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 towards their customers, regardless of whether a contract was voluntarily entered into. Penalties include imprisonment and/or fines, as well as compensation orders for victims.

Description

The bill defines "unconscionable conduct" broadly, allowing courts to consider a wide range of factors. These include:

• Prior Conduct: Actions or circumstances preceding the bill's enactment.
• Systems of Conduct: Repetitive unfair practices, even without identifying specific victims.
• Contract Terms & Execution: The fairness of contractual terms and how the contract is implemented.
• Bargaining Power: The relative strength of the parties involved in a transaction.
• Unnecessary Conditions: Imposing conditions not reasonably necessary for the supplier's protection.
• Undue Influence & Pressure: Using unfair tactics, including unrealistic timescales, to pressure customers.
• Customer Understanding: Whether the customer understood relevant documents.
• Market Alternatives: The availability of comparable goods or services from other suppliers.
• Consistent Conduct: Whether the supplier acted similarly with other customers.
• Industry Codes: Compliance with relevant industry codes.
• Disclosure of Information: Failure to disclose potentially harmful information to the customer.
• Good Faith: Whether parties acted in good faith.

Penalties for unconscionable conduct vary depending on the court's jurisdiction and whether the case is heard summarily or on indictment. Compensation orders can also be issued to victims.

Government Spending

The bill doesn't directly specify government spending figures. However, implementing and enforcing the new law will likely involve costs associated with investigation, prosecution, and potential compensation payouts. The overall financial impact is uncertain and would depend on the number of cases brought to court.

Groups Affected

• Businesses: Businesses could face legal repercussions and financial penalties for engaging in unfair trading practices.
• Consumers: Consumers are the primary beneficiaries, receiving increased protection from exploitative business practices.
• Courts: Increased workload due to a potential rise in cases related to unconscionable conduct.
• Enforcement Agencies: Agencies such as trading standards will be responsible for investigating and prosecuting cases.

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