Published Friday, 15 August, 2008 at 01:26 PM

Attorney-General and Minister for Justice and Minister Assisting the Premier in Western Queensland
The Honourable Kerry Shine

Queensland Acting to Protect Consumers from Unfair Contract Terms

Australia's consumer affairs Ministers have finalised a reform package to create a single law to regulate the national marketplace and enhance consumer protection, Queensland Attorney-General and Minister for Justice Kerry Shine said today.

Mr Shine said ministers attending the Ministerial Council on Consumer Affairs in Hobart had agreed to a package including agreement to act on contracts that unfairly penalise consumers.

“For some time Queensland has sought a consistent national consumer protection law and supports the inclusion of unfair contract term provisions,” Mr Shine said.

“The meeting also noted that there is a need to review implied warranty laws including the provision of ‘lemon laws’.

“Lemon laws protect consumers from defective new motor vehicles and would complement consumer protection currently offered to Queenslanders.”

Mr Shine said protection for consumers against unfair contract terms was a key focus of today's discussion.

“At present, if a person is faced with a contract that unfairly disadvantages the consumer, their only option is to walk away from the transaction.

“If they do sign, the consumer may be caught by terms that, for example, put unfair obligations on them or restrict their rights.

“It is important that individuals and regulators can take action where they believe contract terms are unfair, however any protections must balance the needs of both businesses and consumers.”

Mr Shine said Victoria was currently the only Australian jurisdiction with these provisions and similar protections existed in the United Kingdom.

“State and Commonwealth agencies will work together to develop a harmonised national arrangement for Australia's consumer policy framework,” Mr Shine said.

“I am determined to ensure that this new national scheme will not in any way diminish the protections Queensland consumers already have.

“I am proud to represent Queenslanders in these important national negotiations which will shape the future of our Federation.

“These reforms will build on the strong consumer protection regime already in place in Queensland and it will create a more integrated system of regulations throughout Australia.”

“The vast majority of consumer transactions are regulated by different fair trading acts in each State and this has led to different rules and unnecessary costs for both business and consumers.”

The package agreed today will now be put to the October meeting of the Council of Australian Governments (COAG) for endorsement.


Media contact: Troy Davies 3239 6400 or 0488 799 273