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Competition and Consumer Act 2010

Authoritative Version
  • - C2018C00437
  • In force - Superseded Version
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Act No. 51 of 1974 as amended, taking into account amendments up to Treasury Laws Amendment (Gift Cards) Act 2018
An Act relating to competition, fair trading and consumer protection, and for other purposes
Administered by: Attorney-General's; Treasury; Communications and the Arts; Infrastructure, Regional Development and Cities; Industry, Innovation and Science
Registered 08 Nov 2018
Start Date 26 Oct 2018
End Date 12 Mar 2019
Table of contents.

Commonwealth Coat of Arms of Australia

Competition and Consumer Act 2010

No. 51, 1974

Compilation No. 115

Compilation date:                              26 October 2018

Includes amendments up to:            Act No. 133, 2018

Registered:                                         8 November 2018

This compilation is in 3 volumes

Volume 1:       sections 1–110

Volume 2:       sections 10.01–185

Volume 3:       Schedules

                        Endnotes

Each volume has its own contents

 

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 26 October 2018 (the compilation date).

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 the Legislation Register (www.legislation.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 the Legislation Register 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.

Editorial changes

For more information about any editorial changes made in this compilation, see 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 the Legislation Register 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

45AA.... Simplified outline................................................................................ 1

45AB.... Definitions.......................................................................................... 1

45AC.... Extended meaning of party................................................................. 3

45AD.... Cartel provisions................................................................................. 3

45AE..... Meaning of expressions in other provisions of this Act...................... 9

Subdivision B—Offences etc.                                                                                10

45AF..... Making a contract etc. containing a cartel provision.......................... 10

45AG.... Giving effect to a cartel provision..................................................... 11

45AH.... Determining guilt.............................................................................. 12

45AI...... Court may make related civil orders.................................................. 12

Subdivision C—Civil penalty provisions                                                           13

45AJ..... Making a contract etc. containing a cartel provision.......................... 13

45AK.... Giving effect to a cartel provision..................................................... 13

Subdivision D—Exceptions                                                                                    13

45AL..... Conduct notified................................................................................ 13

45AM... Cartel provision subject to grant of authorisation.............................. 14

45AN.... Contracts, arrangements or understandings between related bodies corporate          14

45AO.... Joint ventures—prosecution.............................................................. 15

45AP..... Joint ventures—civil penalty proceedings......................................... 16

45AQ.... Resale price maintenance................................................................... 17

45AR.... Exclusive dealing.............................................................................. 17

45AS..... Dual listed company arrangement..................................................... 18

45AT..... Acquisition of shares or assets.......................................................... 18

45AU.... Collective acquisition of goods or services by the parties to a contract, arrangement or understanding    19

Division 2—Other provisions                                                                                 20

45.......... Contracts, arrangements or understandings that restrict dealings or affect competition            20

45D....... Secondary boycotts for the purpose of causing substantial loss or damage              24

45DA.... Secondary boycotts for the purpose of causing substantial lessening of competition               24

45DC.... Involvement and liability of employee organisations......................... 25

45DD.... Situations in which boycotts permitted.............................................. 27

45E........ Prohibition of contracts, arrangements or understandings affecting the supply or acquisition of goods or services 30

45EA..... Provisions contravening section 45E not to be given effect.............. 34

45EB..... Sections 45D to 45EA do not affect operation of other provisions of Part               34

46.......... Misuse of market power................................................................... 34

47.......... Exclusive dealing.............................................................................. 36

48.......... Resale price maintenance................................................................... 43

49.......... Dual listed company arrangements that affect competition................ 43

50.......... Prohibition of acquisitions that would result in a substantial lessening of competition             45

51.......... Exceptions......................................................................................... 46

Schedule 2—The Australian Consumer Law                                 52

Chapter 1—Introduction                                                                                                 67

1............ Application of this Schedule............................................................. 67

2............ Definitions........................................................................................ 67

3............ Meaning of consumer....................................................................... 83

4............ Misleading representations with respect to future matters................. 86

5............ When donations are treated as supplies or acquisitions..................... 87

6............ Related bodies corporate................................................................... 88

7............ Meaning of manufacturer................................................................. 88

8............ Goods affixed to land or premises.................................................... 89

9............ Meaning of safety defect in relation to goods.................................... 89

10.......... Asserting a right to payment............................................................. 90

11.......... References to acquisition, supply and re‑supply............................... 91

12.......... Application of Schedule in relation to leases and licences of land and buildings      92

13.......... Loss or damage to include injury...................................................... 92

14.......... Meaning of continuing credit contract.............................................. 92

15.......... Contraventions of this Schedule........................................................ 94

16.......... Severability....................................................................................... 94

17.......... References to provisions in this Schedule......................................... 94

Chapter 2—General protections                                                                                 95

Part 2‑1—Misleading or deceptive conduct                                                   95

18.......... Misleading or deceptive conduct....................................................... 95

19.......... Application of this Part to information providers.............................. 95

Part 2‑2—Unconscionable conduct                                                                     98

20.......... Unconscionable conduct within the meaning of the unwritten law.... 98

21.......... Unconscionable conduct in connection with goods or services......... 98

22.......... Matters the court may have regard to for the purposes of section 21 99

22A....... Presumptions relating to whether representations are misleading.... 102

Part 2‑3—Unfair contract terms                                                                        103

23.......... Unfair terms of consumer contracts and small business contracts... 103

24.......... Meaning of unfair........................................................................... 104

25.......... Examples of unfair terms................................................................ 104

26.......... Terms that define main subject matter of consumer contracts or small business contracts etc. are unaffected          106

27.......... Standard form contracts.................................................................. 106

28.......... Contracts to which this Part does not apply.................................... 107

Chapter 3—Specific protections                                                                               108

Part 3‑1—Unfair practices                                                                                    108

Division 1—False or misleading representations etc.                                   108

29.......... False or misleading representations about goods or services.......... 108

30.......... False or misleading representations about sale etc. of land.............. 110

31.......... Misleading conduct relating to employment.................................... 110

32.......... Offering rebates, gifts, prizes etc..................................................... 111

33.......... Misleading conduct as to the nature etc. of goods........................... 112

34.......... Misleading conduct as to the nature etc. of services........................ 112

35.......... Bait advertising............................................................................... 112

36.......... Wrongly accepting payment............................................................ 113

37.......... Misleading representations about certain business activities........... 115

38.......... Application of provisions of this Division to information providers 116

Division 2—Unsolicited supplies                                                                        118

39.......... Unsolicited cards etc....................................................................... 118

40.......... Assertion of right to payment for unsolicited goods or services..... 119

41.......... Liability etc. of recipient for unsolicited goods................................ 120

42.......... Liability of recipient for unsolicited services................................... 121

43.......... Assertion of right to payment for unauthorised entries or advertisements                121

Division 3—Pyramid schemes                                                                            124

44.......... Participation in pyramid schemes.................................................... 124

45.......... Meaning of pyramid scheme........................................................... 124

46.......... Marketing schemes as pyramid schemes......................................... 125

Division 4—Pricing                                                                                               127

47.......... Multiple pricing............................................................................... 127

48.......... Single price to be specified in certain circumstances....................... 128

Division 5—Other unfair practices                                                                   132

49.......... Referral selling................................................................................ 132

50.......... Harassment and coercion................................................................ 132

Part 3‑2—Consumer transactions                                                                     133

Division 1—Consumer guarantees                                                                    133

Subdivision A—Guarantees relating to the supply of goods                       133

51.......... Guarantee as to title......................................................................... 133

52.......... Guarantee as to undisturbed possession.......................................... 133

53.......... Guarantee as to undisclosed securities etc....................................... 134

54.......... Guarantee as to acceptable quality................................................... 135

55.......... Guarantee as to fitness for any disclosed purpose etc..................... 137

56.......... Guarantee relating to the supply of goods by description................ 137

57.......... Guarantees relating to the supply of goods by sample or demonstration model       138

58.......... Guarantee as to repairs and spare parts........................................... 138

59.......... Guarantee as to express warranties................................................. 139

Subdivision B—Guarantees relating to the supply of services                   140

60.......... Guarantee as to due care and skill................................................... 140

61.......... Guarantees as to fitness for a particular purpose etc........................ 140

62.......... Guarantee as to reasonable time for supply..................................... 141

63.......... Services to which this Subdivision does not apply......................... 141

Subdivision C—Guarantees not to be excluded etc. by contract                142

64.......... Guarantees not to be excluded etc. by contract................................ 142

64A....... Limitation of liability for failures to comply with guarantees.......... 142

Subdivision D—Miscellaneous                                                                            144

65.......... Application of this Division to supplies of gas, electricity and telecommunications 144

66.......... Display notices................................................................................ 144

67.......... Conflict of laws............................................................................... 145

68.......... Convention on Contracts for the International Sale of Goods......... 145

Division 2—Unsolicited consumer agreements                                              146

Subdivision A—Introduction                                                                               146

69.......... Meaning of unsolicited consumer agreement................................. 146

