Laurie Ferguson (Reid, Australian Labor Party, Shadow Minister for Multicultural Affairs, Urban Development and Consumer Affairs) Share this | Link to this | Hansard source

In the decade or so since coming to power the Howard government has obsequiously followed the orthodoxies of neo-liberalism. Australian consumers have been amongst those hardest hit. Consumer protection policy has disappeared from the agenda of the federal government. What was surely amongst the pettiest of government actions, ranking with the abolition of dental assistance to pensioners, was that, upon taking power, the government adopted a scorched earth policy towards consumer organisations and agencies by systematically removing funding from virtually all policy related consumer advocacy.

My colleague the member for Melbourne aptly stated that this government has abolished the ministry of consumer affairs and rid itself of the Bureau of Consumer Affairs, shifting it into a tiny cubbyhole in Treasury and radically downgrading its resources. It has failed to act on a variety of significant consumer affairs issues, particularly with regard to emerging problems that are a consequence of changes in our economy and the introduction of the information economy—the internet, mobile phones and a variety of other services. It is not interested in acting because, ultimately, it has a studied indulgence towards interests that are out there trying to rip off consumers. For that reason, it would require a Labor government to take action for consumers. To this end, a Labor government will be examining options for the introduction of an unfair contracts regime based on the models in Victoria and the United Kingdom. Unfair contracts are a manifestation of harsh and unconscionable conduct. They usually take place when individuals enter into contracts with a larger entity, such as an employer or trading enterprise, without fully understanding the content of the contract or reading the small print.

Unfair contract terms help eliminate market distortion by enabling consumers to take action against misleading and deceptive conduct. Under the current Trade Practices Act, consumers who have entered into unfair contracts are only able to seek remedy through very expensive litigation by way of misleading and deceptive provisions of the TPA. Naturally the majority of consumers are unable to enter into such litigation. The Victorian regime makes any unfair contract void and allows the director of Consumer Affairs Victoria to declare whole classes of unfair contract terms void. Consumers are able to directly take disputes to the Victorian Civil Administrative Tribunal. Choice has said:

We think unfair contract terms should be banned by national laws which apply to all industries. Unfair contract terms legislation would give consumers the right to challenge the consequences of an unfair term affecting them, or obtain compensation where justified. It would enable regulatory authorities to force an organisation to remove an unfair contract term from its standard contracts.

In conclusion, Labor has a proud history of championing consumer rights. Our promise to Australian consumers is that a Rudd Labor government would reverse the insidious policies with regard to the consumer affairs of this government. An examination of ways to protect the people from unfair contracts will be a very high priority.