The first tranche of a bill currently sitting in the Senate would provide the ACCC with the ability to pursue civil action against entities that engage in misleading or deceptive conduct as opposed to just the criminal action it is able to take at the moment. According to Blake Dawson competition partner Ayman Guirguis, the Trade Practices Amendment (Australian Consumer Law) Bill 2009 would increase the number of actions taken by ACCC and result in more work for law firms.

“The test that the ACCC has to meet will go from beyond reasonable doubt to the balance of probabilities,” said Guirguis, who will be speaking on the subject at the upcoming ALB Masterclass in Sydney. “My view is that, in a practical sense, there will be a significant increase in the number of actions taken by the ACCC.”

Because of the higher threshold, the ACCC has been reluctant in the past to take criminal action against corporations that engage in misleading or deceptive conduct. Guirguis said that the regulator has only taken action in the most egregious of circumstances. “Now, it is more likely to take more actions particularly for those suppliers of goods or services that may engage in misleading or deceptive conduct repeatedly,” he said. “On the whole, it is likely to increase the amount of work we do with clients.”

The changes in the law were originally slated to take effect 1 January but Senate debate about the emissions trading scheme has delayed the legislation. It is now envisaged the law changes will come into effect from 1 July.

The ALB Masterclass series - Australian Consumer Law workshop will take place in Sydney, Melbourne and Brisbane in March and will cover all aspects of the new law as well as looking at the second tranche of legislation. To find out more click here