The Australian Competition and Consumer Commission has warned businesses not to engage in undue harassment against debtors and consumers.
Physical force, undue harassment and coercion are prohibited by section 60 of the Trade Practices Act 1974 if the conduct occurs in connection with the supply, or possible supply, of goods or services, or with payment for goods or services. 'The ACCC is concerned that recent allegations by consumer organisations may point to significant non-compliance with s. 60,' ACCC Deputy Chairman, Mr Allan Asher, said today.
'We are also concerned that the alleged conduct may be particularly targeted to disadvantaged consumers. 'The ACCC views contravention of s. 60 as a serious issue and is very keen to increase its enforcement efforts in this area. One particular challenge arises from the fact that there has not previously been any litigation under s. 60, and there is little guidance available to either industry members or consumers about the scope of the provision. Litigation may be one way of clarifying exactly what 'undue harassment' means.
'The conduct of business will be under scrutiny over the coming months, and allegations of undue harassment will be taken seriously.' The ACCC is currently exploring both enforcement strategies and other strategies for ensuring that there is a high level of compliance with section 60.
More information about current work in this area is available on the ACCC's Internet web site, http://www.accc.gov.au.