The Australian Competition and Consumer Commission has today renewed calls for consumers to be cautious when purchasing CDs.
The move follows advice from a major record label that it has introduced copy protection measures on some CDs released in Australia from Monday (18 November 2002).
The introduction of the copy control technology means that consumers will no longer be able to 'burn' copies of CDs to which it has been applied. It is believed that the technology is a move by the music industry to crack down on unauthorised copying of sound recordings which can occur when a digital copy of a disc is made.
The ACCC notes that consumers currently do not have the right under Australian copyright law to make any copies of CDs, regardless of whether the copies are for personal use.
"The ACCC welcomes this initiative as a legitimate method of preventing music piracy", ACCC Chairman, Professor Allan Fels, said today. "We are concerned, however, to ensure that consumers are fully apprised of any technical restrictions on the use of these discs before they pay for them."
The ACCC first warned consumers in December last year to exercise caution when purchasing CDs after becoming aware that discs released in the Unites States and Europe bearing early versions of the copy control technology could not be played in computers, DVD players or car stereos.
"Our concerns are still focussed on ensuring that manufacturers, retailers and importers do the right thing by consumers by informing them of any restrictions on what can be done with a copy protected CD", Professor Fels said. "The ACCC has in the past written to the major record labels in Australia, as well as the Australian Record Industry Association, putting them on notice of the disclosure requirements in the Trade Practices Act 1974. Any subsequent failure to inform consumers of the limitations of these discs will be viewed seriously.
"Where the performance characteristics of a CD are being changed it would be appropriate to place a warning to consumers on the outer packaging of the disc in order to draw their attention to that change. It is also the responsibility of manufacturers and importers to ensure that retailers are educated as to the existence and effect of the technology, so that they can in turn inform consumers. The ACCC views these strategies as complementary", Professor Fels said.
If, as a result of inadequate disclosure on the product packaging or at the point of sale, a consumer believes that a CD can be played in a certain manner, but subsequently finds that it cannot, they can return it to the place of purchase to obtain a refund.
Previous Media Releases: MR 331/01 22 December 2001 ACCC Advises Caution on Purchase of Some CDs