70.......... Presumption that agreements are unsolicited consumer agreements 147

71.......... Meaning of dealer........................................................................... 148

72.......... Meaning of negotiation................................................................... 148

Subdivision B—Negotiating unsolicited consumer agreements                 148

73.......... Permitted hours for negotiating an unsolicited consumer agreement 148

74.......... Disclosing purpose and identity...................................................... 149

75.......... Ceasing to negotiate on request....................................................... 149

76.......... Informing person of termination period etc..................................... 150

77.......... Liability of suppliers for contraventions by dealers......................... 151

Subdivision C—Requirements for unsolicited consumer agreements etc. 151

78.......... Requirement to give document to the consumer.............................. 151

79.......... Requirements for all unsolicited consumer agreements etc.............. 152

80.......... Additional requirements for unsolicited consumer agreements not negotiated by telephone     153

81.......... Requirements for amendments of unsolicited consumer agreements 154

Subdivision D—Terminating unsolicited consumer agreements               154

82.......... Terminating an unsolicited consumer agreement during the termination period        154

83.......... Effect of termination........................................................................ 156

84.......... Obligations of suppliers on termination.......................................... 157

85.......... Obligations and rights of consumers on termination....................... 157

86.......... Prohibition on supplies etc.............................................................. 159

87.......... Repayment of payments received after termination......................... 160

88.......... Prohibition on recovering amounts after termination....................... 160

Subdivision E—Miscellaneous                                                                            161

89.......... Certain provisions of unsolicited consumer agreements void.......... 161

90.......... Waiver of rights.............................................................................. 162

91.......... Application of this Division to persons to whom rights of consumers and suppliers are assigned etc.    162

92.......... Application of this Division to supplies to third parties.................. 162

93.......... Effect of contravening this Division................................................ 163

94.......... Regulations may limit the application of this Division.................... 163

95.......... Application of this Division to certain conduct covered by the Corporations Act    163

Division 3—Lay‑by agreements                                                                         164

96.......... Lay‑by agreements must be in writing etc....................................... 164

97.......... Termination of lay‑by agreements by consumers............................ 164

98.......... Termination of lay‑by agreements by suppliers............................... 165

99.......... Effect of termination........................................................................ 165

Division 3A—Gift cards                                                                                       167

Subdivision A—Introduction                                                                               167

99A....... Meaning of gift card....................................................................... 167

Subdivision B—Requirements relating to gift cards                                     167

99B....... Gift cards to be redeemable for at least 3 years............................... 167

99C....... When gift card ceases to be redeemable to appear prominently on gift card             168

99D....... Terms and conditions not to allow post‑supply fees....................... 168

99E........ Post‑supply fees not to be demanded or received............................ 168

99F........ Certain terms and conditions of gift card void................................. 169

Subdivision C—Miscellaneous                                                                            169

99G....... Regulations may limit application of this Division.......................... 169

Division 4—Miscellaneous                                                                                   171

100........ Supplier must provide proof of transaction etc................................ 171

101........ Consumer may request an itemised bill........................................... 172

102........ Prescribed requirements for warranties against defects................... 173

103........ Repairers must comply with prescribed requirements..................... 173

Part 3‑3—Safety of consumer goods and product related services 175

Division 1—Safety standards                                                                              175

104........ Making safety standards for consumer goods and product related services             175

105........ Declaring safety standards for consumer goods and product related services          176

106........ Supplying etc. consumer goods that do not comply with safety standards               176

107........ Supplying etc. product related services that do not comply with safety standards    178

108........ Requirement to nominate a safety standard..................................... 179

Division 2—Bans on consumer goods and product related services         180

Subdivision A—Interim bans                                                                              180

109........ Interim bans on consumer goods or product related services that will or may cause injury to any person etc.         180

110........ Places in which interim bans apply................................................. 181

111........ Ban period for interim bans............................................................. 181

112........ Interaction of multiple interim bans................................................. 182

113........ Revocation of interim bans.............................................................. 183

Subdivision B—Permanent bans                                                                        183

114........ Permanent bans on consumer goods or product related services..... 183

115........ Places in which permanent bans apply............................................ 184

116........ When permanent bans come into force............................................ 184

117........ Revocation of permanent bans........................................................ 184

Subdivision C—Compliance with interim bans and permanent bans       185

118........ Supplying etc. consumer goods covered by a ban........................... 185

119........ Supplying etc. product related services covered by a ban................ 186

Subdivision D—Temporary exemption from mutual recognition principles 187

120........ Temporary exemption under the Trans‑Tasman Mutual Recognition Act 1997       187

121........ Temporary exemption under the Mutual Recognition Act 1992....... 187

Division 3—Recall of consumer goods                                                             189

Subdivision A—Compulsory recall of consumer goods                               189

122........ Compulsory recall of consumer goods............................................ 189

123........ Contents of a recall notice............................................................... 189

124........ Obligations of a supplier in relation to a recall notice...................... 191

125........ Notification by persons who supply consumer goods outside Australia if there is compulsory recall     192

126........ Interaction of multiple recall notices................................................ 192

127........ Compliance with recall notices........................................................ 193

Subdivision B—Voluntary recall of consumer goods                                   194

128........ Notification requirements for a voluntary recall of consumer goods 194

Division 4—Safety warning notices                                                                   196

129........ Safety warning notices about consumer goods and product related services            196

130........ Announcement of the results of an investigation etc....................... 196

Division 5—Consumer goods, or product related services, associated with death or serious injury or illness      198

131........ Suppliers to report consumer goods associated with the death or serious injury or illness of any person                198

132........ Suppliers to report product related services associated with the death or serious injury or illness of any person     200

132A..... Confidentiality of notices given under this Division....................... 202

Division 6—Miscellaneous                                                                                   204

133........ Liability under a contract of insurance............................................. 204

Part 3‑4—Information standards                                                                      205

134........ Making information standards for goods and services.................... 205

135........ Declaring information standards for goods and services................. 205

136........ Supplying etc. goods that do not comply with information standards 206

137........ Supplying etc. services that do not comply with information standards 207

137A..... Safe harbour for complying with information standards about free range eggs        208

Part 3‑5—Liability of manufacturers for goods with safety defects 210

Division 1—Actions against manufacturers for goods with safety defects 210

138........ Liability for loss or damage suffered by an injured individual........ 210

139........ Liability for loss or damage suffered by a person other than an injured individual   210

140........ Liability for loss or damage suffered by a person if other goods are destroyed or damaged    211

141........ Liability for loss or damage suffered by a person if land, buildings or fixtures are destroyed or damaged              211

142........ Defences to defective goods actions................................................ 212

Division 2—Defective goods actions                                                                 213

143........ Time for commencing defective goods actions................................ 213

144........ Liability joint and several................................................................ 213

145........ Survival of actions.......................................................................... 213

146........ No defective goods action where workers’ compensation law etc. applies               213

147........ Unidentified manufacturer............................................................... 214

148........ Commonwealth liability for goods that are defective only because of compliance with Commonwealth mandatory standard........................................................................................... 214

149........ Representative actions by the regulator........................................... 215

Division 3—Miscellaneous                                                                                   216

150........ Application of all or any provisions of this Part etc. not to be excluded or modified                216

Chapter 4—Offences                                                                                                       217

Part 4‑1—Offences relating to unfair practices                                         217

Division 1—False or misleading representations etc.                                   217

151........ False or misleading representations about goods or services.......... 217

152........ False or misleading representations about sale etc. of land.............. 219

153........ Misleading conduct relating to employment.................................... 220

154........ Offering rebates, gifts, prizes etc..................................................... 221

155........ Misleading conduct as to the nature etc. of goods........................... 223

156........ Misleading conduct as to the nature etc. of services........................ 224

157........ Bait advertising............................................................................... 225

158........ Wrongly accepting payment............................................................ 227

159........ Misleading representations about certain business activities........... 229

160........ Application of provisions of this Division to information providers 230

Division 2—Unsolicited supplies                                                                        232

161........ Unsolicited cards etc....................................................................... 232

162........ Assertion of right to payment for unsolicited goods or services..... 233

163........ Assertion of right to payment for unauthorised entries or advertisements                234

Division 3—Pyramid schemes                                                                            237

164........ Participation in pyramid schemes.................................................... 237

Division 4—Pricing                                                                                               238

165........ Multiple pricing............................................................................... 238

166........ Single price to be specified in certain circumstances....................... 238

Division 5—Other unfair practices                                                                   241

167........ Referral selling................................................................................ 241

168........ Harassment and coercion................................................................ 242

Part 4‑2—Offences relating to consumer transactions                          244

Division 1—Consumer guarantees                                                                    244

169........ Display notices................................................................................ 244

Division 2—Unsolicited consumer agreements                                              245

Subdivision A—Negotiating unsolicited consumer agreements                 245

170........ Permitted hours for negotiating an unsolicited consumer agreement 245

171........ Disclosing purpose and identity...................................................... 245

172........ Ceasing to negotiate on request....................................................... 246

