Key Takeaways

The current penalties under the CCA and ACL carry a maximum penalty of:

• $50 million, or
• 3 times the benefit obtained, or
• 30% of adjusted turnover during the breach period,

whichever is greatest.

Under the Bill, the penalty of $50 million will increase to $100 million.

Consumer protection laws, product safety and information standards, competition law, sector‑specific markets (digital platforms, telecommunications, gas, electricity) and criminal penalties for cartel conduct will all be impacted.

Consumer Protection Law – Australian Consumer Law (ACL)

The Bill doubles penalties for a wide suite of ACL offences. The changes affect the following:

False or Misleading Conduct

• False or misleading representations about goods, services or land
• Misleading conduct relating to employment
• Misleading claims about business activities.

Unconscionable Conduct

• Under both statute and the unwritten law.

Unfair Contract Terms

• Introducing or applying unfair terms in standard form consumer or small‑business contracts.

Unfair Practices

• Bait advertising
• Accepting payment without intending to supply
• Referral selling
• Harassment or coercion
• Unsolicited goods and services
• Pyramid schemes.

Product Safety & Standards

• Supplying goods/services that breach safety standards
• Supplying goods/services subject to a ban
• Failing to comply with recall notices
• Supplying goods/services that breach information standards.

Pricing and Advertising

• Advertising only part of a single price (relevant to ‘drip pricing’).

Competition Law – Anti‑Competitive Conduct

The uplift relates to core competition law prohibitions, with maximum penalties increasing from $50 million to $100 million per contravention, alongside existing alternative turnover‑based tests.

Conduct affected includes:

• Cartel conduct (making or giving effect to cartel provisions)
• Anti‑competitive agreements
• Misuse of market power (s.46)
• Exclusive dealing and third‑line forcing (s.47)
• Resale price maintenance (s.48)
• Anti‑competitive mergers (ss.50, 50A)
• Price fixing or collusion in regulated sectors, including:
  • Telecommunications (Part XIB)
  • Electricity (Part XICA)
  • Gas market instruments (Part IVBB)
  • Digital platforms mandatory bargaining code (Part IVBA).

The penalty for contraventions of the telecommunications competition rule increases to $100 million plus $1 million per day (or more for extended breaches).

Corporate Criminal Liability

The Bill also doubles maximum criminal fines for:

• Cartel offences under sections 45AF and 45AG of the CCA, and
• Numerous existing ACL criminal offences.

What should a business do?

Given the anticipated increase to penalties under the CCA and ACL, businesses should consider the following:

• Review risk exposure across all areas of the ACL and CCA that now carry $100 million+ penalties
• Review their insurance coverage
• Prioritise compliance in:
  • Advertising and claims
  • Contract terms
  • Pricing practices
  • Supply chain representations.
• Conduct sector‑specific reviews for telecoms, energy, media/digital platforms, and gas market participants
• Ensure corporate governance frameworks and resourcing reflects the significantly higher enforcement risks.

Should you wish to discuss this update, and changes to competition and consumer laws, please do not hesitate to contact authors Bill Fragos, Special Counsel, Christina Segaan, Senior Associate, or your usual contact at Moray & Agnew. They also deliver presentations and training to clients on competition law and consumer law and the implications of recent reforms.