The Competition and Consumer Legislation Amendment Bill 2010 (the Bill) will amend the Trade Practices Act 1974 (the TPA) and the Australian Securities and Investments Commission Act 2001 (ASIC Act) to clarify each statute's unconscionable conduct provisions. It will also amend the Australian Consumer Law once the Trade Practice Amendment (Australian Consumer Law) Bill (No.2) 2010 (the ACL) is passed by Parliament.

The unconscionable conduct amendments are central to the implementation of uniform consumer laws throughout Australia and will form part of the Australian Consumer Law once the ACL is passed by Parliament.

In adopting the Senate Economics Committee recommendations, the Bill will enhance the unconscionable conduct provisions and introduce interpretative principles to clarify the scope and definition of "unconscionable conduct".

The amendments to the unconscionable conduct provisions will ensure that the Courts are not constrained by equitable principles and may apply the statutory prohibitions against unconscionable conduct according to their terms. The proposed clarifications focus upon the conduct of businesses - as a result, businesses will need to be vigilant in their dealings with customers, be aware that an accumulation of minor incidents can expose them to unconscionable conduct, and should ensure systems are in place to ensure their business practices are not at risk of falling foul of the unconscionable conduct provisions.

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