goods or services acquired by a person other than by way of purchase is taken to be the price at which, at the time of the acquisition, the person could have purchased the goods or services from the supplier, unless subsection (7) or (8) applies.
(7) For the purposes of subsection (1) or (3), if:
(a) goods or services acquired by a person other than by way of purchase could not, at the time of the acquisition, have been purchased from the supplier, or could have been purchased only by a mixed supply; but
(b) at that time, goods or services of the kind acquired could have been purchased from another supplier other than by a mixed supply;
the amount paid or payable for the goods or services is taken to be the lowest price at which the person could, at that time, reasonably have purchased goods or services of that kind from another supplier.
(8) For the purposes of subsection (1) or (3), if goods or services acquired by a person other than by way of purchase could not, at the time of the acquisition, have been purchased from any supplier other than by a mixed supply, the amount paid or payable for the goods or services is taken to be the value of the goods or services at that time.
Amounts paid or payable for obtaining credit
(9) If:
(a) a person obtains credit in connection with the acquisition of goods or services by him or her; and
(b) the amount paid or payable by him or her for the goods or services is increased because he or she so obtains credit;
obtaining the credit is taken for the purposes of subsection (3) to be the acquisition of a service, and the amount paid or payable by him or her for the service of being provided with the credit is taken to include the amount of the increase.
Presumption that persons are consumers
(10) If it is alleged in any proceeding under this Schedule, or in any other proceeding in respect of a matter arising under this Schedule, that a person was a consumer in relation to particular goods or services, it is presumed, unless the contrary is established, that the person was a consumer in relation to those goods or services.
Mixed supplies
(11) A purchase or other acquisition of goods or services is made by a mixed supply if the goods or services are purchased or acquired together with other property or services, or together with both other property and other services.
Supplies to consumers
(12) In this Schedule, a reference to a supply of goods or services to a consumer is a reference to a supply of goods or services to a person who is taken to have acquired them as a consumer.
4 Misleading representations with respect to future matters
(1) If:
(a) a person makes a representation with respect to any future matter (including the doing of, or the refusing to do, any act); and
(b) the person does not have reasonable grounds for making the representation;
the representation is taken, for the purposes of this Schedule, to be misleading.
(2) For the purposes of applying subsection (1) in relation to a proceeding concerning a representation made with respect to a future matter by:
(a) a party to the proceeding; or
(b) any other person;
the party or other person is taken not to have had reasonable grounds for making the representation, unless evidence is adduced to the contrary.
(3) To avoid doubt, subsection (2) does not:
(a) have the effect that, merely because such evidence to the contrary is adduced, the person who made the representation is taken to have had reasonable grounds for making the representation; or
(b) have the effect of placing on any person an onus of proving that the person who made the representation had reasonable grounds for making the representation.
(4) Subsection (1) does not limit by implication the meaning of a reference in this Schedule to:
(a) a misleading representation; or
(b) a representation that is misleading in a material particular; or
(c) conduct that is misleading or is likely or liable to mislead;
and, in particular, does not imply that a representation that a person makes with respect to any future matter is not misleading merely because the person has reasonable grounds for making the representation.
5 When donations are treated as supplies or acquisitions
(1) For the purposes of this Schedule, other than Parts 3‑3, 3‑4, 4‑3 and 4‑4:
(a) a donation of goods or services is not treated as a supply of the goods or services unless the donation is for promotional purposes; and
(b) receipt of a donation of goods or services is not treated as an acquisition of the goods or services unless the donation is for promotional purposes.
(2) For the purposes of Parts 3‑3, 3‑4, 4‑3 and 4‑4:
(a) any donation of goods or services is treated as a supply of the goods or services; and
(b) receipt of any donation of goods or services is treated as an acquisition of the goods or services.
6 Related bodies corporate
(1) A body corporate is taken to be related to another body corporate if the bodies corporate would, under section 4A(5) of the Competition and Consumer Act, be deemed to be related to each other.
(2) In proceedings under this Schedule, it is presumed, unless the contrary is established, that bodies corporate are not, or were not at a particular time, related to each other.
7 Meaning of manufacturer
(1) A manufacturer includes the following:
(a) a person who grows, extracts, produces, processes or assembles goods;
(b) a person who holds himself or herself out to the public as the manufacturer of goods;
(c) a person who causes or permits the name of the person, a name by which the person carries on business or a brand or mark of the person to be applied to goods supplied by the person;
(d) a person (the first person) who causes or permits another person, in connection with:
(i) the supply or possible supply of goods by that other person; or
(ii) the promotion by that other person by any means of the supply or use of goods;
to hold out the first person to the public as the manufacturer of the goods;
(e) a person who imports goods into Australia if:
(i) the person is not the manufacturer of the goods; and
(ii) at the time of the importation, the manufacturer of the goods does not have a place of business in Australia.
(2) For the purposes of subsection (1)(c):
(a) a name, brand or mark is taken to be applied to goods if:
(i) it is woven in, impressed on, worked into or annexed or affixed to the goods; or
(ii) it is applied to a covering, label, reel or thing in or with which the goods are supplied; and
(b) if the name of a person, a name by which a person carries on business or a brand or mark of a person is applied to goods, it is presumed, unless the contrary is established, that the person caused or permitted the name, brand or mark to be applied to the goods.
(3) If goods are imported into Australia on behalf of a person, the person is taken, for the purposes of paragraph (1)(e), to have imported the goods into Australia.
8 Goods affixed to land or premises
For the purposes of this Schedule, goods are taken to be supplied to a consumer even if they are affixed to land or premises at the time of the supply.
9 Meaning of safety defect in relation to goods
(1) For the purposes of this Schedule, goods have a safety defect if their safety is not such as persons generally are entitled to expect.
(2) In determining the extent of the safety of goods, regard is to be given to all relevant circumstances, including:
(a) the manner in which, and the purposes for which, they have been marketed; and
(b) their packaging; and
(c) the use of any mark in relation to them; and
(d) any instructions for, or warnings with respect to, doing, or refraining from doing, anything with or in relation to them; and
(e) what might reasonably be expected to be done with or in relation to them; and
(f) the time when they were supplied by their manufacturer.
(3) An inference that goods have a safety defect is not to be made only because of the fact that, after they were supplied by their manufacturer, safer goods of the same kind were supplied.
(4) An inference that goods have a safety defect is not to be made only because:
(a) there was compliance with a Commonwealth mandatory standard for them; and
(b) that standard was not the safest possible standard having regard to the latest state of scientific or technical knowledge when they were supplied by their manufacturer.
10 Asserting a right to payment
(1) A person is taken to assert a right to payment from another person if the person:
(a) makes a demand for the payment or asserts a present or prospective right to the payment; or
(b) threatens to bring any legal proceedings with a view to obtaining the payment; or
(c) places or causes to be placed the name of the other person on a list of defaulters or debtors, or threatens to do so, with a view to obtaining the payment; or
(d) invokes or causes to be invoked any other collection procedure, or threatens to do so, with a view to obtaining the payment; or
(e) sends any invoice or other document that:
(i) states the amount of the payment; or
(ii) sets out the price of unsolicited goods or unsolicited services; or
(iii) sets out the charge for placing, in a publication, an entry or advertisement;
and does not contain a statement, to the effect that the document is not an assertion of a right to a payment, that complies with any requirements prescribed by the regulations.
(2) For the purposes of this section, an invoice or other document purporting to have been sent by or on behalf of a person is taken to have been sent by that person unless the contrary is established.
11 References to acquisition, supply and re‑supply
In this Schedule:
(a) a reference to the acquisition of goods includes a reference to the acquisition of property in, or rights in relation to, goods pursuant to a supply of the goods; and
(b) a reference to the supply or acquisition of goods or services includes a reference to agreeing to supply or acquire goods or services; and
(c) a reference to the supply or acquisition of goods includes a reference to the supply or acquisition of goods together with other property or services, or both; and
(d) a reference to the supply or acquisition of services includes a reference to the supply or acquisition of services together with property or other services, or both; and
(e) a reference to the re‑supply of goods acquired from a person includes a reference to:
(i) a supply of the goods to another person in an altered form or condition; and
(ii) a supply to another person of goods in which the first‑mentioned goods have been incorporated; and
(f) a reference to the re‑supply of services (the original services) acquired from a person (the original supplier) includes a reference to:
(i) a supply of the original services to another person in an altered form or condition; and
(ii) a supply to another person of other services that are substantially similar to the original services, and could not have been supplied if the original services had not been acquired by the person who acquired them from the original supplier.
12 Application of Schedule in relation to leases and licences of land and buildings
In this Schedule:
(a) a reference to a contract includes a reference to a lease of, or a licence in respect of, land or a building or part of a building (despite the express references in this Schedule to such leases or licences); and
(b) a reference to making or entering into a contract, in relation to such a lease or licence, is a reference to granting or taking the lease or licence; and
(c) a reference to a party to a contract, in relation to such a lease or licence, includes a reference to any person bound by, or entitled to the benefit of, any provision contained in the lease or licence.
13 Loss or damage to include injury
In this Schedule:
(a) a reference to loss or damage, other than a reference to the amount of any loss or damage, includes a reference to injury; and
(b) a reference to the amount of any loss or damage includes a reference to damages in respect of an injury.
14 Meaning of continuing credit contract
(1) If:
(a) a person (the creditor), in the course of a business carried on by the creditor, agrees with a consumer to provide credit to the consumer in relation to:
(i) payment for goods or services; or
(ii) cash supplied by the creditor to the consumer from time to time; or
(iii) payment by the creditor to another person in relation to goods or services, or cash, supplied by that other person to the consumer from time to time; and
(b) the creditor:
(i) has an agreement, arrangement or understanding (the credit agreement) with the consumer in relation to the provision of the credit; or
(ii) is engaged in a course of dealing (the credit dealing) with the consumer in relation to the provision of the credit; and
(c) the amounts owing to the creditor from time to time under the credit agreement or credit dealing are, or are to be, calculated on the basis that:
(i) all amounts owing; and
(ii) all payments made;
by the consumer under, or in respect of, the credit agreement or credit dealing are entered in one or more accounts kept for the purpose of that agreement or dealing;
the credit agreement or credit dealing is taken, for the purposes of this Schedule, to be a continuing credit contract.
(2) If subsection (1)(a)(iii) applies, the creditor is taken, for the purposes of this section, to have provided credit to the consumer in relation to any goods or services, or cash, supplied by another person to the consumer to the extent of any payments made, or to be made, by the creditor to that other person.
15 Contraventions of this Schedule
Conduct is not taken, for the purposes of this Schedule, to contravene a provision of this Schedule merely because of the application of:
(a) section 23(1); or
(b) a provision of Division 1 of Part 3‑2 (other than section 66(2)); or
(c) a provision of Part 3‑5.
16 Severability
(1) If the making of a contract after the commencement of this section contravenes this Schedule because the contract includes a particular provision, nothing in this Schedule affects the validity or enforceability of the contract otherwise than in relation to that provision, so far as that provision is severable.
(2) This section has effect subject to any order made under Division 4 of Part 5‑2.
17 References to provisions in this Schedule
In this Schedule, a reference to a provision is a reference to a provision of this Schedule, unless the contrary intention appears.
Chapter 2—General protections
Part 2‑1—Misleading or deceptive conduct
18 Misleading or deceptive conduct
(1) A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.
(2) Nothing in Part 3‑1 (which is about unfair practices) limits by implication subsection (1).
Note: For rules relating to representations as to the country of origin of goods, see Part 5‑3.
19 Application of this Part to information providers
(1) This Part does not apply to a publication of matter by an information provider if:
(a) in any case—the information provider made the publication in the course of carrying on a business of providing information; or
(b) if the information provider is the Australian Broadcasting Corporation, the Special Broadcasting Service Corporation or the holder of a licence granted under the Broadcasting Services Act 1992—the publication was by way of a radio or television broadcast by the information provider.
(2) Subsection (1) does not apply to a publication of an advertisement.
(3) Subsection (1) does not apply to a publication of matter in connection with the supply or possible supply of, or the promotion by any means of the supply or use of, goods or services (the publicised goods or services), if:
(a) the publicised goods or services were goods or services of a kind supplied by the information provider or, if the information provider is a body corporate, by a body corporate that is related to the information provider; or
(b) the publication was made on behalf of, or pursuant to a contract, arrangement or understanding with, a person who supplies goods or services of the same kind as the publicised goods or services; or
(c) the publication was made on behalf of, or pursuant to a contract, arrangement or understanding with, a body corporate that is related to a body corporate that supplies goods or services of the same kind as the publicised goods or services.
(4) Subsection (1) does not apply to a publication of matter in connection with the sale or grant, or possible sale or grant, of, or the promotion by any means of the sale or grant of, interests in land (the publicised interests in land), if:
(a) the publicised interests in land were interests of a kind sold or granted by the information provider or, if the information provider is a body corporate, by a body corporate that is related to the information provider; or
(b) the publication was made on behalf of, or pursuant to a contract, arrangement or understanding with, a person who sells or grants interests of the same kind as the publicised interests in land; or
(c) the publication was made on behalf of, or pursuant to a contract, arrangement or understanding with, a body corporate that is related to a body corporate that sells or grants interests of the same kind as the publicised interests in land.
(5) An information provider is a person who carries on a business of providing information.
(6) Without limiting subsection (5), each of the following is an information provider:
(a) the holder of a licence granted under the Broadcasting Services Act 1992;
(b) a person who is the provider of a broadcasting service under a class licence under that Act;
(d) the Australian Broadcasting Corporation;
(e) the Special Broadcasting Service Corporation.
Part 2‑2—Unconscionable conduct
20 Unconscionable conduct within the meaning of the unwritten law
(1) A person must not, in trade or commerce, engage in conduct that is unconscionable, within the meaning of the unwritten law from time to time.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) This section does not apply to conduct that is prohibited by section 21.
21 Unconscionable conduct in connection with goods or services
(1) A person must not, in trade or commerce, in connection with:
(a) the supply or possible supply of goods or services to a person; or
(b) the acquisition or possible acquisition of goods or services from a person;
engage in conduct that is, in all the circumstances, unconscionable.
(2) This section does not apply to conduct that is engaged in only because the person engaging in the conduct:
(a) institutes legal proceedings in relation to the supply or possible supply, or in relation to the acquisition or possible acquisition; or
(b) refers to arbitration a dispute or claim in relation to the supply or possible supply, or in relation to the acquisition or possible acquisition.
(3) For the purpose of determining whether a person has contravened subsection (1):
(a) the court must not have regard to any circumstances that were not reasonably foreseeable at the time of the alleged contravention; and
(b) the court may have regard to conduct engaged in, or circumstances existing, before the commencement of this section.
(4) It is the intention of the Parliament that:
(a) this section is not limited by the unwritten law relating to unconscionable conduct; and
(b) this section is capable of applying to a system of conduct or pattern of behaviour, whether or not a particular individual is identified as having been disadvantaged by the conduct or behaviour; and
(c) in considering whether conduct to which a contract relates is unconscionable, a court’s consideration of the contract may include consideration of:
(i) the terms of the contract; and
(ii) the manner in which and the extent to which the contract is carried out;
and is not limited to consideration of the circumstances relating to formation of the contract.
22 Matters the court may have regard to for the purposes of section 21
(1) Without limiting the matters to which the court may have regard for the purpose of determining whether a person (the supplier) has contravened section 21 in connection with the supply or possible supply of goods or services to a person (the customer), the court may have regard to:
(a) the relative strengths of the bargaining positions of the supplier and the customer; and
(b) whether, as a result of conduct engaged in by the supplier, the customer was required to comply with conditions that were not reasonably necessary for the protection of the legitimate interests of the supplier; and
(c) whether the customer was able to understand any documents relating to the supply or possible supply of the goods or services; and
(d) whether any undue influence or pressure was exerted on, or any unfair tactics were used against, the customer or a person acting on behalf of the customer by the supplier or a person acting on behalf of the supplier in relation to the supply or possible supply of the goods or services; and
(e) the amount for which, and the circumstances under which, the customer could have acquired identical or equivalent goods or services from a person other than the supplier; and
(f) the extent to which the supplier’s conduct towards the customer was consistent with the supplier’s conduct in similar transactions between the supplier and other like customers; and
(g) the requirements of any applicable industry code; and
(h) the requirements of any other industry code, if the customer acted on the reasonable belief that the supplier would comply with that code; and
(i) the extent to which the supplier unreasonably failed to disclose to the customer:
(i) any intended conduct of the supplier that might affect the interests of the customer; and
(ii) any risks to the customer arising from the supplier’s intended conduct (being risks that the supplier should have foreseen would not be apparent to the customer); and
(j) if there is a contract between the supplier and the customer for the supply of the goods or services:
(i) the extent to which the supplier was willing to negotiate the terms and conditions of the contract with the customer; and
(ii) the terms and conditions of the contract; and
(iii) the conduct of the supplier and the customer in complying with the terms and conditions of the contract; and
(iv) any conduct that the supplier or the customer engaged in, in connection with their commercial relationship, after they entered into the contract; and
(k) without limiting paragraph (j), whether the supplier has a contractual right to vary unilaterally a term or condition of a contract between the supplier and the customer for the supply of the goods or services; and
(l) the extent to which the supplier and the customer acted in good faith.
(2) Without limiting the matters to which the court may have regard for the purpose of determining whether a person (the acquirer) has contravened section 21 in connection with the acquisition or possible acquisition of goods or services from a person (the supplier), the court may have regard to:
(a) the relative strengths of the bargaining positions of the acquirer and the supplier; and
(b) whether, as a result of conduct engaged in by the acquirer, the supplier was required to comply with conditions that were not reasonably necessary for the protection of the legitimate interests of the acquirer; and
(c) whether the supplier was able to understand any documents relating to the acquisition or possible acquisition of the goods or services; and
(d) whether any undue influence or pressure was exerted on, or any unfair tactics were used against, the supplier or a person acting on behalf of the supplier by the acquirer or a person acting on behalf of the acquirer in relation to the acquisition or possible acquisition of the goods or services; and
(e) the amount for which, and the circumstances in which, the supplier could have supplied identical or equivalent goods or services to a person other than the acquirer; and
(f) the extent to which the acquirer’s conduct towards the supplier was consistent with the acquirer’s conduct in similar transactions between the acquirer and other like suppliers; and
(g) the requirements of any applicable industry code; and
(h) the requirements of any other industry code, if the supplier acted on the reasonable belief that the acquirer would comply with that code; and
(i) the extent to which the acquirer unreasonably failed to disclose to the supplier:
(i) any intended conduct of the acquirer that might affect the interests of the supplier; and
(ii) any risks to the supplier arising from the acquirer’s intended conduct (being risks that the acquirer should have foreseen would not be apparent to the supplier); and
(j) if there is a contract between the acquirer and the supplier for the acquisition of the goods or services:
(i) the extent to which the acquirer was willing to negotiate the terms and conditions of the contract with the supplier; and
(ii) the terms and conditions of the contract; and
(iii) the conduct of the acquirer and the supplier in complying with the terms and conditions of the contract; and
(iv) any conduct that the acquirer or the supplier engaged in, in connection with their commercial relationship, after they entered into the contract; and
(k) without limiting paragraph (j), whether the acquirer has a contractual right to vary unilaterally a term or condition of a contract between the acquirer and the supplier for the acquisition of the goods or services; and
(l) the extent to which the acquirer and the supplier acted in good faith.
22A Presumptions relating to whether representations are misleading
Section 4 applies for the purposes of sections 21 and 22 in the same way as it applies for the purposes of Division 1 of Part 3‑1.
