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Competition and Consumer Act 2010

Authoritative Version
  • - C2015C00019
  • In force - Superseded Version
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Act No. 51 of 1974 as amended, taking into account amendments up to Omnibus Repeal Day (Autumn 2014) Act 2014
An Act relating to competition, fair trading and consumer protection, and for other purposes
Administered by: Attorney-General's; Treasury; Communications; Infrastructure and Regional Development; Industry and Science
Registered 15 Jan 2015
Start Date 01 Jan 2015
End Date 30 Jun 2015
Table of contents.

Competition and Consumer Act 2010

No. 51, 1974

Compilation No. 99

Compilation date:                              1 January 2015

Includes amendments up to:            Act No. 109, 2014

Registered:                                         15 January 2015

This compilation is in 3 volumes

Volume 1:       sections 1–119

Volume 2:       sections 10.01–179

Volume 3:       Schedules

                        Endnotes

Each volume has its own contents

 

 

 

 

 

This compilation includes commenced amendments made by Act No. 107, 2014

About this compilation

This compilation

This is a compilation of the Competition and Consumer Act 2010 that shows the text of the law as amended and in force on 1 January 2015 (the compilation date).

This compilation was prepared on 5 January 2015.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on ComLaw (www.comlaw.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on ComLaw for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on ComLaw for the compiled law.

Self-repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

  

  

  


Contents

Schedule 1—The Schedule version of Part IV                                 1

Part 1—Schedule version of Part IV                                                                          1

Division 1—Cartel conduct                                                                                       1

Subdivision A—Introduction                                                                                   1

44ZZRA................ Simplified outline................................................................ 1

44ZZRB................ Definitions.......................................................................... 2

44ZZRC................ Extended meaning of party................................................. 3

44ZZRD................ Cartel provisions................................................................. 3

44ZZRE................. Meaning of expressions in other provisions of this Act..... 9

Subdivision B—Offences etc.                                                                                  9

44ZZRF................. Making a contract etc. containing a cartel provision............ 9

44ZZRG................ Giving effect to a cartel provision..................................... 11

44ZZRH................ Determining guilt.............................................................. 12

44ZZRI.................. Court may make related civil orders.................................. 12

Subdivision C—Civil penalty provisions                                                           13

44ZZRJ................. Making a contract etc. containing a cartel provision.......... 13

44ZZRK................ Giving effect to a cartel provision..................................... 13

Subdivision D—Exceptions                                                                                    13

44ZZRL................. Conduct notified............................................................... 13

44ZZRM............... Cartel provision subject to grant of authorisation.............. 14

44ZZRN................ Contracts, arrangements or understandings between related bodies corporate         14

44ZZRO................ Joint ventures—prosecution............................................. 15

44ZZRP................. Joint ventures—civil penalty proceedings......................... 18

44ZZRQ................ Covenants affecting competition....................................... 20

44ZZRR................ Resale price maintenance.................................................. 21

44ZZRS................. Exclusive dealing.............................................................. 21

44ZZRT................. Dual listed company arrangement..................................... 22

44ZZRU................ Acquisition of shares or assets......................................... 22

44ZZRV................ Collective acquisition of goods or services by the parties to a contract, arrangement or understanding   23

Division 1A—Anti‑competitive disclosure of pricing and other information      24

44ZZS................... Definitions........................................................................ 24

44ZZT................... Goods and services to which this Division applies........... 24

44ZZU................... Provisions affecting whether a person has disclosed information to another person                24

44ZZV................... Meaning of private disclosure to competitors.................. 26

44ZZW.................. Person must not make private disclosure of pricing information etc. to competitors                27

44ZZX................... Person must not make disclosure of pricing information etc. for purpose of substantially lessening competition.......................................................................................... 27

44ZZY................... Exceptions that apply to sections 44ZZW and 44ZZX...... 29

44ZZZ................... Additional exceptions that only apply to section 44ZZW.. 31

44ZZZA................ Burden of proof................................................................ 34

44ZZZB................. Mere receipt of information does not constitute being knowingly involved in contravention   34

Division 2—Other provisions                                                                                 35

45.......................... Contracts, arrangements or understandings that restrict dealings or affect competition            35

45B........................ Covenants affecting competition....................................... 38

45C........................ Covenants in relation to prices.......................................... 42

45D....................... Secondary boycotts for the purpose of causing substantial loss or damage             45

45DA.................... Secondary boycotts for the purpose of causing substantial lessening of competition               45

45DC..................... Involvement and liability of employee organisations........ 46

45DD.................... Situations in which boycotts permitted............................. 48

45E........................ Prohibition of contracts, arrangements or understandings affecting the supply or acquisition of goods or services............................................................................. 51

45EA..................... Provisions contravening section 45E not to be given effect 55

45EB..................... Sections 45D to 45EA do not affect operation of other provisions of Part              55

46.......................... Misuse of market power................................................... 55

47.......................... Exclusive dealing.............................................................. 60

48.......................... Resale price maintenance.................................................. 67

49.......................... Dual listed company arrangements that affect competition 67

50.......................... Prohibition of acquisitions that would result in a substantial lessening of competition            68

51.......................... Exceptions........................................................................ 70

Schedule 2—The Australian Consumer Law                                 76

Chapter 1—Introduction                                                                                                 90

1............................ Application of this Schedule............................................. 90

2............................ Definitions........................................................................ 90

3............................ Meaning of consumer..................................................... 105

4............................ Misleading representations with respect to future matters 108

5............................ When donations are treated as supplies or acquisitions... 109

6............................ Related bodies corporate................................................. 110

7............................ Meaning of manufacturer............................................... 110

8............................ Goods affixed to land or premises.................................. 111

9............................ Meaning of safety defect in relation to goods.................. 111

10.......................... Asserting a right to payment........................................... 112

11.......................... References to acquisition, supply and re‑supply............. 113

12.......................... Application of Schedule in relation to leases and licences of land and buildings      114

13.......................... Loss or damage to include injury.................................... 114

14.......................... Meaning of continuing credit contract............................ 114

15.......................... Contraventions of this Schedule..................................... 116

16.......................... Severability..................................................................... 116

17.......................... References to provisions in this Schedule....................... 116

Chapter 2—General protections                                                                               117

Part 2‑1—Misleading or deceptive conduct                                                 117

18.......................... Misleading or deceptive conduct..................................... 117

19.......................... Application of this Part to information providers............ 117

Part 2‑2—Unconscionable conduct                                                                   120

