NSW Bill to Allow Fair Trading Commissioner to Directly Address Consumer Disputes
Monday 13 August 2018 @ 1.21 p.m. | Legal Research | Trade & Commerce
The NSW Government has introduced the Fair Trading Legislation Amendment (Consumer Guarantee Directions) Bill 2018 (NSW) (‘the Bill’) on 8 August 2018. The Bill proposes to allow the NSW Fair Trading Commissioner to address consumer issues directly, allowing the Commissioner to direct businesses to refund, replace or repair defective goods. The new laws are proposed to come into effect from 1 January 2019.
Proposed Amendments
This Bill proposes to amend the Fair Trading Act 1987 (NSW) to:
- Insert a new schedule to provide that a consumer may apply to the Secretary (the NSW Commissioner for Fair Trading or if there is no person employed at the time as the Commissioner, the Secretary of the Department of Finance, Services and Innovation) for a consumer guarantee direction in relation to the sale of a consumer good;
- Insert provisions relating to the definition of consumer goods for the purposes of the Act;
- Insert provisions stating that the Secretary may resolve a dispute by directing a supplier to repair, replace or provide a refund for a good;
- Insert provisions that set out the circumstances in which an application for a consumer guarantee direction is rejected, provisions relating to the making of consumer guarantee directions and provisions relating to the amendment of consumer guarantee directions.
The Bill also proposes to amend the Fair Trading Act 1987 (NSW), the Plumbing and Drainage Act 2011 (NSW), the Plumbing and Drainage Regulation 2017 (NSW) and the Property, Stock and Business Agents Act 2002 (NSW) to make various amendments relating to compliance and enforcement of consumer guarantee directions.
Information on the Operation of the Laws
In his second reading speech, Mr Matt Kean, the Minister for Innovation and Better Regulation, stated:
He provided an overview of the consumer guarantee direction process:
In a media release, NSW Fair Trading stated that the power will be run as a pilot program and internal evaluations will be conducted after 12 months. It stated:
Media Response
Sarah Agar, the head of campaigns and policy at consumer advocacy group Choice , told The Sydney Morning Herald they were supportive of the proposed laws, stating that the tribunal process was intimidating and stressful for consumers when businesses did not cooperate with consumers.
She told the Sydney Morning Herald:
Ms Agar also said that she thought the proposed laws could encourage businesses to work together with consumers to arrive at a solution:
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Sources:
Fair Trading Legislation Amendment (Consumer Guarantee Directions) Bill 2018 (NSW), and second reading speech, as published on TimeBase LawOne.