Part 2‑3—Unfair contract terms
23 Unfair terms of consumer contracts and small business contracts
(1) A term of a consumer contract or small business contract is void if:
(a) the term is unfair; and
(b) the contract is a standard form contract.
(2) The contract continues to bind the parties if it is capable of operating without the unfair term.
(3) A consumer contract is a contract for:
(a) a supply of goods or services; or
(b) a sale or grant of an interest in land;
to an individual whose acquisition of the goods, services or interest is wholly or predominantly for personal, domestic or household use or consumption.
(4) A contract is a small business contract if:
(a) the contract is for a supply of goods or services, or a sale or grant of an interest in land; and
(b) at the time the contract is entered into, at least one party to the contract is a business that employs fewer than 20 persons; and
(c) either of the following applies:
(i) the upfront price payable under the contract does not exceed $300,000;
(ii) the contract has a duration of more than 12 months and the upfront price payable under the contract does not exceed $1,000,000.
(5) In counting the persons employed by a business for the purposes of paragraph (4)(b), a casual employee is not to be counted unless he or she is employed by the business on a regular and systematic basis.
24 Meaning of unfair
(1) A term of a consumer contract or small business contract is unfair if:
(a) it would cause a significant imbalance in the parties’ rights and obligations arising under the contract; and
(b) it is not reasonably necessary in order to protect the legitimate interests of the party who would be advantaged by the term; and
(c) it would cause detriment (whether financial or otherwise) to a party if it were to be applied or relied on.
(2) In determining whether a term of a contract is unfair under subsection (1), a court may take into account such matters as it thinks relevant, but must take into account the following:
(a) the extent to which the term is transparent;
(b) the contract as a whole.
(3) A term is transparent if the term is:
(a) expressed in reasonably plain language; and
(b) legible; and
(c) presented clearly; and
(d) readily available to any party affected by the term.
(4) For the purposes of subsection (1)(b), a term of a contract is presumed not to be reasonably necessary in order to protect the legitimate interests of the party who would be advantaged by the term, unless that party proves otherwise.
25 Examples of unfair terms
Without limiting section 24, the following are examples of the kinds of terms of a consumer contract or small business contract that may be unfair:
(a) a term that permits, or has the effect of permitting, one party (but not another party) to avoid or limit performance of the contract;
(b) a term that permits, or has the effect of permitting, one party (but not another party) to terminate the contract;
(c) a term that penalises, or has the effect of penalising, one party (but not another party) for a breach or termination of the contract;
(d) a term that permits, or has the effect of permitting, one party (but not another party) to vary the terms of the contract;
(e) a term that permits, or has the effect of permitting, one party (but not another party) to renew or not renew the contract;
(f) a term that permits, or has the effect of permitting, one party to vary the upfront price payable under the contract without the right of another party to terminate the contract;
(g) a term that permits, or has the effect of permitting, one party unilaterally to vary the characteristics of the goods or services to be supplied, or the interest in land to be sold or granted, under the contract;
(h) a term that permits, or has the effect of permitting, one party unilaterally to determine whether the contract has been breached or to interpret its meaning;
(i) a term that limits, or has the effect of limiting, one party’s vicarious liability for its agents;
(j) a term that permits, or has the effect of permitting, one party to assign the contract to the detriment of another party without that other party’s consent;
(k) a term that limits, or has the effect of limiting, one party’s right to sue another party;
(l) a term that limits, or has the effect of limiting, the evidence one party can adduce in proceedings relating to the contract;
(m) a term that imposes, or has the effect of imposing, the evidential burden on one party in proceedings relating to the contract;
(n) a term of a kind, or a term that has an effect of a kind, prescribed by the regulations.
26 Terms that define main subject matter of consumer contracts or small business contracts etc. are unaffected
(1) Section 23 does not apply to a term of a consumer contract or small business contract to the extent, but only to the extent, that the term:
(a) defines the main subject matter of the contract; or
(b) sets the upfront price payable under the contract; or
(c) is a term required, or expressly permitted, by a law of the Commonwealth, a State or a Territory.
(2) The upfront price payable under a contract is the consideration that:
(a) is provided, or is to be provided, for the supply, sale or grant under the contract; and
(b) is disclosed at or before the time the contract is entered into;
but does not include any other consideration that is contingent on the occurrence or non‑occurrence of a particular event.
27 Standard form contracts
(1) If a party to a proceeding alleges that a contract is a standard form contract, it is presumed to be a standard form contract unless another party to the proceeding proves otherwise.
(2) In determining whether a contract is a standard form contract, a court may take into account such matters as it thinks relevant, but must take into account the following:
(a) whether one of the parties has all or most of the bargaining power relating to the transaction;
(b) whether the contract was prepared by one party before any discussion relating to the transaction occurred between the parties;
(c) whether another party was, in effect, required either to accept or reject the terms of the contract (other than the terms referred to in section 26(1)) in the form in which they were presented;
(d) whether another party was given an effective opportunity to negotiate the terms of the contract that were not the terms referred to in section 26(1);
(e) whether the terms of the contract (other than the terms referred to in section 26(1)) take into account the specific characteristics of another party or the particular transaction;
(f) any other matter prescribed by the regulations.
28 Contracts to which this Part does not apply
(1) This Part does not apply to:
(a) a contract of marine salvage or towage; or
(b) a charterparty of a ship; or
(c) a contract for the carriage of goods by ship.
(2) Without limiting subsection (1)(c), the reference in that subsection to a contract for the carriage of goods by ship includes a reference to any contract covered by a sea carriage document within the meaning of the amended Hague Rules referred to in section 7(1) of the Carriage of Goods by Sea Act 1991.
(3) This Part does not apply to a contract that is the constitution (within the meaning of section 9 of the Corporations Act 2001) of a company, managed investment scheme or other kind of body.
(4) This Part does not apply to a small business contract to which a prescribed law of the Commonwealth, a State or a Territory applies.
Chapter 3—Specific protections
Part 3‑1—Unfair practices
Division 1—False or misleading representations etc.
29 False or misleading representations about goods or services
(1) A person must not, in trade or commerce, in connection with the supply or possible supply of goods or services or in connection with the promotion by any means of the supply or use of goods or services:
(a) make a false or misleading representation that goods are of a particular standard, quality, value, grade, composition, style or model or have had a particular history or particular previous use; or
(b) make a false or misleading representation that services are of a particular standard, quality, value or grade; or
(c) make a false or misleading representation that goods are new; or
(d) make a false or misleading representation that a particular person has agreed to acquire goods or services; or
(e) make a false or misleading representation that purports to be a testimonial by any person relating to goods or services; or
(f) make a false or misleading representation concerning:
(i) a testimonial by any person; or
(ii) a representation that purports to be such a testimonial;
relating to goods or services; or
(g) make a false or misleading representation that goods or services have sponsorship, approval, performance characteristics, accessories, uses or benefits; or
(h) make a false or misleading representation that the person making the representation has a sponsorship, approval or affiliation; or
(i) make a false or misleading representation with respect to the price of goods or services; or
(j) make a false or misleading representation concerning the availability of facilities for the repair of goods or of spare parts for goods; or
(k) make a false or misleading representation concerning the place of origin of goods; or
(l) make a false or misleading representation concerning the need for any goods or services; or
(m) make a false or misleading representation concerning the existence, exclusion or effect of any condition, warranty, guarantee, right or remedy (including a guarantee under Division 1 of Part 3‑2); or
(n) make a false or misleading representation concerning a requirement to pay for a contractual right that:
(i) is wholly or partly equivalent to any condition, warranty, guarantee, right or remedy (including a guarantee under Division 1 of Part 3‑2); and
(ii) a person has under a law of the Commonwealth, a State or a Territory (other than an unwritten law).
Note 1: A pecuniary penalty may be imposed for a contravention of this subsection.
Note 2: For rules relating to representations as to the country of origin of goods, see Part 5‑3.
(2) For the purposes of applying subsection (1) in relation to a proceeding concerning a representation of a kind referred to in subsection (1)(e) or (f), the representation is taken to be misleading unless evidence is adduced to the contrary.
(3) To avoid doubt, subsection (2) does not:
(a) have the effect that, merely because such evidence to the contrary is adduced, the representation is not misleading; or
(b) have the effect of placing on any person an onus of proving that the representation is not misleading.
30 False or misleading representations about sale etc. of land
(1) A person must not, in trade or commerce, in connection with the sale or grant, or the possible sale or grant, of an interest in land or in connection with the promotion by any means of the sale or grant of an interest in land:
(a) make a false or misleading representation that the person making the representation has a sponsorship, approval or affiliation; or
(b) make a false or misleading representation concerning the nature of the interest in the land; or
(c) make a false or misleading representation concerning the price payable for the land; or
(d) make a false or misleading representation concerning the location of the land; or
(e) make a false or misleading representation concerning the characteristics of the land; or
(f) make a false or misleading representation concerning the use to which the land is capable of being put or may lawfully be put; or
(g) make a false or misleading representation concerning the existence or availability of facilities associated with the land.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) This section does not affect the application of any other provision of Part 2‑1 or this Part in relation to the supply or acquisition, or the possible supply or acquisition, of interests in land.
31 Misleading conduct relating to employment
A person must not, in relation to employment that is to be, or may be, offered by the person or by another person, engage in conduct that is liable to mislead persons seeking the employment as to:
(a) the availability, nature, terms or conditions of the employment; or
(b) any other matter relating to the employment.
Note: A pecuniary penalty may be imposed for a contravention of this section.
32 Offering rebates, gifts, prizes etc.
(1) A person must not, in trade or commerce, offer any rebate, gift, prize or other free item with the intention of not providing it, or of not providing it as offered, in connection with:
(a) the supply or possible supply of goods or services; or
(b) the promotion by any means of the supply or use of goods or services; or
(c) the sale or grant, or the possible sale or grant, of an interest in land; or
(d) the promotion by any means of the sale or grant of an interest in land.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) If a person offers any rebate, gift, prize or other free item in connection with:
(a) the supply or possible supply of goods or services; or
(b) the promotion by any means of the supply or use of goods or services; or
(c) the sale or grant, or the possible sale or grant, of an interest in land; or
(d) the promotion by any means of the sale or grant of an interest in land;
the person must, within the time specified in the offer or (if no such time is specified) within a reasonable time after making the offer, provide the rebate, gift, prize or other free item in accordance with the offer.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) Subsection (2) does not apply if:
(a) the person’s failure to provide the rebate, gift, prize or other free item in accordance with the offer was due to the act or omission of another person, or to some other cause beyond the person’s control; and
(b) the person took reasonable precautions and exercised due diligence to avoid the failure.
(4) Subsection (2) does not apply to an offer that the person makes to another person if:
(a) the person offers to the other person a different rebate, gift, prize or other free item as a replacement; and
(b) the other person agrees to receive the different rebate, gift, prize or other free item.
(5) This section does not affect the application of any other provision of Part 2‑1 or this Part in relation to the supply or acquisition, or the possible supply or acquisition, of interests in land.
33 Misleading conduct as to the nature etc. of goods
A person must not, in trade or commerce, engage in conduct that is liable to mislead the public as to the nature, the manufacturing process, the characteristics, the suitability for their purpose or the quantity of any goods.
Note: A pecuniary penalty may be imposed for a contravention of this section.
34 Misleading conduct as to the nature etc. of services
A person must not, in trade or commerce, engage in conduct that is liable to mislead the public as to the nature, the characteristics, the suitability for their purpose or the quantity of any services.
Note: A pecuniary penalty may be imposed for a contravention of this section.
35 Bait advertising
(1) A person must not, in trade or commerce, advertise goods or services for supply at a specified price if:
(a) there are reasonable grounds for believing that the person will not be able to offer for supply those goods or services at that price for a period that is, and in quantities that are, reasonable, having regard to:
(i) the nature of the market in which the person carries on business; and
(ii) the nature of the advertisement; and
(b) the person is aware or ought reasonably to be aware of those grounds.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A person who, in trade or commerce, advertises goods or services for supply at a specified price must offer such goods or services for supply at that price for a period that is, and in quantities that are, reasonable having regard to:
(a) the nature of the market in which the person carries on business; and
(b) the nature of the advertisement.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
36 Wrongly accepting payment
(1) A person must not, in trade or commerce, accept payment or other consideration for goods or services if, at the time of the acceptance, the person intends not to supply the goods or services.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A person must not, in trade or commerce, accept payment or other consideration for goods or services if, at the time of the acceptance, the person intends to supply goods or services materially different from the goods or services in respect of which the payment or other consideration is accepted.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) A person must not, in trade or commerce, accept payment or other consideration for goods or services if, at the time of the acceptance:
(a) there are reasonable grounds for believing that the person will not be able to supply the goods or services:
(i) within the period specified by or on behalf of the person at or before the time the payment or other consideration was accepted; or
(ii) if no period is specified at or before that time—within a reasonable time; and
(b) the person is aware or ought reasonably to be aware of those grounds.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(4) A person who, in trade or commerce, accepts payment or other consideration for goods or services must supply all the goods or services:
(a) within the period specified by or on behalf of the person at or before the time the payment or other consideration was accepted; or
(b) if no period is specified at or before that time—within a reasonable time.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(5) Subsection (4) does not apply if:
(a) the person’s failure to supply all the goods or services within the period, or within a reasonable time, was due to the act or omission of another person, or to some other cause beyond the person’s control; and
(b) the person took reasonable precautions and exercised due diligence to avoid the failure.
(6) Subsection (4) does not apply if:
(a) the person offers to supply different goods or services as a replacement to the person (the customer) to whom the original supply was to be made; and
(b) the customer agrees to receive the different goods or services.
(7) Subsections (1), (2), (3) and (4) apply whether or not the payment or other consideration that the person accepted represents the whole or a part of the payment or other consideration for the supply of the goods or services.
37 Misleading representations about certain business activities
(1) A person must not, in trade or commerce, make a representation that:
(a) is false or misleading in a material particular; and
(b) concerns the profitability, risk or any other material aspect of any business activity that the person has represented as one that can be, or can be to a considerable extent, carried on at or from a person’s place of residence.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A person must not, in trade or commerce, make a representation that:
(a) is false or misleading in a material particular; and
(b) concerns the profitability, risk or any other material aspect of any business activity:
(i) that the person invites (whether by advertisement or otherwise) other persons to engage or participate in, or to offer or apply to engage or participate in; and
(ii) that requires the performance of work by other persons, or the investment of money by other persons and the performance by them of work associated with the investment.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
38 Application of provisions of this Division to information providers
(1) Sections 29, 30, 33, 34 and 37 do not apply to a publication of matter by an information provider if:
(a) in any case—the information provider made the publication in the course of carrying on a business of providing information; or
(b) if the information provider is the Australian Broadcasting Corporation, the Special Broadcasting Service Corporation or the holder of a licence granted under the Broadcasting Services Act 1992—the publication was by way of a radio or television broadcast by the information provider.
(2) Subsection (1) does not apply to a publication of an advertisement.
(3) Subsection (1) does not apply to a publication of matter in connection with the supply or possible supply of, or the promotion by any means of the supply or use of, goods or services (the publicised goods or services), if:
(a) the publicised goods or services were goods or services of a kind supplied by the information provider or, if the information provider is a body corporate, by a body corporate that is related to the information provider; or
(b) the publication was made on behalf of, or pursuant to a contract, arrangement or understanding with, a person who supplies goods or services of the same kind as the publicised goods or services; or
(c) the publication was made on behalf of, or pursuant to a contract, arrangement or understanding with, a body corporate that is related to a body corporate that supplies goods or services of the same kind as the publicised goods or services.
(4) Subsection (1) does not apply to a publication of matter in connection with the sale or grant, or possible sale or grant, of, or the promotion by any means of the sale or grant of, interests in land (the publicised interests in land), if:
(a) the publicised interests in land were interests of a kind sold or granted by the information provider or, if the information provider is a body corporate, by a body corporate that is related to the information provider; or
(b) the publication was made on behalf of, or pursuant to a contract, arrangement or understanding with, a person who sells or grants interests of the same kind as the publicised interests in land; or
(c) the publication was made on behalf of, or pursuant to a contract, arrangement or understanding with, a body corporate that is related to a body corporate that sells or grants interests of the same kind as the publicised interests in land.
Division 2—Unsolicited supplies
39 Unsolicited cards etc.
(1) A person must not send a credit card or a debit card, or an article that may be used as a credit card and a debit card, to another person except:
(a) pursuant to a written request by the person who will be under a liability to the person who issued the card or article in respect of the use of the card or article; or
(b) in renewal or replacement of, or in substitution for:
(i) a card or article of the same kind previously sent to the other person pursuant to a written request by the person who was under a liability, to the person who issued the card previously so sent, in respect of the use of that card; or
(ii) a card or article of the same kind previously sent to the other person and used for a purpose for which it was intended to be used.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) Subsection (1) does not apply unless the card or article is sent by or on behalf of the person who issued it.
(3) A person must not take any action that enables another person who has a credit card to use the card as a debit card, except in accordance with the other person’s written request.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(4) A person must not take any action that enables another person who has a debit card to use the card as a credit card, except in accordance with the other person’s written request.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(5) A credit card is an article that is one or more of the following:
(a) an article of a kind commonly known as a credit card;
(b) a similar article intended for use in obtaining cash, goods or services on credit;
(c) an article of a kind that persons carrying on business commonly issue to their customers, or prospective customers, for use in obtaining goods or services from those persons on credit;
and includes an article that may be used as an article referred to in paragraph (a), (b) or (c).
(6) A debit card is:
(a) an article intended for use by a person in obtaining access to an account that is held by the person for the purpose of withdrawing or depositing cash or obtaining goods or services; or
(b) an article that may be used as an article referred to in paragraph (a).
40 Assertion of right to payment for unsolicited goods or services
(1) A person must not, in trade or commerce, assert a right to payment from another person for unsolicited goods unless the person has reasonable cause to believe that there is a right to the payment.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A person must not, in trade or commerce, assert a right to payment from another person for unsolicited services unless the person has reasonable cause to believe that there is a right to the payment.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) A person must not, in trade or commerce, send to another person an invoice or other document that:
(a) states the amount of a payment, or sets out the charge, for unsolicited goods or unsolicited services; and
(b) does not contain a warning statement that complies with the requirements set out in the regulations;
unless the person has reasonable cause to believe that there is a right to the payment or charge.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(4) In a proceeding against a person in relation to a contravention of this section, the person bears the onus of proving that the person had reasonable cause to believe that there was a right to the payment or charge.
41 Liability etc. of recipient for unsolicited goods
(1) If a person, in trade or commerce, supplies unsolicited goods to another person, the other person:
(a) is not liable to make any payment for the goods; and
(b) is not liable for loss of or damage to the goods, other than loss or damage resulting from the other person doing a wilful and unlawful act in relation to the goods during the recovery period.
(2) If a person sends, in trade or commerce, unsolicited goods to another person:
(a) neither the sender nor any person claiming under the sender is entitled, after the end of the recovery period, to take action for the recovery of the goods from the other person; and
(b) at the end of the recovery period, the goods become, by force of this section, the property of the other person freed and discharged from all liens and charges of any description.
(3) However, subsection (2) does not apply to or in relation to unsolicited goods sent to a person if:
(a) the person has, at any time during the recovery period, unreasonably refused to permit the sender or the owner of the goods to take possession of the goods; or
(b) the sender or the owner of the goods has within the recovery period taken possession of the goods; or
(c) the goods were received by the person in circumstances in which the person knew, or might reasonably be expected to have known, that the goods were not intended for him or her.
