explanatory STATEMENT
Select Legislative Instrument 2010 No. 305
Issued by the Authority of the Parliamentary Secretary to the Treasurer
Trade Practices Amendment (Australian Consumer Law) Act (No. 2) 2010
Trade Practices Amendment (Australian Consumer Law – Corded Internal Window Coverings) Transitional Regulations 2010
Clause 12 of Schedule 7 to the Trade Practices Amendment (Australian Consumer Law) Act (No. 2) 2010 (the ACL) provides that the Governor‑General may make regulations prescribing matters of a transitional, application or saving nature in relation to the amendments and repeals made by the Schedules of the ACL.
Clause 106 of Schedule 1 to the ACL provides that a person must not, in trade or commerce, offer to supply consumer goods of a particular kind if a safety standard for consumer goods of that kind is in force and those goods do not comply with the standard. The clause also provides that a person must not, in or for the purposes of trade or commerce, manufacture, possess or have control of consumer goods if the supply of the consumer goods is prohibited by the clause.
Subclause 104(2) of Schedule 1 provides that a safety standard for consumer goods of a particular kind may consist of such requirements as are reasonably necessary to prevent or reduce risk of injury to any person. These requirements may relate to, among other things, contents, design, packaging of consumer goods, and the form and content of warnings or instructions to accompany the consumer goods.
The purpose of the Regulations is to save State and Territory regulatory instruments under the ACL related to corded internal window coverings when the ACL takes effect on 1 January 2011. Saving the State and Territory regulatory instruments under the ACL ensures that the Trade Practices (Consumer Product Safety Standard – Corded Internal Window Coverings) Amendment Regulations 2010 (No. 1), which have been made at the same time as these Regulations, has effect under the ACL.
The ACL changes the name of the Trade Practices Act 1974 (the TP Act) to the Competition and Consumer Act 2010 on 1 January 2011 and replaces the existing Schedule 2 to the TP Act with an expanded Schedule 2 including a new section 104 – Making safety standards for consumer goods and product related services. The effect of the Regulations is that, for the period from 1 January 2011 to 30 June 2011, an existing State or Territory regulation for corded internal window coverings will continue to apply as if it was made under section 104 of the Competition and Consumer Act 2010.
Details of the Regulations are in Attachment A.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003. For the purposes of section 17 of that Act, corded internal window covering suppliers have been consulted prior to developing the Regulations and have agreed to the additional time to continue selling stock which complies with the State and Territory regulations.
The Regulations commence on 1 January 2011.
ATTACHMENT A
Details of the Trade Practices Amendment (Australian Consumer Law – Corded Internal Window Coverings) Transitional Regulations 2010.
Regulation 1 – Name of Regulations
This regulation provides that the name of the Regulations is the Trade Practices Amendment (Australian Consumer Law – Corded Internal Window Coverings) Transitional Regulations 2010.
Regulation 2 – Commencement
This regulation provides that the Regulations commence on 1 January 2011.
Regulation 3 – Transitional
This regulation provides that starting on 1 January 2011 and ending at the end of 30 June 2011, a State or Territory instrument or provision of an instrument, as listed in the Regulations, has the effect in the State or Territory in which it was made as if it were a safety standard made under section 104 of the Competition and Consumer Act 2010. This regulation applies despite the amendment of a law of a State or Territory in relation to the enactment of the Trade Practices Amendment (Australian Consumer Law) Act (No.2) 2010.
Overview
The Trade Practices Amendment (Australian Consumer Law – Corded Internal Window Coverings) Transitional Regulations 2010 were enacted to address transitional issues arising from the implementation of the Australian Consumer Law (ACL) as part of the Trade Practices Amendment (Australian Consumer Law) Act (No. 2) 2010. This Act, passed by the Parliament of Australia, aimed to harmonise consumer protection laws across Australia by replacing the Trade Practices Act 1974 with the Competition and Consumer Act 2010, and incorporating the Australian Consumer Law into this new Act. Specifically, the Regulations were designed to ensure a smooth transition concerning safety standards for corded internal window coverings, preserving the existing State and Territory regulations for a period until 30 June 2011. The objective was to maintain consumer safety and provide adequate time for suppliers to adjust to the new legislative framework without compromising on product safety standards.
Scope and Application
The Trade Practices Amendment (Australian Consumer Law – Corded Internal Window Coverings) Transitional Regulations 2010 applies to suppliers of corded internal window coverings, ensuring a smooth transition as the Trade Practices Amendment (Australian Consumer Law) Act (No. 2) 2010 takes effect on 1 January 2011. These Regulations are designed to preserve the existing State and Territory regulatory instruments under the Australian Consumer Law (ACL) for a transitional period, specifically until 30 June 2011. This transitional arrangement is essential to allow suppliers the additional time needed to sell existing stock that complies with pre-existing safety standards, thereby preventing potential disruptions in the market due to the legislative changes. The Regulations apply Commonwealth-wide, ensuring uniformity across all states and territories, and are a legislative instrument under the Legislative Instruments Act 2003. Corded internal window covering suppliers were consulted prior to the development of these Regulations, and they have agreed to the additional transitional period.
Key Provisions
The Trade Practices Amendment (Australian Consumer Law – Corded Internal Window Coverings) Transitional Regulations 2010 (Regulations) are designed to facilitate a smooth transition in the regulation of corded internal window coverings under the Australian Consumer Law (ACL) from 1 January 2011. Regulation 2 specifies that the Regulations commence on this date, while Regulation 3 details the transitional arrangements. This regulation ensures that State and Territory regulations related to corded internal window coverings, as listed in the Regulations, continue to apply until 30 June 2011, as if they were made under section 104 of the Competition and Consumer Act 2010. This transitional period allows for the alignment of these regulations with the new framework established by the ACL.
Under the ACL, as amended by the Trade Practices Amendment (Australian Consumer Law) Act (No. 2) 2010, there are specific prohibitions and requirements concerning the supply of consumer goods that do not comply with safety standards. For instance, clause 106 of Schedule 1 to the ACL prohibits the offer to supply, manufacture, possession, or control of consumer goods in trade or commerce if a safety standard for those goods is in force and the goods do not comply with that standard. Subclause 104(2) of Schedule 1 further explains that safety standards may include requirements necessary to prevent or reduce the risk of injury, covering aspects such as the contents, design, packaging, and warnings or instructions accompanying the goods.
The Regulations impose transitional obligations on parties involved in the supply of corded internal window coverings. These obligations ensure that existing State and Territory regulations continue to apply as if they were made under the new ACL framework until 30 June 2011. This transitional application allows suppliers to continue selling stock that complies with the existing regulations without immediate need to comply with new standards. Additionally, these Regulations are intended to ensure that there is no gap in regulation during the period of transition, thereby protecting consumers and maintaining safety standards.
Breaches of the ACL, particularly the prohibitions outlined in clause 106 of Schedule 1, can lead to significant consequences. Offences under the ACL can result in both civil and criminal penalties. For corporations, the maximum penalty for an offence involving consumer goods can be substantial, with fines up to $1.1 million for each contravention. Individuals involved in such breaches can also face penalties, including fines and imprisonment. The severity of these penalties underscores the importance of compliance with the ACL's provisions, particularly in ensuring that consumer goods meet the necessary safety standards.