Regulatory priorities 2023-24

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What are regulatory priorities?

Consumer Affairs Victoria, part of the Victorian Department of Government Services, is Victoria’s consumer affairs regulator. Our vision is for a fair, safe and competitive marketplace in Victoria.

Consumer Affairs Victoria’s statutory remit includes the application of the Australian Consumer Law in Victoria as well as residential tenancies and diverse industry-specific regulation. Our broad statutory responsibilities and multiple functions under more than 30 pieces of legislation mean we must have clear priorities for our activities to meet the needs of the Victorian community.

Our regulatory priorities set out the specific areas and consumer harms we are concerned about in the marketplace, that we will focus proactive efforts on addressing in the coming year.

This will not prevent us from responding to new, emerging or serious issues or harms that arise during the year under our areas of regulatory responsibility. We will always take appropriate action to address harmful conduct or breaches of the laws we administer.

We have developed these regulatory priorities having considered a range of inputs, including emerging risks and their potential for consumer detriment, contacts from consumers, renters, businesses and others to Consumer Affairs Victoria, Victorian Government priorities and feedback from consumer, community and industry stakeholders.

Our regulatory and compliance approach

We will focus on this year’s regulatory priorities in line with our regulatory approach. Our regulatory approach is to be intelligence-led, risk-based and outcome-focused. You can read more about our regulatory approach.

The actions we take to monitor and enforce compliance with the laws we administer are guided by our published compliance policy.

Our 2023-24 regulatory priorities

Our regulatory priorities span four key areas of responsibility:

Ensuring fairness and safety in competitive consumer markets

We work with our Commonwealth, state and territory fair trading partner agencies to help consumers and business understand their rights and responsibilities under, and monitor and enforce compliance with, the Australian Consumer Law.

The framework for cooperation between Australian Consumer Law regulators is available from the Australian Consumer Law website.

Why

Consumers should be able to trust that the products they buy are safe and fit for purpose. Sadly, that is not always the case. Children and young people are especially vulnerable, with over 150 children dying each year in Australia from preventable injuries.

What

To help keep consumers safe, we will continue to focus on product safety with an emphasis on products presenting risks to young children, such as coin and button batteries and products powered by these types of batteries.

We will respond to consumer concerns about unsafe products, inspect retail premises and attend popular events like the Melbourne Royal Show. Where we find dangerous or illegal items, we will remove them and take appropriate enforcement action. We will continue our important work educating consumers and industry, to drive awareness and compliance with new safety standards, and we will continue to support national safety initiatives that help create a strong, ‘no-gaps’ compliance framework.

Why

Many of us rely on our cars to get us to work, care for loved ones and attend important events, especially if we live away from areas with good public transport. We also expect that cars offered for sale are safe and reliable. When this is not the case the impact can be significant. Cars are a significant budget item for many Victorian households, and especially so for consumers on a fixed or low income.

The pandemic and the conflict in Ukraine have impacted international markets in many ways, disrupting supply chains and causing long waiting lists for some new cars, in turn driving up demand and price for second-hand cars. These market conditions have increased opportunities for unscrupulous traders to sell poor-quality second-hand cars, sometimes targeting those most vulnerable and in need of safe, reliable transport.

What

We will continue to act on complaints and intelligence about traders selling poor quality cars, particularly to people experiencing financial vulnerability. We will also work with other regulators to identify and take action against motor car traders facilitating inappropriate finance to buyers to assist in the purchase of poor quality cars.

We will also continue to take action against those selling cars without being licensed motor car traders. By removing rogue traders and supporting a robust licensing scheme, we ensure Victorians can make purchases more safely and have access to statutory protections if problems do arise.

Why

With increased cost of living pressures, more Victorians are finding it harder to make ends meet. Against this environment, we continue to identify poor conduct by debt collectors, particularly those impacting consumers experiencing vulnerability or with low financial literacy.

What

We will continue to support consumers to help them better understand their rights and will take compliance and enforcement action where debt collectors fail to comply with the law. In addition, we will continue to fund access to financial counselling services, noting the importance of the front-line role that financial counsellors play in assisting consumers to resolve debt issues.

