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 51
Chapter 1—Introduction 66
1............ Application of this Schedule............................................................. 66
2............ Definitions........................................................................................ 66
3............ Meaning of consumer....................................................................... 82
4............ Misleading representations with respect to future matters................. 85
5............ When donations are treated as supplies or acquisitions..................... 86
6............ Related bodies corporate................................................................... 87
7............ Meaning of manufacturer................................................................. 87
8............ Goods affixed to land or premises.................................................... 88
9............ Meaning of safety defect in relation to goods.................................... 88
10.......... Asserting a right to payment............................................................. 89
11.......... References to acquisition, supply and re‑supply............................... 90
12.......... Application of Schedule in relation to leases and licences of land and buildings 91
13.......... Loss or damage to include injury...................................................... 91
14.......... Meaning of continuing credit contract.............................................. 91
15.......... Contraventions of this Schedule........................................................ 93
16.......... Severability....................................................................................... 93
17.......... References to provisions in this Schedule......................................... 93
Chapter 2—General protections 94
Part 2‑1—Misleading or deceptive conduct 94
18.......... Misleading or deceptive conduct....................................................... 94
19.......... Application of this Part to information providers.............................. 94
Part 2‑2—Unconscionable conduct 97
20.......... Unconscionable conduct within the meaning of the unwritten law.... 97
21.......... Unconscionable conduct in connection with goods or services......... 97
22.......... Matters the court may have regard to for the purposes of section 21 98
22A....... Presumptions relating to whether representations are misleading.... 101
Part 2‑3—Unfair contract terms 102
23.......... Unfair terms of consumer contracts and small business contracts... 102
24.......... Meaning of unfair........................................................................... 103
25.......... Examples of unfair terms................................................................ 103
26.......... Terms that define main subject matter of consumer contracts or small business contracts etc. are unaffected 105
27.......... Standard form contracts.................................................................. 105
28.......... Contracts to which this Part does not apply.................................... 106
Chapter 3—Specific protections 107
Part 3‑1—Unfair practices 107
Division 1—False or misleading representations etc. 107
29.......... False or misleading representations about goods or services.......... 107
30.......... False or misleading representations about sale etc. of land.............. 109
31.......... Misleading conduct relating to employment.................................... 109
32.......... Offering rebates, gifts, prizes etc..................................................... 110
33.......... Misleading conduct as to the nature etc. of goods........................... 111
34.......... Misleading conduct as to the nature etc. of services........................ 111
35.......... Bait advertising............................................................................... 111
36.......... Wrongly accepting payment............................................................ 112
37.......... Misleading representations about certain business activities........... 114
38.......... Application of provisions of this Division to information providers 115
Division 2—Unsolicited supplies 117
39.......... Unsolicited cards etc....................................................................... 117
40.......... Assertion of right to payment for unsolicited goods or services..... 118
41.......... Liability etc. of recipient for unsolicited goods................................ 119
42.......... Liability of recipient for unsolicited services................................... 120
43.......... Assertion of right to payment for unauthorised entries or advertisements 120
Division 3—Pyramid schemes 123
44.......... Participation in pyramid schemes.................................................... 123
45.......... Meaning of pyramid scheme........................................................... 123
46.......... Marketing schemes as pyramid schemes......................................... 124
Division 4—Pricing 126
47.......... Multiple pricing............................................................................... 126
48.......... Single price to be specified in certain circumstances....................... 127
Division 5—Other unfair practices 131
49.......... Referral selling................................................................................ 131
50.......... Harassment and coercion................................................................ 131
Part 3‑2—Consumer transactions 132
Division 1—Consumer guarantees 132
Subdivision A—Guarantees relating to the supply of goods 132
51.......... Guarantee as to title......................................................................... 132
52.......... Guarantee as to undisturbed possession.......................................... 132
53.......... Guarantee as to undisclosed securities etc....................................... 133
54.......... Guarantee as to acceptable quality................................................... 134
55.......... Guarantee as to fitness for any disclosed purpose etc..................... 136
56.......... Guarantee relating to the supply of goods by description................ 136
57.......... Guarantees relating to the supply of goods by sample or demonstration model 137
58.......... Guarantee as to repairs and spare parts........................................... 137
59.......... Guarantee as to express warranties................................................. 138
Subdivision B—Guarantees relating to the supply of services 139
60.......... Guarantee as to due care and skill................................................... 139
61.......... Guarantees as to fitness for a particular purpose etc........................ 139
62.......... Guarantee as to reasonable time for supply..................................... 140
63.......... Services to which this Subdivision does not apply......................... 140
Subdivision C—Guarantees not to be excluded etc. by contract 141
64.......... Guarantees not to be excluded etc. by contract................................ 141
64A....... Limitation of liability for failures to comply with guarantees.......... 141
Subdivision D—Miscellaneous 143
65.......... Application of this Division to supplies of gas, electricity and telecommunications 143
66.......... Display notices................................................................................ 143
