Overview

This bill aims to make 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 towards consumers. The bill outlines several factors a court would consider when determining whether conduct is unconscionable.

Description

The Unconscionable Conduct in Commerce Bill criminalizes unconscionable conduct by businesses in trade or commerce. This includes a wide range of actions, and applies even if a contract was voluntarily entered into, or if a specific individual isn't identified as harmed. Penalties for this offence vary across the UK, including potential imprisonment and/or fines. Courts can also order compensation for victims. The bill lists many factors a court should consider to determine whether conduct is unconscionable, including:

• Previous conduct or circumstances.
• The terms of a contract and how it was carried out.
• Relative bargaining power of parties.
• Unnecessary conditions imposed by suppliers.
• Undue influence or pressure exerted.
• Customer's understanding of documents.
• Availability of comparable goods/services elsewhere.
• Consistency of supplier’s conduct.
• Compliance with industry codes.
• Supplier's disclosure of potential risks.
• Willingness to negotiate contract terms.
• Good faith in dealings.

Government Spending

The bill does not directly specify government spending increases or decreases. However, the potential costs associated with enforcing the legislation, including investigations and court proceedings, may require additional resources. It is not specified how these costs will be met.

Groups Affected

This bill primarily impacts:

• Businesses: They could face criminal penalties for unfair trading practices.
• Consumers: They are intended to receive better protection from unfair business conduct and may be eligible for compensation.
• Courts and Law Enforcement: They will be responsible for investigating and prosecuting cases under the new legislation.

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