20.......................... Unconscionable conduct within the meaning of the unwritten law           120

21.......................... Unconscionable conduct in connection with goods or services                120

22.......................... Matters the court may have regard to for the purposes of section 21       121

22A....................... Presumptions relating to whether representations are misleading             124

Part 2‑3—Unfair contract terms                                                                        125

23.......................... Unfair terms of consumer contracts................................ 125

24.......................... Meaning of unfair........................................................... 125

25.......................... Examples of unfair terms................................................ 126

26.......................... Terms that define main subject matter of consumer contracts etc. are unaffected     127

27.......................... Standard form contracts.................................................. 128

28.......................... Contracts to which this Part does not apply.................... 128

Chapter 3—Specific protections                                                                               130

Part 3‑1—Unfair practices                                                                                    130

Division 1—False or misleading representations etc.                                   130

29.......................... False or misleading representations about goods or services 130

30.......................... False or misleading representations about sale etc. of land 132

31.......................... Misleading conduct relating to employment.................... 132

32.......................... Offering rebates, gifts, prizes etc.................................... 133

33.......................... Misleading conduct as to the nature etc. of goods........... 134

34.......................... Misleading conduct as to the nature etc. of services........ 134

35.......................... Bait advertising............................................................... 134

36.......................... Wrongly accepting payment............................................ 135

37.......................... Misleading representations about certain business activities 137

38.......................... Application of provisions of this Division to information providers        138

Division 2—Unsolicited supplies                                                                        140

39.......................... Unsolicited cards etc....................................................... 140

40.......................... Assertion of right to payment for unsolicited goods or services              141

41.......................... Liability etc. of recipient for unsolicited goods............... 142

42.......................... Liability of recipient for unsolicited services................... 143

43.......................... Assertion of right to payment for unauthorised entries or advertisements                143

Division 3—Pyramid schemes                                                                            146

44.......................... Participation in pyramid schemes.................................... 146

45.......................... Meaning of pyramid scheme.......................................... 146

46.......................... Marketing schemes as pyramid schemes........................ 147

Division 4—Pricing                                                                                               149

47.......................... Multiple pricing.............................................................. 149

48.......................... Single price to be specified in certain circumstances....... 150

Division 5—Other unfair practices                                                                   154

49.......................... Referral selling................................................................ 154

50.......................... Harassment and coercion................................................ 154

Part 3‑2—Consumer transactions                                                                     155

Division 1—Consumer guarantees                                                                    155

Subdivision A—Guarantees relating to the supply of goods                       155

51.......................... Guarantee as to title......................................................... 155

52.......................... Guarantee as to undisturbed possession......................... 155

53.......................... Guarantee as to undisclosed securities etc....................... 156

54.......................... Guarantee as to acceptable quality................................... 157

55.......................... Guarantee as to fitness for any disclosed purpose etc..... 159

56.......................... Guarantee relating to the supply of goods by description 159

57.......................... Guarantees relating to the supply of goods by sample or demonstration model       160

58.......................... Guarantee as to repairs and spare parts........................... 160

59.......................... Guarantee as to express warranties................................. 161

Subdivision B—Guarantees relating to the supply of services                   161

60.......................... Guarantee as to due care and skill................................... 161

61.......................... Guarantees as to fitness for a particular purpose etc....... 162

62.......................... Guarantee as to reasonable time for supply..................... 162

63.......................... Services to which this Subdivision does not apply......... 163

Subdivision C—Guarantees not to be excluded etc. by contract                163

64.......................... Guarantees not to be excluded etc. by contract................ 163

64A....................... Limitation of liability for failures to comply with guarantees 164

Subdivision D—Miscellaneous                                                                            165

65.......................... Application of this Division to supplies of gas, electricity and telecommunications 165

66.......................... Display notices............................................................... 165

67.......................... Conflict of laws.............................................................. 166

68.......................... Convention on Contracts for the International Sale of Goods  167

Division 2—Unsolicited consumer agreements                                              168

Subdivision A—Introduction                                                                               168

69.......................... Meaning of unsolicited consumer agreement................. 168

70.......................... Presumption that agreements are unsolicited consumer agreements         169

71.......................... Meaning of dealer.......................................................... 170

72.......................... Meaning of negotiation................................................... 170

Subdivision B—Negotiating unsolicited consumer agreements                 170

73.......................... Permitted hours for negotiating an unsolicited consumer agreement        170

74.......................... Disclosing purpose and identity...................................... 171

75.......................... Ceasing to negotiate on request....................................... 171

76.......................... Informing person of termination period etc..................... 172

77.......................... Liability of suppliers for contraventions by dealers........ 173

Subdivision C—Requirements for unsolicited consumer agreements etc. 173

78.......................... Requirement to give document to the consumer.............. 173

79.......................... Requirements for all unsolicited consumer agreements etc. 174

80.......................... Additional requirements for unsolicited consumer agreements not negotiated by telephone    175

81.......................... Requirements for amendments of unsolicited consumer agreements        176

Subdivision D—Terminating unsolicited consumer agreements               176

82.......................... Terminating an unsolicited consumer agreement during the termination period       176

83.......................... Effect of termination....................................................... 177

84.......................... Obligations of suppliers on termination.......................... 178

85.......................... Obligations and rights of consumers on termination....... 179

86.......................... Prohibition on supplies etc. for 10 business days........... 180

87.......................... Repayment of payments received after termination......... 181

88.......................... Prohibition on recovering amounts after termination...... 181

Subdivision E—Miscellaneous                                                                            182

89.......................... Certain provisions of unsolicited consumer agreements void.. 182

90.......................... Waiver of rights.............................................................. 183

91.......................... Application of this Division to persons to whom rights of consumers and suppliers are assigned etc.    183

92.......................... Application of this Division to supplies to third parties.. 184

93.......................... Effect of contravening this Division............................... 184

94.......................... Regulations may limit the application of this Division.... 184

95.......................... Application of this Division to certain conduct covered by the Corporations Act    184

Division 3—Lay‑by agreements                                                                         186

96.......................... Lay‑by agreements must be in writing etc....................... 186

97.......................... Termination of lay‑by agreements by consumers............ 186

98.......................... Termination of lay‑by agreements by suppliers.............. 187

99.......................... Effect of termination....................................................... 187

Division 4—Miscellaneous                                                                                   189

100........................ Supplier must provide proof of transaction etc............... 189

101........................ Consumer may request an itemised bill........................... 190

