The Competition & Consumer Act of 2010 Replaces Trade Practices Act of Essay

The Competition & Consumer Act of 2010 Replaces Trade Practices Act of 1974 - Implications and Significance - Essay Example The Trade Practices Act of 1974 has always been an integral component of Constitution of Australia as a guarantor of purchaser. Background & Evolution: The need for the formation of a business law was felt during the British rule in Australia in the first half of the 19th century however, at that time all the companies were governed by â€Å"English Company Act of 1862†. In the first half of the 20th century Federal Parliament of Australia formed "foreign corporations, and trading or financial corporation’s formed within the limits of the Commonwealth" and the Small Business activities were left within the domain of the state and the particular territories in a geographical location. In the year 1961-62 for the first time in the history of Australian Business Law State Legislation and Commonwealth Legislation formed â€Å"A Uniform Companies Act†. The year 1965 Trade Practices Act crafted a â€Å"Commissioner of Trade Practices and a Trade Practices Tribunalâ₠¬  to scan trade accords and performances. However, this act was ephemeral and finally the High Court in Australia had to annul the aforesaid act due to â€Å"Constitutional Difficulties† and replaced the same with Restrictive Practices Act in 1971. The Trade Practices Act of 1974 was endorsed to deal with issues relating to Consumer protection was exclusively in charge of looking after the interests of the consumers at all levels however, the Legislation regarding fair trading and other issues external to Trading Corporation remained within the realm of respective states and territories. Thus, The Trade Practices Act 1974 became the decisive Legal entity governing the trade policies to ensure the welfare of the consumers. Finally the Trade Practices Act 1974 was replaced by â€Å"Competition and Consumer Act of 2010.†(History of Business Law, 2010) The Trade Practices Act 1974 Hence the primary task of the Trade Practices Act was to ensure healthy competition without compromising the interests of the consumers. Fair Trading was the benchmark to analyze the role of big companies concerning the protection of consumers. From patrons, merchants, contractor and traders they all fall within the ambit of the Act. In short it included every facets of market place. Regulation of trade through Price monitoring is one of the key ingredients for accomplishing the consumer protection. Other means for safeguarding the interests of the consumers could be ensuring product security, labeling of products and finally restricting â€Å"unjust marketplace practices†. The Competition & Consumer Act of 2010 January 2010 marked the New Year with a new set of laws and legislations that was passed for safeguarding and protecting the rights of the Consumers as well as business groups. If one has to carefully analyze and understand the special benefit of this new law that has replaced the former Trade Practices Act, one can draw two main benefits which are evident. Special Significance of the Act: First it accommodates and accepts the nationwide agreed sets of protections on a consumer known as Australian Consumer Law (ACL). According to this new Act there would be a single uniform Consumer Law all over the country. Hence it would relieve the burden on the business enterprise to abide by the various inter–states rulings. The consumer on the other hand would feel less discriminated against as there would be a uniform law safeguarding and