Why

The introduction of the National Disability Insurance Scheme (NDIS) saw a strong increase in the number of businesses offering goods and services to support persons living with a disability. While an important and positive reform, unfortunately stakeholders report to us that on some occasions goods and services are not fit for purpose or not supplied. Such conduct can have a significant impact on consumers with disability (and their support persons) and may put them at higher risk of physical or financial harms.

What

We will continue to monitor this market, with a particular focus on identifying providers selling unsuitable products, especially those of poor quality, as well as those who fail to supply. We will enhance our understanding of the risks posed by these products so we can shape our compliance and education activities appropriately as well as share intelligence and insights with co-regulators and other agencies.

Why

The COVID-19 pandemic saw a greater number of Victorian consumers move to online shopping. For traders, an online marketplace means they can reach a much broader consumer base than via traditional bricks-and-mortar stores. While reduced overheads can translate into savings for consumers, this environment also comes with risks. There are fewer barriers to market entry and setting up an online store is easier than ever with some traders relying on ‘off the shelf’ virtual shopfronts that promise fast profits and minimal running costs with little experience.

Concurrently, the pandemic and other significant global events have disrupted established supply chains. This has meant some traders have had difficulties delivering products to consumers. Traders doing the right thing have adjusted delivery timeframes, paused sales, provided refunds and had robust processes to keep customers informed, but not all have done so.

What

We will continue to closely monitor complaints about non-compliant online traders and work closely with our counterparts and stakeholders across other jurisdictions to take swift and coordinated action when traders don’t act appropriately.

Why

Consumers rely on businesses to do the right thing, which includes having terms and conditions that are fair and reasonable and comply with the law.

However, we also see examples across the Victorian market where traders take advantage of the power imbalance between them and consumers. Often these traders try to avoid their legal responsibility to provide remedies or refunds, especially when they have been paid but can’t provide the product or service. Following recent changes to the Australian Consumer Law, penalties for using unfair contract terms in standard form contracts will come into force in December 2023.

What

We will implement a communications strategy to remind businesses and consumers of their rights and obligations when signing up to a contract for products or services. We will work closely with our co-regulators to identify non-compliant contracts and encourage businesses to remove unfair terms from existing or new contracts. We will prepare our intelligence, compliance and enforcement operations in readiness for the new laws coming into effect.

Upholding robust standards for key industries, sectors and professions

We help administer and support sixteen business, professional and organisational licensing and registration schemes in Victoria. Integral to these schemes is the regulatory framework that helps maintain public confidence in these schemes and the goods or services provided by these regulated sectors.

Where we identify conduct that falls short of applicable professional standards, we will take action to address that conduct and protect consumers. In appropriate cases, we will initiate court or disciplinary proceedings and may seek orders to remove poorly behaving participants from the market.

Why

Purchasing a property is one of the biggest financial decisions people make. Underquoting is when a property is advertised at a price below the estimated selling price, the seller's asking price, or a price that has been rejected as too low by the seller. When underquoting occurs, potential buyers can waste significant time and money inspecting properties that were never in their price range. It may also distort the market and create an artificial purchasing environment while enriching those who break the law.

Given their role, estate agents and conveyancers also often hold significant monies on trust for consumers. Their trust account obligations, including to follow regulated account keeping practices and annual audit obligations, are critical consumer protection measures, ensuring client money is safe when entrusted as part of a sale or rental transaction.

At a time when households are struggling with cost-of-living pressures, the Government has established a dedicated taskforce within Consumer Affairs Victoria to ensure property prices are fairly and honestly advertised to protect buyers’ time and money when they need it most. This builds on our strong focus over the past few years on ensuring estate agents and conveyancers do not engage in underquoting and manage their trust accounts properly.

What

Consumer Affairs Victoria’s underquoting taskforce will crack down on unlawful underquoting in the property market. Building on the significant activity we have already undertaken, we will increase our education for agents and the public, market analysis and sales campaign monitoring, attendance at auctions and targeted inspections. We will adopt a zero-tolerance approach to underquoting, responding to all detected non-compliance.

