Protecting consumers from unfair trading practices

This submission supports the introduction of a new provision to the Australian Consumer Law (ACL) containing a general prohibition on unfair trading practices. The submission recommends the adoption of the unfairness test in the Unfair Commercial Practices Directive (UPCD) which was implemented in the UK Consumer Protection from Unfair Trading Regulations 2008 (CPR). The Directive has the objective to provide a high level of protection against unfair commercial practices between business and consumers in the internal market and to promote market integration in Europe. The European Commission’s most recent Guidance in 2021 to its Unfair Commercial Practices Directive, replacing its previous Guidance in 2016, clarifies what amounts to unfair commercial practices in the digital world. The submission notes the wider purpose that the Consultation Regulation Impact Statement seeks to achieve, that is, to protect consumers and small business from harms emanating from digital patterns and digital engagement practices.