Ai Group welcomed the opportunity to make a submission on the Consultation Regulation Impact Statement: Improving the effectiveness of the consumer guarantee and supplier indemnification provisions under the Australian Consumer Law (CRIS) by Treasury.

As previously stated during the CAANZ Australian Consumer Law (ACL) Review, we consider that overall the ACL framework has been functioning well. We also stated that we supported minimal changes that will improve and clarify the application of the ACL, strike a fairer balance between the rights of consumers and industry, and hence benefit both consumers and industry in the long term. We continue to stand by that position.

For the purposes of this latest consultation, we are particularly interested in ways that the ACL can be clarified, with non-regulatory options considered in the first instance and how they can be effectively implemented such as improved education and guidance to consumers and industry. However, we do not support the automatic introduction of new or increased penalties and enforcement mechanisms, which can have unintended consequences, not necessarily addressing underlying issues, and impose unnecessary complexity, burden and costs for businesses and regulators. This is particularly important now, given this period of economic recovery from the pandemic.