67.......... Conflict of laws............................................................................... 144
68.......... Convention on Contracts for the International Sale of Goods......... 144
Division 2—Unsolicited consumer agreements 145
Subdivision A—Introduction 145
69.......... Meaning of unsolicited consumer agreement................................. 145
70.......... Presumption that agreements are unsolicited consumer agreements 146
71.......... Meaning of dealer........................................................................... 147
72.......... Meaning of negotiation................................................................... 147
Subdivision B—Negotiating unsolicited consumer agreements 147
73.......... Permitted hours for negotiating an unsolicited consumer agreement 147
74.......... Disclosing purpose and identity...................................................... 148
75.......... Ceasing to negotiate on request....................................................... 148
76.......... Informing person of termination period etc..................................... 149
77.......... Liability of suppliers for contraventions by dealers......................... 150
Subdivision C—Requirements for unsolicited consumer agreements etc. 150
78.......... Requirement to give document to the consumer.............................. 150
79.......... Requirements for all unsolicited consumer agreements etc.............. 151
80.......... Additional requirements for unsolicited consumer agreements not negotiated by telephone 152
81.......... Requirements for amendments of unsolicited consumer agreements 153
Subdivision D—Terminating unsolicited consumer agreements 153
82.......... Terminating an unsolicited consumer agreement during the termination period 153
83.......... Effect of termination........................................................................ 155
84.......... Obligations of suppliers on termination.......................................... 156
85.......... Obligations and rights of consumers on termination....................... 156
86.......... Prohibition on supplies etc.............................................................. 158
87.......... Repayment of payments received after termination......................... 159
88.......... Prohibition on recovering amounts after termination....................... 159
Subdivision E—Miscellaneous 160
89.......... Certain provisions of unsolicited consumer agreements void.......... 160
90.......... Waiver of rights.............................................................................. 161
91.......... Application of this Division to persons to whom rights of consumers and suppliers are assigned etc. 161
92.......... Application of this Division to supplies to third parties.................. 161
93.......... Effect of contravening this Division................................................ 162
94.......... Regulations may limit the application of this Division.................... 162
95.......... Application of this Division to certain conduct covered by the Corporations Act 162
Division 3—Lay‑by agreements 163
96.......... Lay‑by agreements must be in writing etc....................................... 163
97.......... Termination of lay‑by agreements by consumers............................ 163
98.......... Termination of lay‑by agreements by suppliers............................... 164
99.......... Effect of termination........................................................................ 164
Division 3A—Gift cards 166
Subdivision A—Introduction 166
99A....... Meaning of gift card....................................................................... 166
Subdivision B—Requirements relating to gift cards 166
99B....... Gift cards to be redeemable for at least 3 years............................... 166
99C....... When gift card ceases to be redeemable to appear prominently on gift card 167
99D....... Terms and conditions not to allow post‑supply fees....................... 167
99E........ Post‑supply fees not to be demanded or received............................ 167
99F........ Certain terms and conditions of gift card void................................. 168
Subdivision C—Miscellaneous 168
99G....... Regulations may limit application of this Division.......................... 168
Division 4—Miscellaneous 170
100........ Supplier must provide proof of transaction etc................................ 170
101........ Consumer may request an itemised bill........................................... 171
102........ Prescribed requirements for warranties against defects................... 172
103........ Repairers must comply with prescribed requirements..................... 172
Part 3‑3—Safety of consumer goods and product related services 174
Division 1—Safety standards 174
104........ Making safety standards for consumer goods and product related services 174
105........ Declaring safety standards for consumer goods and product related services 175
106........ Supplying etc. consumer goods that do not comply with safety standards 175
107........ Supplying etc. product related services that do not comply with safety standards 177
108........ Requirement to nominate a safety standard..................................... 178
Division 2—Bans on consumer goods and product related services 179
Subdivision A—Interim bans 179
109........ Interim bans on consumer goods or product related services that will or may cause injury to any person etc. 179
110........ Places in which interim bans apply................................................. 180
111........ Ban period for interim bans............................................................. 180
112........ Interaction of multiple interim bans................................................. 181
113........ Revocation of interim bans.............................................................. 182
Subdivision B—Permanent bans 182
114........ Permanent bans on consumer goods or product related services..... 182
115........ Places in which permanent bans apply............................................ 183
116........ When permanent bans come into force............................................ 183
117........ Revocation of permanent bans........................................................ 183
Subdivision C—Compliance with interim bans and permanent bans 184
118........ Supplying etc. consumer goods covered by a ban........................... 184
119........ Supplying etc. product related services covered by a ban................ 185
Subdivision D—Temporary exemption from mutual recognition principles 186
120........ Temporary exemption under the Trans‑Tasman Mutual Recognition Act 1997 186
121........ Temporary exemption under the Mutual Recognition Act 1992....... 186
Division 3—Recall of consumer goods 188
Subdivision A—Compulsory recall of consumer goods 188
122........ Compulsory recall of consumer goods............................................ 188
123........ Contents of a recall notice............................................................... 188
124........ Obligations of a supplier in relation to a recall notice...................... 190
125........ Notification by persons who supply consumer goods outside Australia if there is compulsory recall 191
126........ Interaction of multiple recall notices................................................ 191
127........ Compliance with recall notices........................................................ 192