173........ Informing person of termination period etc..................................... 247

Subdivision B—Requirements for unsolicited consumer agreements etc. 248

174........ Requirement to give document to the consumer.............................. 248

175........ Requirements for all unsolicited consumer agreements etc.............. 249

176........ Additional requirements for unsolicited consumer agreements not negotiated by telephone     250

177........ Requirements for amendments of unsolicited consumer agreements 251

Subdivision C—Terminating unsolicited consumer agreements               252

178........ Obligations of suppliers on termination.......................................... 252

179........ Prohibition on supplies etc.............................................................. 252

180........ Repayment of payments received after termination......................... 253

181........ Prohibition on recovering amounts after termination....................... 253

Subdivision D—Miscellaneous                                                                            254

182........ Certain provisions of unsolicited consumer agreements void.......... 254

183........ Waiver of rights.............................................................................. 255

184........ Application of this Division to persons to whom rights of consumers and suppliers are assigned etc.    255

185........ Application of this Division to supplies to third parties.................. 256

186........ Regulations may limit the application of this Division.................... 256

187........ Application of this Division to certain conduct covered by the Corporations Act    256

Division 3—Lay‑by agreements                                                                         257

188........ Lay‑by agreements must be in writing etc....................................... 257

189........ Termination charges........................................................................ 257

190........ Termination of lay‑by agreements by suppliers............................... 258

191........ Refund of amounts.......................................................................... 258

Division 3A—Gift cards                                                                                       259

191A..... Gift cards to be redeemable for at least 3 years............................... 259

191B..... When gift card ceases to be redeemable to appear prominently on gift card             259

191C..... Terms and conditions not to allow post‑supply fees....................... 260

191D..... Post‑supply fees not to be demanded or received............................ 260

191E...... Regulations may limit the application of this Division.................... 260

Division 4—Miscellaneous                                                                                   262

192........ Prescribed requirements for warranties against defects................... 262

193........ Repairers must comply with prescribed requirements..................... 262

Part 4‑3—Offences relating to safety of consumer goods and product related services             263

Division 1—Safety standards                                                                              263

194........ Supplying etc. consumer goods that do not comply with safety standards               263

195........ Supplying etc. product related services that do not comply with safety standards    264

196........ Requirement to nominate a safety standard..................................... 265

Division 2—Bans on consumer goods and product related services         267

197........ Supplying etc. consumer goods covered by a ban........................... 267

198........ Supplying etc. product related services covered by a ban................ 268

Division 3—Recall of consumer goods                                                             270

199........ Compliance with recall orders......................................................... 270

200........ Notification by persons who supply consumer goods outside Australia if there is compulsory recall     271

201........ Notification requirements for a voluntary recall of consumer goods 271

Division 4—Consumer goods, or product related services, associated with death or serious injury or illness      273

202........ Suppliers to report consumer goods etc. associated with the death or serious injury or illness of any person          273

Part 4‑4—Offences relating to information standards                           274

203........ Supplying etc. goods that do not comply with information standards 274

204........ Supplying etc. services that do not comply with information standards 276

Part 4‑5—Offences relating to substantiation notices                            278

205........ Compliance with substantiation notices........................................... 278

206........ False or misleading information etc................................................. 278

Part 4‑6—Defences                                                                                                    280

207........ Reasonable mistake of fact.............................................................. 280

208........ Act or default of another person etc................................................ 280

209........ Publication of advertisements in the ordinary course of business... 281

210........ Supplying goods acquired for the purpose of re‑supply................. 281

211........ Supplying services acquired for the purpose of re‑supply.............. 283

Part 4‑7—Miscellaneous                                                                                         284

212........ Prosecutions to be commenced within 3 years................................ 284

213........ Preference must be given to compensation for victims.................... 284

214........ Penalties for contraventions of the same nature etc......................... 285

215........ Penalties for previous contraventions of the same nature etc........... 285

216........ Granting of injunctions etc.............................................................. 286

217........ Criminal proceedings not to be brought for contraventions of Chapter 2 or 3          286

Chapter 5—Enforcement and remedies                                                              288

Part 5‑1—Enforcement                                                                                           288

Division 1—Undertakings                                                                                    288

218........ Regulator may accept undertakings................................................. 288

Division 2—Substantiation notices                                                                    289

219........ Regulator may require claims to be substantiated etc....................... 289

220........ Extending periods for complying with substantiation notices......... 290

221........ Compliance with substantiation notices........................................... 291

222........ False or misleading information etc................................................. 291

Division 3—Public warning notices                                                                   293

223........ Regulator may issue a public warning notice.................................. 293

Part 5‑2—Remedies                                                                                                   294

Division 1—Pecuniary penalties                                                                        294

224........ Pecuniary penalties.......................................................................... 294

225........ Pecuniary penalties and offences..................................................... 299

226........ Defence........................................................................................... 300

227........ Preference must be given to compensation for victims.................... 300

228........ Civil action for recovery of pecuniary penalties.............................. 301

229........ Indemnification of officers.............................................................. 301

230........ Certain indemnities not authorised and certain documents void...... 301

Division 2—Injunctions                                                                                        302

232........ Injunctions...................................................................................... 302

233........ Consent injunctions......................................................................... 303

234........ Interim injunctions.......................................................................... 304

235........ Variation and discharge of injunctions............................................ 304

Division 3—Damages                                                                                            305

236........ Actions for damages....................................................................... 305

Division 4—Compensation orders etc. for injured persons and orders for non‑party consumers            306

Subdivision A—Compensation orders etc. for injured persons                  306

237........ Compensation orders etc. on application by an injured person or the regulator        306

238........ Compensation orders etc. arising out of other proceedings............. 307

Subdivision B—Orders for non‑party consumers                                         307

239........ Orders to redress etc. loss or damage suffered by non‑party consumers  307

240........ Determining whether to make a redress order etc. for non‑party consumers            309

241........ When a non‑party consumer is bound by a redress order etc.......... 309

Subdivision C—Miscellaneous                                                                            310

242........ Applications for orders................................................................... 310

243........ Kinds of orders that may be made................................................... 310

244........ Power of a court to make orders..................................................... 311

245........ Interaction with other provisions..................................................... 312

Division 5—Other remedies                                                                                313

246........ Non‑punitive orders........................................................................ 313

247........ Adverse publicity orders................................................................. 314

248........ Order disqualifying a person from managing corporations............. 315

249........ Privilege against exposure to penalty or forfeiture—disqualification from managing corporations          316

250........ Declarations relating to consumer contracts and small business contracts                317

Division 6—Defences                                                                                             318

251........ Publication of advertisement in the ordinary course of business..... 318

252........ Supplying consumer goods for the purpose of re‑supply............... 318

253........ Supplying product related services for the purpose of re‑supply.... 319

Part 5‑3—Country of origin representations                                              321

254........ Overview........................................................................................ 321

255........ Country of origin representations do not contravene certain provisions 321

258........ Proceedings relating to false, misleading or deceptive conduct or representations    323

Part 5‑4—Remedies relating to guarantees                                                 324

Division 1—Action against suppliers                                                                324

Subdivision A—Action against suppliers of goods                                        324

259........ Action against suppliers of goods................................................... 324

260........ When a failure to comply with a guarantee is a major failure.......... 325

261........ How suppliers may remedy a failure to comply with a guarantee... 326

262........ When consumers are not entitled to reject goods............................. 326

263........ Consequences of rejecting goods.................................................... 327

264........ Replaced goods............................................................................... 328

265........ Termination of contracts for the supply of services that are connected with rejected goods     328

266........ Rights of gift recipients................................................................... 329

Subdivision B—Action against suppliers of services                                    329

267........ Action against suppliers of services................................................ 329

268........ When a failure to comply with a guarantee is a major failure.......... 331

269........ Termination of contracts for the supply of services......................... 331

270........ Termination of contracts for the supply of goods that are connected with terminated services 332

Division 2—Action for damages against manufacturers of goods            334

271........ Action for damages against manufacturers of goods....................... 334

272........ Damages that may be recovered by action against manufacturers of goods              335

273........ Time limit for actions against manufacturers of goods.................... 336

Division 3—Miscellaneous                                                                                   337

274........ Indemnification of suppliers by manufacturers............................... 337

275........ Limitation of liability etc.................................................................. 338

276........ This Part not to be excluded etc. by contract................................... 338

276A..... Limitation in certain circumstances of liability of manufacturer to seller.. 339

277........ Representative actions by the regulator........................................... 340

Part 5‑5—Liability of suppliers and credit providers                             341

Division 1—Linked credit contracts                                                                  341

278........ Liability of suppliers and linked credit providers relating to linked credit contracts  341

279........ Action by consumer to recover amount of loss or damage.............. 342

280........ Cases where a linked credit provider is not liable............................ 342

281........ Amount of liability of linked credit providers................................. 344

282........ Counter‑claims and offsets.............................................................. 345

283........ Enforcement of judgments etc......................................................... 345

284........ Award of interest to consumers...................................................... 347

