National Priority 1
Trading Practices
The focus of this priority is to improve the trading practices of traders servicing Indigenous consumers. Key factors that increase the disadvantage in this area include geographic isolation for remote consumers, lack of choice and competition, low levels of English, lack of financial literacy and restricted access to services. These same factors also make it difficult for consumer agencies to monitor inappropriate behaviour by traders.
Constantly changing marketplaces will present challenges to consumer agencies in the future. Consumer agencies and the legislation they administer will need to change to reflect these challenges. However, the main product areas warranting the current focus for this priority area are; the arts, financial services, motor vehicles, funeral funds and telecommunications. These product areas may also change over time.
Issue | Action | Responsibility | Timeline |
| Issue 1.1 Door-to-door sales Door-to-door and itinerant traders remain an area of concern with the use of high pressure selling practices that target Indigenous consumers. | Educating traders about their obligations under fair trading laws and acceptable practice. Ongoing monitoring of door-to-door and itinerant traders, including co-operative action between agencies to address emerging problems. Undertake appropriate enforcement of legislation in this area. | All Consumer Agencies. | Ongoing |
Issue 1.2 Marketing Misleading or deceptive conduct in the promotion of goods and services including:
| Education of traders and media outlets around acceptable marketing practices. Monitoring of market trends, in terms of nature of activities and media used. Enforcement of legislation in this area. Co-operation between agencies building on the introduction of the Australian Consumer Law in 2011. | All Consumer Agencies. | Ongoing |
Issue 1.3 Debt collection Use of harassment and coercion in recovering outstanding debts. | Educating traders involved in debt collection activities about acceptable practices. Harmonisation of debt collection regulations in Australia. Refer affected consumers to financial counselling. Development of debt collection guidelines to involve Indigenous consumers. Enforcement of legislation in this area. | All Consumer Agencies, in particular ASIC and ACCC. | Ongoing |
Issue 1.4 Book-up Concerns with PIN security, differential pricing, fees and charges, and poor book keeping practices. | Educating and encouraging traders to use acceptable practices. Monitoring and responding to changes in book-up type practices. Appropriate legislative responses to book-up. | All Consumer Agencies. | Ongoing |
Consultation and feedback
Poor practices associated with book-up have a detrimental effect on Indigenous consumers. It continues to be our opinion that traders should not hold consumer cards and PIN numbers.
Lack of competition in remote communities results in Indigenous consumers experiencing exploitive pricing of goods and services and high pressure door-to-door selling of insurance, funeral plans, white goods and other products.