Consumer Law Reform

1035 Words5 Pages
Assess the success of law reform in protecting the rights of consumers. The concept of the rule of law indicates that the law must accurately reflect the current social, cultural, moral, political and economic values of the society in which it governs, in order for it to be publicly acceptable and hence effective. Contemporary and early developments in common and statute law in relation to consumers have reflected these issues of changing social values, the changing composition of Australian society, new concepts of justice, the failure of existing law, the influences of international law, and the introduction of new technology. The role of separate government organisations, law reform commissions, the media and consumer- specific lobby…show more content…
Moreover, the introduction of the Australian Securities and Investment Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC) aimed to lead to greater enforcement of the law and prosecution of those who break the law. Due to their enhanced regulation of the market place, they have participated in numerous prosecutions, all of which seek to enhance and protect consumer rights. An example of this is ACCC v Vissy Industries and Others [2007], in which Vissy was fined by the ACCC a record $36 million for insider trading, highlighting the ACCC’s effectiveness in prosecuting breaches of the law. Another example including the ACCC is ACCC vs. Jeune International PTY LTD (2008), where the company Jeune International was punished for displaying the “Product of Australia” logo without the permission of the body that awards this certification, resulting in consumer rights being strongly…show more content…
However there are still many contemporary issues concerning consumers, in particular marketing and technology (if needed). Marketing is a way companies create interest in their product, and the internet has led to the growth of fraudulent behavior, most notably SPAM and the Pyramid Schemes. Marketing and advertising through misleading advertising, offering prizes and gifts, the use of bait advertising although illegal is a very large problem. Although the ACCC does prosecute false and misleading advertising eg ACCC vs Nissan motors, they have only limited resources and a lack of severe penalties and as a consequence many people continue to break the law. Similarly, technology has had a significant impact on how laws have had to be created and reformed in order to protect the rights of consumers. The main problem associated with technology is the lack of regulation in the environment, making consumers particularly vulnerable to illegal practices, as well as the lack of international jurisdiction. Law reform has led to arrest warrants and extradition treaties being able to be issued, and assets of a foreign online marketer can be frozen if information is obtained about their location, amongst many other legal responses, and hence the legal system generally offers adequate protection against the misuse of
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