102........................ Prescribed requirements for warranties against defects... 191

103........................ Repairers must comply with prescribed requirements..... 191

Part 3‑3—Safety of consumer goods and product related services 193

Division 1—Safety standards                                                                              193

104........................ Making safety standards for consumer goods and product related services             193

105........................ Declaring safety standards for consumer goods and product related services          194

106........................ Supplying etc. consumer goods that do not comply with safety standards               194

107........................ Supplying etc. product related services that do not comply with safety standards    196

108........................ Requirement to nominate a safety standard..................... 197

Division 2—Bans on consumer goods and product related services         198

Subdivision A—Interim bans                                                                              198

109........................ Interim bans on consumer goods or product related services that will or may cause injury to any person etc......................................................................................... 198

110........................ Places in which interim bans apply................................. 199

111........................ Ban period for interim bans............................................ 199

112........................ Interaction of multiple interim bans................................. 200

113........................ Revocation of interim bans............................................. 201

Subdivision B—Permanent bans                                                                        201

114........................ Permanent bans on consumer goods or product related services              201

115........................ Places in which permanent bans apply............................ 202

116........................ When permanent bans come into force........................... 202

117........................ Revocation of permanent bans........................................ 202

Subdivision C—Compliance with interim bans and permanent bans       203

118........................ Supplying etc. consumer goods covered by a ban.......... 203

119........................ Supplying etc. product related services covered by a ban 204

Subdivision D—Temporary exemption from mutual recognition principles 205

120........................ Temporary exemption under the Trans‑Tasman Mutual Recognition Act 1997       205

121........................ Temporary exemption under the Mutual Recognition Act 1992                205

Division 3—Recall of consumer goods                                                             207

Subdivision A—Compulsory recall of consumer goods                               207

122........................ Compulsory recall of consumer goods........................... 207

123........................ Contents of a recall notice............................................... 207

124........................ Obligations of a supplier in relation to a recall notice...... 209

125........................ Notification by persons who supply consumer goods outside Australia if there is compulsory recall     210

126........................ Interaction of multiple recall notices................................ 210

127........................ Compliance with recall notices........................................ 211

Subdivision B—Voluntary recall of consumer goods                                   212

128........................ Notification requirements for a voluntary recall of consumer goods        212

Division 4—Safety warning notices                                                                   214

129........................ Safety warning notices about consumer goods and product related services            214

130........................ Announcement of the results of an investigation etc....... 214

Division 5—Consumer goods, or product related services, associated with death or serious injury or illness      216

131........................ Suppliers to report consumer goods associated with the death or serious injury or illness of any person........................................................................................ 216

132........................ Suppliers to report product related services associated with the death or serious injury or illness of any person........................................................................................ 218

132A..................... Confidentiality of notices given under this Division....... 220

Division 6—Miscellaneous                                                                                   221

133........................ Liability under a contract of insurance............................ 221

Part 3‑4—Information standards                                                                      222

134........................ Making information standards for goods and services... 222

135........................ Declaring information standards for goods and services 222

136........................ Supplying etc. goods that do not comply with information standards      223

137........................ Supplying etc. services that do not comply with information standards   224

Part 3‑5—Liability of manufacturers for goods with safety defects 226

Division 1—Actions against manufacturers for goods with safety defects 226

138........................ Liability for loss or damage suffered by an injured individual 226

139........................ Liability for loss or damage suffered by a person other than an injured individual  226

140........................ Liability for loss or damage suffered by a person if other goods are destroyed or damaged    227

141........................ Liability for loss or damage suffered by a person if land, buildings or fixtures are destroyed or damaged........................................................................................ 227

142........................ Defences to defective goods actions............................... 228

Division 2—Defective goods actions                                                                 229

143........................ Time for commencing defective goods actions............... 229

144........................ Liability joint and several................................................ 229

145........................ Survival of actions.......................................................... 229

146........................ No defective goods action where workers’ compensation law etc. applies              229

147........................ Unidentified manufacturer.............................................. 230

148........................ Commonwealth liability for goods that are defective only because of compliance with Commonwealth mandatory standard......................................................... 230

149........................ Representative actions by the regulator........................... 231

Division 3—Miscellaneous                                                                                   232

150........................ Application of all or any provisions of this Part etc. not to be excluded or modified               232

Chapter 4—Offences                                                                                                       233

Part 4‑1—Offences relating to unfair practices                                         233

Division 1—False or misleading representations etc.                                   233

151........................ False or misleading representations about goods or services 233

152........................ False or misleading representations about sale etc. of land 235

153........................ Misleading conduct relating to employment.................... 236

154........................ Offering rebates, gifts, prizes etc.................................... 236

155........................ Misleading conduct as to the nature etc. of goods........... 238

156........................ Misleading conduct as to the nature etc. of services........ 238

157........................ Bait advertising............................................................... 238

158........................ Wrongly accepting payment............................................ 240

159........................ Misleading representations about certain business activities 242

160........................ Application of provisions of this Division to information providers        243

Division 2—Unsolicited supplies                                                                        245

161........................ Unsolicited cards etc....................................................... 245

162........................ Assertion of right to payment for unsolicited goods or services              246

163........................ Assertion of right to payment for unauthorised entries or advertisements                247

Division 3—Pyramid schemes                                                                            249

164........................ Participation in pyramid schemes.................................... 249

Division 4—Pricing                                                                                               250

165........................ Multiple pricing.............................................................. 250

166........................ Single price to be specified in certain circumstances....... 250

Division 5—Other unfair practices                                                                   252

167........................ Referral selling................................................................ 252

168........................ Harassment and coercion................................................ 252

Part 4‑2—Offences relating to consumer transactions                          254

Division 1—Consumer guarantees                                                                    254

169........................ Display notices............................................................... 254

Division 2—Unsolicited consumer agreements                                              255

Subdivision A—Negotiating unsolicited consumer agreements                 255

170........................ Permitted hours for negotiating an unsolicited consumer agreement        255

171........................ Disclosing purpose and identity...................................... 255

172........................ Ceasing to negotiate on request....................................... 256

173........................ Informing person of termination period etc..................... 257

Subdivision B—Requirements for unsolicited consumer agreements etc. 258

174........................ Requirement to give document to the consumer.............. 258

175........................ Requirements for all unsolicited consumer agreements etc. 259

176........................ Additional requirements for unsolicited consumer agreements not negotiated by telephone    260

