Overview

This bill makes it a criminal offence to engage in unconscionable conduct in trade or commerce. This means businesses will be held accountable for unfair or exploitative practices, regardless of whether a contract was signed willingly. Penalties include fines and imprisonment.

Description

The Unconscionable Conduct in Commerce Bill criminalizes unconscionable conduct in trade or commerce. This means actions that are considered extremely unfair or exploitative towards consumers.

Key Aspects:

• Definition of Unconscionable Conduct: The bill doesn't provide a precise definition, instead leaving it to the courts to determine based on a range of factors (see below).
• Penalties: Penalties vary depending on the jurisdiction (England and Wales, Scotland, or Northern Ireland) and whether the case is heard summarily or on indictment. Penalties can range from fines to up to 7 years imprisonment.
• Compensation Orders: Courts can order compensation for victims of unconscionable conduct.
• Factors Considered by Courts: Courts will consider various factors when determining if conduct is unconscionable, including:
  • The terms of any contract.
  • How a contract is executed.
  • Relative bargaining power of the parties.
  • Whether undue pressure or unfair tactics were used.
  • Whether the customer understood relevant documents.
  • The supplier's conduct in similar transactions.
  • Compliance with industry codes.
  • Disclosure of risks and information to the customer.
  • Willingness to negotiate contract terms.
  • Whether parties acted in good faith.
• Applicability: The bill applies to systems of conduct or patterns of behaviour, even if no specific individual is identified as disadvantaged. It applies even if a contract was entered into voluntarily.

Government Spending

The bill doesn't directly specify any increase or decrease in government spending. The costs associated with enforcing the new law (courts, investigations) would be a cost to the government.

Groups Affected

• Businesses: Businesses will be directly affected, needing to ensure their conduct is fair and does not qualify as unconscionable. Non-compliance could lead to legal consequences.
• Consumers: Consumers will benefit from increased protection against unfair business practices, enabling them to pursue legal remedies for exploitative behaviour.
• Courts: Courts will have the responsibility of interpreting the law and deciding individual cases, likely leading to an increased workload.

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