Commerce (Trade Descriptions) Amendment Act 1981
No. 151 of 1981
An Act to amend the Commerce (Trade Descriptions) Act 1905 in relation to the exportation of food
[Assented to 26 October 1981]
BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:
Short title, &c.
1. (1) This Act may be cited as the Commerce (Trade Descriptions) Amendment Act 1981.
(2) The Commerce (Trade Descriptions) Act 19051 is in this Act referred to as the Principal Act.
Commencement
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Penalty for applying false trade description of exports
3. (1) Section 12 of the Principal Act is amended by adding at the end thereof the following sub-sections:
“(2) A person who contravenes sub-section (1), where the description relates, or purports to relate, to food, is guilty of an indictable offence and, subject to this section, is punishable on conviction by a fine not exceeding $100,000 or imprisonment for a period not exceeding 5 years, or both.
“(3) Notwithstanding that an offence referred to in sub-section (2) is an indictable offence, a court of summary jurisdiction may hear and determine proceedings in respect of such an offence if the court is satisfied that it is proper to do so and the defendant and the prosecutor consent.
“(4) Where, in accordance with sub-section (3), a court of summary jurisdiction convicts a person of an offence referred to in sub-section (2), the penalty that the court may impose is a fine not exceeding $5,000 or imprisonment for a period not exceeding 1 year, or both.
“(5) A person who contravenes sub-section (1), otherwise than as mentioned in sub-section (2), is guilty of an offence and is punishable on conviction by a fine not exceeding $200.”.
(2) Section 12 of the Principal Act is amended by omitting “Penalty: Two hundred dollars.”.
NOTE
1. No. 16, 1905, as amended. For previous amendments, see No. 37, 1926; No. 15, 1930; No. 13, 1933; No. 80, 1950; No. 93, 1966; No. 216, 1973; and No. 61, 1981.
Overview
The Commerce (Trade Descriptions) Amendment Act 1981 was enacted to address the issue of false trade descriptions in the context of food exports, ensuring that Australian products are accurately represented in international markets. This Act amends the Commerce (Trade Descriptions) Act 1905 by introducing more stringent penalties for those who apply false trade descriptions to exported food products, aiming to uphold the integrity and reputation of Australian goods abroad. The Act was passed by the Queen, the Senate, and the House of Representatives of the Commonwealth of Australia, reflecting a legislative intent to strengthen compliance and enforcement against misleading trade descriptions in the export of food. The policy objective is to deter fraudulent practices by imposing significant fines and potential imprisonment, thereby safeguarding consumer trust and the commercial interests of Australian exporters.
Scope and Application
The Commerce (Trade Descriptions) Amendment Act 1981 amends the Commerce (Trade Descriptions) Act 1905 to extend its provisions to the exportation of food, ensuring that false trade descriptions concerning food products are regulated within Australia’s international trade activities. This Act applies to any person or entity involved in the export of food from Australia, thereby encompassing a wide range of industries including agriculture, manufacturing, and retail. It imposes stricter penalties for offences involving false trade descriptions related to food, with the potential for fines up to $100,000, imprisonment for up to five years, or both, if the offence is deemed indictable. Conversely, summary jurisdiction courts may impose lesser penalties of up to $5,000 in fines or one year in prison if the defendant and prosecutor consent. Non-food related false trade descriptions remain subject to a maximum fine of $200. The jurisdictional reach of the Act is nationwide, operating under the Commonwealth's legislative authority, and it does not specify any exclusions or thresholds beyond the differentiation between food and non-food related offences.
Key Provisions
The Commerce (Trade Descriptions) Amendment Act 1981 primarily focuses on amending the Commerce (Trade Descriptions) Act 1905 in relation to the exportation of food. Section 12 of the Principal Act is notably amended to introduce new penalties for applying false trade descriptions to exported food. Specifically, Section 12(2) now imposes an indictable offence for those who apply a false trade description to exported food, with penalties including a fine of up to $100,000, imprisonment for up to 5 years, or both. Additionally, Section 12(3) allows courts of summary jurisdiction to hear and determine such offences if both the defendant and prosecutor consent, with the court's penalties capped at a fine of up to $5,000, imprisonment for up to 1 year, or both. Finally, Section 12(4) reduces the penalty for general false trade descriptions to a fine of up to $200.
Under this Act, entities and individuals exporting food must ensure that all trade descriptions are accurate and truthful, avoiding any misleading information that could deceive consumers or regulatory bodies. This includes verifying that the product's origin, quality, and characteristics are correctly represented in all trade documentation and labelling. Failure to comply with these requirements can result in severe legal consequences, including fines and imprisonment for indictable offences, or fines for summary offences.
Breaching the provisions of this Act can lead to significant penalties. For example, applying false trade descriptions to exported food, as outlined in Section 12(2), can result in a fine of up to $100,000, imprisonment for up to 5 years, or both. If the matter is heard in a court of summary jurisdiction under Section 12(3), the penalties are reduced to a maximum fine of $5,000 or imprisonment for up to 1 year, or both. Furthermore, general false trade descriptions, as addressed in Section 12(4), are subject to a fine of up to $200. These stringent penalties underscore the importance of compliance with trade description laws to maintain consumer trust and regulatory integrity in food exports.