EXPLANATORY STATEMENT
Nine permanent bans on unsafe goods under the Trade Practices Act 1974
This explanatory statement has been prepared with attention to sections 4 and 26 of the Legislative Instruments Act 2003 (the LIA). It has been prepared by the Australian Competition and Consumer Commission (the ACCC). At the time the instruments to which this explanatory statement applies were made, there was not a requirement to provide an explanatory statement.
Background
The Trade Practices Act 1974 (the TPA) empowers the administering Minister to take a range of actions to safeguard the Australian community from unsafe goods. Among other things, the Minister:
· may declare goods to be unsafe goods by notice published in the Gazette, and
· may permanently ban unsafe goods 18 months after declaring them to be unsafe if there is no consumer product safety standard in respect of the goods (subsection 65C(7)).
The Trade Practices Amendment (Australian Consumer Law) Act (No.2) 2010 together with the Trade Practices Amendment (Australian Consumer Law) Act (No.1) 2010, amends the TPA to implement a new national consumer law regime known as the Australian Consumer Law (ACL).
The TPA will be renamed the Competition and Consumer Act 2010 (CCA) on 1 January 2011. The ACL will form Schedule 2 to the CCA.
Schedule 7 of the Trade Practices Amendment (Australian Consumer Law) Act (No.2) 2010 sets out transitional matters relating to the commencement of the ACL. Item 3 of Schedule 7 provides that a notice under subsection 65C(7) of the TPA that was in force immediately before the commencement of the ACL, continues in force after the ACL takes effect ‘as if’ it were a permanent ban imposed under section 114 of the ACL.
Section 114 of the ACL provides that a Commonwealth Minister may impose a permanent ban on consumer goods of a particular kind if an interim ban exists for those goods, or it appears to the Commonwealth Minister that consumer goods of that kind will or may cause injury to any person or a reasonably foreseeable use (including misuse) of consumer goods will or may cause injury to any person.
Under section 131E of Part XI of the CCA, which will come into effect on 1 January 2011, permanent ban notices, made under section 114 of the ACL are to be made by legislative instrument. Therefore, in order for pre-existing permanent bans to be treated ‘as if’ they were made under the ACL, they must also become legislative instruments.
A total of nine permanent bans, imposed under the TPA, were in force immediately before 1 January 2011. For details of each instrument see Appendix A.
Consultation
Consultation was undertaken with known suppliers before each ban was made under the TPA. Consultation about the decision to register the bans as legislative instruments was not considered necessary or appropriate, as it does not alter what is banned in any way.
Commencement
These instruments have already commenced in accordance with the TPA but, for the purposes of the LIA, they are taken to have commenced on 1 January 2011 as a consequence of the Trade Practices Amendment (Australian Consumer Law) Act (No. 2) 2010.
Disallowance
These instruments are subject to disallowance under Part 5 of the LIA.
Sunsetting
These instruments are subject to sunsetting under Part 6 of the LIA. Unless action is taken to defer or exempt them from sunsetting, they are expected to sunset on 1 April 2021. This estimate takes into account when they are taken to have commenced (see above) and assumes they are registered on or before 31 March 2011.