177........................ Requirements for amendments of unsolicited consumer agreements        261

Subdivision C—Terminating unsolicited consumer agreements               261

178........................ Obligations of suppliers on termination.......................... 261

179........................ Prohibition on supplies for 10 business days................. 262

180........................ Repayment of payments received after termination......... 263

181........................ Prohibition on recovering amounts after termination...... 263

Subdivision D—Miscellaneous                                                                            264

182........................ Certain provisions of unsolicited consumer agreements void.. 264

183........................ Waiver of rights.............................................................. 265

184........................ Application of this Division to persons to whom rights of consumers and suppliers are assigned etc.    265

185........................ Application of this Division to supplies to third parties.. 265

186........................ Regulations may limit the application of this Division.... 266

187........................ Application of this Division to certain conduct covered by the Corporations Act    266

Division 3—Lay‑by agreements                                                                         267

188........................ Lay‑by agreements must be in writing etc....................... 267

189........................ Termination charges........................................................ 267

190........................ Termination of lay‑by agreements by suppliers.............. 268

191........................ Refund of amounts......................................................... 268

Division 4—Miscellaneous                                                                                   269

192........................ Prescribed requirements for warranties against defects... 269

193........................ Repairers must comply with prescribed requirements..... 269

Part 4‑3—Offences relating to safety of consumer goods and product related services             270

Division 1—Safety standards                                                                              270

194........................ Supplying etc. consumer goods that do not comply with safety standards               270

195........................ Supplying etc. product related services that do not comply with safety standards    271

196........................ Requirement to nominate a safety standard..................... 272

Division 2—Bans on consumer goods and product related services         273

197........................ Supplying etc. consumer goods covered by a ban.......... 273

198........................ Supplying etc. product related services covered by a ban 274

Division 3—Recall of consumer goods                                                             276

199........................ Compliance with recall orders......................................... 276

200........................ Notification by persons who supply consumer goods outside Australia if there is compulsory recall     276

201........................ Notification requirements for a voluntary recall of consumer goods        277

Division 4—Consumer goods, or product related services, associated with death or serious injury or illness      278

202........................ Suppliers to report consumer goods etc. associated with the death or serious injury or illness of any person........................................................................................ 278

Part 4‑4—Offences relating to information standards                           279

203........................ Supplying etc. goods that do not comply with information standards      279

204........................ Supplying etc. services that do not comply with information standards   280

Part 4‑5—Offences relating to substantiation notices                            282

205........................ Compliance with substantiation notices.......................... 282

206........................ False or misleading information etc................................ 282

Part 4‑6—Defences                                                                                                    284

207........................ Reasonable mistake of fact.............................................. 284

208........................ Act or default of another person etc................................ 284

209........................ Publication of advertisements in the ordinary course of business            285

210........................ Supplying goods acquired for the purpose of re‑supply. 285

211........................ Supplying services acquired for the purpose of re‑supply 287

Part 4‑7—Miscellaneous                                                                                         288

212........................ Prosecutions to be commenced within 3 years................ 288

213........................ Preference must be given to compensation for victims... 288

214........................ Penalties for contraventions of the same nature etc......... 289

215........................ Penalties for previous contraventions of the same nature etc... 289

216........................ Granting of injunctions etc.............................................. 290

217........................ Criminal proceedings not to be brought for contraventions of Chapter 2 or 3          290

Chapter 5—Enforcement and remedies                                                              292

Part 5‑1—Enforcement                                                                                           292

Division 1—Undertakings                                                                                    292

218........................ Regulator may accept undertakings................................. 292

Division 2—Substantiation notices                                                                    293

219........................ Regulator may require claims to be substantiated etc...... 293

220........................ Extending periods for complying with substantiation notices  294

221........................ Compliance with substantiation notices.......................... 295

222........................ False or misleading information etc................................ 295

Division 3—Public warning notices                                                                   297

223........................ Regulator may issue a public warning notice.................. 297

Part 5‑2—Remedies                                                                                                   298

Division 1—Pecuniary penalties                                                                        298

224........................ Pecuniary penalties......................................................... 298

225........................ Pecuniary penalties and offences.................................... 302

226........................ Defence........................................................................... 303

227........................ Preference must be given to compensation for victims... 303

228........................ Civil action for recovery of pecuniary penalties.............. 304

229........................ Indemnification of officers.............................................. 304

230........................ Certain indemnities not authorised and certain documents void               304

Division 2—Injunctions                                                                                        306

232........................ Injunctions...................................................................... 306

233........................ Consent injunctions........................................................ 307

234........................ Interim injunctions.......................................................... 308

235........................ Variation and discharge of injunctions............................ 308

Division 3—Damages                                                                                            309

236........................ Actions for damages....................................................... 309

Division 4—Compensation orders etc. for injured persons and orders for non‑party consumers            310

Subdivision A—Compensation orders etc. for injured persons                  310

237........................ Compensation orders etc. on application by an injured person or the regulator        310

238........................ Compensation orders etc. arising out of other proceedings 311

Subdivision B—Orders for non‑party consumers                                         311

239........................ Orders to redress etc. loss or damage suffered by non‑party consumers 311

240........................ Determining whether to make a redress order etc. for non‑party consumers            313

241........................ When a non‑party consumer is bound by a redress order etc.  313

Subdivision C—Miscellaneous                                                                            314

242........................ Applications for orders................................................... 314

243........................ Kinds of orders that may be made................................... 314

244........................ Power of a court to make orders..................................... 315

245........................ Interaction with other provisions.................................... 316

Division 5—Other remedies                                                                                317

246........................ Non‑punitive orders........................................................ 317

247........................ Adverse publicity orders................................................. 318

248........................ Order disqualifying a person from managing corporations 319

249........................ Privilege against exposure to penalty or forfeiture—disqualification from managing corporations          320

250........................ Declarations relating to consumer contracts.................... 320

Division 6—Defences                                                                                             322

251........................ Publication of advertisement in the ordinary course of business              322

252........................ Supplying consumer goods for the purpose of re‑supply 322

253........................ Supplying product related services for the purpose of re‑supply             323

Part 5‑3—Country of origin representations                                              325

254........................ Overview........................................................................ 325

255........................ Country of origin representations do not contravene certain provisions   325

256........................ Cost of producing or manufacturing goods.................... 328

257........................ Rules for determining the percentage of costs of production or manufacture attributable to a country     330

258........................ Proceedings relating to false, misleading or deceptive conduct or representations   330