(4) The recovery period is whichever of the following periods ends first:
(a) the period of 3 months starting on the day after the day on which the person received the goods;
(b) if the person who receives the unsolicited goods gives notice with respect to the goods to the supplier or sender in accordance with subsection (5)—the period of one month starting on the day after the day on which the notice is given.
(5) A notice under subsection (4)(b):
(a) must be in writing; and
(b) must state the name and address of the person who received the goods; and
(c) must state the address at which possession may be taken of the goods, if it is not the address of the person; and
(d) must contain a statement to the effect that the goods are unsolicited goods.
42 Liability of recipient for unsolicited services
If a person, in trade or commerce, supplies, or purports to supply but does not supply, unsolicited services to another person, the other person:
(a) is not liable to make any payment for the services; and
(b) is not liable for loss or damage as a result of the supply or purported supply of the services.
43 Assertion of right to payment for unauthorised entries or advertisements
(1) A person must not assert a right to payment from another person of a charge for placing, in a publication, an entry or advertisement relating to:
(a) the other person; or
(b) the other person’s profession, business, trade or occupation;
unless the person knows, or has reasonable cause to believe, that the other person authorised the placing of the entry or advertisement.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A person must not send to another person an invoice or other document that:
(a) states the amount of a payment, or sets out the charge, for placing, in a publication, an entry or advertisement relating to:
(i) the other person; or
(ii) the other person’s profession, business, trade or occupation; and
(b) does not contain a warning statement that complies with the requirements set out in the regulations;
unless the person knows, or has reasonable cause to believe, that the other person authorised the placing of the entry or advertisement.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) Subsections (1) and (2) do not apply to an entry or advertisement that is placed in a publication published by a person who is:
(a) the publisher of a publication that has an audited circulation of 10,000 copies or more per week, as confirmed by the most recent audit of the publication by a body specified in the regulations; or
(b) a body corporate related to such a publisher; or
(c) the Commonwealth, a State or a Territory, or an authority of the Commonwealth, a State or a Territory; or
(d) a person specified in the regulations.
(4) A person:
(a) is not liable to make any payment to another person; and
(b) is entitled to recover by action in a court against another person any payment made by the person to the other person;
in full or part satisfaction of a charge for placing, in a publication, an entry or advertisement, unless the person authorised the placing of the entry or advertisement.
(5) A person is not taken for the purposes of this section to have authorised the placing of the entry or advertisement, unless:
(a) a document authorising the placing of the entry or advertisement has been signed by the person or by another person authorised by him or her; and
(b) a copy of the document has been given to the person before the right to payment of a charge for the placing of the entry or advertisement is asserted; and
(c) the document specifies:
(i) the name and address of the person publishing the entry or advertisement; and
(ii) particulars of the entry or advertisement; and
(iii) the amount of the charge for the placing of the entry or advertisement, or the basis on which the charge is, or is to be, calculated.
(6) In a proceeding against a person in relation to a contravention of this section, the person bears the onus of proving that the person knew or had reasonable cause to believe that the person against whom a right to payment was asserted had authorised the placing of the entry or advertisement.
Division 3—Pyramid schemes
44 Participation in pyramid schemes
(1) A person must not participate in a pyramid scheme.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A person must not induce, or attempt to induce, another person to participate in a pyramid scheme.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) To participate in a pyramid scheme is:
(a) to establish or promote the scheme (whether alone or together with another person); or
(b) to take part in the scheme in any capacity (whether or not as an employee or agent of a person who establishes or promotes the scheme, or who otherwise takes part in the scheme).
45 Meaning of pyramid scheme
(1) A pyramid scheme is a scheme with both of the following characteristics:
(a) to take part in the scheme, some or all new participants must provide, to another participant or participants in the scheme, either of the following (a participation payment):
(i) a financial or non‑financial benefit to, or for the benefit of, the other participant or participants;
(ii) a financial or non‑financial benefit partly to, or for the benefit of, the other participant or participants and partly to, or for the benefit of, other persons;
(b) the participation payments are entirely or substantially induced by the prospect held out to new participants that they will be entitled, in relation to the introduction to the scheme of further new participants, to be provided with either of the following (a recruitment payment):
(i) a financial or non‑financial benefit to, or for the benefit of, new participants;
(ii) a financial or non‑financial benefit partly to, or for the benefit of, new participants and partly to, or for the benefit of, other persons.
(2) A new participant includes a person who has applied, or been invited, to participate in the scheme.
(3) A scheme may be a pyramid scheme:
(a) no matter who holds out to new participants the prospect of entitlement to recruitment payments; and
(b) no matter who is to make recruitment payments to new participants; and
(c) no matter who is to make introductions to the scheme of further new participants.
(4) A scheme may be a pyramid scheme even if it has any or all of the following characteristics:
(a) the participation payments may (or must) be made after the new participants begin to take part in the scheme;
(b) making a participation payment is not the only requirement for taking part in the scheme;
(c) the holding out of the prospect of entitlement to recruitment payments does not give any new participant a legally enforceable right;
(d) arrangements for the scheme are not recorded in writing (whether entirely or partly);
(e) the scheme involves the marketing of goods or services (or both).
46 Marketing schemes as pyramid schemes
(1) To decide, for the purpose of this Schedule, whether a scheme that involves the marketing of goods or services (or both) is a pyramid scheme, a court must have regard to the following matters in working out whether participation payments under the scheme are entirely or substantially induced by the prospect held out to new participants of entitlement to recruitment payments:
(a) whether the participation payments bear a reasonable relationship to the value of the goods or services that participants are entitled to be supplied with under the scheme (as assessed, if appropriate, by reference to the price of comparable goods or services available elsewhere);
(b) the emphasis given in the promotion of the scheme to the entitlement of participants to the supply of goods or services by comparison with the emphasis given to their entitlement to recruitment payments.
(2) Subsection (1) does not limit the matters to which the court may have regard in working out whether participation payments are entirely or substantially induced by the prospect held out to new participants of entitlement to recruitment payments.
Division 4—Pricing
47 Multiple pricing
(1) A person must not, in trade or commerce, supply goods if:
(a) the goods have more than one displayed price; and
(b) the supply takes place for a price that is not the lower, or lowest, of the displayed prices.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A displayed price for goods is a price for the goods, or any representation that may reasonably be inferred to be a representation of a price for the goods:
(a) that is annexed or affixed to, or is written, printed, stamped or located on, or otherwise applied to, the goods or any covering, label, reel or thing used in connection with the goods; or
(b) that is used in connection with the goods or anything on which the goods are mounted for display or exposed for supply; or
(c) that is determined on the basis of anything encoded on or in relation to the goods; or
(d) that is published in relation to the goods in a catalogue available to the public if:
(i) a time is specified in the catalogue as the time after which the goods will not be sold at that price and that time has not passed; or
(ii) in any other case—the catalogue may reasonably be regarded as not out‑of‑date; or
(e) that is in any other way represented in a manner from which it may reasonably be inferred that the price or representation is applicable to the goods;
and includes such a price or representation that is partly obscured by another such price or representation that is written, stamped or located partly over that price or representation.
(3) If:
(a) a price or representation is included in a catalogue; and
(b) the catalogue is expressed to apply only to goods supplied at a specified location, or in a specified region;
the price or representation is taken, for the purposes of subsection (2)(d), not to have been made in relation to supply of the goods at a different location, or in a different region, as the case may be.
(4) Despite subsection (2), a price or representation is not a displayed price for goods if:
(a) the price or representation is wholly obscured by another such price or representation that is written, stamped or located wholly over that price or representation; or
(b) the price or representation:
(i) is expressed as a price per unit of mass, volume, length or other unit of measure; and
(ii) is presented as an alternative means of expressing the price for supply of the goods that is a displayed price for the goods; or
(c) the price or representation is expressed as an amount in a currency other than Australian currency; or
(d) the price or representation is expressed in a way that is unlikely to be interpreted as an amount of Australian currency.
(5) Despite subsection (2), a displayed price for goods that is a displayed price because it has been published in a catalogue or advertisement ceases to be a displayed price for the goods if:
(a) the displayed price is retracted; and
(b) the retraction is published in a manner that has at least a similar circulation or audience as the catalogue or advertisement.
48 Single price to be specified in certain circumstances
(1) A person must not, in trade or commerce, in connection with:
(a) the supply, or possible supply, to another person of goods or services of a kind ordinarily acquired for personal, domestic or household use or consumption; or
(b) the promotion by any means of the supply to another person, or of the use by another person, of goods or services of a kind ordinarily acquired for personal, domestic or household use or consumption;
make a representation with respect to an amount that, if paid, would constitute a part of the consideration for the supply of the goods or services unless the person also specifies, in a prominent way and as a single figure, the single price for the goods or services.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A person is not required to include, in the single price for goods, a charge that is payable in relation to sending the goods from the supplier to the other person.
(3) However, if:
(a) the person does not include in the single price a charge that is payable in relation to sending the goods from the supplier to the other person; and
(b) the person knows, at the time of the representation, the minimum amount of a charge in relation to sending the goods from the supplier to the other person that must be paid by the other person;
the person must not make the representation referred to in subsection (1) unless the person also specifies that minimum amount.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(4) Subsection (1) does not apply if the representation is made exclusively to a body corporate.
(4A) Subsection (1) does not apply if:
(a) the representation is in a class of representations prescribed by the regulations; and
(b) the conditions (if any) prescribed by the regulations in relation to representations in that class have been complied with.
Note: If the representation is in a class prescribed for paragraph (a) of this subsection and subsection (1) is complied with in relation to the representation, there is no need to also comply with any conditions prescribed for paragraph (b) of this subsection.
(5) For the purposes of subsection (1), the person is taken not to have specified a single price for the goods or services in a prominent way unless the single price is at least as prominent as the most prominent of the parts of the consideration for the supply.
(6) Subsection (5) does not apply in relation to services to be supplied under a contract if:
(a) the contract provides for the supply of the services for the term of the contract; and
(b) the contract provides for periodic payments for the services to be made during the term of the contract; and
(c) if the contract also provides for the supply of goods—the goods are directly related to the supply of the services.
(7) The single price is the minimum quantifiable consideration for the supply of the goods or services at the time of the representation, including each of the following amounts (if any) that is quantifiable at that time:
(a) a charge of any description payable to the person making the representation by another person unless:
(i) the charge is payable at the option of the other person; and
(ii) at or before the time of the representation, the other person has either deselected the charge or not expressly requested that the charge be applied;
(b) the amount which reflects any tax, duty, fee, levy or charge imposed on the person making the representation in relation to the supply;
(c) any amount paid or payable by the person making the representation in relation to the supply with respect to any tax, duty, fee, levy or charge if:
(i) the amount is paid or payable under an agreement or arrangement made under a law of the Commonwealth, a State or a Territory; and
(ii) the tax, duty, fee, levy or charge would have otherwise been payable by another person in relation to the supply.
Example 1: An airline advertises a flight for sale. Persons have the option of paying for a carbon offset. If the carbon offset is preselected on the airline’s online booking system, the single price for the flight must include the carbon offset charge. This is because the person has not, at or before the time of the representation, deselected the charge on the online booking site. If the person deselects the optional carbon offset charge later in the online booking process, the single price does not need to include the carbon offset charge after the charge is deselected because of the exception provided by paragraphs (a)(i) and (ii).
Example 2: The GST may be an example of an amount covered by paragraph (b).
Example 3: The passenger movement charge imposed under the Passenger Movement Charge Act 1978 may be an example of an amount covered by paragraph (c). Under an arrangement under section 10 of the Passenger Movement Charge Collection Act 1978, airlines may pay an amount equal to the charge that would otherwise be payable by passengers departing Australia.
Division 5—Other unfair practices
49 Referral selling
A person must not, in trade or commerce, induce a consumer to acquire goods or services by representing that the consumer will, after the contract for the acquisition of the goods or services is made, receive a rebate, commission or other benefit in return for:
(a) giving the person the names of prospective customers; or
(b) otherwise assisting the person to supply goods or services to other consumers;
if receipt of the rebate, commission or other benefit is contingent on an event occurring after that contract is made.
Note: A pecuniary penalty may be imposed for a contravention of this section.
50 Harassment and coercion
(1) A person must not use physical force, or undue harassment or coercion, in connection with:
(a) the supply or possible supply of goods or services; or
(b) the payment for goods or services; or
(c) the sale or grant, or the possible sale or grant, of an interest in land; or
(d) the payment for an interest in land.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) Subsections (1)(c) and (d) do not affect the application of any other provision of Part 2‑1 or this Part in relation to the supply or acquisition, or the possible supply or acquisition, of interests in land.
Part 3‑2—Consumer transactions
Division 1—Consumer guarantees
Subdivision A—Guarantees relating to the supply of goods
51 Guarantee as to title
(1) If a person (the supplier) supplies goods to a consumer, there is a guarantee that the supplier will have a right to dispose of the property in the goods when that property is to pass to the consumer.
(2) Subsection (1) does not apply to a supply (a supply of limited title) if an intention that the supplier of the goods should transfer only such title as the supplier, or another person, may have:
(a) appears from the contract for the supply; or
(b) is to be inferred from the circumstances of that contract.
(3) This section does not apply if the supply is a supply by way of hire or lease.
52 Guarantee as to undisturbed possession
(1) If:
(a) a person (the supplier) supplies goods to a consumer; and
(b) the supply is not a supply of limited title;
there is a guarantee that the consumer has the right to undisturbed possession of the goods.
(2) Subsection (1) does not apply to the extent that the consumer’s undisturbed possession of the goods may be lawfully disturbed by a person who is entitled to the benefit of any security, charge or encumbrance disclosed to the consumer before the consumer agreed to the supply.
(3) If:
(a) a person (the supplier) supplies goods to a consumer; and
(b) the supply is a supply of limited title;
there is a guarantee that the following persons will not disturb the consumer’s possession of the goods:
(c) the supplier;
(d) if the parties to the contract for the supply intend that the supplier should transfer only such title as another person may have—that other person;
(e) anyone claiming through or under the supplier or that other person (otherwise than under a security, charge or encumbrance disclosed to the consumer before the consumer agreed to the supply).
(4) This section applies to a supply by way of hire or lease only for the period of the hire or lease.
53 Guarantee as to undisclosed securities etc.
(1) If:
(a) a person (the supplier) supplies goods to a consumer; and
(b) the supply is not a supply of limited title;
there is a guarantee that:
(c) the goods are free from any security, charge or encumbrance:
(i) that was not disclosed to the consumer, in writing, before the consumer agreed to the supply; or
(ii) that was not created by or with the express consent of the consumer; and
(d) the goods will remain free from such a security, charge or encumbrance until the time when the property in the goods passes to the consumer.
(2) A supplier does not fail to comply with the guarantee only because of the existence of a floating charge over the supplier’s assets unless and until the charge becomes fixed and enforceable by the person to whom the charge is given.
Note: Section 339 of the Personal Property Securities Act 2009 affects the meaning of the references in this subsection to a floating charge and a fixed charge.
(3) If:
(a) a person (the supplier) supplies goods to a consumer; and
(b) the supply is a supply of limited title;
there is a guarantee that all securities, charges or encumbrances known to the supplier, and not known to the consumer, were disclosed to the consumer before the consumer agreed to the supply.
(4) This section does not apply if the supply is a supply by way of hire or lease.
54 Guarantee as to acceptable quality
(1) If:
(a) a person supplies, in trade or commerce, goods to a consumer; and
(b) the supply does not occur by way of sale by auction;
there is a guarantee that the goods are of acceptable quality.
(2) Goods are of acceptable quality if they are as:
(a) fit for all the purposes for which goods of that kind are commonly supplied; and
(b) acceptable in appearance and finish; and
(c) free from defects; and
(d) safe; and
(e) durable;
as a reasonable consumer fully acquainted with the state and condition of the goods (including any hidden defects of the goods), would regard as acceptable having regard to the matters in subsection (3).
(3) The matters for the purposes of subsection (2) are:
(a) the nature of the goods; and
(b) the price of the goods (if relevant); and
(c) any statements made about the goods on any packaging or label on the goods; and
(d) any representation made about the goods by the supplier or manufacturer of the goods; and
(e) any other relevant circumstances relating to the supply of the goods.
(4) If:
(a) goods supplied to a consumer are not of acceptable quality; and
(b) the only reason or reasons why they are not of acceptable quality were specifically drawn to the consumer’s attention before the consumer agreed to the supply;
the goods are taken to be of acceptable quality.
(5) If:
(a) goods are displayed for sale or hire; and
(b) the goods would not be of acceptable quality if they were supplied to a consumer;
the reason or reasons why they are not of acceptable quality are taken, for the purposes of subsection (4), to have been specifically drawn to a consumer’s attention if those reasons were disclosed on a written notice that was displayed with the goods and that was transparent.
(6) Goods do not fail to be of acceptable quality if:
(a) the consumer to whom they are supplied causes them to become of unacceptable quality, or fails to take reasonable steps to prevent them from becoming of unacceptable quality; and
(b) they are damaged by abnormal use.
(7) Goods do not fail to be of acceptable quality if:
(a) the consumer acquiring the goods examines them before the consumer agrees to the supply of the goods; and
(b) the examination ought reasonably to have revealed that the goods were not of acceptable quality.
55 Guarantee as to fitness for any disclosed purpose etc.
(1) If:
(a) a person (the supplier) supplies, in trade or commerce, goods to a consumer; and
(b) the supply does not occur by way of sale by auction;
there is a guarantee that the goods are reasonably fit for any disclosed purpose, and for any purpose for which the supplier represents that they are reasonably fit.
(2) A disclosed purpose is a particular purpose (whether or not that purpose is a purpose for which the goods are commonly supplied) for which the goods are being acquired by the consumer and that:
(a) the consumer makes known, expressly or by implication, to:
(i) the supplier; or
(ii) a person by whom any prior negotiations or arrangements in relation to the acquisition of the goods were conducted or made; or
(b) the consumer makes known to the manufacturer of the goods either directly or through the supplier or the person referred to in paragraph (a)(ii).
(3) This section does not apply if the circumstances show that the consumer did not rely on, or that it was unreasonable for the consumer to rely on, the skill or judgment of the supplier, the person referred to in subsection (2)(a)(ii) or the manufacturer, as the case may be.
56 Guarantee relating to the supply of goods by description
(1) If:
(a) a person supplies, in trade or commerce, goods by description to a consumer; and
(b) the supply does not occur by way of sale by auction;
there is a guarantee that the goods correspond with the description.
(2) A supply of goods is not prevented from being a supply by description only because, having been exposed for sale or hire, they are selected by the consumer.
(3) If goods are supplied by description as well as by reference to a sample or demonstration model, the guarantees in this section and in section 57 both apply.
57 Guarantees relating to the supply of goods by sample or demonstration model
(1) If:
(a) a person supplies, in trade or commerce, goods to a consumer by reference to a sample or demonstration model; and
(b) the supply does not occur by way of sale by auction;
there is a guarantee that:
(c) the goods correspond with the sample or demonstration model in quality, state or condition; and
(d) if the goods are supplied by reference to a sample—the consumer will have a reasonable opportunity to compare the goods with the sample; and
(e) the goods are free from any defect that:
(i) would not be apparent on reasonable examination of the sample or demonstration model; and
(ii) would cause the goods not to be of acceptable quality.
(2) If goods are supplied by reference to a sample or demonstration model as well as by description, the guarantees in section 56 and in this section both apply.