Subdivision B—Voluntary recall of consumer goods 193
128........ Notification requirements for a voluntary recall of consumer goods 193
Division 4—Safety warning notices 195
129........ Safety warning notices about consumer goods and product related services 195
130........ Announcement of the results of an investigation etc....................... 195
Division 5—Consumer goods, or product related services, associated with death or serious injury or illness 197
131........ Suppliers to report consumer goods associated with the death or serious injury or illness of any person 197
132........ Suppliers to report product related services associated with the death or serious injury or illness of any person 199
132A..... Confidentiality of notices given under this Division....................... 201
Division 6—Miscellaneous 203
133........ Liability under a contract of insurance............................................. 203
Part 3‑4—Information standards 204
134........ Making information standards for goods and services.................... 204
135........ Declaring information standards for goods and services................. 204
136........ Supplying etc. goods that do not comply with information standards 205
137........ Supplying etc. services that do not comply with information standards 206
137A..... Safe harbour for complying with information standards about free range eggs 207
Part 3‑5—Liability of manufacturers for goods with safety defects 209
Division 1—Actions against manufacturers for goods with safety defects 209
138........ Liability for loss or damage suffered by an injured individual........ 209
139........ Liability for loss or damage suffered by a person other than an injured individual 209
140........ Liability for loss or damage suffered by a person if other goods are destroyed or damaged 210
141........ Liability for loss or damage suffered by a person if land, buildings or fixtures are destroyed or damaged 210
142........ Defences to defective goods actions................................................ 211
Division 2—Defective goods actions 212
143........ Time for commencing defective goods actions................................ 212
144........ Liability joint and several................................................................ 212
145........ Survival of actions.......................................................................... 212
146........ No defective goods action where workers’ compensation law etc. applies 212
147........ Unidentified manufacturer............................................................... 213
148........ Commonwealth liability for goods that are defective only because of compliance with Commonwealth mandatory standard........................................................................................... 213
149........ Representative actions by the regulator........................................... 214
Division 3—Miscellaneous 215
150........ Application of all or any provisions of this Part etc. not to be excluded or modified 215
Chapter 4—Offences 216
Part 4‑1—Offences relating to unfair practices 216
Division 1—False or misleading representations etc. 216
151........ False or misleading representations about goods or services.......... 216
152........ False or misleading representations about sale etc. of land.............. 218
153........ Misleading conduct relating to employment.................................... 219
154........ Offering rebates, gifts, prizes etc..................................................... 220
155........ Misleading conduct as to the nature etc. of goods........................... 222
156........ Misleading conduct as to the nature etc. of services........................ 223
157........ Bait advertising............................................................................... 224
158........ Wrongly accepting payment............................................................ 226
159........ Misleading representations about certain business activities........... 228
160........ Application of provisions of this Division to information providers 229
Division 2—Unsolicited supplies 231
161........ Unsolicited cards etc....................................................................... 231
162........ Assertion of right to payment for unsolicited goods or services..... 232
163........ Assertion of right to payment for unauthorised entries or advertisements 233
Division 3—Pyramid schemes 236
164........ Participation in pyramid schemes.................................................... 236
Division 4—Pricing 237
165........ Multiple pricing............................................................................... 237
166........ Single price to be specified in certain circumstances....................... 237
Division 5—Other unfair practices 240
167........ Referral selling................................................................................ 240
168........ Harassment and coercion................................................................ 241
Part 4‑2—Offences relating to consumer transactions 243
Division 1—Consumer guarantees 243
169........ Display notices................................................................................ 243
Division 2—Unsolicited consumer agreements 244
Subdivision A—Negotiating unsolicited consumer agreements 244
170........ Permitted hours for negotiating an unsolicited consumer agreement 244
171........ Disclosing purpose and identity...................................................... 244
172........ Ceasing to negotiate on request....................................................... 245
173........ Informing person of termination period etc..................................... 246
Subdivision B—Requirements for unsolicited consumer agreements etc. 247
174........ Requirement to give document to the consumer.............................. 247
175........ Requirements for all unsolicited consumer agreements etc.............. 248
176........ Additional requirements for unsolicited consumer agreements not negotiated by telephone 249
177........ Requirements for amendments of unsolicited consumer agreements 250
Subdivision C—Terminating unsolicited consumer agreements 251
178........ Obligations of suppliers on termination.......................................... 251
179........ Prohibition on supplies etc.............................................................. 251
180........ Repayment of payments received after termination......................... 252
181........ Prohibition on recovering amounts after termination....................... 252
Subdivision D—Miscellaneous 253
182........ Certain provisions of unsolicited consumer agreements void.......... 253
183........ Waiver of rights.............................................................................. 254
184........ Application of this Division to persons to whom rights of consumers and suppliers are assigned etc. 254
185........ Application of this Division to supplies to third parties.................. 255
186........ Regulations may limit the application of this Division.................... 255
187........ Application of this Division to certain conduct covered by the Corporations Act 255
Division 3—Lay‑by agreements 256
188........ Lay‑by agreements must be in writing etc....................................... 256
189........ Termination charges........................................................................ 256
