Trade Practices Amendment Act 1992

Legislation au C2004A04397 Not in force Act

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Trade Practices Amendment Act 1992

No. 106 of 1992

 

An Act to amend the Trade Practices Act 1974 to provide for the compensation of persons who suffer loss caused by defective goods, and for related purposes

[Assented to 9 July 1992]

The Parliament of Australia enacts:

Short title etc.

1.(1) This Act may be cited as the Trade Practices Amendment Act 1992.

(2) In this Act, "Principal Act" means the Trade Practices Act 19741.

Commencement

2.  This Act commences on the day on which it receives the Royal Assent.


Application

3. Part VA of the Principal Act as amended by this Act applies to goods supplied by their manufacturer after the commencement of this Act ("supplied" and "manufacturer" having the same meanings as in that Part).

4. After Part V of the Principal Act the following Part is inserted:

 

"PART VA—LIABILITY OF MANUFACTURERS AND IMPORTERS FOR DEFECTIVE GOODS

Interpretation

"75AA. In this Part:

'action goods', in relation to a liability action, means the goods whose supply and defect is alleged in the action;

'Commonwealth mandatory standard', in relation to goods, means a mandatory standard in respect of the goods imposed by a law of the Commonwealth;

'defendant', in relation to a liability action, means a person against whom the action is brought (however described);

'liability action' means an action under section 75AD, 75AE, 75AF or 75AG and includes such an action because of paragraph 75AD(f) or section 75AH;

'loss' includes damage;

'mandatory standard', in relation to goods, means a standard:

(a) for the goods or anything relating to the goods; and

(b) that, under a law of the Commonwealth, a State or a Territory, must be complied with when the goods are supplied by their manufacturer, being a law creating an offence or liability where there is such non-compliance;

but does not include a standard which may be complied with by meeting a higher standard;

'manufactured' includes grown, extracted, produced, processed and assembled;

'plaintiff', in relation to a liability action, means the person by whom the action is brought (however described);

'use' includes consume.

Certain interpretation provisions (importers and others taken to be manufacturers etc.) apply to this Part

"75AB. Subsections 74A(3) to (8) (inclusive) operate as if references in them to Division 2A of Part V included references to this Part.


Meaning of goods having defect

"75AC.(1) For the purposes of this Part, goods have a defect if their safety is not such as persons generally are entitled to expect.

"(2) In determining the extent of the safety of goods, regard is to be given to all relevant circumstances including:

(a) the manner in which, and the purposes for which, they have been marketed; and

(b) their packaging; and

(c) the use of any mark in relation to them; and

(d) any instructions for,

Overview

The Trade Practices Amendment Act 1992 (No. 106 of 1992) was enacted by the Parliament of Australia to address the gap in consumer protection by providing compensation for individuals who suffer loss due to defective goods. This Act amends the Trade Practices Act 1974 to introduce provisions that hold manufacturers and importers liable for compensating individuals and others who suffer loss as a result of defective goods. The policy objective of this legislation is to ensure that consumers who are harmed by defective products can seek compensation from the corporations responsible for manufacturing or supplying those products. The Act outlines the circumstances under which a corporation can be held liable, including instances where the defect was not discoverable at the time of supply due to the state of scientific or technical knowledge. It also establishes the rights of individuals and others to bring actions for compensation, including provisions for the survival of causes of action and the application of statutes of limitation.

Scope and Application

The Trade Practices Amendment Act 1992 amends the Trade Practices Act 1974 to introduce provisions regarding the liability of manufacturers and importers for defective goods. The Act applies to goods supplied by their manufacturer after the commencement of this Act. It establishes liability for corporations that supply defective goods in trade or commerce, which are defined as goods whose safety is not such as persons generally are entitled to expect. The Act applies nationally as it is a Commonwealth Act, and its provisions cannot be excluded, restricted, or modified by contract terms. It also provides for the survival of liability actions in cases of death and excludes liability where workers' compensation or laws giving effect to international agreements apply. The Act allows for the commencement of actions within three years of the plaintiff becoming aware, or ought reasonably to have become aware, of the loss, defect, and identity of the manufacturer, but no later than ten years from the supply of the goods by the manufacturer. The Act does not exclude or limit the concurrent operation of other laws, and any term in a contract that purports to exclude, restrict, or modify the application of this Act is void. The Australian Trade Practices Commission can commence liability actions on behalf of individuals who have suffered loss due to defective goods, with their written consent.

Key Provisions

  • The Trade Practices Amendment Act 1992 introduces significant changes to the Trade Practices Act 1974, primarily through the introduction of Part VA. This new Part imposes liability on manufacturers and importers for defective goods, extending beyond the original scope of the Act. Section 75AA provides essential definitions for terms such as "action goods," "defendant," "liability action," and "plaintiff," among others. These definitions are crucial for understanding the scope and application of the Act's provisions.
  • The Act imposes several obligations on manufacturers and importers of goods. Under Section 75AD, a corporation is liable to compensate an individual who suffers injuries due to a defect in goods it has supplied. Similarly, under Section 75AE, a corporation is liable to compensate a person who suffers loss due to injuries caused by defective goods, provided the loss is not a result of a business relationship with the injured individual. Section 75AF imposes liability for loss relating to other goods destroyed or damaged by a defect, while Section 75AG imposes liability for loss relating to buildings or land damaged by defective goods. These sections collectively ensure that manufacturers and importers take responsibility for the safety of the goods they supply.
  • Failure to comply with the provisions of this Act can lead to significant consequences. While specific penalties are not detailed within the text, it is understood that breach of these provisions could result in civil liability for compensation, as outlined in the liability sections (75AD to 75AG). Additionally, the Act mandates that any contract term attempting to exclude or restrict the application of these provisions is void under Section 75AP. Furthermore, Section 75AQ empowers the Trade Practices Commission to commence liability actions on behalf of affected individuals, provided written consent is obtained from those individuals. These mechanisms underscore the seriousness with which the Act treats compliance with its provisions.

Legal classification tags

Area of Law
Consumer Law
Commercial Law
Instrument
Act
Concepts
Definitions & Interpretation
Offence Provisions
Liability for defective goods causing injuries—loss by injured individual
Liability for defective goods causing injuries—loss by person other than injured individual
Prohibited Conduct

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.