285........ Liability of suppliers to linked credit providers, and of linked credit providers to suppliers     348

286........ Joint liability proceedings and recovery under section 135 of the National Credit Code          348

Division 2—Non‑linked credit contracts                                                          350

287........ Liability of suppliers and credit providers relating to non‑linked credit contracts     350

Chapter 6—Application and transitional provisions                                    352

Part 1—Application and transitional provisions relating to the Consumer Credit Legislation Amendment (Enhancements) Act 2012                                                            352

288........ Application of amendments relating to lay‑by agreements.............. 352

289........ Application of amendment relating to repairs.................................. 352

290........ Saving of regulations relating to repairs.......................................... 352

Part 1A—Application provision relating to the Treasury Legislation Amendment (Small Business and Unfair Contract Terms) Act 2015                                           353

290A..... Application...................................................................................... 353

Part 2—Application and transitional provisions relating to the Competition and Consumer Amendment (Competition Policy Review) Act 2017                                 354

291........ Application of amendments relating to confidentiality of notices.... 354

292........ Application of amendments relating to prohibition on supplies....... 354

Part 3—Application provision relating to the Treasury Laws Amendment (2018 Measures No. 3) Act 2018                                                                                                         355

295........ Application of amendments............................................................. 355

Part 4—Application provisions relating to the Treasury Laws Amendment (Australian Consumer Law Review) Act 2018                                                                             356

296........ Application—listed public companies............................................. 356

297........ Application—unsolicited supplies................................................... 356

298........ Application—unsolicited consumer agreements.............................. 356

299........ Application—single price................................................................ 356

300........ Application—non‑punitive orders................................................... 356

301........ Application—guarantees relating to the supply of services............. 357

Part 5—Application and transitional provisions relating to the Treasury Laws Amendment (Gift Cards) Act 2018                                                                                                358

302........ Application of amendments relating to gift cards............................ 358

Endnotes                                                                                                                                  359

Endnote 1—About the endnotes                                                                          359

Endnote 2—Abbreviation key                                                                              361

Endnote 3—Legislation history                                                                           362

Endnote 4—Amendment history                                                                         384


Schedule 1The Schedule version of Part IV

Part 1Schedule version of Part IV

Note:       See section 150A.

Division 1Cartel conduct

Subdivision AIntroduction

45AA  Simplified outline

                   The following is a simplified outline of this Division:

•      This Division sets out parallel offences and civil penalty provisions relating to cartel conduct.

•      A person must not make, or give effect to, a contract, arrangement or understanding that contains a cartel provision.

•      A cartel provision is a provision relating to:

               (a)     price‑fixing; or

              (b)     restricting outputs in the production and supply chain; or

               (c)     allocating customers, suppliers or territories; or

              (d)     bid‑rigging;

       by parties that are, or would otherwise be, in competition with each other.

45AB  Definitions

                   In this Division:

annual turnover, of a body corporate during a 12‑month period, means the sum of the values of all the supplies that the body corporate, and any body corporate related to the body corporate, have made, or are likely to make, during the 12‑month period, other than:

                     (a)  supplies made from any of those bodies corporate to any other of those bodies corporate; or

                     (b)  supplies that are input taxed; or

                     (c)  supplies that are not for consideration (and are not taxable supplies under section 72‑5 of the A New Tax System (Goods and Services Tax) Act 1999); or

                     (d)  supplies that are not made in connection with an enterprise that the body corporate carries on; or

                     (e)  supplies that are not connected with Australia.

Expressions used in this definition that are also used in the A New Tax System (Goods and Services Tax) Act 1999 have the same meaning as in that Act.

benefit includes any advantage and is not limited to property.

bid includes:

                     (a)  tender; and

                     (b)  the taking, by a potential bidder or tenderer, of a preliminary step in a bidding or tendering process.

evidential burden, in relation to a matter, means the burden of adducing or pointing to evidence that suggests a reasonable possibility that the matter exists or does not exist.

knowledge has the same meaning as in the Criminal Code.

likely, in relation to any of the following:

                     (a)  a supply of goods or services;

                     (b)  an acquisition of goods or services;

                     (c)  the production of goods;

                     (d)  the capacity to supply services;

includes a possibility that is not remote.

obtaining includes:

                     (a)  obtaining for another person; and

                     (b)  inducing a third person to do something that results in another person obtaining.

party has a meaning affected by section 45AC.

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

45AC  Extended meaning of party

                   For the purposes of this Division, if a body corporate is a party to a contract, arrangement or understanding (otherwise than because of this section), each body corporate related to that body corporate is taken to be a party to that contract, arrangement or understanding.

45AD  Cartel provisions

             (1)  For the purposes of this Act, a provision of a contract, arrangement or understanding is a cartel provision if:

                     (a)  either of the following conditions is satisfied in relation to the provision:

                              (i)  the purpose/effect condition set out in subsection (2);

                             (ii)  the purpose condition set out in subsection (3); and

                     (b)  the competition condition set out in subsection (4) is satisfied in relation to the provision.

Purpose/effect condition

             (2)  The purpose/effect condition is satisfied if the provision has the purpose, or has or is likely to have the effect, of directly or indirectly:

                     (a)  fixing, controlling or maintaining; or

                     (b)  providing for the fixing, controlling or maintaining of;

the price for, or a discount, allowance, rebate or credit in relation to:

                     (c)  goods or services supplied, or likely to be supplied, by any or all of the parties to the contract, arrangement or understanding; or

                     (d)  goods or services acquired, or likely to be acquired, by any or all of the parties to the contract, arrangement or understanding; or

                     (e)  goods or services re‑supplied, or likely to be re‑supplied, by persons or classes of persons to whom those goods or services were supplied by any or all of the parties to the contract, arrangement or understanding; or

                      (f)  goods or services likely to be re‑supplied by persons or classes of persons to whom those goods or services are likely to be supplied by any or all of the parties to the contract, arrangement or understanding.

Note 1:       The purpose/effect condition can be satisfied when a provision is considered with related provisions—see subsection (8).

Note 2:       Party has an extended meaning—see section 45AC.

Purpose condition

             (3)  The purpose condition is satisfied if the provision has the purpose of directly or indirectly:

                     (a)  preventing, restricting or limiting:

                              (i)  the production, or likely production, of goods by any or all of the parties to the contract, arrangement or understanding; or

                             (ii)  the capacity, or likely capacity, of any or all of the parties to the contract, arrangement or understanding to supply services; or

                            (iii)  the supply, or likely supply, of goods or services to persons or classes of persons by any or all of the parties to the contract, arrangement or understanding; or

                            (iv)  the acquisition, or likely acquisition, of goods or services from persons or classes of persons by any or all of the parties to the contract, arrangement or understanding; or

                     (b)  allocating between any or all of the parties to the contract, arrangement or understanding:

                              (i)  the persons or classes of persons who have acquired, or who are likely to acquire, goods or services from any or all of the parties to the contract, arrangement or understanding; or

                             (ii)  the persons or classes of persons who have supplied, or who are likely to supply, goods or services to any or all of the parties to the contract, arrangement or understanding; or

                            (iii)  the geographical areas in which goods or services are supplied, or likely to be supplied, by any or all of the parties to the contract, arrangement or understanding; or

                            (iv)  the geographical areas in which goods or services are acquired, or likely to be acquired, by any or all of the parties to the contract, arrangement or understanding; or

                     (c)  ensuring that in the event of a request for bids in relation to the supply or acquisition of goods or services:

                              (i)  one or more parties to the contract, arrangement or understanding bid, but one or more other parties do not; or

                             (ii)  2 or more parties to the contract, arrangement or understanding bid, but at least 2 of them do so on the basis that one of those bids is more likely to be successful than the others; or

                            (iii)  2 or more parties to the contract, arrangement or understanding bid, but not all of those parties proceed with their bids until the suspension or finalisation of the request for bids process; or

                            (iv)  2 or more parties to the contract, arrangement or understanding bid and proceed with their bids, but at least 2 of them proceed with their bids on the basis that one of those bids is more likely to be successful than the others; or

                             (v)  2 or more parties to the contract, arrangement or understanding bid, but a material component of at least one of those bids is worked out in accordance with the contract, arrangement or understanding.

Note 1:       For example, subparagraph (3)(a)(iii) will not apply in relation to a roster for the supply of after‑hours medical services if the roster does not prevent, restrict or limit the supply of services.

Note 2:       The purpose condition can be satisfied when a provision is considered with related provisions—see subsection (9).

Note 3:       Party has an extended meaning—see section 45AC.

