Information standards (ACL)

Information standards regulate the type and amount of information provided to consumers about goods and services.

The Commonwealth minister responsible for administering the Australian Consumer Law can:

  • make new information standards; and
  • declare an existing standard as a national information standard. For example, the minister can declare a standard issued by Standards Australia, a non-government organisation, as a national standard.

An information standard for goods or services can:

Harassment and coercion

It is unlawful to use physical force, coerce or unduly harass someone about the supply of, or payment for, goods or services.

Undue harassment means unnecessary or excessive contact or communication with a person, to the point where that person feels intimidated, tired or demoralised.

Coercion involves force (actual or threatened) that restricts another person’s choice or freedom to act.

Unlike harassment, there is no requirement for behaviour to be repetitive in order to amount to coercion.

Referral selling

Referral selling is when a consumer is persuaded to buy goods or services by promises of a rebate, commission or other benefit for supplying information that helps the trader sell to other consumers, and the consumer does not get the promised benefit unless some other event happens after the agreement is made.

Promising future commissions or rebates that depend on other events, such as subsequent sales is illegal in certain circumstances.

Pyramid schemes

Pyramid schemes make money by recruiting businesses or people rather than by selling real and legitimate products or services – even if a product or service is involved. These schemes inevitably collapse and new members can lose a lot of money. It is illegal for any business or person to participate in, or persuade others to participate in a pyramid scheme. 

In a pyramid scheme, participants are often asked to make two payments:

Debt collector complaints

When the debt relates to the provision of a financial service e.g. debts relating to credit card accounts, loans, finance provided by a finance company or fees for the provision of financial advice, the ASIC is responsible for dealing with misconduct associated with debt collection activity.

Debt collector restrictions and conduct

Debt collection is a legitimate and necessary business activity that involves recovering payment from consumers for outstanding debts they are legally obliged to pay.

A debt collector is a person who, on behalf of another person, collects or requests payment of debts.

Debt collectors operating in Western Australia must be licensed under the Debt Collectors Licensing Act 1964. This Act sets out licensing requirements and regulates the management of trust accounts.

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