Part 5‑4—Remedies relating to guarantees                                                 331

Division 1—Action against suppliers                                                                331

Subdivision A—Action against suppliers of goods                                        331

259........................ Action against suppliers of goods................................... 331

260........................ When a failure to comply with a guarantee is a major failure 332

261........................ How suppliers may remedy a failure to comply with a guarantee            333

262........................ When consumers are not entitled to reject goods............ 333

263........................ Consequences of rejecting goods.................................... 334

264........................ Replaced goods............................................................... 335

265........................ Termination of contracts for the supply of services that are connected with rejected goods     335

266........................ Rights of gift recipients................................................... 336

Subdivision B—Action against suppliers of services                                    336

267........................ Action against suppliers of services................................ 336

268........................ When a failure to comply with a guarantee is a major failure 338

269........................ Termination of contracts for the supply of services........ 338

270........................ Termination of contracts for the supply of goods that are connected with terminated services 339

Division 2—Action for damages against manufacturers of goods            341

271........................ Action for damages against manufacturers of goods...... 341

272........................ Damages that may be recovered by action against manufacturers of goods             342

273........................ Time limit for actions against manufacturers of goods.... 343

Division 3—Miscellaneous                                                                                   344

274........................ Indemnification of suppliers by manufacturers............... 344

275........................ Limitation of liability etc................................................. 345

276........................ This Part not to be excluded etc. by contract................... 345

276A..................... Limitation in certain circumstances of liability of manufacturer to seller  346

277........................ Representative actions by the regulator........................... 347

Part 5‑5—Liability of suppliers and credit providers                             348

Division 1—Linked credit contracts                                                                  348

278........................ Liability of suppliers and linked credit providers relating to linked credit contracts 348

279........................ Action by consumer to recover amount of loss or damage 349

280........................ Cases where a linked credit provider is not liable........... 349

281........................ Amount of liability of linked credit providers................. 351

282........................ Counter‑claims and offsets............................................. 352

283........................ Enforcement of judgments etc......................................... 352

284........................ Award of interest to consumers...................................... 354

285........................ Liability of suppliers to linked credit providers, and of linked credit providers to suppliers    354

286........................ Joint liability proceedings and recovery under section 135 of the National Credit Code          355

Division 2—Non‑linked credit contracts                                                          357

287........................ Liability of suppliers and credit providers relating to non‑linked credit contracts     357

Chapter 6—Application and transitional provisions                                    359

Part 1—Application and transitional provisions relating to the Consumer Credit Legislation Amendment (Enhancements) Act 2012                                                            359

288........................ Application of amendments relating to lay‑by agreements 359

289........................ Application of amendment relating to repairs.................. 359

290........................ Saving of regulations relating to repairs.......................... 359

Endnotes                                                                                                                                  360

Endnote 1—About the endnotes                                                                          360

Endnote 2—Abbreviation key                                                                              361

Endnote 3—Legislation history                                                                           362

Endnote 4—Amendment history                                                                         389


Schedule 1The Schedule version of Part IV

Part 1Schedule version of Part IV

Note:       See section 150A.

Division 1Cartel conduct

Subdivision AIntroduction

44ZZRA  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.

44ZZRB  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 44ZZRC.

production includes manufacture, processing, treatment, assembly, disassembly, renovation, restoration, growing, raising, mining, extraction, harvesting, fishing, capturing and gathering.

44ZZRC  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.

44ZZRD  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 44ZZRC.

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

                     (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 44ZZRC.

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; 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; 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 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; 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; 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; or

                      (i)  if paragraph (3)(c) applies in relation to a supply of goods or services—the supply of those goods or services; or

                      (j)  if paragraph (3)(c) applies in relation to an acquisition of goods or services—the acquisition of those goods or services.

Note:          Party has an extended meaning—see section 44ZZRC.

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), (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), subparagraph (3)(a)(iii) 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.

44ZZRE  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 BOffences etc.

44ZZRF  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.

44ZZRG  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.

44ZZRH  Determining guilt

             (1)  A person may be found guilty of an offence against section 44ZZRF or 44ZZRG 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 44ZZRC.

             (2)  A person cannot be found guilty of an offence against section 44ZZRF or 44ZZRG 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.

44ZZRI  Court may make related civil orders

                   If a prosecution against a person for an offence against section 44ZZRF or 44ZZRG 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 CCivil penalty provisions

44ZZRJ  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.

44ZZRK  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 DExceptions

44ZZRL  Conduct notified

             (1)  Sections 44ZZRF, 44ZZRG, 44ZZRJ and 44ZZRK 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 44ZZRD(2); or

                             (ii)  has the purpose mentioned in a paragraph of subsection 44ZZRD(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.

44ZZRM  Cartel provision subject to grant of authorisation

             (1)  Sections 44ZZRF and 44ZZRJ 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.

44ZZRN  Contracts, arrangements or understandings between related bodies corporate

             (1)  Sections 44ZZRF, 44ZZRG, 44ZZRJ and 44ZZRK 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.

44ZZRO  Joint ventures—prosecution

             (1)  Sections 44ZZRF and 44ZZRG do not apply in relation to a contract containing a cartel provision if:

                     (a)  the cartel provision is for the purposes of a joint venture; and

                     (b)  the joint venture is for the production and/or supply of goods or services; and

                     (c)  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; and

                     (d)  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 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.

          (1A)  Section 44ZZRF does not apply in relation to an arrangement or understanding containing a cartel provision if:

                     (a)  the arrangement or understanding is not a contract; and

                     (b)  when the arrangement was made, or the understanding was arrived at, each party to the arrangement or understanding:

                              (i)  intended the arrangement or understanding to be a contract; and

                             (ii)  reasonably believed that the arrangement or understanding was a contract; and

                     (c)  the cartel provision is for the purposes of a joint venture; and

                     (d)  the joint venture is for the production and/or supply of goods or services; and

                     (e)  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 arrangement or understanding; and

                      (f)  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 arrangement or understanding for the purpose of enabling those parties to carry on the activity mentioned in paragraph (d) 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.

