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Businesses risk million-dollar fines if they breach new law

11th May 2012

Many local retailers and manufacturers are still unaware of their obligations under the new Australian Consumer Law (ACL), which replaced the old Trade Practices Act at the beginning of last year. This new law applies nationally and to all business sectors and covers a range of rights and obligations that businesses must comply with or they risk heavy fines.

BMO Practice Manager Barry Jordan says it’s important for all businesses who supply goods or services to be aware of the risks of not meeting the new guidelines.

“Employers need to know their obligations and meet the guidelines of this law as they can face significant fines. Although the law has been in effect since January 2011, many businesses are still not aware of its implications.

“This law affects every retailer, manufacturer and supplier of goods and services, and has new powers and penalties, including fines of up to $1.1 million for corporations and $220,000 for individuals who are found in breach,” says Mr Jordan.

Mr Jordan urges every business to recognise their responsibilities and seek professional advice to ensure their business is protected.

The Australian Consumer Law includes general standards of business conduct, prohibits harmful practices, regulates specific types of business–to–consumer transactions, provides basic consumer rights for goods and services, and regulates the safety of consumer products and product-related services. It also includes a new framework for unfair contract terms, consumer guarantees, and product safety and sales practices.

As part of informing local businesses about this new law, BMO will be featuring the topic at this month’s Breakfast at BMO on Wednesday 23 May. This event is complimentary and anyone interested in learning more about the new consumer guidelines is welcome to attend. Places are limited though, so please RSVP today by phoning 07 4662 3722. You can also visit www.bmo.com.au for further details.

(Barry will explain to guests at the Breakfast at BMO their responsibilities as a business).

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