Competition condition

             (4)  The competition condition is satisfied if at least 2 of the parties to the contract, arrangement or understanding:

                     (a)  are or are likely to be; or

                     (b)  but for any contract, arrangement or understanding, would be or would be likely to be;

in competition with each other in relation to:

                     (c)  if paragraph (2)(c) or (3)(b) applies in relation to a supply, or likely supply, of goods or services—the supply of those goods or services in trade or commerce; or

                     (d)  if paragraph (2)(d) or (3)(b) applies in relation to an acquisition, or likely acquisition, of goods or services—the acquisition of those goods or services in trade or commerce; or

                     (e)  if paragraph (2)(e) or (f) applies in relation to a re‑supply, or likely re‑supply, of goods or services—the supply of those goods or services in trade or commerce to that re‑supplier; or

                      (f)  if subparagraph (3)(a)(i) applies in relation to preventing, restricting or limiting the production, or likely production, of goods—the production of those goods in trade or commerce; or

                     (g)  if subparagraph (3)(a)(ii) applies in relation to preventing, restricting or limiting the capacity, or likely capacity, to supply services—the supply of those services in trade or commerce; or

                     (h)  if subparagraph (3)(a)(iii) applies in relation to preventing, restricting or limiting the supply, or likely supply, of goods or services—the supply of those goods or services in trade or commerce; or

                      (i)  if subparagraph (3)(a)(iv) applies in relation to preventing, restricting or limiting the acquisition, or likely acquisition, of goods or services—the acquisition of those goods or services in trade or commerce; or

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

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

Note 1:       Party has an extended meaning—see section 45AC.

Note 2:       Trade or commerce is defined in section 4 to mean trade or commerce within Australia or between Australia and places outside Australia.

Immaterial whether identities of persons can be ascertained

             (5)  It is immaterial whether the identities of the persons referred to in paragraph (2)(e) or (f) or subparagraph (3)(a)(iii) or (iv) or (b)(i) or (ii) can be ascertained.

Recommending prices etc.

             (6)  For the purposes of this Division, a provision of a contract, arrangement or understanding is not taken:

                     (a)  to have the purpose mentioned in subsection (2); or

                     (b)  to have, or be likely to have, the effect mentioned in subsection (2);

by reason only that it recommends, or provides for the recommending of, a price, discount, allowance, rebate or credit.

Immaterial whether particular circumstances or particular conditions

             (7)  It is immaterial whether:

                     (a)  for the purposes of subsection (2), subparagraphs (3)(a)(iii) and (iv) and paragraphs (3)(b) and (c)—a supply or acquisition happens, or a likely supply or likely acquisition is to happen, in particular circumstances or on particular conditions; and

                     (b)  for the purposes of subparagraph (3)(a)(i)—the production happens, or the likely production is to happen, in particular circumstances or on particular conditions; and

                     (c)  for the purposes of subparagraph (3)(a)(ii)—the capacity exists, or the likely capacity is to exist, in particular circumstances or on particular conditions.

Considering related provisions—purpose/effect condition

             (8)  For the purposes of this Division, a provision of a contract, arrangement or understanding is taken to have the purpose, or to have or be likely to have the effect, mentioned in subsection (2) if the provision, when considered together with any or all of the following provisions:

                     (a)  the other provisions of the contract, arrangement or understanding;

                     (b)  the provisions of another contract, arrangement or understanding, if the parties to that other contract, arrangement or understanding consist of or include at least one of the parties to the first‑mentioned contract, arrangement or understanding;

has that purpose, or has or is likely to have that effect.

Considering related provisions—purpose condition

             (9)  For the purposes of this Division, a provision of a contract, arrangement or understanding is taken to have the purpose mentioned in a paragraph of subsection (3) if the provision, when considered together with any or all of the following provisions:

                     (a)  the other provisions of the contract, arrangement or understanding;

                     (b)  the provisions of another contract, arrangement or understanding, if the parties to that other contract, arrangement or understanding consist of or include at least one of the parties to the first‑mentioned contract, arrangement or understanding;

has that purpose.

Purpose/effect of a provision

           (10)  For the purposes of this Division, a provision of a contract, arrangement or understanding is not to be taken not to have the purpose, or not to have or to be likely to have the effect, mentioned in subsection (2) by reason only of:

                     (a)  the form of the provision; or

                     (b)  the form of the contract, arrangement or understanding; or

                     (c)  any description given to the provision, or to the contract, arrangement or understanding, by the parties.

Purpose of a provision

           (11)  For the purposes of this Division, a provision of a contract, arrangement or understanding is not to be taken not to have the purpose mentioned in a paragraph of subsection (3) by reason only of:

                     (a)  the form of the provision; or

                     (b)  the form of the contract, arrangement or understanding; or

                     (c)  any description given to the provision, or to the contract, arrangement or understanding, by the parties.

45AE  Meaning of expressions in other provisions of this Act

                   In determining the meaning of an expression used in a provision of this Act (other than this Division, subsection 6(2C), paragraph 76(1A)(aa) or subsection 93AB(1A)), this Division is to be disregarded.

Subdivision BOffences etc.

45AF  Making a contract etc. containing a cartel provision

Offence

             (1)  A person commits an offence if:

                     (a)  the person makes a contract or arrangement, or arrives at an understanding; and

                     (b)  the contract, arrangement or understanding contains a cartel provision.

             (2)  The fault element for paragraph (1)(b) is knowledge or belief.

Penalty

             (3)  An offence against subsection (1) committed by a body corporate is punishable on conviction by a fine not exceeding the greater of the following:

                     (a)  $10,000,000;

                     (b)  if the court can determine the total value of the benefits that:

                              (i)  have been obtained by one or more persons; and

                             (ii)  are reasonably attributable to the commission of the offence;

                            3 times that total value;

                     (c)  if the court cannot determine the total value of those benefits—10% of the body corporate’s annual turnover during the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence.

             (4)  An offence against subsection (1) committed by a person other than a body corporate is punishable on conviction by a term of imprisonment not exceeding 10 years or a fine not exceeding 2,000 penalty units, or both.

Indictable offence

             (5)  An offence against subsection (1) is an indictable offence.

45AG  Giving effect to a cartel provision

Offence

             (1)  A person commits an offence if:

                     (a)  a contract, arrangement or understanding contains a cartel provision; and

                     (b)  the person gives effect to the cartel provision.

             (2)  The fault element for paragraph (1)(a) is knowledge or belief.

Penalty

             (3)  An offence against subsection (1) committed by a body corporate is punishable on conviction by a fine not exceeding the greater of the following:

                     (a)  $10,000,000;

                     (b)  if the court can determine the total value of the benefits that:

                              (i)  have been obtained by one or more persons; and

                             (ii)  are reasonably attributable to the commission of the offence;

                            3 times that total value;

                     (c)  if the court cannot determine the total value of those benefits—10% of the body corporate’s annual turnover during the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence.

             (4)  An offence against subsection (1) committed by a person other than a body corporate is punishable on conviction by a term of imprisonment not exceeding 10 years or a fine not exceeding 2,000 penalty units, or both.

Pre‑commencement contracts etc.

             (5)  Paragraph (1)(a) applies to contracts or arrangements made, or understandings arrived at, before, at or after the commencement of this section.

Indictable offence

             (6)  An offence against subsection (1) is an indictable offence.

45AH  Determining guilt

             (1)  A person may be found guilty of an offence against section 45AF or 45AG even if:

                     (a)  each other party to the contract, arrangement or understanding is a person who is not criminally responsible; or

                     (b)  subject to subsection (2), all other parties to the contract, arrangement or understanding have been acquitted of the offence.

Note:          Party has an extended meaning—see section 45AC.

             (2)  A person cannot be found guilty of an offence against section 45AF or 45AG if:

                     (a)  all other parties to the contract, arrangement or understanding have been acquitted of such an offence; and

                     (b)  a finding of guilt would be inconsistent with their acquittal.

45AI  Court may make related civil orders

                   If a prosecution against a person for an offence against section 45AF or 45AG is being, or has been, heard by a court, the court may:

                     (a)  grant an injunction under section 80 against the person in relation to:

                              (i)  the conduct that constitutes, or is alleged to constitute, the offence; or

                             (ii)  other conduct of that kind; or

                     (b)  make an order under section 86C, 86D, 86E or 87 in relation to the offence.

Subdivision CCivil penalty provisions

45AJ  Making a contract etc. containing a cartel provision

                   A person contravenes this section if:

                     (a)  the person makes a contract or arrangement, or arrives at an understanding; and

                     (b)  the contract, arrangement or understanding contains a cartel provision.

Note:          For enforcement, see Part VI.

45AK  Giving effect to a cartel provision

             (1)  A person contravenes this section if:

                     (a)  a contract, arrangement or understanding contains a cartel provision; and

                     (b)  the person gives effect to the cartel provision.

Note:          For enforcement, see Part VI.

             (2)  Paragraph (1)(a) applies to contracts or arrangements made, or understandings arrived at, before, at or after the commencement of this section.

Subdivision DExceptions

45AL  Conduct notified

             (1)  Sections 45AF, 45AG, 45AJ and 45AK do not apply to a person in relation to a contract, arrangement or understanding containing a cartel provision, in so far as:

                     (a)  the cartel provision:

                              (i)  has the purpose, or has or is likely to have the effect, mentioned in subsection 45AD(2); or

                             (ii)  has the purpose mentioned in a paragraph of subsection 45AD(3) other than paragraph (c); and

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

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

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

45AM  Cartel provision subject to grant of authorisation

             (1)  Sections 45AF and 45AJ do not apply in relation to the making of a contract that contains a cartel provision if:

                     (a)  the contract is subject to a condition that the provision will not come into force unless and until the person is granted an authorisation to give effect to the provision; and

                     (b)  the person applies for the grant of such an authorisation within 14 days after the contract is made.

