Welcome to the Latest Edition of the Addisons Direct Selling
2013 has seen many interesting developments which impact upon
the direct selling sector from a legal and regulatory perspective.
In this edition, we highlight and comment upon some of these
developments and their implications for the direct selling
Set out below is an overview of the matters appearing in our
Direct Selling Legal Update.
Unsolicited Consumer Agreements and the Australian Consumer Law
- Federal Court Determines That "Do Not Knock" Signs are
a Request to Leave
A landmark decision of the Federal Court on 11 October 2013
examines, for the first time in Australia, the issue of what
constitutes a "request" to leave premises for the
purposes of section 75 of the Australian Consumer Law
(ACL). In ACCC v AGL Sales, Middleton J held that
a "request" to leave the premises under section 75 of the
ACL can include the display of a "Do Not Knock" sign on
the front door of the premises.
Privacy – new obligations – is your company
Significant changes to Australian privacy law will take effect
in March 2014. We take a look at what these reforms mean for your
company and what steps your company should be taking now in order
to comply fully by March 2014.
Full Federal Court considers when independent contractors will
be deemed employees - Ace Insurance Limited v Trifunovski
The question of whether a worker is an employee or contractor is
often a grey area of law but particularly relevant to direct
selling companies and the salesforce they engage. This issue was
considered in detail by the Full Federal Court in Ace Insurance
Limited v Trifunovski .
Recent Developments in respect of Consumer Guarantees –
Hewlett Packard ordered by the Federal Court to pay a pecuniary
penalty of $3 million - Have you reviewed and updated your refunds
and return policy and any satisfaction guarantee you provide?
In our October 2012 Direct Selling Legal Update, we outlined the
new warranty against defects requirements contained in the ACL.
Following on from this, we look at a recent ACCC enforcement action
in which the Federal Court ordered Hewlett Packard to pay a penalty
of $3 million in respect of false and misleading representations
concerning the consumer guarantee rights in the ACL.
ACCC Negotiates Cosmetics Recall with Suppliers
The ACCC has recently negotiated with suppliers the recall of
three cosmetic products after a product safety survey indicated
that the products contained dangerous levels of microbial
contamination. Microbial contamination can cause diseases and
Foodies Beware! - ACCC Cracks Down on Misleading and Deceptive
In recent times, it is well recognised that consumers are
prepared to pay more for food products that have
"organic" qualities or have been manufactured, treated or
prepared in an ethically humane manner. It is not surprising that
the ACCC have cracked down significantly on the use of
"credence" claims, such as "organic",
emphasising that these types of claims are an enforcement priority
and that it will continue to investigate actively any credence
claims that are misleading and deceptive and will take action where
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The Sportscraft refunds and returns policy limitations went beyond consumer's rights under the Australian Consumer Law.
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