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Consumer Law penalties ramped up!

In its last gasp under Prime Minister Turnbull, Parliament passed legislation to substantially increase penalties for breach of the Australian Consumer Law.

For individuals who breach, the maximum penalty rises from $220,000 to $500,000 per breach.

For companies that breach, the maximum penalty rises to whichever is the highest of-

  •  $10 million
  • 300 per cent of the value of the benefit received by the company; or
  • if that benefit can’t be calculated, 10 per cent of its annual turnover in the prior year.

What a sobering prospect for companies weighing up the risk of making potentially misleading statements about their product performance or warranty conditions!