          (1B)  Section 44ZZRG does not apply in relation to giving effect to a cartel provision contained in an arrangement or understanding if:

                     (a)  the arrangement or understanding is not a contract; and

                     (b)  when the arrangement was made, or the understanding was arrived at, each party to the arrangement or understanding:

                              (i)  intended the arrangement or understanding to be a contract; and

                             (ii)  reasonably believed that the arrangement or understanding was a contract; and

                     (c)  when the cartel provision was given effect to, each party to the arrangement or understanding reasonably believed that the arrangement or understanding was a contract; and

                     (d)  the cartel provision is for the purposes of a joint venture; and

                     (e)  the joint venture is for the production and/or supply of goods or services; and

                      (f)  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 arrangement or understanding; and

                     (g)  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 arrangement or understanding for the purpose of enabling those parties to carry on the activity mentioned in paragraph (e) 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 person who wishes to rely on subsection (1), (1A) or (1B) bears an evidential burden in relation to that matter.

Notice to prosecutor

             (3)  A person is not entitled to rely on subsection (1), (1A) or (1B) in a trial for an offence unless, within 28 days after the day on which the person is committed for trial, the person gives the prosecutor:

                     (a)  a written notice setting out:

                              (i)  the facts on which the person proposes to rely for the purpose of discharging the evidential burden borne by the person in relation to the matter in subsection (1), (1A) or (1B), as the case may be; and

                             (ii)  the names and address of any witnesses whom the person proposes to call for the purpose of discharging the evidential burden borne by the person in relation to the matter in subsection (1), (1A) or (1B), as the case may be; and

                     (b)  certified copies of any documents which the person proposes to adduce or point to for the purpose of discharging the evidential burden borne by the person in relation to the matter in subsection (1), (1A) or (1B), as the case may be.

             (4)  If the trial of a person for an offence is being, or is to be, held in a court, the court may, by order:

                     (a)  exempt the person from compliance with subsection (3); or

                     (b)  extend the time within which the person is required to comply with subsection (3).

             (5)  For the purposes of paragraph (3)(b), a certified copy of a document is a copy of the document certified to be a true copy by:

                     (a)  a Justice of the Peace; or

                     (b)  a commissioner for taking affidavits.

44ZZRP  Joint ventures—civil penalty proceedings

             (1)  Sections 44ZZRJ and 44ZZRK do not apply in relation to a contract containing a cartel provision if:

                     (a)  the cartel provision is for the purposes of a joint venture; and

                     (b)  the joint venture is for the production and/or supply of goods or services; and

                     (c)  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; and

                     (d)  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 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.

          (1A)  Section 44ZZRJ does not apply in relation to an arrangement or understanding containing a cartel provision if:

                     (a)  the arrangement or understanding is not a contract; and

                     (b)  when the arrangement was made, or the understanding was arrived at, each party to the arrangement or understanding:

                              (i)  intended the arrangement or understanding to be a contract; and

                             (ii)  reasonably believed that the arrangement or understanding was a contract; and

                     (c)  the cartel provision is for the purposes of a joint venture; and

                     (d)  the joint venture is for the production and/or supply of goods or services; and

                     (e)  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 arrangement or understanding; and

                      (f)  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 arrangement or understanding for the purpose of enabling those parties to carry on the activity mentioned in paragraph (d) 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.

          (1B)  Section 44ZZRK does not apply in relation to giving effect to a cartel provision contained in an arrangement or understanding if:

                     (a)  the arrangement or understanding is not a contract; and

                     (b)  when the arrangement was made, or the understanding was arrived at, each party to the arrangement or understanding:

                              (i)  intended the arrangement or understanding to be a contract; and

                             (ii)  reasonably believed that the arrangement or understanding was a contract; and

                     (c)  when the cartel provision was given effect to, each party to the arrangement or understanding reasonably believed that the arrangement or understanding was a contract; and

                     (d)  the cartel provision is for the purposes of a joint venture; and

                     (e)  the joint venture is for the production and/or supply of goods or services; and

                      (f)  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 arrangement or understanding; and

                     (g)  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 arrangement or understanding for the purpose of enabling those parties to carry on the activity mentioned in paragraph (e) 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 person who wishes to rely on subsection (1), (1A) or (1B) bears an evidential burden in relation to that matter.

44ZZRQ  Covenants affecting competition

             (1)  Sections 44ZZRF, 44ZZRG, 44ZZRJ and 44ZZRK do not apply in relation to a contract containing a cartel provision, in so far as the cartel provision constitutes a covenant to which section 45B applies or, but for subsection 45B(9), would apply.

             (2)  A person who wishes to rely on subsection (1) bears an evidential burden in relation to that matter.

44ZZRR  Resale price maintenance

             (1)  Sections 44ZZRF, 44ZZRG, 44ZZRJ and 44ZZRK 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 subsection 88(8A); 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.

44ZZRS  Exclusive dealing

             (1)  Sections 44ZZRF and 44ZZRJ 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 88(8) or section 93, constitute a contravention of section 47.

             (2)  Sections 44ZZRG and 44ZZRK 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 88(8) or section 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 subsection 88(8) 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.

44ZZRT  Dual listed company arrangement

             (1)  Sections 44ZZRF and 44ZZRJ 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 subsection 88(8B), contravene section 49.

             (2)  Sections 44ZZRG and 44ZZRK 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 subsection 88(8B), contravene section 49.

             (3)  A person who wishes to rely on subsection (1) or (2) bears an evidential burden in relation to that matter.

44ZZRU  Acquisition of shares or assets

             (1)  Sections 44ZZRF, 44ZZRG, 44ZZRJ and 44ZZRK 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.

44ZZRV  Collective acquisition of goods or services by the parties to a contract, arrangement or understanding

             (1)  Sections 44ZZRF, 44ZZRG, 44ZZRJ and 44ZZRK 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 44ZZRD(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 1AAnti‑competitive disclosure of pricing and other information

44ZZS  Definitions

                   In this Division:

disclose has a meaning affected by section 44ZZU.

Division 1A goods or services means goods or services to which this Division applies (see section 44ZZT).

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.

intermediary: see subsection 44ZZU(3).

private disclosure to competitors: see section 44ZZV.

44ZZT  Goods and services to which this Division applies

                   This Division applies to goods and services of the classes prescribed by the regulations for the purpose of section 44ZZT of the Competition and Consumer Act 2010.

44ZZU  Provisions affecting whether a person has disclosed information to another person

Disclosure to director, employee or agent etc. of another person

             (1)  For the purpose of this Division:

                     (a)  if a person (the first person) makes a disclosure of information to another person (the second person) in the second person’s capacity as a director, employee or agent of a body corporate, the disclosure is taken to have been made by the first person to the body corporate; and

                     (b)  if a person (the first person) makes a disclosure of information to another person (the second person) in the second person’s capacity as an employee or agent of another person (not being a body corporate), the disclosure is taken to have been made by the first person to that other person.

