Online companies owe their customers a better job

In a speech to the Commission for Economic Development of Australia (CEDA) in March, she said consumer guarantees were the most common subject of complaints to the ACCC and every state and territory consumer agency.

Importantly, she said that while improving compliance with these guarantees is important, she signaled tougher rules so that companies face more severe penalties than just the obligation to offer a remedy such as a refund.

Strengthening regulations would bring Australia into line with the international community. The United States, the United Kingdom, the European Union and Singapore have stricter unfair trading prohibitions for business-to-consumer transactions.

Treasury is exploring reforming existing Australian consumer law to address unfair trading practices as small businesses and consumers increasingly interact with digital platforms.

While consultations are continuing, an initial statement issued by the Treasury last year highlighted the number of restrictions in existing law on companies’ obligations to disclose information about their practices and unfair conduct. It notes that the current regulatory framework prevents the ACCC from seeking penalties against businesses that fail to meet consumer guarantees.

We are facing a cost of living crisis. Household budgets are under pressure and it is unacceptable that the goods and services paid for are not delivered in good condition and within a reasonable time frame.

Putting the onus on consumers to pursue defaulting businesses, particularly those without a physical presence, is unfair and the impact on the reputation of businesses that actually deliver on time undermines consumer confidence.

Harbinger of the Sun supports the idea of ​​a reform that would replace the requirement for companies to only offer remedies with tougher financial penalties to encourage companies to improve their practices and treat customers with respect.

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