The creeping corporatisation of consumer guarantee remedial relief: Implications of Australian Competition and Consumer Commission v LG Electronics Australia Pty Ltd on the Australian Consumer Law

Yau, Barry (2019) The creeping corporatisation of consumer guarantee remedial relief: Implications of Australian Competition and Consumer Commission v LG Electronics Australia Pty Ltd on the Australian Consumer Law. Competition and Consumer Law Journal, 27 (1). pp. 54-75.

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Abstract

This article will contend that contrary to the legislative intention, the Australian Consumer Law’s consumer guarantee remedial relief procedures are complicated, cumbersome and time-consuming for many consumers whose products become defective. This is all the more so for higher-value products that become faulty after the warranty against defects (otherwise known as the manufacturer’s warranty) has expired. The article contends that this could have the unintended consequence of ceding to powerful and self-interested manufacturer or retailer corporations the responsibility to lawfully provide remedial relief to consumers outside the Australian Consumer Law. This creates an environment for the creeping corporatisation of consumer guarantee relief as highlighted in the decisions of the Federal Court and the Full Federal Court in Australian Competition and Consumer Commission v LG Electronics Australia Pty Ltd. Whilst consumers have the freedom to pursue statutory relief, the reality is that the unwieldiness of the statutory regime is for many consumers, even fully-informed ones, less preferable than engaging (knowingly or unwittingly) in a corporate-driven remedial process possibly leading to a less favourable remedy for the consumer. This creeping corporatisation has the potential to undermine the legislative and regulatory framework governing consumer guarantees. This could lead to weakening consumer confidence in the Australian Consumer Law, especially the ability of consumers to rely on statutory guarantee remedies.

Item ID: 76712
Item Type: Article (Research - C1)
ISSN: 1039-5598
Keywords: Australian Consumer Law, consumer guarantees, misleading or deceptive conduct, ACCC, Samsung, Federal Court, Full Federal Court, dispute resolution
Copyright Information: © Institute of Chartered Accountants.
Date Deposited: 04 Nov 2022 01:40
FoR Codes: 48 LAW AND LEGAL STUDIES > 4801 Commercial law > 480199 Commercial law not elsewhere classified @ 50%
48 LAW AND LEGAL STUDIES > 4806 Private law and civil obligations > 480699 Private law and civil obligations not elsewhere classified @ 50%
SEO Codes: 23 LAW, POLITICS AND COMMUNITY SERVICES > 2304 Justice and the law > 230405 Law reform @ 50%
23 LAW, POLITICS AND COMMUNITY SERVICES > 2399 Other law, politics and community services > 239999 Other law, politics and community services not elsewhere classified @ 50%
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