Unconscionable conduct regulation

Treasury has prepared an issues paper concerning various options for clarifying the scope of the unconscionable conduct provisions of the Trade Practices Act 1974 (TPA).

The issues paper is part of a process which will examine two options for clarifying the application of the TPA’s unconscionable conduct provisions:

1. The first option is the introduction in the TPA of a list of examples of conduct that is universally agreed to be unconscionable.
2. The second is the introduction of a statement of principles of unconscionable conduct.

If the panel is satisfied that either or both of these options would make the provisions more effective, it is then to consider the content of a list of examples or statement of principles.

The panel has also been asked to consider issues associated with conduct in franchising relationships and, in particular, whether specific inappropriate conduct can be identified and — if the panel considers it necessary — whether measures can be introduced into the Franchising Code of Conduct to prevent them. The panel will conduct its work on possible amendments to the Franchising Code of Conduct as a separate process.

Submissions close on 18 December 2009.