Australian Consumer Law Adrian Coorey BEc, LLB (Hons I) (Macq), LLM (Hons II) (Cantab), BCom (Macq) LexisNexis Butterworths Australia 2015 LexisNexis AUSTRALIA LexisNexis Butterworths 475–495 Victoria Avenue, Chatswood NSW 2067 On the internet at: www.lexisnexis.com.au ARGENTINA LexisNexis Argentina, BUENOS AIRES AUSTRIA LexisNexis Verlag ARD Orac GmbH & Co KG, VIENNA BRAZIL LexisNexis Latin America, SAO PAULO CANADA LexisNexis Canada, Markham, ONTARIO CHILE LexisNexis Chile, SANTIAGO CHINA LexisNexis China, BEIJING, SHANGHAI CZECH REPUBLIC Nakladatelství Orac sro, PRAGUE FRANCE LexisNexis SA, PARIS GERMANY LexisNexis Germany, FRANKFURT HONG KONG LexisNexis Hong Kong, HONG KONG HUNGARY HVG-Orac, BUDAPEST INDIA LexisNexis, NEW DELHI ITALY Dott A Giuffrè Editore SpA, MILAN JAPAN LexisNexis Japan KK, TOKYO KOREA LexisNexis, SEOUL MALAYSIA LexisNexis Malaysia Sdn Bhd, PETALING JAYA, SELANGOR NEW ZEALAND LexisNexis, WELLINGTON POLAND Wydawnictwo Prawnicze LexisNexis, WARSAW SINGAPORE LexisNexis, SINGAPORE SOUTH AFRICA LexisNexis Butterworths, DURBAN SWITZERLAND Staempfli Verlag AG, BERNE TAIWAN LexisNexis, TAIWAN UNITED KINGDOM LexisNexis UK, LONDON, EDINBURGH USA LexisNexis Group, New York, NEW YORK LexisNexis, Miamisburg, OHIO National Library of Australia Cataloguing-in-Publication entry Author: Coorey, Adrian. Title: Australian Consumer Law. Edition: First edition. ISBN: 9780409339031 (pbk). 9780409339048 (ebk). Notes: Includes index. Subjects: Consumer protection — Law and legislation — Australia. Dewey Number: 343.94071 © 2015 Reed International Books Australia Pty Limited trading as LexisNexis. This book is copyright. Except as permitted under the Copyright Act 1968 (Cth), no part of this publication may be reproduced by any process, electronic or otherwise, without the specific written permission of the copyright owner. Neither may information be stored electronically in any form whatsoever without such permission. Inquiries should be addressed to the publishers. Typeset in Myriad Pro, Minion Pro. Printed in China. Visit LexisNexis Butterworths at www.lexisnexis.com.au Foreword The year 2011 marked a major reform in consumer policy framework in Australia with the consolidation and replacement of 17 existing national, state and territory laws in one single national consumer law: the Australian Consumer Law (ACL). This piece of law created a uniform set of rights and obligations for all across states and territories and has become the cornerstone of consumer protection in Australia. This book offers a timely and comprehensive account of the ACL. It provides a clear outline of its legislative background and history, in-depth analysis of the provisions with references to well-selected case law and detailed analysis of the relevant enforcement powers and remedies. Perhaps the most widely-known consumer protection provisions are those dealing with misleading or deceptive conduct or misrepresentations made by persons. It is therefore fitting that the author has devoted four chapters to these specific provisions. Impressively, the author has examined these provisions in a wider context and provided an interesting comparison between the ACL provision on misleading or deceptive conduct with similar causes of actions in other areas of law, such as torts and contract. This offers an interesting and rare perspective on this key consumer protection provision to students of law and is of significant practical relevance to practitioners. I congratulate the author and the publisher on the publication of this important work on a subject that is of increasing significance in Australia. I have no doubt it will be an invaluable source of knowledge and assistance to all that study or practise in this area of law. Professor Allan Fels AO Former Chairman, Australian Competition and Consumer Commission 26 November 2014 Preface There is no doubt that the most significant change to consumer protection law in Australia since the enactment of the former Pt V of the Trade Practices Act 1974 (Cth) was the introduction of the Australian Consumer Law (ACL). The ACL commenced on 1 January 2011 and replaced 17 