Disclosure to discloser’s own agent

             (2)  For the purpose of this Division, the disclosure of information by a person (the first person) to another person is to be disregarded if:

                     (a)  the disclosure is made to the other person in the other person’s capacity as an agent of the first person; and

                     (b)  subsection (3) does not apply to the disclosure.

Disclosure through intermediary

             (3)  If:

                     (a)  a person (the first person) makes a disclosure of information to another person (the intermediary); and

                     (b)  the first person makes the disclosure to the intermediary for the purpose of the intermediary disclosing (or arranging for the disclosure of) the information to one or more other persons; and

                     (c)  the information is so disclosed to one or more of those other persons (the recipients);

then, for the purpose of this Division:

                     (d)  the disclosure of the information to the recipients is taken to have been made by the first person; and

                     (e)  the disclosure of the information to the intermediary is to be disregarded (unless the intermediary is a competitor or potential competitor of the first person in a market).

Accidental disclosure

             (4)  For the purpose of this Division, the disclosure of information by a person (the first person) to another person (the recipient) is to be disregarded if the disclosure to the recipient is due to:

                     (a)  an accident; or

                     (b)  the default of a person other than the first person; or

                     (c)  some other cause beyond the control of the first person.

Note:          This subsection does not apply to a disclosure of information covered by subsection (3).

Section 84 not limited

             (5)  This section does not limit section 84.

44ZZV  Meaning of private disclosure to competitors

Main definition

             (1)  A disclosure of information by a person is a private disclosure to competitors, in relation to a particular market, if the disclosure is to one or more competitors or potential competitors of the person in that market, and is not to any other person.

Note:          The effect of section 44ZZU must be taken into account in working out whether the disclosure is to one or more competitors or potential competitors, and is not to any other person.

Anti‑avoidance

             (2)  For the purpose of determining whether a person (the first person) has made a private disclosure to competitors in relation to a particular market, the fact that the disclosure is also made to another person who is not a competitor or potential competitor of the first person in that market is to be disregarded if:

                     (a)  for a disclosure that is not made through an intermediary—the first person made the disclosure to the other person for the purpose of avoiding the application of section 44ZZW to the disclosure; or

                     (b)  for a disclosure that is made through an intermediary—either:

                              (i)  the first person directed or requested the intermediary to disclose the information to the other person for the purpose of avoiding the application of section 44ZZW to the disclosure; or

                             (ii)  the intermediary disclosed the information to the other person for the purpose of avoiding the application of section 44ZZW to the disclosure.

Fact that the information is otherwise available is not relevant

             (3)  The question whether a disclosure of information by a person is a private disclosure to competitors is not affected by the information otherwise being or becoming available to competitors or potential competitors of the person in the market, or to other persons.

44ZZW  Person must not make private disclosure of pricing information etc. to competitors

                   A person must not make a disclosure of information if:

                     (a)  the information relates to a price for, or a discount, allowance, rebate or credit in relation to, Division 1A goods or services supplied or likely to be supplied, or acquired or likely to be acquired, by the person in a market (whether or not the information also relates to other matters); and

                     (b)  the disclosure is a private disclosure to competitors in relation to that market; and

                     (c)  the disclosure is not in the ordinary course of business.

Note:          Conduct that would otherwise contravene this section can be authorised under subsection 88(6A) or notified under subsection 93(1).

44ZZX  Person must not make disclosure of pricing information etc. for purpose of substantially lessening competition

The prohibition

             (1)  A person must not make a disclosure of information if:

                     (a)  the information relates to one or more of the following (whether or not it also relates to other matters):

                              (i)  a price for, or a discount, allowance, rebate or credit in relation to, Division 1A goods or services supplied or likely to be supplied, or acquired or likely to be acquired, by the person;

                             (ii)  the capacity, or likely capacity, of the person to supply or acquire Division 1A goods or services;

                            (iii)  any aspect of the commercial strategy of the person that relates to Division 1A goods or services; and

                     (b)  the person makes the disclosure for the purpose of substantially lessening competition in a market.

Note:          Conduct that would otherwise contravene this section can be authorised under subsection 88(6A).

Determining whether disclosure made for purpose of substantially lessening competition

             (2)  In determining, for the purpose of this section, if a person has made a disclosure for the purpose of substantially lessening competition in a market, the matters to which the court may have regard include (but are not limited to):

                     (a)  whether the disclosure was a private disclosure to competitors in relation to that market; and

                     (b)  the degree of specificity of the information; and

                     (c)  whether the information relates to past, current or future activities; and

                     (d)  how readily available the information is to the public; and

                     (e)  whether the disclosure is part of a pattern of similar disclosures by the person.

             (3)  Without limiting the manner in which the purpose of a person may be established for the purposes of any other provision of this Act, a person may be taken to have made a disclosure of information for the purpose of substantially lessening competition in a market even though, after all the evidence has been considered, the existence of that purpose is ascertainable only by inference from the conduct of the person or of any other person or from other relevant circumstances.

44ZZY  Exceptions that apply to sections 44ZZW and 44ZZX

Disclosure authorised by law: general exception for 10 years

             (1)  Sections 44ZZW and 44ZZX do not apply to the disclosure of information by a person if:

                     (a)  the disclosure is authorised by or under a law of the Commonwealth, a State or a Territory; and

                     (b)  the disclosure occurs before the end of 10 years after the day on which the Competition and Consumer Amendment Act (No. 1) 2011 receives the Royal Assent.

Note:          This subsection has effect in addition to:

(a)  subsection (6) (which covers compliance with continuous disclosure requirements of the Corporations Act 2001); and

(b)  subsection 51(1) (which covers things authorised by certain laws).

Disclosure to related bodies corporate

             (2)  Sections 44ZZW and 44ZZX do not apply to the disclosure of information by a body corporate (the first body corporate) if the disclosure is to one or more other bodies corporate that are related to the first body corporate, and is not to any other person.

Note:          The effect of section 44ZZU must be taken into account in working out whether the disclosure is to one or more bodies corporate that are related to the first body corporate, and is not to any other person.

