Woodhouse Michael: Third Readings —Text is incorporated into the Bound VolumeWoodhouse Michael: Third Readings —[Sitting date: 10 December 2013. Volume:695;Page:15389. Text is incorporated into the Bound Volume.]Hon MICHAEL WOODHOUSE (Minister of Immigration)on behalf of theMinister of Consumer Affairs: I moveThat the Fair Trading Amendment Bill the Consumer Guarantees Amendment Bill the Weights and Measures Amendment Bill the Secondhand Dealers and Pawnbrokers Amendment Bill the Carriage of Goods Amendment Bill and the Auctioneers Bill be now read a third time.The bills amend the Fair Trading Act the Consumer Guarantees Act and the Weights and Measures Act. In addition the Door to Door Sales Act theLayby Sales Act and the Unsolicited Goods and Services Act will be repealed and their content incorporated into the Fair Trading Act. A new Auctioneers Act will replace auctioneers licensing with a new auctioneers registration regime. I want to thank the House and the Commerce Committee for the unanimous support these bills have received. The support reflects robust consultation and a shared view that we are delivering positive outcomes. Businesses will understand their rights and obligations and consumers will be protected if there is an issue with the goods or services they purchase. Thanks are also due to the former Ministers of Consumer Affairs who have also guided this work to officials and to the parties who submitted on the bills.The aims of these bills are to offer better protection to both consumers and businesses to bring consumer laws in line with the business practices of our times to ensure compliance with the laws is much more straightforward and to make enforcing the laws more efficient and more effective. These changes represent best practice in regulatory reform and will drive competition innovation and growth in our economy. Content has been updated across all consumer laws to keep pace with changes in the way businesses and consumers transact. Less well-known legislation has been consolidated into the Fair Trading Act where it will be more accessible to businesses and consumers. The laws will take into account typical day-to-day transactions such as making purchases from businesses online and self-service shopping which had not been considered when the laws were originally designed. The changes will also better align our laws with Australian consumer laws reflecting further progress on the single economic market agenda.New principles will ensure that ethical businesses are not disadvantaged when they compete with businesses that cut corners. For instance a new provision will requiretraders to be able to substantiate any claims they make as opposed to the Commerce Commission having to test the claim. New disclosure rules will also come into force around extended warranties so consumers know what sort of extra warranty they are buying over and above what they are entitled to under the Consumer Guarantees Act. These provisions not only protect consumers but also support honest business practices by ensuring that businesses compete on a level playing field.Businesses that are transparent about their claims and in their dealings with the public will not be disadvantaged. Thanks to the Fair Trading Act and the Consumer Guarantees Act consumers already know that they can rely on traders not to be misleading or dishonest and to supply goods that are safe and of acceptable quality. The Weights and Measures Act also has fundamental protections about receiving the right quantity of goods. By modernising and improving protections we will make the laws more accessible and improve consumer confidence. When consumers know understand and exercise their consumer rights competition thrives. This level of informed consumer confidence drives a healthy market place. Consumer confidence also supports innovation new products and new entrants into a market. We all take a risk when we buy something new or from an untried supplier. Our consumer laws help manage that risk for us so that we might be more inclined to buy a cutting edge product or trust information about new products.Business costs are also reduced when the law is accessible and compliance is easier to understand. As part of this process I acknowledge that legislation does not have all the answers. The bills resulting from the Consumer Law Reform Bill are underpinned by broad principles and by having principles-based law we avoid the need for specific rules for every type of transaction imaginable. The benefits of principles-based legislation will be enhanced by providing suitable and accessible guidance for consumers and for businesses. For example under the new laws traders will be required to identify themselves as traders when completing sales online. The law has broad definitions of “business” and “trade” but guidance information will clarify that anyone selling personal used consumer goods is not a trader and guidance will set out indicators for those who may be unsure. If you buy goods online in order to onsell them if you meet tax criteria or if you are required to register as a second-hand dealer you probably are a trader.Similarly the acceptable quality guarantee in the Consumer Guarantees Act remains principles-based. We cannot set different and detailed requirements for every type of good. In known grey areas such as reasonable expectations for the quality of second-hand vehicles guidance will be updated. What has changed is that the Consumer Guarantees Act will apply to all transactions when the bill is passed including online auctions. This closes a loophole where any good sold by traders to consumers in any bidding process has been exempt from the Consumer Guarantees Act. The change clarifies and simplifies the law and brings it up to date with modern trading practices.The majority of the changes that may affect the way businesses operate will take effect 6 months after Royal assent to give businesses time to review their practices if necessary. The new provisions on unfair contract terms have an even longer lead-in time of 15 months as businesses may wish to review their standard form contracts. Plain English communications public information and business guidance will be released by the Ministry of Business Innovation and Employment and by the Commerce Commission when the bill has been passed. General information about the changes is already readily available for consumers and businesses. I am confident that the agencies are ready to support the implementation of this bill and I commend it to the House.