58 Guarantee as to repairs and spare parts
(1) If:
(a) a person supplies, in trade or commerce, goods to a consumer; and
(b) the supply does not occur by way of sale by auction;
there is a guarantee that the manufacturer of the goods will take reasonable action to ensure that facilities for the repair of the goods, and parts for the goods, are reasonably available for a reasonable period after the goods are supplied.
(2) This section does not apply if the manufacturer took reasonable action to ensure that the consumer would be given written notice, at or before the time when the consumer agrees to the supply of the goods, that:
(a) facilities for the repair of the goods would not be available or would not be available after a specified period; or
(b) parts for the goods would not be available or would not be available after a specified period.
59 Guarantee as to express warranties
(1) If:
(a) a person supplies, in trade or commerce, goods to a consumer; and
(b) the supply does not occur by way of sale by auction;
there is a guarantee that the manufacturer of the goods will comply with any express warranty given or made by the manufacturer in relation to the goods.
(2) If:
(a) a person supplies, in trade or commerce, goods to a consumer; and
(b) the supply does not occur by way of sale by auction;
there is a guarantee that the supplier will comply with any express warranty given or made by the supplier in relation to the goods.
Subdivision B—Guarantees relating to the supply of services
60 Guarantee as to due care and skill
If a person supplies, in trade or commerce, services to a consumer, there is a guarantee that the services will be rendered with due care and skill.
61 Guarantees as to fitness for a particular purpose etc.
(1) If:
(a) a person (the supplier) supplies, in trade or commerce, services to a consumer; and
(b) the consumer, expressly or by implication, makes known to the supplier any particular purpose for which the services are being acquired by the consumer;
there is a guarantee that the services, and any product resulting from the services, will be reasonably fit for that purpose.
(2) If:
(a) a person (the supplier) supplies, in trade or commerce, services to a consumer; and
(b) the consumer makes known, expressly or by implication, to:
(i) the supplier; or
(ii) a person by whom any prior negotiations or arrangements in relation to the acquisition of the services were conducted or made;
the result that the consumer wishes the services to achieve;
there is a guarantee that the services, and any product resulting from the services, will be of such a nature, and quality, state or condition, that they might reasonably be expected to achieve that result.
(3) This section does not apply if the circumstances show that the consumer did not rely on, or that it was unreasonable for the consumer to rely on, the skill or judgment of the supplier.
(4) This section does not apply to a supply of services of a professional nature by a qualified architect or engineer.
62 Guarantee as to reasonable time for supply
If:
(a) a person (the supplier) supplies, in trade or commerce, services to a consumer; and
(b) the time within which the services are to be supplied:
(i) is not fixed by the contract for the supply of the services; or
(ii) is not to be determined in a manner agreed to by the consumer and supplier;
there is a guarantee that the services will be supplied within a reasonable time.
63 Services to which this Subdivision does not apply
(1) This Subdivision does not apply to services that are, or are to be, supplied under:
(a) a contract for or in relation to the transportation or storage of goods for the purposes of a business, trade, profession or occupation carried on or engaged in by the person for whom the goods are transported or stored; or
(b) a contract of insurance.
(2) To avoid doubt, subsection (1)(a) does not apply if the consignee of the goods is not carrying on or engaged in a business, trade, profession or occupation in relation to the goods.
Note: This subsection was inserted as a response to the decision of the High Court of Australia in Wallis v Downard‑Pickford (North Queensland) Pty Ltd [1994] HCA 17.
Subdivision C—Guarantees not to be excluded etc. by contract
64 Guarantees not to be excluded etc. by contract
(1) A term of a contract (including a term that is not set out in the contract but is incorporated in the contract by another term of the contract) is void to the extent that the term purports to exclude, restrict or modify, or has the effect of excluding, restricting or modifying:
(a) the application of all or any of the provisions of this Division; or
(b) the exercise of a right conferred by such a provision; or
(c) any liability of a person for a failure to comply with a guarantee that applies under this Division to a supply of goods or services.
(2) A term of a contract is not taken, for the purposes of this section, to exclude, restrict or modify the application of a provision of this Division unless the term does so expressly or is inconsistent with the provision.
64A Limitation of liability for failures to comply with guarantees
(1) A term of a contract for the supply by a person of goods other than goods of a kind ordinarily acquired for personal, domestic or household use or consumption is not void under section 64 merely because the term limits the person’s liability for failure to comply with a guarantee (other than a guarantee under section 51, 52 or 53) to one or more of the following:
(a) the replacement of the goods or the supply of equivalent goods;
(b) the repair of the goods;
(c) the payment of the cost of replacing the goods or of acquiring equivalent goods;
(d) the payment of the cost of having the goods repaired.
(2) A term of a contract for the supply by a person of services other than services of a kind ordinarily acquired for personal, domestic or household use or consumption is not void under section 64 merely because the term limits the person’s liability for failure to comply with a guarantee to:
(a) the supplying of the services again; or
(b) the payment of the cost of having the services supplied again.
(3) This section does not apply in relation to a term of a contract if the person to whom the goods or services were supplied establishes that it is not fair or reasonable for the person who supplied the goods or services to rely on that term of the contract.
(4) In determining for the purposes of subsection (3) whether or not reliance on a term of a contract is fair or reasonable, a court is to have regard to all the circumstances of the case, and in particular to the following matters:
(a) the strength of the bargaining positions of the person who supplied the goods or services and the person to whom the goods or services were supplied (the buyer) relative to each other, taking into account, among other things, the availability of equivalent goods or services and suitable alternative sources of supply;
(b) whether the buyer received an inducement to agree to the term or, in agreeing to the term, had an opportunity of acquiring the goods or services or equivalent goods or services from any source of supply under a contract that did not include that term;
(c) whether the buyer knew or ought reasonably to have known of the existence and extent of the term (having regard, among other things, to any custom of the trade and any previous course of dealing between the parties);
(d) in the case of the supply of goods, whether the goods were manufactured, processed or adapted to the special order of the buyer.
Subdivision D—Miscellaneous
65 Application of this Division to supplies of gas, electricity and telecommunications
(1) This Division does not apply to a supply if the supply:
(a) is a supply of a kind specified in the regulations; and
(b) is a supply of gas, electricity or a telecommunications service.
(2) A telecommunications service is a service for carrying communications by means of guided or unguided electromagnetic energy or both.
66 Display notices
(1) The Commonwealth Minister may determine, in writing, that persons (the suppliers) who make supplies, or supplies of a specified kind, to which guarantees apply under this Division are required to display, in accordance with the determination, a notice that meets the requirements of the determination.
(2) A supplier who makes a supply to a consumer to which a guarantee applies under this Division, and to which such a determination relates, must ensure that a notice that meets those requirements is, in accordance with the determination:
(a) if the consumer takes delivery of the goods or services at the supplier’s premises—displayed at those premises; or
(b) otherwise—drawn to the consumer’s attention before the consumer agrees to the supply of the goods.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) Without limiting subsection (1), a determination under that subsection may do all or any of the following:
(a) require the notice to include specified information about the application of all or any of the provisions of this Division and Part 5‑4;
(b) specify where the notice must be displayed;
(c) specify how the notice must be drawn to the attention of consumers;
(d) specify requirements as to the form of the notice.
67 Conflict of laws
If:
(a) the proper law of a contract for the supply of goods or services to a consumer would be the law of any part of Australia but for a term of the contract that provides otherwise; or
(b) a contract for the supply of goods or services to a consumer contains a term that purports to substitute, or has the effect of substituting, the following provisions for all or any of the provisions of this Division:
(i) the provisions of the law of a country other than Australia;
(ii) the provisions of the law of a State or a Territory;
the provisions of this Division apply in relation to the supply under the contract despite that term.
68 Convention on Contracts for the International Sale of Goods
The provisions of the United Nations Convention on Contracts for the International Sale of Goods, done at Vienna on 11 April 1980, as amended and in force for Australia from time to time, prevail over the provisions of this Division to the extent of any inconsistency.
Note: The text of the Convention is set out in Australian Treaty Series 1988 No. 32 ([1988] ATS 32). In 2010, the text of a Convention in the Australian Treaty Series was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).
Division 2—Unsolicited consumer agreements
Subdivision A—Introduction
69 Meaning of unsolicited consumer agreement
(1) An agreement is an unsolicited consumer agreement if:
(a) it is for the supply, in trade or commerce, of goods or services to a consumer; and
(b) it is made as a result of negotiations between a dealer and the consumer:
(i) in each other’s presence at a place other than the business or trade premises of the supplier of the goods or services; or
(ii) by telephone;
whether or not they are the only negotiations that precede the making of the agreement; and
(c) the consumer did not invite the dealer to come to that place, or to make a telephone call, for the purposes of entering into negotiations relating to the supply of those goods or services (whether or not the consumer made such an invitation in relation to a different supply); and
(d) the total price paid or payable by the consumer under the agreement:
(i) is not ascertainable at the time the agreement is made; or
(ii) if it is ascertainable at that time—is more than $100 or such other amount prescribed by the regulations.
(1AA) To avoid doubt, a place mentioned in subsection (1)(b)(i) may be a public place, and need not be a place the dealer cannot enter without the consumer’s consent or invitation.
Note: This subsection was inserted as a response to the decision of the Federal Court of Australia in Australian Competition and Consumer Commission v A.C.N. 099 814 749 Pty Ltd [2016] FCA 403.
(1A) The consumer is not taken, for the purposes of subsection (1)(c), to have invited the dealer to come to that place, or to make a telephone call, merely because the consumer has:
(a) given his or her name or contact details other than for the predominant purpose of entering into negotiations relating to the supply of the goods or services referred to in subsection (1)(c); or
(b) contacted the dealer in connection with an unsuccessful attempt by the dealer to contact the consumer.
(2) An invitation merely to quote a price for a supply is not taken, for the purposes of subsection (1)(c), to be an invitation to enter into negotiations for a supply.
(3) An agreement is also an unsolicited consumer agreement if it is an agreement of a kind that the regulations provide are unsolicited consumer agreements.
(4) However, despite subsections (1) and (3), an agreement is not an unsolicited consumer agreement if it is an agreement of a kind that the regulations provide are not unsolicited consumer agreements.
70 Presumption that agreements are unsolicited consumer agreements
(1) In a proceeding relating to a contravention or possible contravention of this Division (other than a criminal proceeding), an agreement is presumed to be an unsolicited consumer agreement if:
(a) a party to the proceeding alleges that the agreement is an unsolicited consumer agreement; and
(b) no other party to the proceeding proves that the agreement is not an unsolicited consumer agreement.
(2) In a proceeding relating to a contravention or possible contravention of this Division (other than a criminal proceeding), it is presumed that a proposed agreement would be an unsolicited consumer agreement if it were made if:
(a) a party to the proceeding alleges that the proposed agreement would be an unsolicited consumer agreement if it were made; and
(b) no other party to the proceeding proves that the proposed agreement would not be an unsolicited consumer agreement if it were made.
71 Meaning of dealer
A dealer is a person who, in trade or commerce:
(a) enters into negotiations with a consumer with a view to making an agreement for the supply of goods or services to the consumer; or
(b) calls on, or telephones, a consumer for the purpose of entering into such negotiations;
whether or not that person is, or is to be, the supplier of the goods or services.
72 Meaning of negotiation
A negotiation, in relation to an agreement or a proposed agreement, includes any discussion or dealing directed towards the making of the agreement or proposed agreement (whether or not the terms of the agreement or proposed agreement are open to any discussion or dealing).
Subdivision B—Negotiating unsolicited consumer agreements
73 Permitted hours for negotiating an unsolicited consumer agreement
(1) A dealer must not call on a person for the purpose of negotiating an unsolicited consumer agreement, or for an incidental or related purpose:
(a) at any time on a Sunday or a public holiday; or
(b) before 9 am on any other day; or
(c) after 6 pm on any other day (or after 5 pm if the other day is a Saturday).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) Subsection (1) does not apply if the dealer calls on the person in accordance with consent that:
(a) was given by the person to the dealer or a person acting on the dealer’s behalf; and
(b) was not given in the presence of the dealer or a person acting on the dealer’s behalf.
Note: The Do Not Call Register Act 2006 may apply to a telephone call made for the purpose of negotiating an unsolicited consumer agreement.
74 Disclosing purpose and identity
A dealer who calls on a person for the purpose of negotiating an unsolicited consumer agreement, or for an incidental or related purpose, must, as soon as practicable and in any event before starting to negotiate:
(a) clearly advise the person that the dealer’s purpose is to seek the person’s agreement to a supply of the goods or services concerned; and
(b) clearly advise the person that the dealer is obliged to leave the premises immediately on request; and
(c) provide to the person such information relating to the dealer’s identity as is prescribed by the regulations.
Note: A pecuniary penalty may be imposed for a contravention of this section.
75 Ceasing to negotiate on request
(1) A dealer who calls on a person at any premises for the purpose of negotiating an unsolicited consumer agreement, or for an incidental or related purpose, must leave the premises immediately on the request of:
(a) the occupier of the premises, or any person acting with the actual or apparent authority of the occupier; or
(b) the person (the prospective consumer) with whom the negotiations are being conducted.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) If the prospective consumer makes such a request, the dealer must not contact the prospective consumer for the purpose of negotiating an unsolicited consumer agreement (or for an incidental or related purpose) for at least 30 days after the prospective consumer makes the request.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) If the dealer is not, or is not to be, the supplier of the goods or services to which the negotiations relate:
(a) subsection (2) applies to that supplier, and any person acting on behalf of that supplier, in the same way that it applies to the dealer; but
(b) subsection (2) does not apply to the dealer contacting the prospective customer in relation to a supply by another supplier.
76 Informing person of termination period etc.
A dealer must not make an unsolicited consumer agreement with a person unless:
(a) before the agreement is made, the person is given information as to the following:
(i) the person’s right to terminate the agreement during the termination period;
(ii) the way in which the person may exercise that right;
(iii) such other matters as are prescribed by the regulations; and
(b) if the agreement is made in the presence of both the dealer and the person—the person is given the information in writing; and
(c) if the agreement is made by telephone—the person is given the information by telephone, and is subsequently given the information in writing; and
(d) the form in which, and the way in which, the person is given the information complies with any other requirements prescribed by the regulations.
Note: A pecuniary penalty may be imposed for a contravention of this section.
77 Liability of suppliers for contraventions by dealers
If:
(a) a dealer contravenes a provision of this Subdivision in relation to an unsolicited consumer agreement; and
(b) the dealer is not, or is not to be, the supplier of the goods or services to which the agreement relates;
the supplier of the goods or services is also taken to have contravened that provision in relation to the agreement.
Subdivision C—Requirements for unsolicited consumer agreements etc.
78 Requirement to give document to the consumer
(1) If an unsolicited consumer agreement was not negotiated by telephone, the dealer who negotiated the agreement must give a copy of the agreement to the consumer under the agreement immediately after the consumer signs the agreement.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) If an unsolicited consumer agreement was negotiated by telephone, the dealer who negotiated the agreement must, within 5 business days after the agreement was made or such longer period agreed by the parties, give to the consumer under the agreement:
(a) personally; or
(b) by post; or
(c) with the consumer’s consent—by electronic communication;
a document (the agreement document) evidencing the agreement.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) An unsolicited consumer agreement was negotiated by telephone if the negotiations that resulted in the making of the agreement took place by telephone (whether or not other negotiations preceded the making of the agreement).
79 Requirements for all unsolicited consumer agreements etc.
The supplier under an unsolicited consumer agreement must ensure that the agreement, or (if the agreement was negotiated by telephone) the agreement document, complies with the following requirements:
(a) it must set out in full all the terms of the agreement, including:
(i) the total consideration to be paid or provided by the consumer under the agreement or, if the total consideration is not ascertainable at the time the agreement is made, the way in which it is to be calculated; and
(ii) any postal or delivery charges to be paid by the consumer;
(b) its front page must include a notice that:
(i) conspicuously and prominently informs the consumer of the consumer’s right to terminate the agreement; and
(ii) conspicuously and prominently sets out any other information prescribed by the regulations; and
(iii) complies with any other requirements prescribed by the regulations;
(c) it must be accompanied by a notice that:
(i) may be used by the consumer to terminate the agreement; and
(ii) complies with any requirements prescribed by the regulations;
(d) it must conspicuously and prominently set out in full:
(i) the supplier’s name; and
(ii) if the supplier has an ABN—the supplier’s ABN; and
(iii) if the supplier does not have an ABN but has an ACN—the supplier’s ACN; and
(iv) the supplier’s business address (not being a post box) or, if the supplier does not have a business address, the supplier’s residential address; and
(v) if the supplier has an email address—the supplier’s email address; and
(vi) if the supplier has a fax number—the supplier’s fax number;
(e) it must be printed clearly or typewritten (apart from any amendments to the printed or typewritten form, which may be handwritten);
(f) it must be transparent.
Note: A pecuniary penalty may be imposed for a contravention of this section.
80 Additional requirements for unsolicited consumer agreements not negotiated by telephone
The supplier under an unsolicited consumer agreement that was not negotiated by telephone must ensure that, in addition to complying with the requirements of section 79, the agreement complies with the following requirements:
(a) the agreement must be signed by the consumer under the agreement;
(b) if the agreement is signed by a person on the supplier’s behalf—the agreement must state that the person is acting on the supplier’s behalf, and must set out in full:
(i) the person’s name; and
(ii) the person’s business address (not being a post box) or, if the person does not have a business address, the person’s residential address; and
(iii) if the person has an email address—the person’s email address.
Note: A pecuniary penalty may be imposed for a contravention of this section.
81 Requirements for amendments of unsolicited consumer agreements
The supplier under an unsolicited consumer agreement must ensure that any amendments to the agreement are signed by both parties to the agreement.
Note: A pecuniary penalty may be imposed for a contravention of this section.
Subdivision D—Terminating unsolicited consumer agreements
82 Terminating an unsolicited consumer agreement during the termination period
(1) The consumer under an unsolicited consumer agreement may, during the period provided under subsection (3), terminate the agreement by indicating, in an oral or written notice to the supplier under the agreement, an intention to terminate the agreement.
(2) A right of termination under this section may be exercised:
(a) despite affirmation of the agreement by the consumer; and
(b) even though the agreement has been fully executed.
(3) The period during which the consumer may terminate the agreement is whichever of the following periods is the longest:
(a) if the agreement was not negotiated by telephone—the period starting on the day on which the agreement was made and ending at the end of the tenth business day after the day on which the agreement was made;
(b) if the agreement was negotiated by telephone—the period starting on the day on which the agreement was made and ending at the end of the tenth business day after the day on which the consumer was given the agreement document relating to the agreement;
(c) if one or more of sections 73 (permitted hours for negotiating an unsolicited consumer agreement), 74 (disclosing purpose and identity) and 75 (ceasing to negotiate on request) were contravened in relation to the agreement:
(i) if the agreement was not negotiated by telephone—the period starting on the day on which the agreement was made and ending at the end of the period of 3 months starting on the day after the day on which the agreement was made; or
(ii) if the agreement was negotiated by telephone—the period starting on the day on which the agreement was made and ending at the end of the period of 3 months starting on the day after the day on which the consumer was given the agreement document relating to the agreement;
(d) if one or more of section 76 (informing consumer of termination period), a provision of Subdivision C (requirements for unsolicited consumer agreements) and section 86 (prohibition on supplies etc.) were contravened in relation to the agreement:
(i) if the agreement was not negotiated by telephone—the period starting on the day on which the agreement was made and ending at the end of the period of 6 months starting on the day after the day on which the agreement was made; or
(ii) if the agreement was negotiated by telephone—the period starting on the day on which the agreement was made and ending at the end of the period of 6 months starting on the day after the day on which the consumer was given the agreement document relating to the agreement;
(e) such other period as the agreement provides.