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

45AN  Contracts, arrangements or understandings between related bodies corporate

             (1)  Sections 45AF, 45AG, 45AJ and 45AK do not apply in relation to a contract, arrangement or understanding if the only parties to the contract, arrangement or understanding are bodies corporate that are related to each other.

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

45AO  Joint ventures—prosecution

             (1)  Sections 45AF and 45AG do not apply in relation to a contract, arrangement or understanding containing a cartel provision if the defendant proves that:

                     (a)  the cartel provision is:

                              (i)  for the purposes of a joint venture; and

                             (ii)  reasonably necessary for undertaking the joint venture; and

                     (b)  the joint venture is for any one or more of the following:

                              (i)  production of goods;

                             (ii)  supply of goods or services;

                            (iii)  acquisition of goods or services; and

                     (c)  the joint venture is not carried on for the purpose of substantially lessening competition; and

                     (d)  in a case where subparagraph 4J(a)(i) applies to the joint venture—the joint venture is carried on jointly by the parties to the contract, arrangement or understanding; and

                     (e)  in a case where subparagraph 4J(a)(ii) applies to the joint venture—the joint venture is carried on by a body corporate formed by the parties to the contract, arrangement or understanding for the purpose of enabling those parties to carry on the activity mentioned in paragraph (b) jointly by means of:

                              (i)  their joint control; or

                             (ii)  their ownership of shares in the capital;

                            of that body corporate.

Note:          For example, if a joint venture formed for the purpose of research and development provides the results of its research and development to participants in the joint venture, it may be a joint venture for the supply of services.

             (2)  A defendant who wishes to rely on subsection (1) must prove that matter on the balance of probabilities.

45AP  Joint ventures—civil penalty proceedings

             (1)  Sections 45AJ and 45AK do not apply in relation to a contract, arrangement or understanding containing a cartel provision if the defendant proves that:

                     (a)  the cartel provision is:

                              (i)  for the purposes of a joint venture; and

                             (ii)  reasonably necessary for undertaking the joint venture; and

                     (b)  the joint venture is for any one or more of the following:

                              (i)  production of goods;

                             (ii)  supply of goods or services;

                            (iii)  acquisition of goods or services; and

                     (c)  the joint venture is not carried on for the purpose of substantially lessening competition; and

                     (d)  in a case where subparagraph 4J(a)(i) applies to the joint venture—the joint venture is carried on jointly by the parties to the contract, arrangement or understanding; and

                     (e)  in a case where subparagraph 4J(a)(ii) applies to the joint venture—the joint venture is carried on by a body corporate formed by the parties to the contract, arrangement or understanding for the purpose of enabling those parties to carry on the activity mentioned in paragraph (b) jointly by means of:

                              (i)  their joint control; or

                             (ii)  their ownership of shares in the capital;

                            of that body corporate.

Note:          For example, if a joint venture formed for the purpose of research and development provides the results of its research and development to participants in the joint venture, it may be a joint venture for the supply of services.

             (2)  A defendant who wishes to rely on subsection (1) must prove that matter on the balance of probabilities.

45AQ  Resale price maintenance

             (1)  Sections 45AF, 45AG, 45AJ and 45AK do not apply in relation to a contract, arrangement or understanding containing a cartel provision, in so far as the cartel provision relates to:

                     (a)  conduct that contravenes section 48; or

                     (b)  conduct that would contravene section 48 but for the operation of section 88; or

                     (c)  conduct that would contravene section 48 if this Act defined the acts constituting the practice of resale price maintenance by reference to the maximum price at which goods or services are to be sold or supplied or are to be advertised, displayed or offered for sale or supply.

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

45AR  Exclusive dealing

             (1)  Sections 45AF and 45AJ do not apply in relation to the making of a contract, arrangement or understanding that contains a cartel provision, in so far as giving effect to the cartel provision would, or would but for the operation of subsection 47(10) or section 88 or 93, constitute a contravention of section 47.

             (2)  Sections 45AG and 45AK do not apply in relation to the giving effect to a cartel provision by way of:

                     (a)  engaging in conduct that contravenes, or would but for the operation of subsection 47(10) or section 88 or 93 contravene, section 47; or

                     (b)  doing an act by reason of a breach or threatened breach of a condition referred to in subsection 47(2), (4), (6) or (8), being an act done by a person at a time when:

                              (i)  an authorisation under section 88 is in force in relation to conduct engaged in by that person on that condition; or

                             (ii)  by reason of subsection 93(7), conduct engaged in by that person on that condition is not to be taken to have the effect of substantially lessening competition within the meaning of section 47; or

                            (iii)  a notice under subsection 93(1) is in force in relation to conduct engaged in by that person on that condition.

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

45AS  Dual listed company arrangement

             (1)  Sections 45AF and 45AJ do not apply in relation to the making of a contract, arrangement or understanding that contains a cartel provision, in so far as:

                     (a)  the contract, arrangement or understanding is a dual listed company arrangement; and

                     (b)  the making of the contract, arrangement or understanding would, or would apart from section 88, contravene section 49.

             (2)  Sections 45AG and 45AK do not apply in relation to the giving effect to a cartel provision, in so far as:

                     (a)  the cartel provision is a provision of a dual listed company arrangement; and

                     (b)  the giving effect to the cartel provision would, or would apart from section 88, contravene section 49.

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

45AT  Acquisition of shares or assets

             (1)  Sections 45AF, 45AG, 45AJ and 45AK do not apply in relation to a contract, arrangement or understanding containing a cartel provision, in so far as the cartel provision provides directly or indirectly for the acquisition of:

                     (a)  any shares in the capital of a body corporate; or

                     (b)  any assets of a person.

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

45AU  Collective acquisition of goods or services by the parties to a contract, arrangement or understanding

             (1)  Sections 45AF, 45AG, 45AJ and 45AK do not apply in relation to a contract, arrangement or understanding containing a cartel provision, in so far as:

                     (a)  the cartel provision has the purpose, or has or is likely to have the effect, mentioned in subsection 45AD(2); and

                     (b)  either:

                              (i)  the cartel provision relates to the price for goods or services to be collectively acquired, whether directly or indirectly, by the parties to the contract, arrangement or understanding; or

                             (ii)  the cartel provision is for the joint advertising of the price for the re‑supply of goods or services so acquired.

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

Division 2Other provisions

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

             (1)  A person must not:

                     (a)  make a contract or arrangement, or arrive at an understanding, if a provision of the proposed contract, arrangement or understanding has the purpose, or would have or be likely to have the effect, of substantially lessening competition; or

                     (b)  give effect to a provision of a contract, arrangement or understanding, if that provision has the purpose, or has or is likely to have the effect, of substantially lessening competition; or

                     (c)  engage with one or more other persons in a concerted practice that has the purpose, or has or is likely to have the effect, of substantially lessening competition.

             (2)  Paragraph (1)(b) applies in relation to contracts or arrangements made, or understandings arrived at, before or after the commencement of this section.

             (3)  For the purposes of this section, competition means:

                     (a)  in relation to a provision of a contract, arrangement or understanding or of a proposed contract, arrangement or understanding—competition in any market in which:

                              (i)  a person who is a party to the contract, arrangement or understanding, or would be a party to the proposed contract, arrangement or understanding; or

                             (ii)  any body corporate related to such a person;

                            supplies or acquires, or is likely to supply or acquire, goods or services or would, but for the provision, supply or acquire, or be likely to supply or acquire, goods or services; or

                     (b)  in relation to a concerted practice—competition in any market in which:

                              (i)  a person who is a party to the practice; or

                             (ii)  any body corporate related to such a person;

                            supplies or acquires, or is likely to supply or acquire, goods or services or would, but for the practice, supply or acquire, or be likely to supply or acquire, goods or services.

             (4)  For the purposes of the application of this section in relation to a particular person, a provision of a contract, arrangement or understanding or of a proposed contract, arrangement or understanding shall be deemed to have or to be likely to have the effect of substantially lessening competition if that provision and any one or more of the following provisions, namely:

                     (a)  the other provisions of that contract, arrangement or understanding or proposed contract, arrangement or understanding; and

                     (b)  the provisions of any other contract, arrangement or understanding or proposed contract, arrangement or understanding to which the person or a body corporate related to the person is or would be a party;

together have or are likely to have that effect.

             (5)  This section does not apply to or in relation to a provision of a contract, arrangement or understanding or of a proposed contract, arrangement or understanding, or to or in relation to a concerted practice, in so far as the provision or practice relates to:

                     (a)  conduct that contravenes section 48; or

                     (b)  conduct that would contravene section 48 if subsection 48(2) did not apply; or

                     (c)  conduct that would contravene section 48 if it were not authorised under section 88; or

                     (d)  conduct that would contravene section 48 if this Act defined the acts constituting the practice of resale price maintenance by reference to the maximum price at which goods or services are to be sold or supplied or are to be advertised, displayed or offered for sale or supply.

