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2010-2011-2012-2013
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
COMPETITION AND CONSUMER AMENDMENT BILL 2013
EXPLANATORY MEMORANDUM
(Circulated by the authority of the Assistant Treasurer, Minister Assisting for
Deregulation, the Hon David Bradbury MP)
Table of contents
Glossary .................................................................................................. 5
General outline and financial impact ....................................................... 7
Chapter 1 An amendment relating to the component
pricing requirement in the Australian Consumer
Law ............................................................................... 9
Chapter 2 Statement of Compatibility with Human Rights ............ 13
Index ..................................................................................................... 15
3
Glossary
The following abbreviations and acronyms are used throughout this
explanatory memorandum.
Abbreviation Definition
ACL Australian Consumer Law
Bill Competition and Consumer Amendment
Bill 2013
CCA Competition and Consumer Act 2010
IGA The Intergovernmental Agreement for the
Australian Consumer Law 2009
PC Productivity Commission
Report Annual Review of Regulatory Burdens on
Business: Business and Consumer Services,
Productivity Commission, 2010
5
General outline and financial impact
An amendment relating to the component pricing requirement
in the Australian Consumer Law
The Competition and Consumer Amendment Bill 2013 (Bill) amends the
Competition and Consumer Act 2010 (CCA) to insert a
regulations-making power to enable regulations to be made to exempt
certain representations from the component pricing requirement in the
Australian Consumer Law (ACL) (Schedule 2 of the CCA).
The amendment will allow a regulation to be made to place restaurant and
café menu surcharges for specific days outside of the component pricing
requirement in the ACL.
Date of effect: The amendment applies on the day after this Act receives
the Royal Assent.
Proposal announced: This proposal was announced in the Australian
Government's response to the Productivity Commission's (PC) Annual
Review of Regulatory Burdens on Business: Business and Consumer
Services 2010 (Report), on 13 September 2011.
Financial impact: Nil.
Compliance cost impact: The amendment will enable regulations to be
made which will reduce the regulatory burden on small businesses in the
restaurant and café sector, as identified in the PC Report.
Human rights implications: This Bill does not raise any human rights
issues.
7
An amendment relating to the component
pricing requirement in the Australian
Consumer Law
Outline of chapter
1.1 The Competition and Consumer Amendment Bill 2013 (Bill)
amends the component pricing provision of the Australian Consumer Law
(ACL), located in Schedule 2 of the Competition and Consumer Act 2010
(CCA), by inserting a regulations-making power.
1.2 The regulations-making power will allow a regulation to be
made to prescribe that restaurant and café menu surcharges for specific
days are placed outside of the component pricing requirement if
conditions relating to disclosure, prominence and transparency are
satisfied.
Context of reform
1.3 The amendment contained in this Bill gives effect to the
Australian Government's response to a recommendation of the
Productivity Commission (PC) in its 2010 Annual Review of Regulatory
Burdens on Business: Business and Consumer Services (Report).
1.4 In the Report, the PC recommended that `The Australian
Government should amend the Trade Practices Act 1974 to have
restaurant and café menu surcharges for specific days placed outside the
scope of the component pricing provision of that legislation'.
1.5 On 1 January 2011, the Trade Practices Act 1974 was renamed
the CCA, with the component pricing provision located in section 48 of
the ACL -- Schedule 2 to the CCA.
1.6 The amendment to the CCA will enable regulations to be made
to exempt restaurants and café menu surcharges for specific days from the
component pricing provision in the ACL, if conditions relating to
disclosure, prominence and transparency are satisfied.
9
Competition and Consumer Amendment Bill 2013
1.7 The amendment will enable regulations to be made which will
reduce the regulatory burden on small businesses in the restaurant and
café sector, as identified in the PC Report.
Consultation process
1.8 The consultation process on the amendment to the CCA
involved two levels of consultations -- (i) consultations with the public;
and (ii) consultations with State and Territory Consumer Affairs
Ministers.
Public consultations
1.9 The public consultation process involved the Treasury publicly
releasing an exposure draft Bill via its website, inviting comments from
interested parties. The public consultation period ran for six weeks and
closed on 18 January 2013.
1.10 A total of nine submissions were received, which are available
on the website (see www.treasury.gov.au).
1.11 These public consultations complemented the targeted
consultations that were conducted by Victoria and New South Wales in
early 2012.
State and Territory Consumer Affairs Ministers consultations
1.12 Pursuant to the State and Territory consultation requirements in
Clause 11 of the Intergovernmental Agreement for the Australian
Consumer Law 2009 (IGA), the Commonwealth consulted State and
Territory Consumer Affairs Ministers on the proposed amendment to the
CCA.
1.13 Clause 19 of the IGA provides that, before the Commonwealth
can introduce a Bill into the Commonwealth Parliament to amend the
ACL, the support of four other jurisdictions, including at least three States
is required.
1.14 In May 2013, the Commonwealth received the requisite State
and Territory support in favour of the proposed amendment.
10
An amendment relating to the component pricing requirement in the Australian Consumer Law
Comparison of key features of new law and current law
New law Current law
Inserts a regulations-making The component pricing requirement in the
power to enable regulations to ACL applies to all persons in trade or
be made to exempt certain commerce. No regulations-making power
representations from the currently exists.
component pricing
requirement in the ACL.
Detailed explanation of new law
1.15 Section 48 of the ACL prohibits a person in trade or commerce
from representing a component of a price when making a representation
about the price of a good or service, without also prominently specifying
the single figure price a person must pay to obtain the good or service, to
the extent that a single figure price (total price) is quantifiable at the time
of making a representation.
1.16 The Bill amends the component pricing provision (section 48) in
the ACL to insert a regulations-making power, which will enable
conditional exemptions to be prescribed in the Competition and Consumer
Regulations 2010. [Schedule 1, item 1]
1.17 The amendment to the CCA will enable regulations to be made
to exempt a class of representations from the component pricing
requirement in the ACL. [Schedule 1, item 1, paragraph 48(4A)(a)]
1.18 The amendment to the CCA will enable regulations to prescribe
conditions in relation to a class of representations that must be complied
with to obtain the benefit of an exemption. [Schedule 1, item 1,
paragraph 48(4A)(b)]
1.19 Following the Royal Assent, it is proposed that a regulation will
be made to prescribe an exemption to restaurant and café menu surcharges
for specific days from the component pricing provision in the ACL, if
conditions relating to disclosure, prominence and transparency are
satisfied.
11
Statement of Compatibility with Human
Rights
Prepared in accordance with Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011
Competition and Consumer Amendment Bill 2013
2.1 The Competition and Consumer Amendment Bill 2013 (Bill) is
compatible with the human rights and freedoms recognised or declared in
the international instruments listed in section 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011.
Overview
2.2 The Bill amends the Competition and Consumer Act 2010
(CCA) to insert a regulations-making power to enable regulations to be
made to exempt certain representations from the component pricing
requirement in the Australian Consumer Law (ACL) (Schedule 2 of the
CCA).
Human rights implications
2.3 This Bill does not engage any of the applicable rights or
freedoms.
Conclusion
2.4 This Bill is compatible with human rights as it does not raise any
human rights issues.
The Hon David Bradbury MP, the Assistant Treasurer, Minister
Assisting for Deregulation
13
Index
Schedule 1: Amendments
Bill reference Paragraph number
Item 1 1.16
Item 1, paragraph 48(4A)(a) 1.17
Item 1, paragraph 48(4A)(b) 1.18
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