(4) If the notice under subsection (1) is written, it may be given:
(a) by delivering it personally to the supplier; or
(b) by delivering it, or sending it by post, in an envelope addressed to the supplier, to the supplier’s address referred to in section 79(d)(iv); or
(c) if the supplier has an email address—by sending it to the supplier’s email address referred to in section 79(d)(v); or
(d) if the supplier has a fax number—by faxing it to the supplier’s fax number referred to in section 79(d)(vi).
(5) A notice under subsection (1) sent by post to a supplier is taken to have been given to the supplier at the time of posting.
(6) There are no requirements relating to the form or content of a notice under subsection (1).
83 Effect of termination
(1) If an unsolicited consumer agreement is terminated in accordance with section 82:
(a) the agreement is taken to have been rescinded by mutual consent; and
(b) any related contract or instrument is void.
(2) A related contract or instrument, in relation to an unsolicited consumer agreement, is:
(a) any contract of guarantee or indemnity that is related to the agreement; or
(b) any instrument related to the agreement that creates a mortgage or charge in favour of the supplier under the contract or the dealer in relation to the contract (or a person nominated by the supplier or dealer); or
(c) any contract or instrument (other than an instrument of a kind referred to in paragraph (b)) that is collateral or related to the agreement;
but does not include a tied continuing credit contract (within the meaning of section 127(2) of Schedule 1 to the National Consumer Credit Protection Act 2009), or a tied loan contract (within the meaning of section 127(3) of that Schedule).
(3) The termination of an unsolicited consumer agreement has effect for the purposes of section 82 and this section even if:
(a) the supplier under the agreement has not received the notice of termination; or
(b) the goods or services supplied under the agreement have been wholly or partly consumed or used.
84 Obligations of suppliers on termination
If an unsolicited consumer agreement is terminated in accordance with section 82, the supplier under the agreement must, immediately upon being notified of the termination, return or refund to the consumer under the agreement any consideration (or the value of any consideration) that the consumer gave under the agreement or a related contract or instrument.
Note: A pecuniary penalty may be imposed for a contravention of this section.
85 Obligations and rights of consumers on termination
(1) If an unsolicited consumer agreement is terminated in accordance with section 82, the consumer under the agreement must, within a reasonable time:
(a) return to the supplier under the agreement any goods:
(i) that have been received from the supplier under the agreement; and
(ii) that the consumer has not already consumed; or
(b) notify the supplier of the place where the supplier may collect the goods.
(2) The goods become the property of the consumer, freed and discharged from all liens and charges of any description, if:
(a) the consumer gives notice to the supplier under subsection (1)(b); and
(b) the supplier does not collect the goods within 30 days after the termination of the contract.
(3) If:
(a) the agreement is terminated in accordance with section 82 after the end of:
(i) if the agreement was not negotiated by telephone—the period starting on the day on which the agreement was made and ending at the end of the tenth business day after the day on which the agreement was made; or
(ii) if the agreement was negotiated by telephone—the period starting on the day on which the agreement was made and ending at the end of the tenth business day after the day on which the consumer was given the agreement document relating to the agreement; and
(b) the consumer returns the goods to the supplier, or the supplier collects the goods, under this section; and
(c) the consumer has failed to take reasonable care of the goods;
the consumer is liable to pay compensation to the supplier for the damage to, or depreciation in the value of, the goods.
(4) The compensation is recoverable in a court of competent jurisdiction.
(5) However, the consumer is not liable for any such damage or depreciation attributable to normal use of the goods or to circumstances beyond the consumer’s control.
(6) If:
(a) an unsolicited consumer agreement is terminated in accordance with section 82 after the end of:
(i) if the agreement was not negotiated by telephone—the period starting on the day on which the agreement was made and ending at the end of the tenth business day after the day on which the agreement was made; or
(ii) if the agreement was negotiated by telephone—the period starting on the day on which the agreement was made and ending at the end of the tenth business day after the day on which the consumer was given the agreement document relating to the agreement; and
(b) prior to the termination, but after the end of that period, a service was supplied under the agreement;
the termination does not affect any liability of the consumer under the agreement to provide consideration for the service.
86 Prohibition on supplies etc.
(1) The supplier under an unsolicited consumer agreement must not:
(a) supply to the consumer under the agreement the goods or services to be supplied under the agreement; or
(b) accept any payment, or any other consideration, in connection with those goods or services; or
(c) require any payment, or any other consideration, in connection with those goods or services;
during:
(d) if the agreement was not negotiated by telephone—the period starting on the day on which the agreement was made and ending at the end of the tenth business day after the day on which the agreement was made; or
(e) if the agreement was negotiated by telephone—the period starting on the day on which the agreement was made and ending at the end of the tenth business day after the day on which the consumer was given the agreement document relating to the agreement.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) If the supplier supplies goods to the consumer in contravention of this section, the consumer has the same rights in relation to the goods as if the goods were unsolicited goods.
Note: Section 41 deals with unsolicited goods.
(3) If the supplier supplies services to the consumer in contravention of this section, the consumer has the same rights in relation to the services as if the services were unsolicited services.
Note: Section 42 deals with unsolicited services.
87 Repayment of payments received after termination
If an unsolicited consumer agreement is terminated in accordance with section 82, the supplier under the agreement must immediately refund to the consumer under the agreement any payment:
(a) that the consumer, or a person acting on the consumer’s behalf, makes to the supplier after the termination; and
(b) that purports to be made under the agreement or a related contract or instrument.
Note: A pecuniary penalty may be imposed for a contravention of this section.
88 Prohibition on recovering amounts after termination
(1) If an unsolicited consumer agreement is terminated in accordance with section 82, a person must not:
(a) bring, or assert an intention to bring, legal proceedings against the consumer; or
(b) take, or assert an intention to take, any other action against the consumer;
in relation to an amount alleged to be payable, under the agreement or a related contract or instrument, by the consumer under the agreement.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(1A) Subsection (1) does not apply to:
(a) bringing, or asserting an intention to bring, legal proceedings against the consumer; or
(b) taking, or asserting an intention to take, any other action against the consumer;
to enforce a liability under section 85(3), or a liability of a kind referred to in section 85(6).
(2) If an unsolicited consumer agreement is terminated in accordance with section 82, a person must not, for the purpose of recovering an amount alleged to be payable, under the agreement or a related contract or instrument, by the consumer under the agreement:
(a) place the consumer’s name, or cause the consumer’s name to be placed, on a list of defaulters or debtors; or
(b) assert an intention to place the consumer’s name, or cause the consumer’s name to be placed, on such a list.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) Without limiting Division 2 of Part 5‑2, an injunction granted under that Division may require a person responsible for keeping a list of defaulters or debtors on which the consumer’s name has been wrongly placed to remove the name from that list.
Subdivision E—Miscellaneous
89 Certain provisions of unsolicited consumer agreements void
(1) A provision (however described) of an unsolicited consumer agreement is void if it has the effect of, or purports to have the effect of:
(a) excluding, limiting, modifying or restricting a right of the consumer under the agreement to terminate the agreement under this Division; or
(b) otherwise excluding, limiting, modifying or restricting the effect or operation of this Division; or
(c) making a dispute relating to the agreement, or to a supply to which the agreement relates, justiciable by a court by which the dispute would not otherwise be justiciable.
(2) The supplier under an unsolicited consumer agreement must ensure that the agreement does not include, or purport to include, a provision (however described) that is, or would be, void because of subsection (1).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) The supplier under an unsolicited consumer agreement must not attempt to enforce or rely on a provision (however described) that is void because of subsection (1).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
90 Waiver of rights
(1) The consumer under an unsolicited consumer agreement is not competent to waive any right conferred by this Division.
(2) The supplier under the unsolicited consumer agreement must not induce, or attempt to induce, the consumer to waive any right conferred by this Division.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
91 Application of this Division to persons to whom rights of consumers and suppliers are assigned etc.
(1) This Division applies in relation to a person to whom the rights of a consumer (the original consumer) under a contract for the supply of goods or services are assigned or transferred, or pass by operation of law, (whether from the original consumer or from another person) as if the person were the original consumer.
(2) This Division applies in relation to a person to whom the rights of a supplier (the original supplier) under a contract for the supply of goods or services are assigned or transferred, or pass by operation of law, (whether from the original supplier or from another person) as if the person were the original supplier.
92 Application of this Division to supplies to third parties
This Division applies in relation to a contract for the supply of goods or services to a consumer (the original consumer) on the order of another person as if the other person were also the consumer.
93 Effect of contravening this Division
(1) The supplier under an unsolicited consumer agreement cannot enforce the agreement against the consumer under the agreement if a provision of this Division (other than section 85) has been contravened in relation to the agreement.
(2) This section does not prevent any action being taken under this Schedule in relation to the contravention.
94 Regulations may limit the application of this Division
This Division (other than section 73) does not apply, or provisions of this Division (other than section 73) that are specified in the regulations do not apply, to or in relation to:
(a) circumstances of a kind specified in the regulations; or
(b) agreements of a kind specified in the regulations; or
(c) the conduct of businesses of a kind specified in the regulations.
95 Application of this Division to certain conduct covered by the Corporations Act
This Division does not apply in relation to conduct to which section 736, 992A or 992AA of the Corporations Act 2001 applies.
Note: Section 736 of the Corporations Act 2001 prohibits hawking of securities. Section 992A of that Act prohibits hawking of certain financial products. Section 992AA of that Act prohibits hawking of interests in managed investment schemes (which for the purposes of that Act include interests in notified foreign passport funds).
Division 3—Lay‑by agreements
96 Lay‑by agreements must be in writing etc.
(1) A supplier of goods who is a party to a lay‑by agreement must ensure that:
(a) the agreement is in writing; and
(b) a copy of the agreement is given to the consumer to whom the goods are, or are to be, supplied.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A supplier of goods who is a party to a lay‑by agreement must ensure that the agreement is transparent.
(3) A lay‑by agreement is an agreement between a supplier of goods and a consumer for the supply, in trade or commerce, of the goods on terms (whether express or implied) which provide that:
(a) the goods will not be delivered to the consumer until the total price of the goods has been paid; and
(b) the price of the goods is to be paid by:
(i) 3 or more instalments; or
(ii) if the agreement specifies that it is a lay‑by agreement—2 or more instalments.
(4) For the purposes of subsection (3)(b), any deposit paid by the consumer for the goods is taken to be an instalment.
97 Termination of lay‑by agreements by consumers
(1) A consumer who is party to a lay‑by agreement may terminate the agreement at any time before the goods to which the agreement relates are delivered to the consumer under the agreement.
(2) A supplier of goods who is a party to a lay‑by agreement must ensure that the agreement does not require the consumer to pay a charge (a termination charge) for the termination of the agreement unless:
(a) the agreement is terminated by the consumer; and
(b) the supplier has not breached the agreement.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) A supplier of goods who is a party to a lay‑by agreement must ensure that, if the agreement provides that a termination charge is payable, the amount of the charge is not more than the supplier’s reasonable costs in relation to the agreement.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
98 Termination of lay‑by agreements by suppliers
A supplier of goods who is a party to a lay‑by agreement must not terminate the agreement unless:
(a) the consumer who is a party to the agreement breached a term of the agreement; or
(b) the supplier is no longer engaged in trade or commerce; or
(c) the goods to which the agreement relates are no longer available.
Note: A pecuniary penalty may be imposed for a contravention of this section.
99 Effect of termination
(1) If a lay‑by agreement is terminated by a party to the agreement, the supplier must refund to the consumer all the amounts paid by the consumer under the agreement other than any termination charge that is payable under the agreement.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) The supplier is entitled to recover any unpaid termination charge from the consumer as a debt if the amounts paid by the consumer under the lay‑by agreement are not enough to cover the charge.
(3) If a lay‑by agreement is terminated by a party to the agreement, the supplier is not entitled to damages, or to enforce any other remedy, in relation to that termination except as provided for by this section.
Division 3A—Gift cards
Subdivision A—Introduction
99A Meaning of gift card
A gift card is:
(a) an article (whether in physical or electronic form) that:
(i) is of a kind that is commonly known as a gift card or gift voucher; and
(ii) is redeemable for goods or services; or
(b) an article of a kind specified in regulations made for the purposes of this paragraph;
but does not include an article of a kind specified in the regulations.
Subdivision B—Requirements relating to gift cards
99B Gift cards to be redeemable for at least 3 years
(1) A person must not, in trade or commerce, supply a gift card to a consumer if the day that the gift card ceases to be redeemable is earlier than 3 years after the day of that supply.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) If:
(a) a gift card is, in trade or commerce, supplied to a consumer; and
(b) the day that the gift card ceases to be redeemable is earlier than 3 years after the day of that supply;
the day that the gift card ceases to be redeemable is taken to be 3 years after the day of that supply.
(3) Subsection (2) does not affect a person’s liability for an alleged contravention of subsection (1) or section 191A.
99C When gift card ceases to be redeemable to appear prominently on gift card
A person must not, in trade or commerce, supply a gift card to a consumer if one of the following does not appear prominently on the gift card:
(a) the date the gift card ceases to be redeemable;
(b) the month and year the gift card ceases to be redeemable;
(c) the date the gift card is supplied and a statement that identifies the period during which the gift card is redeemable;
(d) the month and year the gift card is supplied and a statement that identifies the period during which the gift card is redeemable;
(e) the words “no expiry date” or words to that effect.
Note: A pecuniary penalty may be imposed for a contravention of this section.
99D Terms and conditions not to allow post‑supply fees
(1) A person must not, in trade or commerce, supply a gift card to a consumer if the terms or conditions (however described) of the gift card allow or require the payment of a post‑supply fee in relation to the gift card.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A post‑supply fee is a fee or charge payable in relation to a gift card after it is supplied to a consumer, other than a fee or charge of a kind specified in the regulations.
99E Post‑supply fees not to be demanded or received
A person must not, in trade or commerce, demand or receive payment of a post‑supply fee in relation to a gift card.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
99F Certain terms and conditions of gift card void
(1) A term or condition (however described) of a gift card is void if it has the effect of, or purports to have the effect of:
(a) allowing or requiring the payment of a post‑supply fee in relation to the gift card; or
(b) reducing the period that the gift card ceases to be redeemable to a period that ends earlier than 3 years after the day the gift card is supplied to a consumer.
(2) The supplier of a gift card must ensure that the terms or conditions (however described) of the gift card do not include, or purport to include, a term or condition that is, or would be, void because of subsection (1).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) This section does not affect a person’s liability for an alleged contravention of:
(a) section 99B(1); or
(b) section 99C; or
(c) section 99D(1); or
(d) section 99E; or
(e) section 191A; or
(f) section 191B; or
(g) section 191C; or
(h) section 191D.
Subdivision C—Miscellaneous
99G Regulations may limit application of this Division
The regulations may provide that some or all of the provisions of this Division do not apply to or in relation to:
(a) gift cards of a kind prescribed by the regulations; or
(b) persons of a kind prescribed by the regulations; or
(c) gift cards supplied in circumstances prescribed by the regulations.
Division 4—Miscellaneous
100 Supplier must provide proof of transaction etc.
(1) If:
(a) a person (the supplier), in trade or commerce, supplies goods or services to a consumer; and
(b) the total price (excluding GST) of the goods or services is $75 or more;
the supplier must give the consumer a proof of transaction as soon as practicable after the goods or services are so supplied.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) If:
(a) a person (the supplier), in trade or commerce, supplies goods or services to a consumer; and
(b) the total price (excluding GST) of the goods or services is less than $75;
the consumer may request a proof of transaction from the supplier as soon as practicable after the goods or services are so supplied.
(3) If a request is made under subsection (2), the supplier must give the proof of transaction within 7 days after the request is made.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(4) A proof of transaction for a supply of goods or services to a consumer is a document that:
(a) identifies the supplier of the goods or services; and
(b) if the supplier has an ABN—states the supplier’s ABN; and
(c) if the supplier does not have an ABN but has an ACN—states the supplier’s ACN; and
(d) states the date of the supply; and
(e) states the goods or services supplied to the consumer; and
(f) states the price of the goods or services.
Note: The following are examples of a proof of transaction:
(a) a tax invoice within the meaning of the A New Tax System (Goods and Services Tax) Act 1999;
(b) a cash register receipt;
(c) a credit card or debit card statement;
(d) a handwritten receipt;
(e) a lay‑by agreement;
(f) a confirmation or receipt number provided for a telephone or internet transaction.
(5) The supplier must ensure that the proof of transaction given under subsection (1) or (3) is transparent.
101 Consumer may request an itemised bill
(1) If a person (the supplier), in trade or commerce, supplies services to a consumer, the consumer may request that the supplier give the consumer an itemised bill that:
(a) specifies how the price of the services was calculated; and
(b) includes, if applicable, the number of hours of labour that related to the supply of the services and the hourly rate for that labour; and
(c) includes, if applicable, a list of the materials used to supply the services and the amount charged for those materials.
(2) The request under subsection (1) must be made within 30 days after:
(a) the services are supplied; or
(b) the consumer receives a bill or account from the supplier for the supply of the services;
whichever occurs later.
(3) The supplier must give the consumer the itemised bill within 7 days after the request is made.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(4) The supplier must not charge the consumer for the itemised bill.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(5) The supplier must ensure that the itemised bill is transparent.
102 Prescribed requirements for warranties against defects
(1) The regulations may prescribe requirements relating to the form and content of warranties against defects.
(2) A person must not, in connection with the supply, in trade or commerce, of goods or services to a consumer:
(a) give to the consumer a document that evidences a warranty against defects that does not comply with the requirements prescribed for the purposes of subsection (1); or
(b) represent directly to the consumer that the goods or services are goods or services to which such a warranty against defects relates.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) A warranty against defects is a representation communicated to a consumer in connection with the supply of goods or services, at or about the time of supply, to the effect that a person will (unconditionally or on specified conditions):
(a) repair or replace the goods or part of them; or
(b) provide again or rectify the services or part of them; or
(c) wholly or partly recompense the consumer;
if the goods or services or part of them are defective, and includes any document by which such a representation is evidenced.
103 Repairers must comply with prescribed requirements
(1) The regulations may prescribe requirements relating to the form and content of notices to be given relating to the repair of goods supplied to a consumer.
(2) A person (the repairer) must not, in trade or commerce, accept from another person goods that the other person acquired as a consumer if the repairer:
(a) accepts the goods for the purpose of repairing them; and
(b) does not give to the other person a notice that complies with the requirements prescribed for the purposes of subsection (1).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
Part 3‑3—Safety of consumer goods and product related services
Division 1—Safety standards
104 Making safety standards for consumer goods and product related services
(1) The Commonwealth Minister may, by written notice published on the internet, make a safety standard for one or both of the following:
(a) consumer goods of a particular kind;
(b) product related services of a particular kind.
(2) A safety standard for consumer goods of a particular kind may consist of such requirements about the following matters as are reasonably necessary to prevent or reduce risk of injury to any person:
(a) the performance, composition, contents, methods of manufacture or processing, design, construction, finish or packaging of consumer goods of that kind;
(b) the testing of consumer goods of that kind during, or after the completion of, manufacture or processing;
(c) the form and content of markings, warnings or instructions to accompany consumer goods of that kind.