190........ Termination of lay‑by agreements by suppliers............................... 257
191........ Refund of amounts.......................................................................... 257
Division 3A—Gift cards 258
191A..... Gift cards to be redeemable for at least 3 years............................... 258
191B..... When gift card ceases to be redeemable to appear prominently on gift card 258
191C..... Terms and conditions not to allow post‑supply fees....................... 259
191D..... Post‑supply fees not to be demanded or received............................ 259
191E...... Regulations may limit the application of this Division.................... 259
Division 4—Miscellaneous 261
192........ Prescribed requirements for warranties against defects................... 261
193........ Repairers must comply with prescribed requirements..................... 261
Part 4‑3—Offences relating to safety of consumer goods and product related services 262
Division 1—Safety standards 262
194........ Supplying etc. consumer goods that do not comply with safety standards 262
195........ Supplying etc. product related services that do not comply with safety standards 263
196........ Requirement to nominate a safety standard..................................... 264
Division 2—Bans on consumer goods and product related services 266
197........ Supplying etc. consumer goods covered by a ban........................... 266
198........ Supplying etc. product related services covered by a ban................ 267
Division 3—Recall of consumer goods 269
199........ Compliance with recall orders......................................................... 269
200........ Notification by persons who supply consumer goods outside Australia if there is compulsory recall 270
201........ Notification requirements for a voluntary recall of consumer goods 270
Division 4—Consumer goods, or product related services, associated with death or serious injury or illness 272
202........ Suppliers to report consumer goods etc. associated with the death or serious injury or illness of any person 272
Part 4‑4—Offences relating to information standards 273
203........ Supplying etc. goods that do not comply with information standards 273
204........ Supplying etc. services that do not comply with information standards 275
Part 4‑5—Offences relating to substantiation notices 277
205........ Compliance with substantiation notices........................................... 277
206........ False or misleading information etc................................................. 277
Part 4‑6—Defences 279
207........ Reasonable mistake of fact.............................................................. 279
208........ Act or default of another person etc................................................ 279
209........ Publication of advertisements in the ordinary course of business... 280
210........ Supplying goods acquired for the purpose of re‑supply................. 280
211........ Supplying services acquired for the purpose of re‑supply.............. 282
Part 4‑7—Miscellaneous 283
212........ Prosecutions to be commenced within 3 years................................ 283
213........ Preference must be given to compensation for victims.................... 283
214........ Penalties for contraventions of the same nature etc......................... 284
215........ Penalties for previous contraventions of the same nature etc........... 284
216........ Granting of injunctions etc.............................................................. 285
217........ Criminal proceedings not to be brought for contraventions of Chapter 2 or 3 285
Chapter 5—Enforcement and remedies 287
Part 5‑1—Enforcement 287
Division 1—Undertakings 287
218........ Regulator may accept undertakings................................................. 287
Division 2—Substantiation notices 288
219........ Regulator may require claims to be substantiated etc....................... 288
220........ Extending periods for complying with substantiation notices......... 289
221........ Compliance with substantiation notices........................................... 290
222........ False or misleading information etc................................................. 290
Division 3—Public warning notices 292
223........ Regulator may issue a public warning notice.................................. 292
Part 5‑2—Remedies 293
Division 1—Pecuniary penalties 293
224........ Pecuniary penalties.......................................................................... 293
225........ Pecuniary penalties and offences..................................................... 298
226........ Defence........................................................................................... 299
227........ Preference must be given to compensation for victims.................... 299
228........ Civil action for recovery of pecuniary penalties.............................. 300
229........ Indemnification of officers.............................................................. 300
230........ Certain indemnities not authorised and certain documents void...... 300
Division 2—Injunctions 301
232........ Injunctions...................................................................................... 301
233........ Consent injunctions......................................................................... 302
234........ Interim injunctions.......................................................................... 303
235........ Variation and discharge of injunctions............................................ 303
Division 3—Damages 304
236........ Actions for damages....................................................................... 304
Division 4—Compensation orders etc. for injured persons and orders for non‑party consumers 305
Subdivision A—Compensation orders etc. for injured persons 305
237........ Compensation orders etc. on application by an injured person or the regulator 305
238........ Compensation orders etc. arising out of other proceedings............. 306
Subdivision B—Orders for non‑party consumers 306
239........ Orders to redress etc. loss or damage suffered by non‑party consumers 306
240........ Determining whether to make a redress order etc. for non‑party consumers 308
241........ When a non‑party consumer is bound by a redress order etc.......... 308
Subdivision C—Miscellaneous 309
242........ Applications for orders................................................................... 309
243........ Kinds of orders that may be made................................................... 309
244........ Power of a court to make orders..................................................... 310
245........ Interaction with other provisions..................................................... 311
Division 5—Other remedies 312
246........ Non‑punitive orders........................................................................ 312
247........ Adverse publicity orders................................................................. 313
248........ Order disqualifying a person from managing corporations............. 314
249........ Privilege against exposure to penalty or forfeiture—disqualification from managing corporations 315
250........ Declarations relating to consumer contracts and small business contracts 316
Division 6—Defences 317
251........ Publication of advertisement in the ordinary course of business..... 317
252........ Supplying consumer goods for the purpose of re‑supply............... 317
