Policy Reports
2012
In January 2011, the Australian Government introduced legal protections for consumers buying goods or services called ‘consumer guarantees’. Consumer Guarantees ensure that you can get a refund, replacement or another remedy if goods or services you buy are faulty, unsafe, or don’t do what you reasonably expect them to do.
Consumer Action looked at the returns policies of twelve leading online businesses in December 2011 to find out if online retailers understood their obligations under the Consumer Guarantees and whether they reflect that understanding in the information they provide to consumers. What we found was pretty disappointing. In our assessment, only two of the twelve retailers we looked at had returns policies that were both compliant with the Consumer Guarantees and demonstrate good practice. Eight businesses, including some big names like Apple, Coles Online and Officeworks, had policies with many serious deficiencies.
Note: Since reviewing the policies in December 2011, some of these companies have said that they will review or change their policies. Be aware that the problems we identify in this document may have already been addressed.
2011
Barriers to fair network prices
A new report released by the Consumer Action Law Centre and the Consumer Utilities Advocacy Centre, shows electricity distribution companies are routinely challenging pricing determinations made by the Australian Energy Regulator, the independent organisation that sets distribution costs. The one sided nature of the appeals process means so far attempts to use it to increase distributors' profit margins have been very successful
Just Sign Here... A review of Victorian retail energy contract terms and conditions
Energy retail contracts have been put under the microscope in a report just released by the Consumer Action Law Centre. And while the report found that most contracts largely met their regulatory requirements, a lack of contract clarity, consistency and access to information, proved significant barriers to consumer understanding and effective competition.
Just sign here... looked at energy contracts from twelve energy retailers from 2008 and found that sections relating to consumer rights were confusing and unclear to consumer experts, let alone customers looking to make an informed choice about their energy provider.
Mission Incomplete: A snapshot of consumer experiences of short-term loans post the national consumer credit reforms
Exorbitant effective interest rates on short term loans, upwards of 400 per cent, continue to put the pinch on vulnerable Australians despite the introduction of responsible lending laws in 2010.
Mission Incomplete, a new report released by the Consumer Action Law Centre, offers a snapshot into the experiences of twelve pay-day lending clients and details the high social and financial costs of an industry estimated to be worth $200 million.
2010
Consumer Action Law Centre and senior policy officer Zac Gillam have reviewed the experience of payday loan borrowers by updating empirical research into the impact of high-cost short term lending in Australia in 2002.
The report also examines the United States payday lending industry and makes recommendations which inform the current debate surrrounding the appropriate policy and regulatory framework for the paydayloan market.
Shutting the Gates: an analysis of the psychology of in-home sales of educational software
Consumer Action in conjunction with Dr Paul Harrison, Centre for Sustainable and Responsible Organisations, Deakin University, Marta Massi, School of Marketing and Communication, Lumsa University (Rome) and Kathryn Chalmers, Deakin University, have studied the psychological aspects of in-home sales techniques used by the sellers of educational software. The report uses interviews with former sales people and actual case studies of families who have experienced the in-home sales process to reveal the emotional manipulation behind these sophisicated sales scripts.
The researchers make recommendations based on their findings and proposes how these findings might be applied to consumer policy.
2009
Nicole Rich, Director – Policy & Campaigns, was awarded the Victoria Law Foundation’s 2007/08 Community Legal Centre Fellowship. This is the final report of her Fellowship project.The report discusses why it is so important that Community Legal Centres (CLCs) engage in more than individual service work (direct legal advice, assistance and representation), in particular policy and law reform work, even with the large amount of unmet legal need in the Australian community. The report analyses several interesting developments in the US that could perhaps be adapted for use by Australian CLCs, including leveraging individual casework, strategic campaign planning, and law and organising. The report also touches on issues of funding and the evaluation of CLC work.
Download the one-page Quick guide to the Report.
2008
Congratulations, You’re Pre-Approved! An analysis of credit limit upselling letters
(Warning: 17MB – large file)
Consumer Action commissioned Dr Paul Harrison, Deakin Business School, Deakin University and Marta Massi, School of Marketing and Communication, Lumsa University (Rome), to study the psychological aspects of one form of credit marketing - unsolicited credit card limit-increase offers (UCCLIOs). The researchers studied 21 UCCLIO letters – 17 provided by consumers and four provided by banks – and applied theories developed from previous research in the fields of marketing, consumer behavior, behavioural economics and cognitive psychology, to describe likely ways in which UCCLIO's influenced consumer behavior and decision making. The researchers make some recommendations from a behavioural perspective based on their findings, and Consumer Action proposes how these findings might be applied to consumer policy.