(3) A safety standard for product related services of a particular kind may consist of such requirements about the following matters as are reasonably necessary to prevent or reduce risk of injury to any person:
(a) the manner in which services of that kind are supplied (including, but not limited to, the method of supply);
(b) the skills or qualifications of persons who supply such services;
(c) the materials used in supplying such services;
(d) the testing of such services;
(e) the form and content of warnings, instructions or other information about such services.
105 Declaring safety standards for consumer goods and product related services
(1) The Commonwealth Minister may, by written notice published on the internet, declare that the following is a safety standard for consumer goods, or product related services, of a kind specified in the instrument:
(a) a particular standard, or a particular part of a standard, prepared or approved by Standards Australia or by an association prescribed by the regulations;
(b) such a standard, or such a part of a standard, with additions or variations specified in the notice.
(2) The Commonwealth Minister must not declare under subsection (1) that a standard, or a part of a standard, referred to in that subsection is a safety standard for:
(a) consumer goods of a particular kind; or
(b) product related services of a particular kind;
if that standard or part is inconsistent with a safety standard for those goods or services that is in force and that was made under section 104(1).
106 Supplying etc. consumer goods that do not comply with safety standards
(1) A person must not, in trade or commerce, supply consumer goods of a particular kind if:
(a) a safety standard for consumer goods of that kind is in force; and
(b) those goods do not comply with the standard.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A person must not, in trade or commerce, offer for supply (other than for export) consumer goods the supply of which is prohibited by subsection (1).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) A person must not, in or for the purposes of trade or commerce, manufacture, possess or have control of consumer goods the supply of which is prohibited by subsection (1).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(4) In a proceeding under Part 5‑2 in relation to a contravention of subsection (3), it is a defence if the defendant proves that the defendant’s manufacture, possession or control of the goods was not for the purpose of supplying the goods (other than for export).
(5) A person must not, in trade or commerce, export consumer goods the supply of which is prohibited by subsection (1) unless:
(a) the person applies, in writing, to the Commonwealth Minister for an approval to export those goods; and
(b) the Commonwealth Minister gives such an approval by written notice given to the person.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(6) If the Commonwealth Minister gives an approval under subsection (5), he or she must cause a statement setting out particulars of the approval to be tabled in each House of the Parliament of the Commonwealth within 7 sitting days of that House after the approval is given.
(7) If:
(a) a person supplies consumer goods in contravention of this section; and
(b) another person suffers loss or damage:
(i) because of a defect in, or a dangerous characteristic of, the goods; or
(ii) because of a reasonably foreseeable use (including a misuse) of the goods; or
(iii) because, contrary to the safety standard, he or she was not provided with particular information in relation to the goods; and
(c) the other person would not have suffered the loss or damage if the goods had complied with the safety standard;
the other person is taken, for the purposes of this Schedule, to have suffered the loss or damage because of that supply.
107 Supplying etc. product related services that do not comply with safety standards
(1) A person must not, in trade or commerce, supply product related services of particular kind if:
(a) a safety standard for services of that kind is in force; and
(b) those services do not comply with the standard.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A person must not, in trade or commerce, offer for supply product related services the supply of which is prohibited by subsection (1).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) If:
(a) a person supplies product related services in contravention of this section; and
(b) another person suffers loss or damage:
(i) because of defect in, or a dangerous characteristic of, consumer goods that results from the services being supplied; or
(ii) because of a reasonably foreseeable use (including a misuse) of consumer goods that results from the services being supplied; or
(iii) because, contrary to the safety standard, he or she was not provided with particular information in relation to the services; and
(c) the other person would not have suffered the loss or damage if the services had complied with the safety standard;
the other person is taken, for the purposes of this Schedule, to have suffered the loss or damage because of that supply.
108 Requirement to nominate a safety standard
If:
(a) a safety standard for consumer goods of a particular kind is in force; and
(b) the standard specifies, as alternative methods of complying with the standard (or part of the standard), 2 or more sets of requirements relating to goods of that kind; and
(c) the regulator gives to a supplier of goods of that kind a written request that the supplier nominate which of those sets of requirements the supplier intends to comply with as the supplier’s method of complying with the standard;
the supplier must, within the period specified in the request, give to the regulator a written notice specifying which of those sets of requirements the supplier intends to comply with as the supplier’s method of complying with the standard.
Division 2—Bans on consumer goods and product related services
Subdivision A—Interim bans
109 Interim bans on consumer goods or product related services that will or may cause injury to any person etc.
(1) A responsible Minister may, by written notice published on the internet, impose an interim ban on consumer goods of a particular kind if:
(a) it appears to the responsible Minister that:
(i) consumer goods of that kind will or may cause injury to any person; or
(ii) a reasonably foreseeable use (including a misuse) of consumer goods of that kind will or may cause injury to any person; or
(b) another responsible Minister has imposed, under paragraph (a), an interim ban:
(i) on consumer goods of the same kind; or
(ii) on consumer goods of a kind that includes those goods;
and that ban is still in force.
(2) A responsible Minister may, by written notice published on the internet, impose an interim ban on product related services of a particular kind if:
(a) it appears to the responsible Minister that:
(i) as a result of services of that kind being supplied, consumer goods of a particular kind will or may cause injury to any person; or
(ii) a reasonably foreseeable use (including a misuse) of consumer goods of a particular kind, to which such services relate, will or may cause injury to any person as a result of such services being supplied; or
(b) another responsible Minister has imposed, under paragraph (a), an interim ban:
(i) on product related services of the same kind; or
(ii) on product related services that include those services;
and that ban is still in force.
110 Places in which interim bans apply
(1) An interim ban imposed by the Commonwealth Minister applies in all States and Territories.
(2) An interim ban imposed by a responsible Minister who is Minister of a State applies in the State.
(3) An interim ban imposed by a responsible Minister who is a Minister of a Territory applies in the Territory.
111 Ban period for interim bans
(1) An interim ban imposed by a responsible Minister is in force during the period (the ban period) that:
(a) starts on the day (the start day) specified in the notice imposing the ban; and
(b) subject to this Subdivision, ends at the end of 60 days after the start day.
(2) Before the ban period for the interim ban ends, the responsible Minister may, by written notice published on the internet, extend the ban period for the ban by a period of up to 30 days.
(3) If:
(a) the ban period for the interim ban is extended under subsection (2); and
(b) the extended ban period for the ban has not ended; and
(c) the interim ban was not imposed by the Commonwealth Minister;
the responsible Minister may, in writing, request the Commonwealth Minister to extend the extended ban period for the ban.
(4) If a request is made under subsection (3), the Commonwealth Minister may, by written notice published on the internet, extend the extended ban period for the interim ban by a further period of up to 30 days.
(5) If:
(a) a request is made under subsection (3); and
(b) the Commonwealth Minister has not made a decision on the request immediately before the extended ban period for the interim ban is to end;
the Commonwealth Minister is taken to have decided to extend the extended ban period for the ban by a further period of 30 days.
(6) If:
(a) the ban period for the interim ban is extended under subsection (2); and
(b) the extended ban period for the ban has not ended; and
(c) the interim ban was imposed by the Commonwealth Minister;
the Commonwealth Minister may, by written notice published on the internet, extend the extended ban period for the interim ban by a further period of up to 30 days.
112 Interaction of multiple interim bans
(1) If:
(a) an interim ban (the original ban) on consumer goods of a particular kind (the banned goods) is imposed by a responsible Minister other than the Commonwealth Minister; and
(b) while the original ban is in force, the Commonwealth Minister imposes an interim ban (the Commonwealth ban):
(i) on the banned goods; or
(ii) on consumer goods of a kind that includes the banned goods;
the original ban, to the extent that it is a ban on the banned goods, ceases to be in force immediately before the Commonwealth ban comes into force.
(2) If:
(a) an interim ban (the original ban) on product related services of a particular kind (the banned services) is imposed by a responsible Minister other than the Commonwealth Minister; and
(b) while the original ban is in force, the Commonwealth Minister imposes an interim ban (the Commonwealth ban):
(i) on the banned services; or
(ii) on product related services of a kind that includes the banned services;
the original ban, to the extent that it is a ban on the banned services, ceases to be in force immediately before the Commonwealth ban comes into force.
113 Revocation of interim bans
If a responsible Minister imposes an interim ban:
(a) the responsible Minister may, by written notice published on the internet, revoke the ban at any time; and
(b) the ban ceases to be in force on the day specified by the responsible Minister in the notice.
Subdivision B—Permanent bans
114 Permanent bans on consumer goods or product related services
(1) The Commonwealth Minister may, by written notice published on the internet, impose a permanent ban on consumer goods of a particular kind if:
(a) one or more interim bans on consumer goods of that kind (the banned goods), or on consumer goods of a kind that include the banned goods, are in force; or
(b) it appears to the Commonwealth Minister that:
(i) consumer goods of that kind will or may cause injury to any person; or
(ii) a reasonably foreseeable use (including a misuse) of consumer goods of that kind will or may cause injury to any person.
(2) The Commonwealth Minister may, by written notice published on the internet, impose a permanent ban on product related services of a particular kind if:
(a) one or more interim bans on product related services of that kind (the banned services), or on product related services of a kind that include the banned services, are in force; or
(b) it appears to the Commonwealth Minister that:
(i) as a result of services of that kind being supplied, consumer goods of a particular kind will or may cause injury to any person; or
(ii) a reasonably foreseeable use (including a misuse) of consumer goods of a particular kind, to which such services relate, will or may cause injury to any person as a result of such services being supplied.
115 Places in which permanent bans apply
A permanent ban applies in all States and Territories.
116 When permanent bans come into force
A permanent ban comes into force on the day specified by the Commonwealth Minister in the instrument imposing the ban.
117 Revocation of permanent bans
If the Commonwealth Minister imposes a permanent ban:
(a) the Commonwealth Minister may, by written notice published on the internet, revoke the ban at any time; and
(b) the ban ceases to be in force on the day specified by the Commonwealth Minister in the notice.
Subdivision C—Compliance with interim bans and permanent bans
118 Supplying etc. consumer goods covered by a ban
(1) A person must not, in trade or commerce, supply consumer goods of a particular kind if:
(a) an interim ban on consumer goods of that kind is in force in the place where the supply occurs; or
(b) a permanent ban on consumer goods of that kind is in force.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A person must not, in trade or commerce, offer for supply (other than for export) consumer goods the supply of which is prohibited by subsection (1).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) A person must not, in or for the purposes of trade or commerce, manufacture, possess or have control of consumer goods the supply of which is prohibited by subsection (1).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(4) In a proceeding under Part 5‑2 in relation to a contravention of subsection (3), it is a defence if the defendant proves that the defendant’s manufacture, possession or control of the goods was not for the purpose of supplying the goods (other than for export).
(5) A person must not, in trade or commerce, export consumer goods the supply of which is prohibited by subsection (1) unless:
(a) the person applies, in writing, to the Commonwealth Minister for an approval to export those goods; and
(b) the Commonwealth Minister gives such an approval by written notice given to the person.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(6) If the Commonwealth Minister gives an approval under subsection (5), he or she must cause a statement setting out particulars of the approval to be tabled in each House of the Parliament of the Commonwealth within 7 sitting days of that House after the approval is given.
(7) If:
(a) a person supplies consumer goods in contravention of subsection (1); and
(b) another person suffers loss or damage:
(i) because of a defect in, or a dangerous characteristic of, the goods; or
(ii) because of a reasonably foreseeable use (including a misuse) of the goods;
the other person is taken, for the purposes of this Schedule, to have suffered the loss or damage because of that supply.
119 Supplying etc. product related services covered by a ban
(1) A person must not, in trade or commerce, supply product related services of a particular kind if:
(a) an interim ban on services of that kind is in force in the place where the supply occurs; or
(b) a permanent ban on services of that kind is in force.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A person must not, in trade or commerce, offer for supply product related services the supply of which is prohibited by subsection (1).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) If:
(a) a person supplies product related services in contravention of subsection (1); and
(b) another person suffers loss or damage:
(i) because of a defect in, or a dangerous characteristic of, consumer goods that results from the services being supplied; or
(ii) because of a reasonably foreseeable use (including a misuse) of consumer goods that results from the services being supplied;
the other person is taken, for the purposes of this Schedule, to have suffered the loss or damage because of that supply.
Subdivision D—Temporary exemption from mutual recognition principles
120 Temporary exemption under the Trans‑Tasman Mutual Recognition Act 1997
(1) If:
(a) an interim ban on consumer goods of a particular kind is in force; or
(b) a permanent ban on consumer goods of a particular kind is in force;
the goods are taken, for the purposes of section 46 of the Trans‑Tasman Mutual Recognition Act 1997, to be goods of a kind that are declared, in the manner provided by section 46(2) of that Act, to be exempt from the operation of that Act.
(2) This section does not affect the application of section 46(4) of that Act in relation to such an exemption.
121 Temporary exemption under the Mutual Recognition Act 1992
(1) If:
(a) an interim ban on consumer goods of a particular kind is in force; and
(b) the interim ban was not imposed by the Commonwealth Minister;
the goods are taken, for the purposes of section 15 of the Mutual Recognition Act 1992, to be goods of a kind that are declared, in the manner provided by section 15(1) of that Act, to be goods to which that section applies.
(2) This section does not affect the application of section 15(3) of that Act in relation to such an exemption.
Division 3—Recall of consumer goods
Subdivision A—Compulsory recall of consumer goods
122 Compulsory recall of consumer goods
(1) A responsible Minister may, by written notice published on the internet, issue a recall notice for consumer goods of a particular kind if:
(a) a person, in trade or commerce, supplies consumer goods of that kind; and
(b) any of the following applies:
(i) it appears to the responsible Minister that such goods will or may cause injury to any person;
(ii) it appears to the responsible Minister that a reasonably foreseeable use (including a misuse) of such goods will or may cause injury to any person;
(iii) a safety standard for such goods is in force and the goods do not comply with the standard;
(iv) an interim ban, or a permanent ban, on such goods is in force; and
(c) it appears to the responsible Minister that one or more suppliers of such goods have not taken satisfactory action to prevent those goods causing injury to any person.
(2) It is not necessary for the purposes of subsection (1)(c) for the responsible Minister to know the identities of any of the suppliers of the consumer goods of that kind.
(3) A recall notice for consumer goods may be issued under subsection (1) even if the consumer goods have become fixtures since the time they were supplied.
123 Contents of a recall notice
(1) A recall notice for the consumer goods may require one or more suppliers of the goods, or (if no such supplier is known to the responsible Minister who issued the notice) the regulator, to take one or more of the following actions:
(a) recall the goods;
(b) disclose to the public, or to a class of persons specified in the notice, one or more of the following:
(i) the nature of a defect in, or a dangerous characteristic of, the goods as identified in the notice;
(ii) the circumstances as identified in the notice in which a reasonably foreseeable use or misuse of the goods is dangerous;
(iii) procedures as specified in the notice for disposing of the goods;
(c) if the identities of any of those suppliers are known to the responsible Minister—inform the public, or a class of persons specified in the notice, that the supplier undertakes to do whichever of the following the supplier thinks is appropriate:
(i) unless the notice identifies a dangerous characteristic of the goods—repair the goods;
(ii) replace the goods;
(iii) refund to a person to whom the goods were supplied (whether by the supplier or by another person) the price of the goods.
(2) The recall notice may specify:
(a) the manner in which the action required to be taken by the notice must be taken; and
(b) the period within which the action must be taken.
(3) If the recall notice requires the regulator to take action to recall the consumer goods, the responsible Minister may specify in the notice that the regulator must retain, destroy or otherwise dispose of the goods.
(4) If the recall notice requires a supplier of the consumer goods to take action of a kind referred to in subsection (1)(c), the responsible Minister may specify in the notice that, if:
(a) the supplier undertakes to refund the price of the goods; and
(b) a period of more than 12 months has elapsed since a person (whether or not the person to whom the refund is to be made) acquired the goods from the supplier;
the amount of a refund may be reduced by the supplier by an amount calculated in a manner specified in the notice that is attributable to the use which a person has had of the goods.
124 Obligations of a supplier in relation to a recall notice
(1) This section applies if a recall notice for consumer goods requires a supplier to take action of a kind referred to in section 123(1)(c).
(2) If the supplier undertakes to repair the consumer goods, the supplier must cause the goods to be repaired so that:
(a) any defect in the goods identified in the recall notice is remedied; and
(b) if a safety standard for the goods is in force—the goods comply with that standard.
(3) If the supplier undertakes to replace the consumer goods, the supplier must replace the goods with similar consumer goods which:
(a) if a defect in, or a dangerous characteristic of, the goods to be replaced was identified in the recall notice—do not contain that defect or have that characteristic; and
(b) if a safety standard for the goods to be replaced is in force—comply with that standard.
(4) If the supplier undertakes:
(a) to repair the consumer goods; or
(b) to replace the consumer goods;
the cost of the repair or replacement, including any necessary transportation costs, must be paid by the supplier.
125 Notification by persons who supply consumer goods outside Australia if there is compulsory recall
(1) If consumer goods of a particular kind are recalled as required by a recall notice, a person who has supplied or supplies those consumer goods to a person outside Australia must give the person outside Australia a written notice that complies with subsection (2).
(2) The notice given under subsection (1) must:
(a) state that the consumer goods are subject to recall; and
(b) if the consumer goods contain a defect or have a dangerous characteristic—set out the nature of that defect or characteristic; and
(c) if a reasonably foreseeable use or misuse of the consumer goods is dangerous—set out the circumstances of that use or misuse; and
(d) if the consumer goods do not comply with a safety standard for such goods that is in force—set out the nature of the non‑compliance; and
(e) if an interim ban, or a permanent ban, on the consumer goods is in force—state that fact.
(3) The notice under subsection (1) must be given as soon as practicable after the supply of the consumer goods to the person outside Australia.
(4) A person who is required to give a notice under subsection (1) must, within 10 days after giving the notice, give a copy of the notice to the responsible Minister who issued the recall notice.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
126 Interaction of multiple recall notices
If:
(a) a recall notice (the original recall notice) for consumer goods of a particular kind (the recalled goods) is issued by a responsible Minister other than the Commonwealth Minister; and
(b) while the original recall notice is in force, the Commonwealth Minister issues a recall notice (the Commonwealth recall notice):
(i) for the recalled goods; or
(ii) for consumer goods of a kind that includes the recalled goods;
the original recall notice, to the extent that it relates to the recalled goods, ceases to be in force immediately before the Commonwealth recall notice is issued.
127 Compliance with recall notices
(1) If:
(a) a recall notice for consumer goods is in force; and
(b) the notice requires a person (other than the regulator) to do one or more things;
the person must comply with the notice.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) If a recall notice for consumer goods is in force, a person must not, in trade or commerce:
(a) if the notice identifies a defect in, or a dangerous characteristic of, the consumer goods—supply consumer goods of the kind to which the notice relates which contain that defect or have that characteristic; or
(b) in any other case—supply consumer goods of the kind to which the notice relates.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) If:
(a) a person contravenes subsection (1) or (2) in relation to consumer goods; and
(b) another person suffers loss or damage:
(i) because of a defect in, or a dangerous characteristic of, the goods; or
(ii) because of a reasonably foreseeable use (including a misuse) of the goods; or
(iii) because, contrary to the recall notice, the other person was not provided with particular information in relation to the goods;
the other person is taken, for the purposes of this Schedule, to have suffered the loss or damage because of the contravention.