253........ Supplying product related services for the purpose of re‑supply.... 318
Part 5‑3—Country of origin representations 320
254........ Overview........................................................................................ 320
255........ Country of origin representations do not contravene certain provisions 320
258........ Proceedings relating to false, misleading or deceptive conduct or representations 322
Part 5‑4—Remedies relating to guarantees 323
Division 1—Action against suppliers 323
Subdivision A—Action against suppliers of goods 323
259........ Action against suppliers of goods................................................... 323
260........ When a failure to comply with a guarantee is a major failure.......... 324
261........ How suppliers may remedy a failure to comply with a guarantee... 325
262........ When consumers are not entitled to reject goods............................. 325
263........ Consequences of rejecting goods.................................................... 326
264........ Replaced goods............................................................................... 327
265........ Termination of contracts for the supply of services that are connected with rejected goods 327
266........ Rights of gift recipients................................................................... 328
Subdivision B—Action against suppliers of services 328
267........ Action against suppliers of services................................................ 328
268........ When a failure to comply with a guarantee is a major failure.......... 330
269........ Termination of contracts for the supply of services......................... 330
270........ Termination of contracts for the supply of goods that are connected with terminated services 331
Division 2—Action for damages against manufacturers of goods 333
271........ Action for damages against manufacturers of goods....................... 333
272........ Damages that may be recovered by action against manufacturers of goods 334
273........ Time limit for actions against manufacturers of goods.................... 335
Division 3—Miscellaneous 336
274........ Indemnification of suppliers by manufacturers............................... 336
275........ Limitation of liability etc.................................................................. 337
276........ This Part not to be excluded etc. by contract................................... 337
276A..... Limitation in certain circumstances of liability of manufacturer to seller.. 338
277........ Representative actions by the regulator........................................... 339
Part 5‑5—Liability of suppliers and credit providers 340
Division 1—Linked credit contracts 340
278........ Liability of suppliers and linked credit providers relating to linked credit contracts 340
279........ Action by consumer to recover amount of loss or damage.............. 341
280........ Cases where a linked credit provider is not liable............................ 341
281........ Amount of liability of linked credit providers................................. 343
282........ Counter‑claims and offsets.............................................................. 344
283........ Enforcement of judgments etc......................................................... 344
284........ Award of interest to consumers...................................................... 346
285........ Liability of suppliers to linked credit providers, and of linked credit providers to suppliers 347
286........ Joint liability proceedings and recovery under section 135 of the National Credit Code 347
Division 2—Non‑linked credit contracts 349
287........ Liability of suppliers and credit providers relating to non‑linked credit contracts 349
Chapter 6—Application and transitional provisions 351
Part 1—Application and transitional provisions relating to the Consumer Credit Legislation Amendment (Enhancements) Act 2012 351
288........ Application of amendments relating to lay‑by agreements.............. 351
289........ Application of amendment relating to repairs.................................. 351
290........ Saving of regulations relating to repairs.......................................... 351
Part 1A—Application provision relating to the Treasury Legislation Amendment (Small Business and Unfair Contract Terms) Act 2015 352
290A..... Application...................................................................................... 352
Part 2—Application and transitional provisions relating to the Competition and Consumer Amendment (Competition Policy Review) Act 2017 353
291........ Application of amendments relating to confidentiality of notices.... 353
292........ Application of amendments relating to prohibition on supplies....... 353
Part 3—Application provision relating to the Treasury Laws Amendment (2018 Measures No. 3) Act 2018 354
295........ Application of amendments............................................................. 354
Part 4—Application provisions relating to the Treasury Laws Amendment (Australian Consumer Law Review) Act 2018 355
296........ Application—listed public companies............................................. 355
297........ Application—unsolicited supplies................................................... 355
298........ Application—unsolicited consumer agreements.............................. 355
299........ Application—single price................................................................ 355
300........ Application—non‑punitive orders................................................... 355
301........ Application—guarantees relating to the supply of services............. 356
Part 5—Application and transitional provisions relating to the Treasury Laws Amendment (Gift Cards) Act 2018 357
302........ Application of amendments relating to gift cards............................ 357
Endnotes 358
Endnote 1—About the endnotes 358
Endnote 2—Abbreviation key 360
Endnote 3—Legislation history 361
Endnote 4—Amendment history 384
Schedule 1—The Schedule version of Part IV
Part 1—Schedule version of Part IV
Note: See section 150A.
Division 1—Cartel conduct
Subdivision A—Introduction
45AA Simplified outline
The following is a simplified outline of this Division:
• This Division sets out parallel offences and civil penalty provisions relating to cartel conduct.
• A person must not make, or give effect to, a contract, arrangement or understanding that contains a cartel provision.
• A cartel provision is a provision relating to:
(a) price‑fixing; or
(b) restricting outputs in the production and supply chain; or
(c) allocating customers, suppliers or territories; or
(d) bid‑rigging;
by parties that are, or would otherwise be, in competition with each other.
45AB Definitions
In this Division:
annual turnover, of a body corporate during a 12‑month period, means the sum of the values of all the supplies that the body corporate, and any body corporate related to the body corporate, have made, or are likely to make, during the 12‑month period, other than:
(a) supplies made from any of those bodies corporate to any other of those bodies corporate; or
(b) supplies that are input taxed; or
(c) supplies that are not for consideration (and are not taxable supplies under section 72‑5 of the A New Tax System (Goods and Services Tax) Act 1999); or
(d) supplies that are not made in connection with an enterprise that the body corporate carries on; or
(e) supplies that are not connected with Australia.
