Consumer Laws

Regulations exist in order to restrict marketing practices that could negatively impact consumers and businesses. 

Without laws, businesses could act against the interests of society in pursuit of profit. 

Laws need to exist to ensure that consumers keep spending (and that the economy continues to grow).

Australian Consumer Act 2010 (Commonwealth) 

Federal legislation (act of parliament) that united 17 various state and territory laws in order streamline legal compliance (expensive) for businesses. 

Australian Competition and Consumer Commission (ACCC) 

Regulatory body that monitors and enforces Australian Consumer Act. 

Two purposes of consumer law:

• Protect consumers against undesirable practices.

• Regulate trade practices that restrict competition. Acquisitions between firms in same market must be approved by ACCC. Competition is healthy for consumers and prevents a single business from becoming a monopoly.

Consequences for marketing activity:

Marketing practices that violate Consumer Law can result in the business being taken to court by the ACCC. 

If convicted of being in breach of laws, financial penalties can result and negative impacts on brand reputation. 

ACCC can also issue public warning notices warning consumers.