We will also intervene when agents or conveyancers fail to meet their trust account obligations or misuse trust monies. We will continue to monitor annual trust account audits and take action, including seeking significant penalties or suspension or loss of licence, where agents or conveyancers do not meet their obligations.

Why

The COVID-19 pandemic saw increases in the costs of labour and building materials and significant interruptions to supply chains. We have received increasing numbers of queries or complaints by consumers building or renovating their homes seeking assistance or intervention. More recently, the collapse of several high-profile domestic builders has left significant numbers of consumers facing unfinished builds and higher costs and further dented confidence in the market. Consumers unprotected by insurance can suffer acute financial distress.

What

We will provide clear information, advice and support to consumers regarding their consumer rights when building or renovating, including about entering into domestic building contracts or negotiating with builders. We will work closely with our partners and co-regulators and act swiftly to crack down on builders who persistently fail to comply with basic consumer protections.

Why

New, mandatory registration obligations commenced for professional engineers in 2021. This state-wide mandatory registration scheme was introduced to ensure professional engineers are appropriately qualified and experienced to practise, with the aim of allowing Victorians to make informed choices about the engineer they engage and promote greater public confidence in local engineering services, knowing they meet solid industry benchmarks.

The scheme is being phased in over two and a half years and by 1 December 2023, the last of the five prescribed tranches of engineers will need to be registered.

What

We will continue to support the industry and work with co-regulators to help engineers understand and comply with their new obligations, including to register and to comply with a Code of Conduct. We will establish a new auditing process to assess compliance with registration requirements and undertake research to better understand the industry and ensure our promotion of the new registration requirements is helpful and effective. In serious cases of non-compliance, we will take disciplinary action.

Ensuring a fair and safe rental market

The rental market is experiencing considerable challenges, with low rental vacancy rates and large increases in median rents across Victoria leaving many renters vulnerable to financial stress or poor conduct by rental providers. Emergencies such as floods and bushfires can further reduce housing supply and provide opportunities for unscrupulous conduct. Following the COVID-19 pandemic and the introduction of Victoria’s rental reforms in March 2021, we have an important role as Victoria’s residential tenancies regulator to ensure people understand and comply with rental laws.

Victoria’s rental laws largely regulate the private rights and responsibilities between renters and rental providers, but some types of poor conduct are also banned and can attract penalties. We will work with partners and stakeholders to promote awareness of the laws among rental providers and renters and will monitor and enforce compliance with key consumer protections, particularly where poor conduct targets renters and residents experiencing disadvantage in the current market.

Why

Rental providers who don’t satisfy minimum health and safety standards place renters, especially those experiencing vulnerability at risk of serious harm. Failing to provide adequate heating or ensure mould prevention are particularly concerning in Victoria, and under the 2021 rental reforms allowing a renter to move into a new rental property that does not comply with minimum standards is an offence.

What

We will educate rental providers and ensure renters are more aware of their rights. While individual renters can apply to the tribunal to enforce rights and obligations regarding minimum standards and repairs, we will also monitor non-compliance with the minimum standards and take regulatory action against rental providers who engage in egregious, deliberate, or systemic breaches. Persons acting on behalf of rental providers, such as estate agents advertising non-compliant residential properties, may also be the subject of regulatory action.

We will also continue to fund support services, such as the Tenancy Assistance and Advocacy Program, to help individual renters and residents experiencing disadvantage get the advice and support they need.

Why

Rooming houses are often a housing option of last resort for some of the most vulnerable members of our community. Rooming house operators are required to satisfy mandatory minimum standards of safety and amenity. When these standards are not met, residents are placed at risk of serious harms. New minimum standards for rooming houses were introduced on 26 February 2023 that balance the needs of residents while allowing operators to manage their properties sustainably. They build on the minimum standards that have been in operation for Victorian rooming houses since 2012 and have been a strong focus of our inspection and compliance activities since that time.