Disclosure for collective bargaining

             (3)  Sections 44ZZW and 44ZZX do not apply to the disclosure of information by a person if:

                     (a)  the person has given the Commission a collective bargaining notice under subsection 93AB(1A) or (1) setting out particulars of a contract or proposed contract; and

                     (b)  the notice is in force; and

                     (c)  the disclosure is to one or more of the other contracting parties, and is not to any other person; and

                     (d)  the disclosure of the information:

                              (i)  if the notice relates to a contract—is required by the contract; or

                             (ii)  if the notice relates to a proposed contract—is made in the course of negotiations for the proposed contract or, if the proposed contract is entered into, is required by the contract.

Note:          The effect of section 44ZZU must be taken into account in working out whether the disclosure is to one or more of the other contracting parties, and is not to any other person.

Disclosure in course of authorised conduct

             (4)  Sections 44ZZW and 44ZZX do not apply to the disclosure of information by a person if:

                     (a)  an authorisation under section 88 (other than subsection 88(6A)) applies to or in relation to the person; and

                     (b)  the authorisation is in force; and

                     (c)  the disclosure of the information is made in the course of engaging in conduct that is covered by the authorisation.

Note:          A disclosure that would otherwise contravene section 44ZZW or 44ZZX can also be directly authorised under subsection 88(6A).

Disclosure covered by notification under section 93

             (5)  Sections 44ZZW and 44ZZX do not apply to the disclosure of information by a person if:

                     (a)  the person has given the Commission a notice under subsection 93(1) describing conduct; and

                     (b)  the disclosure is conduct described in the notice; and

                     (c)  the notice is in force under section 93.

Compliance with continuous disclosure requirements of the Corporations Act 2001

             (6)  Sections 44ZZW and 44ZZX do not apply to the disclosure of information by a person if the disclosure is made for the purpose of complying with Chapter 6CA of the Corporations Act 2001.

44ZZZ  Additional exceptions that only apply to section 44ZZW

Disclosure of information to acquirer or supplier of goods or services

             (1)  Section 44ZZW does not apply to the disclosure of information by a person (the first person) to another person (the recipient) if:

                     (a)  the information relates to goods or services supplied or likely to be supplied, by the first person to the recipient; or

                     (b)  the information relates to goods or services acquired or likely to be acquired, by the first person from the recipient.

Disclosure to unknown competitor

             (2)  Section 44ZZW does not apply to the disclosure of information by a person (the first person) to another person (the recipient) if:

                     (a)  the recipient is a competitor or potential competitor of the first person in the market referred to in that section; and

                     (b)  the first person did not know, and could not reasonably be expected to have known, that the recipient was such a competitor or potential competitor.

Disclosure to participants in joint venture

             (3)  Section 44ZZW does not apply to the disclosure of information by a person if:

                     (a)  either:

                              (i)  the person is a participant in a joint venture for the production and/or supply of goods or services; or

                             (ii)  the person proposes to enter into a joint venture with one or more other persons (the proposed participants); and

                     (b)  the disclosure is to one or more participants or proposed participants in the joint venture, and is not to any other person; and

                     (c)  the disclosure is made for the purposes of the joint venture or in the course of negotiations for the joint venture.

Note:          The effect of section 44ZZU must be taken into account in working out whether the disclosure is to one or more participants in the joint venture, and is not to any other person.

Disclosure relating to provision of loans etc. to same person

          (3A)  Section 44ZZW does not apply to the disclosure of information between 2 or more persons (the relevant persons) if:

                     (a)  the information relates to services, being loans or credit, supplied, or likely to be supplied, by one or more of the relevant persons; and

                     (b)  2 or more of the relevant persons are, in relation to the same person (the borrower), doing either or both of the following:

                              (i)  providing such services to the borrower;

                             (ii)  considering whether to provide such services to the borrower;

                     (c)  the disclosure is for the purpose of, or related to, providing services, or considering whether to provide services, to the borrower as mentioned in paragraph (b).

Disclosure between credit provider and provider of credit service

          (3B)  Section 44ZZW does not apply to the disclosure of information by a person to another person if:

                     (a)  one of the persons is a credit provider, and the other person provides a credit service, within the meaning of the National Consumer Credit Protection Act 2009; and

                     (b)  the disclosure is made in the course of the relationship between the persons in their capacities as credit provider and provider of a credit service.

Disclosure relating to acquisition of shares or assets

             (4)  Section 44ZZW does not apply to the disclosure of information by a person (the first person) in so far as the information is disclosed in connection with a contract, arrangement or understanding that provides, or a proposed contract, arrangement or understanding that would provide, for the acquisition of any shares in the capital of a body corporate, or any assets of a person, by or from the first person.

Note:          For the meaning of acquisition of shares, and acquisition of assets, see subsection 4(4).

Disclosure if borrower insolvent etc.

             (5)  Section 44ZZW does not apply to the disclosure of information between 2 or more persons (the relevant persons) if:

                     (a)  at least one of the relevant persons:

                              (i)  has provided a loan or credit to another person (the borrower); and

                             (ii)  has been notified of a borrower insolvency situation (see subsection (6)); and

                     (b)  the information relates to services, being loans or credit, supplied, or likely to be supplied, by one or more of the relevant persons; and

                     (c)  the disclosure is for the purpose of one or more of the relevant persons considering whether to take measures to return the borrower to solvency, or to avoid or reduce the risk of the borrower becoming insolvent.

             (6)  For the purpose of subsection (5), a relevant person is notified of a borrower insolvency situation if:

                     (a)  the person is notified that there are reasonable grounds for suspecting that one or more of the following may be or become insolvent:

                              (i)  the borrower;

                             (ii)  a person who has given a guarantee or indemnity in respect of loans or credit provided to the borrower by one or more of the relevant persons; and

                     (b)  the notification is given by the borrower, or by a person referred to in subparagraph (a)(ii).

44ZZZA  Burden of proof

                   If:

                     (a)  proceedings are brought against a person in respect of section 44ZZW or 44ZZX; and

                     (b)  the person seeks to rely on subsection 44ZZU(2) or (4), or on a subsection of section 44ZZY or 44ZZZ;

the person bears an evidential burden in relation to the matters set out in that subsection on which the person seeks to rely.

44ZZZB  Mere receipt of information does not constitute being knowingly involved in contravention

                   For the purpose of paragraph 76(1)(e), a person is not taken to be directly or indirectly knowingly concerned in, or party to, a contravention of section 44ZZW or 44ZZX merely because the person is a recipient of information disclosed in contravention of that section.

Division 2Other provisions

45  Contracts, arrangements or understandings that restrict dealings or affect competition

             (1)  If a provision of a contract made before the commencement of this section:

                     (a)  is an exclusionary provision; or