Subdivision B—Voluntary recall of consumer goods
128 Notification requirements for a voluntary recall of consumer goods
(1) This section applies if a person voluntarily takes action to recall consumer goods of a particular kind (including consumer goods that have become fixtures since being supplied) because:
(a) the consumer goods will or may cause injury to any other person; or
(b) a reasonably foreseeable use (including a misuse) of the consumer goods will or may cause injury to any other person; or
(c) a safety standard for the consumer goods is in force and they do not, or it is likely that they do not, comply with the standard; or
(d) an interim ban, or a permanent ban, on the consumer goods is in force.
(2) The person must, within 2 days after taking the action, give the Commonwealth Minister a written notice that complies with subsection (7).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) The Commonwealth Minister may publish a copy of the notice on the internet.
(4) A person who has supplied or supplies consumer goods of that kind to another person outside Australia must give the other person a written notice that complies with subsection (7).
(5) The notice under subsection (4) must be given as soon as practicable after the supply of the consumer goods to the person outside Australia.
(6) A person who is required to give a notice under subsection (4) must, within 10 days after giving the notice, give a copy of the notice to the Commonwealth Minister.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(7) A notice given under subsection (2) or (4) must:
(a) state that the consumer goods are subject to recall; and
(b) if the consumer goods contain a defect or have a dangerous characteristic—set out the nature of that defect or characteristic; and
(c) if a reasonably foreseeable use or misuse of the consumer goods is dangerous—set out the circumstances of that use or misuse; and
(d) if the consumer goods do not, or it is likely that they do not, comply with a safety standard for the goods that is in force—set out the nature of the non‑compliance or likely non‑compliance; and
(e) if an interim ban, or a permanent ban, on the consumer goods is in force—state that fact.
Division 4—Safety warning notices
129 Safety warning notices about consumer goods and product related services
(1) A responsible Minister may publish on the internet a written notice containing one or both of the following:
(a) a statement that consumer goods of a kind specified in the notice are under investigation to determine whether:
(i) those goods will or may cause injury to any person; or
(ii) a reasonably foreseeable use (including a misuse) of those goods will or may cause injury to any person;
(b) a warning of possible risks involved in the use of consumer goods of a kind specified in the notice.
(2) A responsible Minister may publish on the internet a written notice containing one or both of the following:
(a) a statement that product related services of a kind specified in the notice are under investigation to determine whether:
(i) consumer goods of a particular kind will or may cause injury to any person as a result of services of that kind being supplied; or
(ii) a reasonably foreseeable use (including a misuse) of consumer goods of a particular kind, to which such services relate, will or may cause injury to any person as a result of such services being supplied;
(b) a warning of possible risks involved in the supply of product related services of a kind specified in the notice.
130 Announcement of the results of an investigation etc.
(1) If:
(a) an investigation of consumer goods, or product related services, specified in a notice under section 129(1) or (2) has been completed; and
(b) none of the following have been published or issued in relation to those goods or services:
(i) a proposed ban notice under section 132 of the Competition and Consumer Act;
(ii) a proposed recall notice under section 132A of that Act;
(iii) a notice under section 132J(1) or (2) of that Act;
the responsible Minister who issued the notice under section 129(1) or (2) must, as soon as practicable after the completion of the investigation, announce, by written notice published on the internet, the results of the investigation.
(2) The responsible Minister may announce in a notice published under subsection (1) of this section:
(a) whether any action under this Part is proposed to be taken in relation to the consumer goods or product related services; and
(b) if it is proposed to take any such action—what action is proposed to be taken.
Division 5—Consumer goods, or product related services, associated with death or serious injury or illness
131 Suppliers to report consumer goods associated with the death or serious injury or illness of any person
(1) If:
(a) a person (the supplier), in trade or commerce, supplies consumer goods; and
(b) the supplier becomes aware of the death or serious injury or illness of any person and:
(i) considers that the death or serious injury or illness was caused, or may have been caused, by the use or foreseeable misuse of the consumer goods; or
(ii) becomes aware that a person other than the supplier considers that the death or serious injury or illness was caused, or may have been caused, by the use or foreseeable misuse of the consumer goods;
the supplier must, within 2 days of becoming so aware, give the Commonwealth Minister a written notice that complies with subsection (5).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) Subsection (1) does not apply if:
(a) it is clear that the death or serious injury or illness was not caused by the use or foreseeable misuse of the consumer goods; or
(b) it is very unlikely that the death or serious injury or illness was caused by the use or foreseeable misuse of the consumer goods; or
(c) the supplier, or another person, is required to notify the death or serious injury or illness in accordance with a law of the Commonwealth, a State or a Territory that is a law specified in the regulations; or
(d) the supplier, or another person, is required to notify the death or serious injury or illness in accordance with an industry code of practice that:
(i) applies to the supplier or other person; and
(ii) is specified in the regulations.
(3) Subsection (1) applies whether or not the consumer goods were being used before or at the time the death or serious injury or illness occurred.
(4) Without limiting subsection (1), the ways in which the supplier may become aware as mentioned in subsection (1)(b) include receiving the relevant information from any of the following:
(a) a consumer;
(b) a person who re‑supplies the consumer goods;
(c) a repairer or insurer of the goods;
(d) an industry organisation or consumer organisation.
(5) The notice must:
(a) identify the consumer goods; and
(b) include information about the following matters to the extent that it is known by the supplier at the time the notice is given:
(i) when, and in what quantities, the consumer goods were manufactured in Australia, supplied in Australia, imported into Australia or exported from Australia;
(ii) the circumstances in which the death or serious injury or illness occurred;
(iii) the nature of any serious injury or illness suffered by any person;
(iv) any action that the supplier has taken, or is intending to take, in relation to the consumer goods.
(6) The giving of the notice under subsection (1) is not to be taken for any purpose to be an admission by the supplier of any liability in relation to:
(a) the consumer goods; or
(b) the death or serious injury or illness of any person.
132 Suppliers to report product related services associated with the death or serious injury or illness of any person
(1) If:
(a) a person (the supplier), in trade or commerce, supplies product related services; and
(b) the supplier becomes aware of the death or serious injury or illness of any person and:
(i) considers that the death or serious injury or illness was caused, or may have been caused, by the use or foreseeable misuse of the consumer goods to which the services relate; or
(ii) becomes aware that a person other than the supplier considers that the death or serious injury or illness was caused, or may have been caused, by the use or foreseeable misuse of the consumer goods to which the services relate;
the supplier must, within 2 days of becoming so aware, give the Commonwealth Minister a written notice that complies with subsection (5).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) Subsection (1) does not apply if:
(a) it is clear that the death or serious injury or illness was not caused by the use or foreseeable misuse of the consumer goods to which the services relate; or
(b) it is very unlikely that the death or serious injury or illness was caused by the use or foreseeable misuse of the consumer goods to which the services relate; or
(c) the supplier, or another person, is required to notify the death or serious injury or illness in accordance with a law of the Commonwealth, a State or a Territory that is a law specified in the regulations; or
(d) the supplier, or another person, has notified the death or serious injury or illness in accordance with an industry code of practice that:
(i) applies to the supplier or other person; and
(ii) is specified in the regulations.
(3) Subsection (1) applies whether or not consumer goods to which the product related services relate were being used before or at the time the death or serious injury or illness occurred.
(4) Without limiting subsection (1), the ways in which the supplier may become aware as mentioned in subsection (1)(b) include receiving the relevant information from any of the following:
(a) a consumer;
(b) a person who re‑supplies the product related services;
(c) an insurer of the services;
(d) an industry organisation or consumer organisation.
(5) The notice must:
(a) identify the product related services and the consumer goods to which the services relate; and
(b) include information about the following matters to the extent that it is known by the supplier at the time the notice is given:
(i) when the services have been supplied;
(ii) the circumstances in which the death or serious injury or illness occurred;
(iii) the nature of any serious injury or illness suffered by any person;
(iv) any action that the supplier has taken, or is intending to take, in relation to the services.
(6) The giving of the notice under subsection (1) is not to be taken for any purpose to be an admission by the supplier of any liability in relation to:
(a) the product related services; or
(b) the consumer goods to which the services relate; or
(c) the death or serious injury or illness of any person.
132A Confidentiality of notices given under this Division
(1) A person must not disclose to any other person a notice given under this Division, or any part of or information contained in such a notice, unless the person who gave the notice has consented to the notice, or that part or information, not being treated as confidential.
(2) This section does not apply if:
(a) the disclosure is made by the Commonwealth Minister to:
(i) another responsible Minister; or
(ii) the regulator; or
(iii) an associate regulator; or
(b) the disclosure is made by the Commonwealth Minister and the Commonwealth Minister considers that the disclosure is in the public interest; or
(c) the disclosure is made by a member of the staff of the regulator, or an associate regulator, in the performance of his or her duties as such a member of staff, and is made:
(i) to another member of the staff of the regulator or associate regulator; or
(ii) if the person making the disclosure is a member of the staff of the regulator—to an associate regulator; or
(iii) if the person making the disclosure is a member of the staff of an associate regulator—to the regulator or another associate regulator; or
(d) the disclosure is required or authorised by or under law; or
(e) the disclosure is reasonably necessary for the enforcement of the criminal law or of a law imposing a pecuniary penalty.
(3) This section also does not apply if the disclosure is made by a member of the staff of the regulator, or an associate regulator, in the performance of his or her duties as such a member of staff, and is made because it is reasonably necessary to protect public safety, to:
(a) any other agency within the meaning of the Freedom of Information Act 1982; or
(b) the Director of Public Prosecutions; or
(c) a State/Territory government body (within the meaning of section 155AAA of the Competition and Consumer Act); or
(d) a foreign government body (within the meaning of the Competition and Consumer Act).
Division 6—Miscellaneous
133 Liability under a contract of insurance
If:
(a) a contract of insurance between an insurer and a person relates to:
(i) the recall of consumer goods that are supplied by the person, or which the person proposes to supply; or
(ii) the liability of the person with respect to possible defects in such consumer goods; and
(b) the person gives information relating to any such consumer goods to:
(i) a responsible Minister; or
(ii) the regulator; or
(iii) a person appointed or engaged under the Public Service Act 1999, or under a corresponding law of a State or a Territory; or
(iv) an officer of an authority of the Commonwealth or of a State or Territory;
the liability of the insurer under the contract is not affected only because the person gave the information.
Part 3‑4—Information standards
134 Making information standards for goods and services
(1) The Commonwealth Minister may, by written notice published on the internet, make an information standard for one or both of the following:
(a) goods of a particular kind;
(b) services of a particular kind.
(2) Without limiting subsection (1), an information standard for goods or services of a particular kind may:
(a) make provision in relation to the content of information about goods or services of that kind; or
(b) require the provision of specified information about goods or services of that kind; or
(c) provide for the manner or form in which such information is to be provided; or
(d) provide that such information is not to be provided in a specified manner or form; or
(e) provide that information of a specified kind is not to be provided about goods or services of that kind; or
(f) assign a meaning to specified information about goods or services.
135 Declaring information standards for goods and services
(1) The Commonwealth Minister may, by written notice published on the internet, declare that the following is an information standard for goods or services of a kind specified in the instrument:
(a) a particular standard, or a particular part of a standard, prepared or approved by Standards Australia or by an association prescribed by the regulations;
(b) such a standard, or such a part of a standard, with additions or variations specified in the notice.
(2) The Commonwealth Minister must not declare under subsection (1) that a standard, or a part of a standard, referred to in that subsection is an information standard for:
(a) goods of a particular kind; or
(b) services of a particular kind;
if that standard or part is inconsistent with an information standard for those goods or services that is in force and was made under section 134(1).
136 Supplying etc. goods that do not comply with information standards
(1) A person must not, in trade or commerce, supply goods of a particular kind if:
(a) an information standard for goods of that kind is in force; and
(b) the person has not complied with that standard.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A person must not, in trade or commerce, offer for supply goods the supply of which is prohibited by subsection (1).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) A person must not, in or for the purposes of trade or commerce, manufacture, possess or have control of goods the supply of which is prohibited by subsection (1).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(4) In a proceeding under Part 5‑2 in relation to a contravention of subsection (3), it is a defence if the defendant proves that the defendant’s manufacture, possession or control of the goods was not for the purpose of supplying the goods.
(5) Subsections (1), (2) and (3) do not apply to goods that are intended to be used outside Australia.
(6) Unless the contrary is established, it is presumed, for the purposes of this section, that goods are intended to be used outside Australia if either of the following is applied to the goods:
(a) a statement that the goods are for export only;
(b) a statement indicating, by the use of words authorised by the regulations to be used for the purposes of this subsection, that the goods are intended to be used outside Australia.
(7) Without limiting subsection (6), a statement may, for the purposes of that subsection, be applied to goods by being:
(a) woven in, impressed on, worked into or annexed or affixed to the goods; or
(b) applied to a covering, label, reel or thing in or with which the goods are supplied.
(8) If:
(a) a person (the supplier) supplies goods in contravention of subsection (1), (2) or (3); and
(b) another person suffers loss or damage because, contrary to the information standard, he or she was not provided with particular information in relation to the goods; and
(c) the other person would not have suffered the loss or damage if the supplier had complied with the information standard;
the other person is taken, for the purposes of this Schedule, to have suffered the loss or damage because of that supply.
137 Supplying etc. services that do not comply with information standards
(1) A person must not, in trade or commerce, supply services of a particular kind if:
(a) an information standard for services of that kind is in force; and
(b) the person has not complied with that standard.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A person must not, in trade or commerce, offer for supply services the supply of which is prohibited by subsection (1).
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) If:
(a) a person (the supplier) supplies services in contravention of subsection (1) or (2); and
(b) another person suffers loss or damage because, contrary to the information standard, he or she was not provided with particular information in relation to the services; and
(c) the other person would not have suffered the loss or damage if the supplier had complied with the information standard;
the other person is taken, for the purposes of this Schedule, to have suffered the loss or damage because of that supply.
137A Safe harbour for complying with information standards about free range eggs
(1) Neither section 18 nor paragraph 29(1)(a) or 151(1)(a) applies to a person in relation to the labelling or displaying of eggs as free range eggs if, when doing so, the person is complying with all requirements:
(a) specified in an information standard for eggs; and
(b) relating to the labelling or displaying of free range eggs, including requirements about:
(i) the use of the words “free range”; or
(ii) representing that eggs are free range eggs.
(2) If:
(a) proceedings are brought against a person in respect of section 18 or paragraph 29(1)(a) or 151(1)(a); and
(b) the person seeks to rely on subsection (1) of this section in the proceedings;
the person bears an evidential burden in relation to the matters set out in that subsection.
(3) An egg is an egg laid by a female domestic chicken (Gallus gallus domesticus).
(4) Free range egg has the meaning given by the information standard mentioned in paragraph (1)(a).
Part 3‑5—Liability of manufacturers for goods with safety defects
Division 1—Actions against manufacturers for goods with safety defects
138 Liability for loss or damage suffered by an injured individual
(1) A manufacturer of goods is liable to compensate an individual if:
(a) the manufacturer supplies the goods in trade or commerce; and
(b) the goods have a safety defect; and
(c) the individual suffers injuries because of the safety defect.
(2) The individual may recover, by action against the manufacturer, the amount of the loss or damage suffered by the individual.
(3) If the individual dies because of the injuries, a law of a State or a Territory about liability in respect of the death of individuals applies as if:
(a) the action were an action under the law of the State or Territory for damages in respect of the injuries; and
(b) the safety defect were the manufacturer’s wrongful act, neglect or default.
139 Liability for loss or damage suffered by a person other than an injured individual
(1) A manufacturer of goods is liable to compensate a person if:
(a) the manufacturer supplies the goods in trade or commerce; and
(b) the goods have a safety defect; and
(c) an individual (other than the person) suffers injuries because of the safety defect; and
(d) the person suffers loss or damage because of:
(i) the injuries; or
(ii) if the individual dies because of the injuries—the individual’s death; and
(e) the loss or damage does not come about because of a business or professional relationship between the person and the individual.
(2) The person may recover, by action against the manufacturer, the amount of the loss or damage suffered by the person.
140 Liability for loss or damage suffered by a person if other goods are destroyed or damaged
(1) A manufacturer of goods is liable to compensate a person if:
(a) the manufacturer supplies the goods in trade or commerce; and
(b) the goods have a safety defect; and
(c) other goods of a kind ordinarily acquired for personal, domestic or household use or consumption are destroyed or damaged because of the safety defect; and
(d) the person used or consumed, or intended to use or consume, the destroyed or damaged goods for personal, domestic or household use or consumption; and
(e) the person suffers loss or damage as a result of the destruction or damage.
(2) The person may recover, by action against the manufacturer, the amount of the loss or damage suffered by the person.
141 Liability for loss or damage suffered by a person if land, buildings or fixtures are destroyed or damaged
(1) A manufacturer of goods is liable to compensate a person if:
(a) the manufacturer supplies the goods in trade or commerce; and
(b) the goods have a safety defect; and
(c) land, buildings or fixtures are destroyed or damaged because of the safety defect; and
(d) the land, buildings or fixtures are ordinarily acquired for private use; and
(e) the person used, or intended to use, the land, buildings or fixtures for private use; and
(f) the person suffers loss or damage as a result of the destruction or damage.
(2) The person may recover, by action against the manufacturer, the amount of the loss or damage suffered by the person.
142 Defences to defective goods actions
In a defective goods action, it is a defence if it is established that:
(a) the safety defect in the goods that is alleged to have caused the loss or damage did not exist:
(i) in the case of electricity—at the time at which the electricity was generated, being a time before it was transmitted or distributed; or
(ii) in any other case—at the time when the goods were supplied by their actual manufacturer; or
(b) the goods had that safety defect only because there was compliance with a mandatory standard for them; or
(c) the state of scientific or technical knowledge at the time when the goods were supplied by their manufacturer was not such as to enable that safety defect to be discovered; or
(d) if the goods that had that safety defect were comprised in other goods—that safety defect is attributable only to:
(i) the design of the other goods; or
(ii) the markings on or accompanying the other goods; or
(iii) the instructions or warnings given by the manufacturer of the other goods.
Division 2—Defective goods actions
143 Time for commencing defective goods actions
(1) Subject to subsection (2), a person may commence a defective goods action at any time within 3 years after the time the person became aware, or ought reasonably to have become aware, of all of the following:
(a) the alleged loss or damage;
(b) the safety defect of the goods;
(c) the identity of the person who manufactured the goods.
(2) A defective goods action must be commenced within 10 years of the supply by the manufacturer of the goods to which the action relates.
144 Liability joint and several
If 2 or more persons are liable under Division 1 for the same loss or damage, they are jointly and severally liable.
145 Survival of actions
A law of a State or a Territory about the survival of causes of action vested in persons who die applies to actions under Division 1.
146 No defective goods action where workers’ compensation law etc. applies
Division 1 does not apply to a loss or damage in respect of which an amount has been, or could be, recovered under a law of the Commonwealth, a State or a Territory that:
(a) relates to workers’ compensation; or
(b) gives effect to an international agreement.
147 Unidentified manufacturer
(1) A person who:
(a) wishes to institute a defective goods action; but
(b) does not know who is the manufacturer of the goods to which the action would relate;
may, by written notice given to a supplier, or each supplier, of the goods who is known to the person, request the supplier or suppliers to give the person particulars identifying the manufacturer of the goods, or the supplier of the goods to the supplier requested.
(2) If, 30 days after the person made the request or requests, the person still does not know who is the manufacturer of the goods, then each supplier:
(a) to whom the request was made; and
(b) who did not comply with the request;
is taken, for the purposes of the defective goods liability action (but not for the purposes of section 142(c)), to be the manufacturer of the goods.