          (5A)  The making of a contract, arrangement or understanding does not constitute a contravention of this section because the contract, arrangement or understanding contains a provision the giving effect to which would, or would apart from subsection 47(10) or section 88 or 93, constitute a contravention of section 47.

             (6)  This section does not apply to or in relation to the giving effect to a provision of a contract, arrangement or understanding, or to or in relation to engaging in a concerted practice, by way of:

                     (a)  engaging in conduct that contravenes, or would but for the operation of subsection 47(10) or section 88 or 93 contravene, section 47; or

                     (b)  doing an act by reason of a breach or threatened breach of a condition referred to in subsection 47(2), (4), (6) or (8), being an act done by a person at a time when:

                              (i)  an authorization under section 88 is in force in relation to conduct engaged in by that person on that condition; or

                             (ii)  by reason of subsection 93(7) conduct engaged in by that person on that condition is not to be taken to have the effect of substantially lessening competition within the meaning of section 47; or

                            (iii)  a notice under subsection 93(1) is in force in relation to conduct engaged in by that person on that condition.

          (6A)  The following conduct:

                     (a)  the making of a dual listed company arrangement;

                     (b)  the giving effect to a provision of a dual listed company arrangement;

does not contravene this section if the conduct would, or would apart from section 88, contravene section 49.

             (7)  This section does not apply to or in relation to:

                     (a)  a contract, arrangement or understanding to the extent that the contract, arrangement or understanding directly or indirectly provides for; or

                     (b)  a proposed contract, arrangement or understanding to the extent that the proposed contract, arrangement or understanding would directly or indirectly provide for; or

                     (c)  a concerted practice to the extent that the practice directly or indirectly involves;

the acquisition of any shares in the capital of a body corporate or any assets of a person.

             (8)  This section does not apply to or in relation to:

                     (a)  a contract, arrangement or understanding, or

                     (b)  a proposed contract, arrangement or understanding; or

                     (c)  a concerted practice;

the only parties to which are or would be bodies corporate that are related to each other.

       (8AA)  This section does not apply to or in relation to a concerted practice if the only persons engaging in it are or would be:

                     (a)  the Crown in right of the Commonwealth and one or more authorities of the Commonwealth; or

                     (b)  the Crown in right of a State or Territory and one or more authorities of that State or Territory.

          (8A)  Subsection (1) does not apply to a person engaging in conduct described in that subsection if:

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

                     (b)  the notice is in force under section 93AD.

             (9)  The making by a person of a contract that contains a provision in relation to which the person intends to apply for an authorisation under section 88 is not a contravention of subsection (1) of this section if:

                     (a)  the contract is subject to a condition that the provision will not come into force unless and until the person is granted an authorization to give effect to the provision; and

                     (b)  the person applies for the grant of such an authorization within 14 days after the contract is made;

but nothing in this subsection prevents the giving effect by a person to such a provision from constituting a contravention of subsection (1).

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

             (1)  A person must not, in concert with a second person, engage in conduct:

                     (a)  that hinders or prevents:

                              (i)  a third person supplying goods or services to a fourth person (who is not an employer of the first person or the second person); or

                             (ii)  a third person acquiring goods or services from a fourth person (who is not an employer of the first person or the second person); and

                     (b)  that is engaged in for the purpose, and would have or be likely to have the effect, of causing substantial loss or damage to the business of the fourth person.

Note 1:       Conduct that would otherwise contravene this section can be authorised under section 88.

Note 2:       This section also has effect subject to section 45DD, which deals with permitted boycotts.

             (2)  A person is taken to engage in conduct for a purpose mentioned in subsection (1) if the person engages in the conduct for purposes that include that purpose.

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

             (1)  A person must not, in concert with a second person, engage in conduct:

                     (a)  that hinders or prevents:

                              (i)  a third person supplying goods or services to a fourth person (who is not an employer of the first person or the second person); or

                             (ii)  a third person acquiring goods or services from a fourth person (who is not an employer of the first person or the second person); and

                     (b)  that is engaged in for the purpose, and would have or be likely to have the effect, of causing a substantial lessening of competition in any market in which the fourth person supplies or acquires goods or services.

Note 1:       Conduct that would otherwise contravene this section can be authorised under section 88.

Note 2:       This section also has effect subject to section 45DD, which deals with permitted boycotts.

             (2)  A person is taken to engage in conduct for a purpose mentioned in subsection (1) if the person engages in the conduct for purposes that include that purpose.

Note:          This version of Part IV does not contain an equivalent of section 45DB of the Competition and Consumer Act 2010.

45DC  Involvement and liability of employee organisations

Certain organisations taken to be acting in concert

             (1)  If 2 or more persons (the participants), each of whom is a member or officer of the same organisation of employees, engage in conduct in concert with one another, whether or not the conduct is also engaged in in concert with another person, then, unless the organisation proves otherwise, the organisation is taken for the purposes of sections 45D and 45DA:

                     (a)  to engage in that conduct in concert with the participants; and

                     (b)  to have engaged in that conduct for the purposes for which the participants engaged in it.

Consequences of organisation contravening subsection 45D(1) or 45DA(1)

             (2)  The consequences of an organisation of employees engaging, or being taken by subsection (1) to engage, in conduct in concert with any of its members or officers in contravention of subsection 45D(1) or 45DA(1) are as set out in subsections (3), (4) and (5).

Loss or damage taken to have been caused by organisation’s conduct

             (3)  Any loss or damage suffered by a person as a result of the conduct is taken, for the purposes of this Act, to have been caused by the conduct of the organisation.

Taking proceedings if organisation is a body corporate

             (4)  If the organisation is a body corporate, no action under section 82 to recover the amount of the loss or damage may be brought against any of the members or officers of the organisation in respect of the conduct.

Taking proceedings if organisation is not a body corporate

             (5)  If the organisation is not a body corporate:

                     (a)  a proceeding in respect of the conduct may be brought under section 77, 80 or 82 against an officer of the organisation as a representative of the organisation’s members and the proceeding is taken to be a proceeding against all the persons who were members of the organisation at the time when the conduct was engaged in; and

                     (b)  subsection 76(2) does not prevent an order being made in a proceeding mentioned in paragraph (a) that was brought under section 77; and

                     (c)  the maximum pecuniary penalty that may be imposed in a proceeding mentioned in paragraph (a) that was brought under section 77 is the penalty applicable under section 76 in relation to a body corporate; and

                     (d)  except as provided by paragraph (a), a proceeding in respect of the conduct must not be brought under section 77 or 82 against any of the members or officers of the organisation; and

                     (e)  for the purpose of enforcing any judgment or order given or made in a proceeding mentioned in paragraph (a) that was brought under section 77 or 82, process may be issued and executed against the following property or interests as if the organisation were a body corporate and the absolute owner of the property or interests:

                              (i)  any property of the organisation or of any branch or part of the organisation, whether vested in trustees or however otherwise held;

                             (ii)  any property in which the organisation or any branch or part of the organisation has a beneficial interest, whether vested in trustees or however otherwise held;

                            (iii)  any property in which any members of the organisation or of a branch or part of the organisation have a beneficial interest in their capacity as members, whether vested in trustees or however otherwise held; and

                      (f)  if paragraph (e) applies, no process is to be issued or executed against any property of members or officers of the organisation or of a branch or part of the organisation except as provided in that paragraph.

45DD  Situations in which boycotts permitted

Dominant purpose of conduct relates to employment matters—conduct by a person

             (1)  A person does not contravene, and is not involved in a contravention of, subsection 45D(1) or 45DA(1) by engaging in conduct if the dominant purpose for which the conduct is engaged in is substantially related to the remuneration, conditions of employment, hours of work or working conditions of that person or of another person employed by an employer of that person.

Dominant purpose of conduct relates to employment matters—conduct by employee organisation and employees

             (2)  If:

                     (a)  an employee, or 2 or more employees who are employed by the same employer, engage in conduct in concert with another person who is, or with other persons each of whom is:

                              (i)  an organisation of employees; or

                             (ii)  an officer of an organisation of employees; and

                     (b)  the conduct is only engaged in by the persons covered by paragraph (a); and

                     (c)  the dominant purpose for which the conduct is engaged in is substantially related to the remuneration, conditions of employment, hours of work or working conditions of the employee, or any of the employees, covered by paragraph (a);

the persons covered by paragraph (a) do not contravene, and are not involved in a contravention of, subsection 45D(1) or 45DA(1) by engaging in the conduct.

Dominant purpose of conduct relates to environmental protection or consumer protection

             (3)  A person does not contravene, and is not involved in a contravention of, subsection 45D(1) or 45DA(1) by engaging in conduct if:

                     (a)  the dominant purpose for which the conduct is engaged in is substantially related to environmental protection or consumer protection; and

                     (b)  engaging in the conduct is not industrial action.

