The ACCC announced today that they have instituted proceedings in the Federal Court alleging BUPA Aged Care made false or misleading representations to its aged care residents in 21 homes about services it did not provide, breaching Australian Consumer Law. With the increased scrutiny in the sector, it’s a timely reminder to review your compliance with Australian Consumer Law.

There are a number of steps that businesses with vulnerable consumers can take to protect them, and therefore reduce the risks of contravening the Australian Consumer Law:

1. As a first step, it is extremely important that businesses that deal with vulnerable consumers, and their employees, are aware that the standards expected of them are higher than for businesses that deal with ordinary consumers. Employees must be educated about the particular requirements of vulnerable consumers and that promotional materials, sales tactics and business practices used in other sectors may be inappropriate and create legal risk when applied to vulnerable consumers.
2. Businesses should ensure that their contracts are tailored towards their particular consumers, whether they be from remote and regional areas, indigenous consumers, low-income consumers, or the disabled or elderly. Such contracts are not required to merely comply with industry-specific regulatory regimes, but must be clearly expressed, easy to understand and should not to include any unfair terms. (These are terms that cause a significant imbalance in the rights of the parties to the contract that are not reasonably necessary to protect the legitimate interests of the business).
3. Processes should be put in place for the period during and after entry into contracts with vulnerable consumers that ensure that they are treated with special care. These processes can include verbal explanations of contractual terms, the availability of cooling off periods and the requirement that consumers obtain independent legal advice. Once contracts are entered into, communications with consumers should remain clear and easy to understand and businesses may need to be more open to releasing such consumers from contractual obligations as a result of a change in circumstances.

By conducting a review and ensuring that you are compliant with Australian Consumer Law, you will help protect vulnerable consumers and be less likely to encounter systemic problems and be subject to serious enforcement action from the ACCC in the event that a contravention does occur.

Please feel free to reach out to a member of our aged care or competition team if you would like to discuss.