In our October 2009 issue, we addressed the Federal Government's Australian Consumer Law Initiative which was to take the form of amendments to the Trade Practices Act 1974, Australian Securities and Investments Commission Act 2001 and Corporations Act 2001. Broadly, the amendments were to come in two phases. Firstly, there were the unfair contract provisions which had implications for section 15 of the Insurance Contracts Act 1984 (see our October 2009 issue for details) and secondly, there were the amendments concerning product safety and consumer guarantees.
On 1 July 2010, the first phase of amendments came into force.
As to the second phase, on 24 June 2010, very quietly it would seem, the House of Representatives approved the amendments suggested by the Senate to the Trade Practices Amendment (Australian Consumer Law) Bill (No. 2) 2010. This second phase is expected to be operational by 1 January 2011.
We await with anticipation the issuance of the full text of the new Act which will be known as the Competition and Consumer Act 2010. At that time we will provide a detailed update of the most significant provisions and an analysis their implication for insureds and insurers alike.
Watch this space!
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