Note 1:       If an environmental organisation or a consumer organisation is a body corporate:

(a)    it is a “person” who may be subject to the prohibitions in subsections 45D(1) and 45DA(1) and who may also be covered by this exemption; and

(b)    each of its members is a “person” who may be subject to the prohibitions in subsections 45D(1) and 45DA(1) and who may also be covered by this exemption.

Note 2:       If an environmental organisation or a consumer organisation is not a body corporate:

(a)    it is not a “person” and is therefore not subject to the prohibitions in subsections 45D(1) and 45DA(1) (consequently, this exemption does not cover the organisation as such); but

(b)    each of its members is a “person” who may be subject to the prohibitions in subsections 45D(1) and 45DA(1) and who may also be covered by this exemption.

Meaning of industrial action—basic definition

             (4)  In subsection (3), industrial action means:

                     (a)  the performance of work in a manner different from that in which it is customarily performed, or the adoption of a practice in relation to work, the result of which is a restriction or limitation on, or a delay in, the performance of the work, where:

                              (i)  the terms and conditions of the work are prescribed, wholly or partly, by a workplace instrument or an order of an industrial body; or

                             (ii)  the work is performed, or the practice is adopted, in connection with an industrial dispute; or

                     (b)  a ban, limitation or restriction on the performance of work, or on acceptance of or offering for work, in accordance with the terms and conditions prescribed by a workplace instrument or by an order of an industrial body; or

                     (c)  a ban, limitation or restriction on the performance of work, or on acceptance of or offering for work, that is adopted in connection with an industrial dispute; or

                     (d)  a failure or refusal by persons to attend for work or a failure or refusal to perform any work at all by persons who attend for work.

For this purpose, industrial body and workplace instrument have the same meanings as in the Fair Work Act 2009.

Meaning of industrial action—further clarification

             (5)  For the purposes of subsection (3):

                     (a)  conduct is capable of constituting industrial action even if the conduct relates to part only of the duties that persons are required to perform in the course of their employment; and

                     (b)  a reference to industrial action includes a reference to a course of conduct consisting of a series of industrial actions.

Subsections (1), (2) and (3) do not protect people not covered by them

             (6)  In applying subsection 45D(1) or 45DA(1) to a person who is not covered by subsection (1), (2) or (3) in respect of certain conduct, disregard the fact that other persons may be covered by one of those subsections in respect of the same conduct.

Note:          Section 415 of the Fair Work Act 2009 limits the right to bring actions under the Competition Code in respect of industrial action that is protected action for the purposes of that section.

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

Situations to which section applies

             (1)  This section applies in the following situations:

                     (a)  a supply situation—in this situation, a person (the first person) has been accustomed, or is under an obligation, to supply goods or services to another person (the second person); or

                     (b)  an acquisition situation—in this situation, a person (the first person) has been accustomed, or is under an obligation, to acquire goods or services from another person (the second person).

Note :         For the meanings of accustomed to supply and accustomed to acquire, see subsections (5) and (7).

Prohibition in a supply situation

             (2)  In a supply situation, the first person must not make a contract or arrangement, or arrive at an understanding, with an organisation of employees, an officer of such an organisation or a person acting for and on behalf of such an officer or organisation, if the proposed contract, arrangement or understanding contains a provision included for the purpose, or for purposes including the purpose, of:

                     (a)  preventing or hindering the first person from supplying or continuing to supply such goods or services to the second person; or

                     (b)  preventing or hindering the first person from supplying or continuing to supply such goods or services to the second person, except subject to a condition:

                              (i)  that is not a condition to which the supply of such goods or services by the first person to the second person has previously been subject because of a provision in a contract between those persons; and

                             (ii)  that is about the persons to whom, the manner in which or the terms on which the second person may supply any goods or services.

Prohibition in an acquisition situation

             (3)  In an acquisition situation, the first person must not make a contract or arrangement, or arrive at an understanding, with an organisation of employees, an officer of such an organisation or a person acting for and on behalf of such an officer or organisation, if the proposed contract, arrangement or understanding contains a provision included for the purpose, or for purposes including the purpose, of:

                     (a)  preventing or hindering the first person from acquiring or continuing to acquire such goods or services from the second person; or

                     (b)  preventing or hindering the first person from acquiring or continuing to acquire such goods or services from the second person, except subject to a condition:

                              (i)  that is not a condition to which the acquisition of such goods or services by the first person from the second person has previously been subject because of a provision in a contract between those persons; and

                             (ii)  that is about the persons to whom, the manner in which or the terms on which the second person may supply any goods or services.

No contravention if second person gives written consent to written contract etc.

             (4)  Subsections (2) and (3) do not apply to a contract, arrangement or understanding if it is in writing and was made or arrived at with the written consent of the second person.

Meaning of accustomed to supply

             (5)  In this section, a reference to a person who has been accustomed to supply goods or services to a second person includes (subject to subsection (6)):

                     (a)  a regular supplier of such goods or services to the second person; or

                     (b)  the latest supplier of such goods or services to the second person; or

                     (c)  a person who, at any time during the immediately preceding 3 months, supplied such goods or services to the second person.

Exception to subsection (5)

             (6)  If:

                     (a)  goods or services have been supplied by a person to a second person under a contract between them that required the first person to supply such goods or services over a period; and

                     (b)  the period has ended; and

                     (c)  after the end of the period, the second person has been supplied with such goods or services by another person and has not also been supplied with such goods or services by the first person;

then, for the purposes of the application of this section in relation to anything done after the second person has been supplied with goods or services as mentioned in paragraph (c), the first person is not to be taken to be a person who has been accustomed to supply such goods or services to the second person.

Meaning of accustomed to acquire

             (7)  In this section, a reference to a person who has been accustomed to acquire goods or services from a second person includes (subject to subsection (8)):

                     (a)  a regular acquirer of such goods or services from the second person; or

                     (b)  a person who, when last acquiring such goods or services, acquired them from the second person; or

                     (c)  a person who, at any time during the immediately preceding 3 months, acquired such goods or services from the second person.

Exception to subsection (7)

             (8)  If:

                     (a)  goods or services have been acquired by a person from a second person under a contract between them that required the first person to acquire such goods or services over a period; and

                     (b)  the period has ended; and

                     (c)  after the end of the period, the second person has refused to supply such goods or services to the first person;

then, for the purposes of the application of this section in relation to anything done after the second person has refused to supply goods or services as mentioned in paragraph (c), the first person is not to be taken to be a person who has been accustomed to acquire such goods or services from the second person.

Note:          Conduct that would otherwise contravene this section can be authorised under section 88.

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

                   A person must not give effect to a provision of a contract, arrangement or understanding if, because of the provision, the making of the contract or arrangement, or the arriving at the understanding, by the person:

                     (a)  contravened subsection 45E(2) or (3); or

                     (b)  would have contravened subsection 45E(2) or (3) if:

                              (i)  section 45E had been in force when the contract or arrangement was made, or the understanding was arrived at; and

                             (ii)  the words “is in writing and” and “written” were not included in subsection 45E(4).

Note:          Conduct that would otherwise contravene this section can be authorised under section 88.

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

                   Nothing in section 45D, 45DA, 45DC, 45DD, 45E or 45EA affects the operation of any other provision of this Part.

46  Misuse of market power

             (1)  A person who has a substantial degree of power in a market must not engage in conduct that has the purpose, or has or is likely to have the effect, of substantially lessening competition in:

                     (a)  that market; or

                     (b)  any other market in which that person, or a body corporate that is related to that person:

                              (i)  supplies goods or services, or is likely to supply goods or services; or

                             (ii)  supplies goods or services, or is likely to supply goods or services, indirectly through one or more other persons; or

                     (c)  any other market in which that person, or a body corporate that is related to that person:

                              (i)  acquires goods or services, or is likely to acquire goods or services; or

                             (ii)  acquires goods or services, or is likely to acquire goods or services, indirectly through one or more other persons.

             (3)  A person (the first person) is taken for the purposes of this section to have a substantial degree of power in a market if:

                     (a)  a body corporate that is related to the first person has, or 2 or more bodies corporate each of which is related to the first person together have, a substantial degree of power in that market; or

                     (b)  the first person and a body corporate that is, or the first person and 2 or more bodies corporate each of which is, related to the first person, together have a substantial degree of power in that market.

             (4)  In determining for the purposes of this section the degree of power that a person (the first person) or bodies corporate have in a market:

                     (a)  regard must be had to the extent to which the conduct of the first person or of any of those bodies corporate in that market is constrained by the conduct of:

                              (i)  competitors, or potential competitors, of the first person or of any of those bodies corporate in that market; or

                             (ii)  persons to whom or from whom the first person or any of those bodies corporate supplies or acquires goods or services in that market; and

                     (b)  regard may be had to the power the first person or bodies corporate have in that market that results from:

                              (i)  any contracts, arrangements or understandings that the first pe