What

Working closely with our key stakeholders, our education and compliance monitoring programs will continue to focus on improving the standards of rooming houses. We will continue to conduct inspections, with a particular focus on the new minimum standards and on the minimum standards applicable to electrical and gas safety and door and window locks. If we identify serious or systemic breaches, we will take further compliance and enforcement action, which may include seeking to cancel operators’ licences. We will use the full range of enforcement options against any unlicensed operators detected

Why

Residential parks are another growing accommodation sector. Such parks often attract older renters who may be financially vulnerable and seeking an alternative to a retirement village. Our previous work has identified a range of potential industry wide issues that may adversely affect residents’ health and safety, as well as presenting potential financial harm and detriment to renters. Central to these concerns is the use of unfair or prohibited contract terms in site agreements by some industry participants and a lack of transparency around fees and charges and rights or obligations on ending an agreement.

What

We will conduct further research to better understand these issues, engage with industry leaders to encourage better service delivery and intervene where appropriate. We will also assist older, financially disadvantaged residents living in retirement housing through the state-wide Retirement Housing Assistance and Advocacy Program (RHAAP) to help individual residents get the advice and support they need. We will take enforcement action against systemic or egregious non-compliance by park operators.

Why

Specialist Disability Accommodation (SDA) providers have specific legislative obligations under residential tenancy laws, aimed at providing additional protections for residents of this type of housing. Where providers engage in poor conduct and do not comply with the law, these residents can be at greater risk of financial, health or other serious harms.

What

We will support residents and their representatives by raising awareness of SDA rights and protections and where to go for help. If we identify systemic or egregious non-compliance, we will address that behaviour and involve other relevant regulators as needed. Where we identify opportunities to improve services, communication, and responses for SDA residents, we will work with key stakeholders to support those enhancements. We will also work closely with partner agencies to monitor and address issues and trends as they arise.

Supporting Victorian communities impacted by emergencies

Like all Victorian government agencies, Consumer Affairs Victoria is committed to supporting Victorians impacted by emergencies. While emergencies often bring out the best in our communities, sadly they are sometimes an opportunity for fraudsters to take advantage of people experiencing vulnerability or disadvantage or to prey on the kindness of those wanting to help.

Why

Emergencies such as floods or bushfires cause significant trauma for people and communities impacted. They can cause widespread damage to and loss of housing and result in complex financial issues for people affected, including insurance issues, loss of income, mortgage or rental stress, loss of possessions. Communities often show extraordinary resilience in the face of and after emergencies, but they also need services and supports to ensure a successful recovery.

What

We will continue to administer additional Victorian Government funding to agencies delivering financial counselling and renter services to those impacted by the October 2022 floods, including through a pilot program to provide integrated support to affected renters. This pilot will assist Victorians by providing access to legal, financial counselling and social support services.

We will also focus on streamlining our outreach services so renters impacted by flood events receive immediate, tailored, and long-lasting support without having to navigate multiple layers of bureaucracy. This support will aim to achieve better housing and life outcomes, including by reducing eviction rates (and associated social disadvantage like homelessness).

What

Emergencies often require residents and homeowners to take immediate action to fix their homes or arrange other, similar work. When demand for repairs is high and urgent, and access to skilled tradespeople is limited, ‘fake tradies’ can see an opportunity to fleece consumers by offering to do maintenance work, usually for cash, before disappearing with the money leaving unfinished or substandard work, if they start work at all.

What

We will continue to provide education and support for residents affected by emergencies and will respond swiftly to information or complaints about fake tradies, referring serious matters to Victoria Police when appropriate.

Why

Genuine fundraising activities are a great way to quickly raise money to help communities hit hard by emergencies. Unfortunately, as with ‘fake tradies’, fake fundraisers can see emergencies as a prime opportunity to prey on the generosity of the public who are keen to help by donating money, usually online. Not only is such conduct illegal, it also diverts much-needed donations away from legitimate charities.

What

We will actively monitor fundraising activities for impacted communities to identify practices such as misleading claims, unregistered fundraisers, or misappropriation of funds where proceeds are not distributed to beneficiaries. Where we receive reports of illegal fundraising, we will act in collaboration with our regulatory partners and may also refer matters to other law enforcement agencies for investigation and prosecution.