The Consumer Action Law Centre wants to see misleading solar sales and similar operations put out of business.
Shonky business practices on the rise
A new government survey shows a significant drop in businesses' knowledge of consumer law obligations.
Last updated: 20 Dec 2023
A huge government survey of consumers’ experiences shows an alarming rise in the number of deceptive business practices and a spike in the number of people targeted by scams.
The 2023 Australian Consumer Survey, commissioned by the federal government, collected data from over 5400 people and found a 250% increase in the number of people targeted by scammers, compared to 2016 when the survey was last conducted.
“The incidence of consumers experiencing scams or frauds is the fastest growing problem reported. When consumers do lose money, they most often lose less than $10,000. However, once the money is gone it is very difficult to get back, with over half (53%) saying they received less than 25% of their money back,” the report says.
The incidence of consumers experiencing scams or frauds is the fastest growing problem reported
Aside from the financial losses, the report also highlights some of the other effects scams can have on consumers.
“Scams and frauds also have many non-monetary costs, with 33% of consumers saying their ability to trust others has been impacted, and 31% saying it has made them feel less confident using the internet,” the report says.
Rosie Thomas, director of campaigns and communications at CHOICE, says the rise in scams and fraud is alarming.
“Businesses like banks and technology platforms have let scams run rampant. We need strong regulation to make these businesses do more to detect and prevent scams, with strong penalties if they fail to do so,” she says.
Deceptive business practices
The survey also recorded a significant uptick in the number of consumers experiencing “deceptive business practices”, such as high-pressure sales tactics (up from 4% in 2016 to 7% in 2023) and unclear contract terms and conditions (up from 11% to 15%).
“We were also interested to see that a quarter of consumers reported finding it hard to cancel subscriptions,” Thomas says.
“Other countries already have laws in place to address these unfair business practices. The survey data really highlights the need to update our consumer law to ensure consumers in Australia have similar protections.”
Other countries already have laws in place to address these unfair business practices
CHOICE director of campaigns and communications Rosie Thomas
The survey also collected data from 1200 businesses and found a significant drop in the understanding of their obligations under Australian Consumer Laws.
“Overall, nine out of ten businesses (89%) are aware that businesses in Australia have legal obligations and responsibilities regarding consumer protection and fair trading. This represents a significant decrease from 2016 when 98% of businesses said they were aware,” the report says.
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