Expressions used in this definition that are also used in the A New Tax System (Goods and Services Tax) Act 1999 have the same meaning as in that Act.
benefit includes any advantage and is not limited to property.
bid includes:
(a) tender; and
(b) the taking, by a potential bidder or tenderer, of a preliminary step in a bidding or tendering process.
evidential burden, in relation to a matter, means the burden of adducing or pointing to evidence that suggests a reasonable possibility that the matter exists or does not exist.
knowledge has the same meaning as in the Criminal Code.
likely, in relation to any of the following:
(a) a supply of goods or services;
(b) an acquisition of goods or services;
(c) the production of goods;
(d) the capacity to supply services;
includes a possibility that is not remote.
obtaining includes:
(a) obtaining for another person; and
(b) inducing a third person to do something that results in another person obtaining.
party has a meaning affected by section 45AC.
production includes manufacture, processing, treatment, assembly, disassembly, renovation, restoration, growing, raising, mining, extraction, harvesting, fishing, capturing and gathering.
45AC Extended meaning of party
For the purposes of this Division, if a body corporate is a party to a contract, arrangement or understanding (otherwise than because of this section), each body corporate related to that body corporate is taken to be a party to that contract, arrangement or understanding.
45AD Cartel provisions
(1) For the purposes of this Act, a provision of a contract, arrangement or understanding is a cartel provision if:
(a) either of the following conditions is satisfied in relation to the provision:
(i) the purpose/effect condition set out in subsection (2);
(ii) the purpose condition set out in subsection (3); and
(b) the competition condition set out in subsection (4) is satisfied in relation to the provision.
Purpose/effect condition
(2) The purpose/effect condition is satisfied if the provision has the purpose, or has or is likely to have the effect, of directly or indirectly:
(a) fixing, controlling or maintaining; or
(b) providing for the fixing, controlling or maintaining of;
the price for, or a discount, allowance, rebate or credit in relation to:
(c) goods or services supplied, or likely to be supplied, by any or all of the parties to the contract, arrangement or understanding; or
(d) goods or services acquired, or likely to be acquired, by any or all of the parties to the contract, arrangement or understanding; or
(e) goods or services re‑supplied, or likely to be re‑supplied, by persons or classes of persons to whom those goods or services were supplied by any or all of the parties to the contract, arrangement or understanding; or
(f) goods or services likely to be re‑supplied by persons or classes of persons to whom those goods or services are likely to be supplied by any or all of the parties to the contract, arrangement or understanding.
Note 1: The purpose/effect condition can be satisfied when a provision is considered with related provisions—see subsection (8).
Note 2: Party has an extended meaning—see section 45AC.
Purpose condition
(3) The purpose condition is satisfied if the provision has the purpose of directly or indirectly:
(a) preventing, restricting or limiting:
(i) the production, or likely production, of goods by any or all of the parties to the contract, arrangement or understanding; or
(ii) the capacity, or likely capacity, of any or all of the parties to the contract, arrangement or understanding to supply services; or
(iii) the supply, or likely supply, of goods or services to persons or classes of persons by any or all of the parties to the contract, arrangement or understanding; or
(iv) the acquisition, or likely acquisition, of goods or services from persons or classes of persons by any or all of the parties to the contract, arrangement or understanding; or
(b) allocating between any or all of the parties to the contract, arrangement or understanding:
(i) the persons or classes of persons who have acquired, or who are likely to acquire, goods or services from any or all of the parties to the contract, arrangement or understanding; or
(ii) the persons or classes of persons who have supplied, or who are likely to supply, goods or services to any or all of the parties to the contract, arrangement or understanding; or
(iii) the geographical areas in which goods or services are supplied, or likely to be supplied, by any or all of the parties to the contract, arrangement or understanding; or
(iv) the geographical areas in which goods or services are acquired, or likely to be acquired, by any or all of the parties to the contract, arrangement or understanding; or
(c) ensuring that in the event of a request for bids in relation to the supply or acquisition of goods or services:
(i) one or more parties to the contract, arrangement or understanding bid, but one or more other parties do not; or
(ii) 2 or more parties to the contract, arrangement or understanding bid, but at least 2 of them do so on the basis that one of those bids is more likely to be successful than the others; or
(iii) 2 or more parties to the contract, arrangement or understanding bid, but not all of those parties proceed with their bids until the suspension or finalisation of the request for bids process; or
(iv) 2 or more parties to the contract, arrangement or understanding bid and proceed with their bids, but at least 2 of them proceed with their bids on the basis that one of those bids is more likely to be successful than the others; or
(v) 2 or more parties to the contract, arrangement or understanding bid, but a material component of at least one of those bids is worked out in accordance with the contract, arrangement or understanding.
Note 1: For example, subparagraph (3)(a)(iii) will not apply in relation to a roster for the supply of after‑hours medical services if the roster does not prevent, restrict or limit the supply of services.
Note 2: The purpose condition can be satisfied when a provision is considered with related provisions—see subsection (9).
Note 3: Party has an extended meaning—see section 45AC.