The consumer protection provisions of the Trade Practices Act 1974: Keeping Australia up to date
This comprehensive report examines Australia’s consumer protection framework in light of international developments, including those from the USA, Canada, UK and European Union. The report complements the Productivity Commission’s recent Review of Australia’s Consumer Policy Framework. While the report makes many of the same recommendations as the Productivity Commission, it seeks to ensure Australia’s consumer protection framework is world’s best by making additional recommendations for reform, such as the introduction of market studies, super complaints and a general unfair trading prohibition.
2007
Coercion and harassment at the door: Consumer experiences with energy direct marketers
Since the introduction of full retail contestability in the Victorian energy market, Consumer Action and others have received numerous complaints from consumers about the marketing practices of energy retailers. This report provides the stories of 28 consumers who have had difficulty with energy marketers – many have been misled, taken advantage of or even harassed. The report concludes that a reliance on direct marketing in the energy market prohibits competitive outcomes – by being pressured into sales on the spot, consumers are unable to determine whether the offer being presented is in their best interests.
Defining 'Public Benefit': Social and environmental considerations in Part VII of the Trade Practices Act
Part VII of the Trade Practices Act 1974 acknowledges that there are circumstances in which anti-competitive conduct will be permissible - where the detriment caused by the conduct is outweighed by other benefits to the public. This report argues that there is a need to widen the scope and understanding of 'public benefit', so that it includes not only economic considerations, but social and environmental concerns. The report examines the application of the public benefit test in both theory and practice, and makes recommendations aimed at improving consideration of the public benefit in authorisations.
Water Reform in Victoria: Independent pricing regulation and its outcomes for consumers
This report examines Victoria’s first independent review of water prices, undertaken by the Essential Services Commission in 2004 and 2005. The report concludes that there was a lack of community consultation by water businesses about the structure and impact of water prices, which inhibited the ability of the price review to achieve its objectives. It also considers the regulatory framework for setting the price of water, and makes a number of recommendations that aim to improve that framework
Vendor Terms - Rhetoric & Reality
Over recent years, vendor terms mortgages have emerged as a way of marketing overpriced homes to predominately low-income consumers. Such mortgages can be particularly harmful as they often involve poor quality dwellings, high interest rates and misleading and unconscionable sales tactics. This research report makes a number of recommendations that aim to better regulate vendor terms mortgages, so that vulnerable consumers are not disadvantaged when entering the property market. Click here to accesss Appendix 2 and Appendix 3.
2006
Consumer Protections in the National Energy Market: The need for Comprehensive Energy -Specific Consumer Protections
This paper provides an overview of current consumer protections applying to the provision of energy to small-end residential users and argues that continued energy-specific consumer protections are necessary for the achievement of the NEM objective - the promotion of the long-term interests of consumers, and that consumers bouyed by strong protections play a fundamental role in ensuring that markets operate efficiently and competitively.
Implementation of Hardship Policies by Victorian Water Businesses
A research report that examines the implementation of residential hardship policies by Victorian water businesses.
Electricity Reform in Victoria: Outcomes for Consumers
A joint research report with the Centre for the Study of Privatisation and Public Accountability at Monash University.
2005
Water: Access, Affordability and Sustainability
This Issues Paper considers ways in which to protect consumers’ access to water as a human right, while at the same time ensuring water is returned to the environment.
Do the Poor Pay More?
The Report argues that poor consumers pay more for their banking, credit cards, telephone, internet, gas, electricity, water and other household goods and services.
Debt Agreements: Remedy or Racket?
An examination of the commercialisation of the administration of debt agreements entered into under Part IX of the Bankruptcy Act 1966 (Cth).
2004
Unfair fees: penalty fees charged by Australian banks
The Report reveals that Australian banks are charging consumers hundreds of millions of dollars in fees that could be unlawful.
Access to Energy and Water in Victoria
The Report examines the impact on Victorian households of disconnection from electricity, gas or water services.
Buying a Car – Pitfalls for Consumers
A case study report prepared by the CLCV for the Royal Automobile Club of Victoria.
Mortgage Reduction - Misleading Marketing – A report on industry practices and case studies
The Operation of the Uniform Consumer Credit Code
Appendices to Uniform Consumer Credit Code report: Set 1
Appendices to Uniform Consumer Credit Code report: Set 2
Solicitor lending to consumers: a study of interest only loans and asset-based lending practices in Victoria
2003
A Report to ASIC on the finance and mortgage broker industry, by the Consumer Credit Legal Centre (NSW) Inc.
2002
Payday Lending in Victoria
The report examines the national and international developments in payday lending and the scale, operation and regulation of the payday lending industry in Australia and, in particular, Victoria.
Selling their Customers Out
Consumer problems with debt collection outsourcing in Australia.
1999
Unrepresented Debtors in the Melbourne Magistrates’ Court: A matter for justice
An examination of the experience of unrepresented debtors in the Melbourne Magistrates’ Court. The report found that many debtors are forced to ‘negotiate’ with debt collectors when appearing for a summons of examination, rather than having their issues aired in an impartial matter at the Court.