The Treasury Laws Amendment (2018 Measures No. 3) Act 2018 (Cth) has introduced new tougher penalties for companies and individuals who breach certain provisions of the Australian Consumer Law (ACL).
What are the new penalties for companies?
The new maximum penalty for companies is the greater of:
- $10 million; or
- 3 times the value of the benefit directly or indirectly obtained by the company (and any related companies) which is reasonably attributable to the offence; or
- if the value of the benefit cannot be determined, 10% of the annual turnover of the company (and any related companies) for the 12 month period leading up to the commission of the offence.
Previously, the maximum penalty for companies was $1.1 million.
What are the new penalties for individuals?
The new maximum penalty for individuals is $500,000 (up from the previous maximum of $220,000).
The maximum penalties will apply to each contravention, so companies and individuals could potentially face massive fines if they commit multiple contraventions of the ACL.