148 Commonwealth liability for goods that are defective only because of compliance with Commonwealth mandatory standard
(1) If a person (however described) against whom a defective goods action is brought raises the defence that the goods had the alleged safety defect only because there was compliance with a Commonwealth mandatory standard for the goods, the person must, as soon as practicable after raising that defence, give the Commonwealth:
(a) a prescribed notice of the action and of that defence; and
(b) a copy of the person’s defence in the action.
(2) The giving of the notice and defence makes the Commonwealth a defendant in the action.
(3) If, in the action, the court finds that the person (the plaintiff) by whom the action is brought would, but for the defence referred to in subsection (1), have succeeded against the person (other than the Commonwealth) against which the action is brought, then:
(a) the Commonwealth, and not the person (other than the Commonwealth) against which the action is brought, is liable to pay the plaintiff for the amount of the loss or damage caused by the safety defect; and
(b) the court is to enter judgment against the Commonwealth for that amount; and
(c) the court may make such orders for costs as the court considers just.
149 Representative actions by the regulator
(1) The regulator may, by application, commence a defective goods action on behalf of one or more persons identified in the application who have suffered the loss or damage in relation to which the action is commenced.
(2) The regulator may only make the application if it has obtained the written consent of the person, or each of the persons, on whose behalf the application is being made.
Division 3—Miscellaneous
150 Application of all or any provisions of this Part etc. not to be excluded or modified
(1) Any term of a contract (including a term that is not set out in the contract but is incorporated in the contract by another term) that purports to exclude, restrict or modify, or has the effect of excluding, restricting or modifying, any of the following is void:
(a) the application of all or any of the provisions of this Part;
(b) the exercise of a right conferred by any of those provisions;
(c) any liability under any of those provisions.
(2) A term of a contract is not taken to exclude, restrict or modify the application of a provision of this Part unless the term does so expressly or is inconsistent with that provision.
Chapter 4—Offences
Part 4‑1—Offences relating to unfair practices
Division 1—False or misleading representations etc.
151 False or misleading representations about goods or services
(1) A person commits an offence if the person, in trade or commerce, in connection with the supply or possible supply of goods or services or in connection with the promotion by any means of the supply or use of goods or services:
(a) makes a false or misleading representation that goods are of a particular standard, quality, value, grade, composition, style or model or have had a particular history or particular previous use; or
(b) makes a false or misleading representation that services are of a particular standard, quality, value or grade; or
(c) makes a false or misleading representation that goods are new; or
(d) makes a false or misleading representation that a particular person has agreed to acquire goods or services; or
(e) makes a false or misleading representation that purports to be a testimonial by any person relating to goods or services; or
(f) makes a false or misleading representation concerning:
(i) a testimonial by any person; or
(ii) a representation that purports to be such a testimonial;
relating to goods or services; or
(g) makes a false or misleading representation that goods or services have sponsorship, approval, performance characteristics, accessories, uses or benefits; or
(h) makes a false or misleading representation that the person making the representation has a sponsorship, approval or affiliation; or
(i) makes a false or misleading representation with respect to the price of goods or services; or
(j) makes a false or misleading representation concerning the availability of facilities for the repair of goods or of spare parts for goods; or
(k) makes a false or misleading representation concerning the place of origin of goods; or
(l) makes a false or misleading representation concerning the need for any goods or services; or
(m) makes a false or misleading representation concerning the existence, exclusion or effect of any condition, warranty, guarantee, right or remedy (including a guarantee under Division 1 of Part 3‑2); or
(n) makes a false or misleading representation concerning a requirement to pay for a contractual right that:
(i) is wholly or partly equivalent to any condition, warranty, guarantee, right or remedy (including a guarantee under Division 1 of Part 3‑2); and
(ii) a person has under a law of the Commonwealth, a State or a Territory (other than an unwritten law).
Note: For rules relating to representations as to the country of origin of goods, see Part 5‑3.
(2) For the purposes of applying subsection (1) in relation to a proceeding concerning a representation of a kind referred to in subsection (1)(e) or (f), the representation is taken to be misleading unless evidence is adduced to the contrary.
(3) To avoid doubt, subsection (2) does not:
(a) have the effect that, merely because such evidence to the contrary is adduced, the representation is not misleading; or
(b) have the effect of placing on any person an onus of proving that the representation is not misleading.
(4) Subsection (1) is an offence of strict liability.
Penalty
(5) An offence against subsection (1) committed by a body corporate is punishable on conviction by a fine of not more than the greater of the following:
(a) $10,000,000;
(b) if the court can determine the value of the benefit that the body corporate, and any body corporate related to the body corporate, have obtained directly or indirectly and that is reasonably attributable to the commission of the offence—3 times the value of that benefit;
(c) if the court cannot determine the value of that benefit—10% of the annual turnover of the body corporate during the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence.
(6) An offence against subsection (1) committed by a person other than a body corporate is punishable on conviction by a fine of not more than $500,000.
152 False or misleading representations about sale etc. of land
(1) A person commits an offence if the person, in trade or commerce, in connection with the sale or grant, or the possible sale or grant, of an interest in land or in connection with the promotion by any means of the sale or grant of an interest in land:
(a) makes a false or misleading representation that the person making the representation has a sponsorship, approval or affiliation; or
(b) makes a false or misleading representation concerning the nature of the interest in the land; or
(c) makes a false or misleading representation concerning the price payable for the land; or
(d) makes a false or misleading representation concerning the location of the land; or
(e) makes a false or misleading representation concerning the characteristics of the land; or
(f) makes a false or misleading representation concerning the use to which the land is capable of being put or may lawfully be put; or
(g) makes a false or misleading representation concerning the existence or availability of facilities associated with the land.
(2) Subsection (1) is an offence of strict liability.
Penalty
(2A) An offence against subsection (1) committed by a body corporate is punishable on conviction by a fine of not more than the greater of the following:
(a) $10,000,000;
(b) if the court can determine the value of the benefit that the body corporate, and any body corporate related to the body corporate, have obtained directly or indirectly and that is reasonably attributable to the commission of the offence—3 times the value of that benefit;
(c) if the court cannot determine the value of that benefit—10% of the annual turnover of the body corporate during the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence.
(2B) An offence against subsection (1) committed by a person other than a body corporate is punishable on conviction by a fine of not more than $500,000.
Other
(3) This section does not affect the application of any other provision of this Part in relation to the supply or acquisition, or the possible supply or acquisition, of interests in land.
153 Misleading conduct relating to employment
(1) A person commits an offence if the person, in relation to employment that is to be, or may be, offered by the person or by another person, engages in conduct that is liable to mislead persons seeking the employment as to:
(a) the availability, nature, terms or conditions of the employment; or
(b) any other matter relating to the employment.
(2) Subsection (1) is an offence of strict liability.
Penalty
(3) An offence against subsection (1) committed by a body corporate is punishable on conviction by a fine of not more than the greater of the following:
(a) $10,000,000;
(b) if the court can determine the value of the benefit that the body corporate, and any body corporate related to the body corporate, have obtained directly or indirectly and that is reasonably attributable to the commission of the offence—3 times the value of that benefit;
(c) if the court cannot determine the value of that benefit—10% of the annual turnover of the body corporate during the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence.
(4) An offence against subsection (1) committed by a person other than a body corporate is punishable on conviction by a fine of not more than $500,000.
154 Offering rebates, gifts, prizes etc.
(1) A person commits an offence if:
(a) the person, in trade or commerce, offers any rebate, gift, prize or other free item; and
(b) the offer is connected with:
(i) the supply or possible supply of goods or services; or
(ii) the promotion by any means of the supply or use of goods or services; or
(iii) the sale or grant, or the possible sale or grant, of an interest in land; or
(iv) the promotion by any means of the sale or grant of an interest in land; and
(c) the offer is made with the intention of not providing the rebate, gift, prize or other free item, or of not providing it as offered.
(2) A person commits an offence if:
(a) the person, in trade or commerce, offers any rebate, gift, prize or other free item; and
(b) the offer is connected with:
(i) the supply or possible supply of goods or services; or
(ii) the promotion by any means of the supply or use of goods or services; or
(iii) the sale or grant, or the possible sale or grant, of an interest in land; or
(iv) the promotion by any means of the sale or grant of an interest in land; and
(c) the person fails to provide the rebate, gift, prize or other free item, in accordance with the offer, within the time specified in the offer or (if no such time is specified) within a reasonable time after making the offer.
(3) Subsection (2) does not apply if:
(a) the person’s failure to provide the rebate, gift, prize or other free item in accordance with the offer was due to the act or omission of another person, or to some other cause beyond the person’s control; and
(b) the person took reasonable precautions and exercised due diligence to avoid the failure.
(4) Subsection (2) does not apply to an offer that the person makes to another person if:
(a) the person offers to the other person a different rebate, gift, prize or other free item as a replacement; and
(b) the other person agrees to receive the different rebate, gift, prize or other free item.
(5) Strict liability applies to subsections (1)(b) and (2)(b).
Penalty
(5A) An offence against subsection (1) or (2) committed by a body corporate is punishable on conviction by a fine of not more than the greater of the following:
(a) $10,000,000;
(b) if the court can determine the value of the benefit that the body corporate, and any body corporate related to the body corporate, have obtained directly or indirectly and that is reasonably attributable to the commission of the offence—3 times the value of that benefit;
(c) if the court cannot determine the value of that benefit—10% of the annual turnover of the body corporate during the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence.
(5B) An offence against subsection (1) or (2) committed by a person other than a body corporate is punishable on conviction by a fine of not more than $500,000.
Other
(6) This section does not affect the application of any other provision of this Part in relation to the supply or acquisition, or the possible supply or acquisition, of interests in land.
155 Misleading conduct as to the nature etc. of goods
(1) A person commits an offence if the person, in trade or commerce, engages in conduct that is liable to mislead the public as to the nature, the manufacturing process, the characteristics, the suitability for their purpose or the quantity of any goods.
(2) Subsection (1) is an offence of strict liability.
Penalty
(3) An offence against subsection (1) committed by a body corporate is punishable on conviction by a fine of not more than the greater of the following:
(a) $10,000,000;
(b) if the court can determine the value of the benefit that the body corporate, and any body corporate related to the body corporate, have obtained directly or indirectly and that is reasonably attributable to the commission of the offence—3 times the value of that benefit;
(c) if the court cannot determine the value of that benefit—10% of the annual turnover of the body corporate during the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence.
(4) An offence against subsection (1) committed by a person other than a body corporate is punishable on conviction by a fine of not more than $500,000.
156 Misleading conduct as to the nature etc. of services
(1) A person commits an offence if the person, in trade or commerce, engages in conduct that is liable to mislead the public as to the nature, the characteristics, the suitability for their purpose or the quantity of any services.
(2) Subsection (1) is an offence of strict liability.
Penalty
(3) An offence against subsection (1) committed by a body corporate is punishable on conviction by a fine of not more than the greater of the following:
(a) $10,000,000;
(b) if the court can determine the value of the benefit that the body corporate, and any body corporate related to the body corporate, have obtained directly or indirectly and that is reasonably attributable to the commission of the offence—3 times the value of that benefit;
(c) if the court cannot determine the value of that benefit—10% of the annual turnover of the body corporate during the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence.
(4) An offence against subsection (1) committed by a person other than a body corporate is punishable on conviction by a fine of not more than $500,000.
157 Bait advertising
(1) A person commits an offence if:
(a) the person, in trade or commerce, advertises goods or services for supply at a specified price; and
(b) there are reasonable grounds for believing that the person will not be able to offer for supply those goods or services at that price for a period that is, and in quantities that are, reasonable, having regard to:
(i) the nature of the market in which the person carries on business; and
(ii) the nature of the advertisement.
(2) A person commits an offence if:
(a) the person, in trade or commerce, advertises goods or services for supply at a specified price; and
(b) the person fails to offer such goods or services for supply at that price for a period that is, and in quantities that are, reasonable having regard to:
(i) the nature of the market in which the person carries on business; and
(ii) the nature of the advertisement.
(3) Subsections (1) and (2) are offences of strict liability.
Penalty
(3A) An offence against subsection (1) or (2) committed by a body corporate is punishable on conviction by a fine of not more than the greater of the following:
(a) $10,000,000;
(b) if the court can determine the value of the benefit that the body corporate, and any body corporate related to the body corporate, have obtained directly or indirectly and that is reasonably attributable to the commission of the offence—3 times the value of that benefit;
(c) if the court cannot determine the value of that benefit—10% of the annual turnover of the body corporate during the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence.
(3B) An offence against subsection (1) or (2) committed by a person other than a body corporate is punishable on conviction by a fine of not more than $500,000.
Defence
(4) In a prosecution of a person (the defendant) under subsection (2), for failing to offer goods or services to another person (the customer), it is a defence if:
(a) the defendant proves that:
(i) he or she offered to supply, or to procure a third person to supply, goods or services of the kind advertised to the customer within a reasonable time, in a reasonable quantity and at the advertised price; or
(ii) he or she offered to supply immediately, or to procure a third person to supply within a reasonable time, equivalent goods or services to the customer in a reasonable quantity and at the price at which the first‑mentioned goods or services were advertised; and
(b) in either case, if the offer was accepted by the customer, the defendant proves that he or she has so supplied, or procured a third person to supply, the goods or services.
158 Wrongly accepting payment
(1) A person commits an offence if:
(a) the person, in trade or commerce, accepts payment or other consideration for goods or services; and
(b) at the time of the acceptance, the person intends not to supply the goods or services.
(2) Strict liability applies to subsection (1)(a).
(3) A person commits an offence if:
(a) the person, in trade or commerce, accepts payment or other consideration for goods or services; and
(b) at the time of the acceptance, the person intends to supply goods or services materially different from the goods or services in respect of which the payment or other consideration is accepted.
(4) Strict liability applies to subsection (3)(a).
(5) A person commits an offence if:
(a) the person, in trade or commerce, accepts payment or other consideration for goods or services; and
(b) at the time of the acceptance, the person was reckless as to whether he or she would be able to supply the goods or services:
(i) within the period specified by or on behalf of the person at or before the time the payment or other consideration was accepted; or
(ii) if no period is specified at or before that time—within a reasonable time.
(6) Strict liability applies to subsection (5)(a).
(7) A person commits an offence if:
(a) the person, in trade or commerce, accepts payment or other consideration for goods or services; and
(b) the person fails to supply all the goods or services:
(i) within the period specified by or on behalf of the person at or before the time the payment or other consideration was accepted; or
(ii) if no period is specified at or before that time—within a reasonable time.
(8) Subsection (7) does not apply if:
(a) the person’s failure to supply all the goods or services within the period, or within a reasonable time, was due to the act or omission of another person, or to some other cause beyond the person’s control; and
(b) the person took reasonable precautions and exercised due diligence to avoid the failure.
(9) Subsection (7) does not apply if:
(a) the person offers to supply different goods or services as a replacement to the person (the customer) to whom the original supply was to be made; and
(b) the customer agrees to receive the different goods or services.
(10) Subsection (7) is an offence of strict liability.
Penalty
(10A) An offence against subsection (1), (3), (5) or (7) committed by a body corporate is punishable on conviction by a fine of not more than the greater of the following:
(a) $10,000,000;
(b) if the court can determine the value of the benefit that the body corporate, and any body corporate related to the body corporate, have obtained directly or indirectly and that is reasonably attributable to the commission of the offence—3 times the value of that benefit;
(c) if the court cannot determine the value of that benefit—10% of the annual turnover of the body corporate during the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence.
(10B) An offence against subsection (1), (3), (5) or (7) committed by a person other than a body corporate is punishable on conviction by a fine of not more than $500,000.
Other
(11) Subsections (1), (3), (5) and (7) apply whether or not the payment or other consideration that the person accepted represents the whole or a part of the payment or other consideration for the supply of the goods or services.
159 Misleading representations about certain business activities
(1) A person commits an offence if:
(a) the person, in trade or commerce, makes a representation; and
(b) the representation is false or misleading in a material particular; and
(c) the representation concerns the profitability, risk or any other material aspect of any business activity that the person has represented as one that can be, or can be to a considerable extent, carried on at or from a person’s place of residence.
(2) A person commits an offence if:
(a) the person, in trade or commerce, makes a representation; and
(b) the representation is false or misleading in a material particular; and
(c) the representation concerns the profitability, risk or any other material aspect of any business activity:
(i) that the person invites (whether by advertisement or otherwise) other persons to engage or participate in, or to offer or apply to engage or participate in; and
(ii) that requires the performance of work by other persons, or the investment of money by other persons and the performance by them of work associated with the investment.
(3) Subsections (1) and (2) are offences of strict liability.
Penalty
(4) An offence against subsection (1) or (2) committed by a body corporate is punishable on conviction by a fine of not more than the greater of the following:
(a) $10,000,000;
(b) if the court can determine the value of the benefit that the body corporate, and any body corporate related to the body corporate, have obtained directly or indirectly and that is reasonably attributable to the commission of the offence—3 times the value of that benefit;
(c) if the court cannot determine the value of that benefit—10% of the annual turnover of the body corporate during the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence.
(5) An offence against subsection (1) or (2) committed by a person other than a body corporate is punishable on conviction by a fine of not more than $500,000.
160 Application of provisions of this Division to information providers
(1) Sections 151, 152, 155, 156 and 159 do not apply to a publication of matter by an information provider if:
(a) in any case—the information provider made the publication in the course of carrying on a business of providing information; or
(b) if the information provider is the Australian Broadcasting Corporation, the Special Broadcasting Service Corporation or the holder of a licence granted under the Broadcasting Services Act 1992—the publication was by way of a radio or television broadcast by the information provider.
(2) Subsection (1) does not apply to a publication of an advertisement.
(3) Subsection (1) does not apply to a publication of matter in connection with the supply or possible supply of, or the promotion by any means of the supply or use of, goods or services (the publicised goods or services), if:
(a) the publicised goods or services were goods or services of a kind supplied by the information provider or, if the information provider is a body corporate, by a body corporate that is related to the information provider; or
(b) the publication was made on behalf of, or pursuant to a contract, arrangement or understanding with, a person who supplies goods or services of the same kind as the publicised goods or services; or
(c) the publication was made on behalf of, or pursuant to a contract, arrangement or understanding with, a body corporate that is related to a body corporate that supplies goods or services of the same kind as the publicised goods or services.
(4) Subsection (1) does not apply to a publication of matter in connection with the sale or grant, or possible sale or grant, of, or the promotion by any means of the sale or grant of, interests in land (the publicised interests in land), if:
(a) the publicised interests in land were interests of a kind sold or granted by the information provider or, if the information provider is a body corporate, by a body corporate that is related to the information provider; or
(b) the publication was made on behalf of, or pursuant to a contract, arrangement or understanding with, a person who sells or grants interests of the same kind as the publicised interests in land; or
(c) the publication was made on behalf of, or pursuant to a contract, arrangement or understanding with, a body corporate that is related to a body corporate that sells or grants interests of the same kind as the publicised interests in land.
Division 2—Unsolicited supplies
161 Unsolicited cards etc.
(1) A person commits an offence if:
(a) the person sends a credit card or a debit card, or an article that may be used as a credit card and a debit card, to another person; and
(b) either:
(i) the person had issued the card; or
(ii) the card was sent on behalf of the person who had issued the card.
(2) Subsection (1) does not apply if the person sends the card to the other person:
