Craig Hill
KC Hill
Paladin
Oracle of DelphiTrade Practices Act - What is it?
September 21st 2006 13:02
The Trade Practices Act 1974 (Cth) is an act of the Australian Parliament. It applies throughout Australia but there are equivalent Fair Trading Acts in each state. It is an important piece of legislation because it provides for the protection of all consumers and keeps corporations in line. So what exactly is it all about?
Here’s a summary of the key sections of the law:
Restrictive Trade Practices
Sections 45 – 50A of the TPA prevent companies from engaging in activities that are anti-competitive or that restrict free competition. This includes things like price-fixing and agreements between two parties to boycott the business of another. It also focuses on preventing corporations from misusing their power by taking advantage of competitors or attempting to eliminate their competition in any way.
This is enforced by the Australian Competition and Consumer Commission (ACCC) which can take the matter to the Federal Court and seek up to $10 million from corporations who contravene the law. There is also a mechanism in place which allows corporations to apply for exemptions from the ACCC to engage in particular conduct which may not be permitted as long as it is in the public’s interest to do so.
Consumer Protection
This is something we should all know about because we are all consumers in some form. Perhaps you have purchased a faulty laptop computer or found a scrap of plastic in your can of cola?
The consumer protection provisions can be found in Part V and Part VC of the Act. The basis for these provisions is to address the limited powers consumers have in the marketplace. It refers to actions consumers may take against manufacturers and importers of goods. It also covers product liability, safety and information.
Misleading or Deceptive Conduct
Section 52 of the TPA prevents any conduct by a corporation that arises in trade or commerce which is misleading or deceptive or is likely to mislead or deceive. Sound complicated? It’s not.
If you buy a business after relying on the seller’s words telling you that you will be earning $50,000 a week, then this may be misleading or deceptive if all you earn is $5,000 a week. Of course, such a situation will depend on the precise facts of the case.
Other conduct which may be misleading includes a failure to disclose material information. For example, you might purchase a CK t-shirt thinking it’s the Calvin Klein brand after the person tells you how popular and reliable it is. But it turns out that the seller failed to disclose that the CK actually refers to some other unknown brand.
Again the ACCC can intervene on behalf of those who are the victims of the improper conduct. A victim may be able to receive damages and other remedies. Where a contract is involved, the victim may be put back in the same place he or she was in before the contract was entered into.
Conditions and Warranties
The TPA sets out a number of conditions and warranties relating to contracts that a consumer may enter into. Some examples are that goods being sold must be of a merchantable quality and the supply of goods must be as described in the contract. So if you’ve purchased a tractor and it falls to bits the moment you take it back to the farm, there’s a clear breach of the TPA because the goods were not of merchantable quality. Or if you contract to buy 1000 slap bands and you get 1000 head bands instead, you haven’t received the goods as described in the contract and this would be a contravention of the law.
Other
Of course, there are lots of other provisions in the TPA which cover things like unfair practices and unconscionable conduct. If you have a penchant for reading legislation or if you just have absolutely nothing to do, have a read - it’s probably one of the most relevant pieces of legislation in our day-to-day lives.
Trade Practices Act
Here’s a summary of the key sections of the law:
Restrictive Trade Practices
Sections 45 – 50A of the TPA prevent companies from engaging in activities that are anti-competitive or that restrict free competition. This includes things like price-fixing and agreements between two parties to boycott the business of another. It also focuses on preventing corporations from misusing their power by taking advantage of competitors or attempting to eliminate their competition in any way.
This is enforced by the Australian Competition and Consumer Commission (ACCC) which can take the matter to the Federal Court and seek up to $10 million from corporations who contravene the law. There is also a mechanism in place which allows corporations to apply for exemptions from the ACCC to engage in particular conduct which may not be permitted as long as it is in the public’s interest to do so.
Consumer Protection
This is something we should all know about because we are all consumers in some form. Perhaps you have purchased a faulty laptop computer or found a scrap of plastic in your can of cola?
The consumer protection provisions can be found in Part V and Part VC of the Act. The basis for these provisions is to address the limited powers consumers have in the marketplace. It refers to actions consumers may take against manufacturers and importers of goods. It also covers product liability, safety and information.
Misleading or Deceptive Conduct
Section 52 of the TPA prevents any conduct by a corporation that arises in trade or commerce which is misleading or deceptive or is likely to mislead or deceive. Sound complicated? It’s not.
If you buy a business after relying on the seller’s words telling you that you will be earning $50,000 a week, then this may be misleading or deceptive if all you earn is $5,000 a week. Of course, such a situation will depend on the precise facts of the case.
Other conduct which may be misleading includes a failure to disclose material information. For example, you might purchase a CK t-shirt thinking it’s the Calvin Klein brand after the person tells you how popular and reliable it is. But it turns out that the seller failed to disclose that the CK actually refers to some other unknown brand.
Again the ACCC can intervene on behalf of those who are the victims of the improper conduct. A victim may be able to receive damages and other remedies. Where a contract is involved, the victim may be put back in the same place he or she was in before the contract was entered into.
Conditions and Warranties
The TPA sets out a number of conditions and warranties relating to contracts that a consumer may enter into. Some examples are that goods being sold must be of a merchantable quality and the supply of goods must be as described in the contract. So if you’ve purchased a tractor and it falls to bits the moment you take it back to the farm, there’s a clear breach of the TPA because the goods were not of merchantable quality. Or if you contract to buy 1000 slap bands and you get 1000 head bands instead, you haven’t received the goods as described in the contract and this would be a contravention of the law.
Other
Of course, there are lots of other provisions in the TPA which cover things like unfair practices and unconscionable conduct. If you have a penchant for reading legislation or if you just have absolutely nothing to do, have a read - it’s probably one of the most relevant pieces of legislation in our day-to-day lives.
Trade Practices Act
| 103 |
| Vote |
subscribe to this blog
Go to Craig Hill's home page by clicking here
Comment by Chantal
How you doing?
I'm a friend of Esther's so I thought I'd check out your site! I'm well versed in TPA thanks to endless work training but they've got to do it!
Pop in and say hello at www.dropofpop.com
Happy blogging!
Chan x
Comment by Legally Brunette
My Wedding
Comment by Stanley
Comment by Legally Brunette
My Wedding
Comment by Anonymous
tru_Soulja19@hotmail.com