Small Business And Working With The Australian Consumer Law

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Question :


Q. Write the Legal issue of "Small Business and working with the Australian Consumer Law".

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Answer :


Small business refers to the small scale business operations that are operated within few personnel with less number of employees that do not have large volume of sales performance and production. The small business sectors in Australia generally are privately owned and as observed are governed by single proprietorships. However, the small business needs to consider and put importance on the customer needs and satisfaction. They need to follow the several laws governing the business and consumer operations as outlined by the Australian government. The Australian consumer Act (ACL) formulates the protection of the consumers that cater to the needs and requirements of the Australian customers (Cantatore & Marshall, 2016). The study explores the importance of the consumer law and act in Australia and how far the small business sector adheres to the regulations of the consumer law.  

Australian consumer law: 

The Australian Consumer law (ACL) was formulated and introduced in the constitution of law in the year of 2011.  The consumer law is applied in the business sectors both privately and public owned enterprises (Cantatore & Marshall, 2016). The small and the large business companies need to follow the regulations and rules of the consumers. Initially the law was formed under the professional research and guidance of the federal government and administered by the state and law regulators. The laws later was revised and examined by the officials under the consumer affairs Australia. The regulators and the federal government had examined if the policies are relevant. The consumer law was adopted in order to benefit the consumers and foster fair trade within the business economy and integrate possible and effective competition within the existing market structure, without avoiding customer dissatisfaction (Paterson & Wong, 2016)

Literature review: 

The small business need to cater towards the maintenance of the consumer protection act and laws. The laws will help in allowing the consumers in participating in the market and fair trade supply so that they are aware of the production process, services, market strategies, price structure (Phillips, 2016). It is their right to know about the existing purchasing decisions in regards to the product availability. In addition, the consumers need to know their basic rights that involve right to information, right to speech; legal authorities; problem-solving methods; rights and protections; barriers and economic efficiency (Tang, 2016). Consumers are highly benefited when they are empowered by the laws and governmental policies. Australia’s national policy in relation to consumers has been shaped due to several issue faced by the customers. The issues involve globalization, technological advancement, liberalization of trade, constant changes in the consumer behavior and perceptions due to their requirement alterations (Steinwall & Griggs, 2015)

            Consumer behavior and attitudes are constantly changing and it is the responsibility of the marketers in facing such challenges while meeting their demands. The marketers need to facilitate their economic growth through the review of eth customer feedbacks regarding specific products and services (Miller, 2016). Besides, customers be allowed in the decision making process that wills strengthen their bond and gain customer trust and loyalty. In relation to the small business sectors, the marketers and entrepreneurs need to set down customer policies that will help them in performing their production in accordance to the fulfillment of the organization and the consumers. In creating effective market-oriented and consumer-oriented environment, the consumer law and policy be appropriately balanced by the business enterprises under the compliance of effective market innovation and competition (Atwell & Buchan, 2014)

In introducing the consumer law and framework, the Productivity Commission, need to underline the strategies, and aspects of such formulation and how far the customers benefited with the utilization of such policies. The Australian Consumer Law therefore, helps in improving cooperation and coordination among the employers and modifies enforcement. The Australian consumer law has enabled to strengthen the communication between consumers and the marketers that has resulted in unprecedented growth and coordination within the purchase process and consumers choice (Paterson & Wong, 2016). The small business organization have been preparing report such as progress reports, consumer reports, query reports and associated in order to examine the ongoing issues and operations. 

Critical evaluation:

From the study of eth secondary sources, it is understood that the Consumer Act of 2011 in Australia aims at the well being of consumers. The law has given way to empowerment and strength to their thoughts and ideas and provided them with the space of fighting for their rights and demands. Such establishment of law provides confidence to the consumers in the understanding of the market structure and business operations. It helps them in making right decision in relation their demands and purchase choices (Casson, 2016). The small business organization needs to ensure that the customers are benefited from their services and products. It is through customer fulfillment that the production will again is profit and overcome the constant competition within the existing market (Svantesson & Clarke, 2013).  

Maintenance of laws will help the company to reduce unfair practices and deceitful acts that stresses and pressurizes the customers in making wrong choices (Tynan, 2015). In addition, the small organizations need to promote consumer empowerment by making the consumer aware of their mission, objectives and timely redress them. They need to eventually support the customers who are vulnerable to help them with their choices and in making appropriate decisions. 


The Australian consumer law is stated in understandable language that can be easily read and be understood by eth customers.  The consumer law helps the consumers in the understanding of eth deceitful nature of the marketers and conduct market and business analysis so that they cannot be misguided. The consumer act gives the small business organizations with eth space of informing the consumers with selling and buying procedures and information. The consumer law is incorporated in the Commonwealth of Australia that is to be maintained by the small business organizations of any Australian territory and state.