different laws on consumer protection. The ACL is a single, national consumer protection law that applies consistently in all Australian jurisdictions. The administrative provisions of the ACL are contained in Pts XI and XIAA of the Competition and Consumer Act 2010 (Cth) (CCA) and the substantive provisions are contained in Sch 2 of the CCA. The substantive provisions of the ACL are voluminous. Schedule 2 of the CCA contains 287 sections and is divided into five chapters, 20 Parts, 45 Divisions and 25 Sub-Divisions, and consists of over 67,000 words. The purpose of this book is to provide a clear, concise and comprehensive explanation of all key areas of the ACL, including the enforcement powers of the ACL regulators and the availability of private and public remedies. The book has been designed primarily to accommodate both undergraduate and postgraduate university students who study the ACL, and to aid legal researchers, staff of ACL regulators, lawyers and barristers who practise in this area. Readers should note that the book contains some attempts at humour and reference to famous musicians and movie characters, particularly in the hypothetical problem sections at the end of each chapter. I do not intend to offend anyone with what has been described to me as a ‘lawyer’s typical bad attempt to make a joke’. I sincerely apologise if anyone is offended by my light humour, offered in the hope that through the problems and exercises, readers will gain a better understanding of the ACL. All of the drafting and editing work of this book was done after working hours and on weekends. The book was written over a lengthy period of time and I am forever indebted to all who contributed to it. In particular, I am most grateful for the enormous amount of editing work that was done by Peter Renehan, Felicity Lee, Chris Xie, Jack Ducommun and the LexisNexis Butterworths editorial team. I thank you all for your dedication and hard work. However, the greatest sacrifices that were made while writing this book came from my two greatest loves of all time — my wonderful, darling wife, Dr Pornsakol Coorey, and my extra-super-special daughter, Catherine Coorey (Little C). I love you both always and forever. This book is dedicated to you both, as well as to my family, and especially to my mother and my late father, who worked tirelessly all of their lives to provide me with the best education they could afford. My father passed away while I was in the midst of writing this book. The passing of my father has been the greatest loss to our family and we will never forget him for being the best dad in the world. Adrian Coorey Sydney 29 November 2014 Publisher’s Note The scenarios described in the Hypothetical Problem Questions at the end of each chapter are entirely fictitious, and so are the characters in them. Any similarities between the characters’ names and those of famous people are purely for lighthearted amusement. Table of Cases References are to paragraphs 10th Cantanae Pty Ltd v Shoshana Pty Ltd (Sue Smith case) (1987) 79 ALR 299 …. 8.127, 8.128, 8.132 A Abundant Earth Pty Ltd v R & C Products Pty Ltd (1985) 59 ALR 211 …. 4.73 ACCC v 1Cellnet LLC [2005] FCA 856 …. 14.207 — v 4WD Systems Pty Ltd (2003) 200 ALR 491 …. 13.42, 13.47, 14.194 — v ABB Power Transmission [2004] FCA 819 …. 14.110 — v ABB Transmission and Distribution Ltd (No 2) (2002) 190 ALR 169 …. 14.22, 14.55, 14.60, 14.67, 14.100, 14.425, 14.426, 14.428 — v ACN 135 183 372 (in liq) (formerly known as Energy Watch Pty Ltd) [2012] FCA 749 …. 14.25, 14.82, 14.123 — v Adepto Publications Pty Ltd [2013] FCA 247 …. 8.92, 13.52, 13.75, 14.123 — v Advance Medical Institute Pty Ltd (admin apptd) [2011] FCA 103 …. 7.149 — v AGL Sales Pty Ltd [2013] FCA 1030 …. 14.87, 14.114 — v AI Constructions (ACT) Pty Ltd [2010] FCA 1377 …. 14.123 — v AirAsia Berhad Co [2012] FCA 1413 …. 9.192, 14.25, 14.123, 14.222, 14.232, 14.234, 14.235 — v Albert (2005) 223 ALR 467 …. 13.45, 13.50 — v Allergy Pathway Pty Ltd [2009] FCA 960 …. 3.11, 8.77, 13.375 — v — (No 2) [2011] FCA 74 …. 12.60, 12.61 — v Allphones Retail Pty Ltd (No 2) (2009) 253 ALR 324 …. 6.126, 13.81