Businesses dealing with consumers who may experience disadvantage or vulnerability in the marketplace have been assisted to do the right thing with the issuing of the Australian Competition and Consumer Commission publication Don't take advantage of disadvantage.
"The guide helps businesses understand their trade practices law obligations, rights and responsibilities when dealing with disadvantaged or vulnerable consumers", ACCC Chairman, Mr Graeme Samuel, said today.
The guide is one outcome of the ACCC's campaign to protect disadvantaged and vulnerable consumers which was launched on 2 June 2003 in partnership with the ACCC's Consumer Consultative Committee*.
The guide outlines a range of characteristics of disadvantage or vulnerability that may be experienced by consumers, including:
- low income
- non-English speaking background
- disability, including intellectual, psychiatric, physical or sensory
- serious or chronic illness
- poor reading, writing and numerical skills
- homelessness
- youth
- elderly
- remoteness and/or
- indigenous background.
"Of course, not all consumers with these characteristics are more susceptible to poor business practices", Mr Samuel said. "But businesses should be aware that some consumers may face particular difficulties when making decisions about buying goods or services, and these situations may call for more care to be taken by businesses".
The ACCC recently took action against Lux Pty Ltd in relation to the sale of a vacuum cleaner to a vulnerable consumer. The Federal Court declared that Lux had engaged in unconscionable conduct in breach of s51AB of the Trade Practices Act 1974.**
"That outcome showed that businesses and their sales agents must take extra care to avoid taking advantage of any disadvantage or vulnerability that a consumer may experience, and this guide provides information and advice for business to help them recognise these situations and act accordingly".
"Businesses should continue to contract or do business with consumers who may experience a disadvantage or vulnerability, as a refusal to deal will not be in any party's interests, and may risk breaching anti-discrimination legislation.
"Provisions against misleading and deceptive conduct, harassment and coercion, and unconscionable conduct are discussed in the guide, along with tips to help businesses avoid breaching these provisions.
"The guide also discusses the recent decision handed down by the Federal Court against Mr Ramon Keshow, the promoter of educational materials to indigenous consumers. Many of the indigenous women that Mr Keshow marketed to had little experience in commercial matters, and in some cases, also had poor English language skills. The Federal Court found that for a significant number of Mr Keshow's customers, 'he was just taking their money and providing nothing for it'.
"Mr Keshow was found to have acted unconscionably not only against the eight consumers identified by the ACCC, but also generally against consumers living in indigenous communities in the Northern Territory.***
"All consumers need sufficient and accurate information to make an informed decision. Be aware that you and your staff or agents are responsible for ensuring that your customers have that information", Mr Samuel said.
The guide can be downloaded from the ACCC website or a printed copy is available from the ACCC's Infocentre on 1300 302 502.