Overview

This bill makes it a criminal offence to engage in unconscionable conduct in trade or commerce. This means businesses could face prosecution for unfair or exploitative practices towards consumers or other businesses. The bill provides a broad definition of what constitutes unconscionable conduct, allowing courts to consider a wide range of factors.

Description

The Unconscionable Conduct in Commerce Bill criminalizes unconscionable conduct in trade or commerce. This includes a wide array of potentially unfair practices. Penalties for conviction range from a fine and up to 12 months imprisonment (summary conviction) to an unlimited fine and up to 7 years imprisonment (on indictment). The court can also order compensation to victims. The bill considers both single instances of unconscionable conduct and patterns of behavior. Even if a contract was entered voluntarily, unconscionable conduct can still be prosecuted. The court can take into account a wide range of factors when determining if conduct is unconscionable, including:

• Bargaining power of parties
• Unfair pressure or tactics
• Understandability of contracts
• Availability of similar goods/services elsewhere
• Compliance with industry codes
• Disclosure of risks to the customer
• Willingness to negotiate contract terms
• Good faith of parties

Government Spending

The bill's impact on government spending is not explicitly stated. However, increased prosecutions and potential compensation payments could lead to increased costs for the justice system. The potential increase in government spending is unclear and would depend on the number of prosecutions.

Groups Affected

• Businesses: Businesses, particularly those engaging in potentially unfair practices, face the risk of prosecution and penalties. Smaller businesses may be disproportionately affected.
• Consumers: Consumers will potentially benefit from greater protection against unfair business practices and may be entitled to compensation in cases of unconscionable conduct.
• Courts and Law Enforcement: Increased workload for courts and law enforcement agencies is expected.

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