Competition condition
(4) The competition condition is satisfied if at least 2 of the parties to the contract, arrangement or understanding:
(a) are or are likely to be; or
(b) but for any contract, arrangement or understanding, would be or would be likely to be;
in competition with each other in relation to:
(c) if paragraph (2)(c) or (3)(b) applies in relation to a supply, or likely supply, of goods or services—the supply of those goods or services in trade or commerce; or
(d) if paragraph (2)(d) or (3)(b) applies in relation to an acquisition, or likely acquisition, of goods or services—the acquisition of those goods or services in trade or commerce; or
(e) if paragraph (2)(e) or (f) applies in relation to a re‑supply, or likely re‑supply, of goods or services—the supply of those goods or services in trade or commerce to that re‑supplier; or
(f) if subparagraph (3)(a)(i) applies in relation to preventing, restricting or limiting the production, or likely production, of goods—the production of those goods in trade or commerce; or
(g) if subparagraph (3)(a)(ii) applies in relation to preventing, restricting or limiting the capacity, or likely capacity, to supply services—the supply of those services in trade or commerce; or
(h) if subparagraph (3)(a)(iii) applies in relation to preventing, restricting or limiting the supply, or likely supply, of goods or services—the supply of those goods or services in trade or commerce; or
(i) if subparagraph (3)(a)(iv) applies in relation to preventing, restricting or limiting the acquisition, or likely acquisition, of goods or services—the acquisition of those goods or services in trade or commerce; or
(j) if paragraph (3)(c) applies in relation to a supply of goods or services—the supply of those goods or services in trade or commerce; or
(k) if paragraph (3)(c) applies in relation to an acquisition of goods or services—the acquisition of those goods or services in trade or commerce.
Note 1: Party has an extended meaning—see section 45AC.
Note 2: Trade or commerce is defined in section 4 to mean trade or commerce within Australia or between Australia and places outside Australia.
Immaterial whether identities of persons can be ascertained
(5) It is immaterial whether the identities of the persons referred to in paragraph (2)(e) or (f) or subparagraph (3)(a)(iii) or (iv) or (b)(i) or (ii) can be ascertained.
Recommending prices etc.
(6) For the purposes of this Division, a provision of a contract, arrangement or understanding is not taken:
(a) to have the purpose mentioned in subsection (2); or
(b) to have, or be likely to have, the effect mentioned in subsection (2);
by reason only that it recommends, or provides for the recommending of, a price, discount, allowance, rebate or credit.
Immaterial whether particular circumstances or particular conditions
(7) It is immaterial whether:
(a) for the purposes of subsection (2), subparagraphs (3)(a)(iii) and (iv) and paragraphs (3)(b) and (c)—a supply or acquisition happens, or a likely supply or likely acquisition is to happen, in particular circumstances or on particular conditions; and
(b) for the purposes of subparagraph (3)(a)(i)—the production happens, or the likely production is to happen, in particular circumstances or on particular conditions; and
(c) for the purposes of subparagraph (3)(a)(ii)—the capacity exists, or the likely capacity is to exist, in particular circumstances or on particular conditions.
Considering related provisions—purpose/effect condition
(8) For the purposes of this Division, a provision of a contract, arrangement or understanding is taken to have the purpose, or to have or be likely to have the effect, mentioned in subsection (2) if the provision, when considered together with any or all of the following provisions:
(a) the other provisions of the contract, arrangement or understanding;
(b) the provisions of another contract, arrangement or understanding, if the parties to that other contract, arrangement or understanding consist of or include at least one of the parties to the first‑mentioned contract, arrangement or understanding;
has that purpose, or has or is likely to have that effect.
Considering related provisions—purpose condition
(9) For the purposes of this Division, a provision of a contract, arrangement or understanding is taken to have the purpose mentioned in a paragraph of subsection (3) if the provision, when considered together with any or all of the following provisions:
(a) the other provisions of the contract, arrangement or understanding;
(b) the provisions of another contract, arrangement or understanding, if the parties to that other contract, arrangement or understanding consist of or include at least one of the parties to the first‑mentioned contract, arrangement or understanding;
has that purpose.
Purpose/effect of a provision
(10) For the purposes of this Division, a provision of a contract, arrangement or understanding is not to be taken not to have the purpose, or not to have or to be likely to have the effect, mentioned in subsection (2) by reason only of:
(a) the form of the provision; or
(b) the form of the contract, arrangement or understanding; or
(c) any description given to the provision, or to the contract, arrangement or understanding, by the parties.
Purpose of a provision
(11) For the purposes of this Division, a provision of a contract, arrangement or understanding is not to be taken not to have the purpose mentioned in a paragraph of subsection (3) by reason only of:
(a) the form of the provision; or
(b) the form of the contract, arrangement or understanding; or
(c) any description given to the provision, or to the contract, arrangement or understanding, by the parties.
45AE Meaning of expressions in other provisions of this Act
In determining the meaning of an expression used in a provision of this Act (other than this Division, subsection 6(2C), paragraph 76(1A)(aa) or subsection 93AB(1A)), this Division is to be disregarded.
Subdivision B—Offences etc.
45AF Making a contract etc. containing a cartel provision
Offence
(1) A person commits an offence if:
(a) the person makes a contract or arrangement, or arrives at an understanding; and
(b) the contract, arrangement or understanding contains a cartel provision.
(2) The fault element for paragraph (1)(b) is knowledge or belief.
Penalty
(3) An offence against subsection (1) committed by a body corporate is punishable on conviction by a fine not exceeding the greater of the following:
(a) $10,000,000;
(b) if the court can determine the total value of the benefits that:
(i) have been obtained by one or more persons; and
(ii) are reasonably attributable to the commission of the offence;
3 times that total value;
(c) if the court cannot determine the total value of those benefits—10% of the body corporate’s annual turnover during the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence.
(4) An offence against subsection (1) committed by a person other than a body corporate is punishable on conviction by a term of imprisonment not exceeding 10 years or a fine not exceeding 2,000 penalty units, or both.
Indictable offence
(5) An offence against subsection (1) is an indictable offence.
45AG Giving effect to a cartel provision
Offence
(1) A person commits an offence if:
(a) a contract, arrangement or understanding contains a cartel provision; and
(b) the person gives effect to the cartel provision.
(2) The fault element for paragraph (1)(a) is knowledge or belief.
Penalty
(3) An offence against subsection (1) committed by a body corporate is punishable on conviction by a fine not exceeding the greater of the following:
(a) $10,000,000;
(b) if the court can determine the total value of the benefits that:
(i) have been obtained by one or more persons; and
(ii) are reasonably attributable to the commission of the offence;
3 times that total value;
(c) if the court cannot determine the total value of those benefits—10% of the body corporate’s annual turnover during the 12‑month period ending at the end of the month in which the body corporate committed, or began committing, the offence.
(4) An offence against subsection (1) committed by a person other than a body corporate is punishable on conviction by a term of imprisonment not exceeding 10 years or a fine not exceeding 2,000 penalty units, or both.
Pre‑commencement contracts etc.
(5) Paragraph (1)(a) applies to contracts or arrangements made, or understandings arrived at, before, at or after the commencement of this section.
Indictable offence
(6) An offence against subsection (1) is an indictable offence.
45AH Determining guilt
(1) A person may be found guilty of an offence against section 45AF or 45AG even if:
(a) each other party to the contract, arrangement or understanding is a person who is not criminally responsible; or
(b) subject to subsection (2), all other parties to the contract, arrangement or understanding have been acquitted of the offence.
Note: Party has an extended meaning—see section 45AC.
(2) A person cannot be found guilty of an offence against section 45AF or 45AG if:
(a) all other parties to the contract, arrangement or understanding have been acquitted of such an offence; and
(b) a finding of guilt would be inconsistent with their acquittal.
45AI Court may make related civil orders
If a prosecution against a person for an offence against section 45AF or 45AG is being, or has been, heard by a court, the court may:
(a) grant an injunction under section 80 against the person in relation to:
(i) the conduct that constitutes, or is alleged to constitute, the offence; or
(ii) other conduct of that kind; or
(b) make an order under section 86C, 86D, 86E or 87 in relation to the offence.
Subdivision C—Civil penalty provisions
45AJ Making a contract etc. containing a cartel provision
A person contravenes this section if:
(a) the person makes a contract or arrangement, or arrives at an understanding; and
(b) the contract, arrangement or understanding contains a cartel provision.
Note: For enforcement, see Part VI.
45AK Giving effect to a cartel provision
(1) A person contravenes this section if:
(a) a contract, arrangement or understanding contains a cartel provision; and
(b) the person gives effect to the cartel provision.
Note: For enforcement, see Part VI.
(2) Paragraph (1)(a) applies to contracts or arrangements made, or understandings arrived at, before, at or after the commencement of this section.
Subdivision D—Exceptions
45AL Conduct notified
(1) Sections 45AF, 45AG, 45AJ and 45AK do not apply to a person in relation to a contract, arrangement or understanding containing a cartel provision, in so far as:
(a) the cartel provision:
(i) has the purpose, or has or is likely to have the effect, mentioned in subsection 45AD(2); or
(ii) has the purpose mentioned in a paragraph of subsection 45AD(3) other than paragraph (c); and
(b) the person has given the Commission a collective bargaining notice under subsection 93AB(1A) setting out particulars of the contract, arrangement or understanding; and
(c) the notice is in force under section 93AD.
(2) A person who wishes to rely on subsection (1) bears an evidential burden in relation to that matter.
45AM Cartel provision subject to grant of authorisation
(1) Sections 45AF and 45AJ do not apply in relation to the making of a contract that contains a cartel provision if:
(a) the contract is subject to a condition that the provision will not come into force unless and until the person is granted an authorisation to give effect to the provision; and
(b) the person applies for the grant of such an authorisation within 14 days after the contract is made.
(2) A person who wishes to rely on subsection (1) bears an evidential burden in relation to that matter.
45AN Contracts, arrangements or understandings between related bodies corporate
(1) Sections 45AF, 45AG, 45AJ and 45AK do not apply in relation to a contract, arrangement or understanding if the only parties to the contract, arrangement or understanding are bodies corporate that are related to each other.
(2) A person who wishes to rely on subsection (1) bears an evidential burden in relation to that matter.
45AO Joint ventures—prosecution
(1) Sections 45AF and 45AG do not apply in relation to a contract, arrangement or understanding containing a cartel provision if the defendant proves that:
(a) the cartel provision is:
(i) for the purposes of a joint venture; and
(ii) reasonably necessary for undertaking the joint venture; and
(b) the joint venture is for any one or more of the following:
(i) production of goods;
(ii) supply of goods or services;
(iii) acquisition of goods or services; and
(c) the joint venture is not carried on for the purpose of substantially lessening competition; and
(d) in a case where subparagraph 4J(a)(i) applies to the joint venture—the joint venture is carried on jointly by the parties to the contract, arrangement or understanding; and
(e) in a case where subparagraph 4J(a)(ii) applies to the joint venture—the joint venture is carried on by a body corporate formed by the parties to the contract, arrangement or understanding for the purpose of enabling those parties to carry on the activity mentioned in paragraph (b) jointly by means of:
(i) their joint control; or