The Role Of Law Reform

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The role of law reform has responded rather effectively to a certain extent in protecting the rights of consumers. This is evident in the legal responses introduced to address issues of credit, marketing innovation and technology. These law amendments has effectively increase the protection of the rights of consumers to a certain extent, however loopholes still exist. Due to the increasing range of goods and services continues to grow and the failure of existing laws, the role of law reform has been significant in protecting the rights of consumers. Consumer laws were created to prevent deceitful activities, or unfair business practices, as well as serving a protection for weaker parties who are unable to protect themselves. However, laws were later reformed to enable customers to transact with confidence and protect suppliers, consumers from inappropriate business conduct and to reflect changed community values and circumstances.
A credit transaction is when a consumer purchases a good or service and pays in the future. The use of a credit card can be useful as it is convenient, saving time and trouble. However, due to the extensive use of credit cards in Australia, legal issues has arisen such as the inability for consumers to repay their debts, unfair contract terms and inadequate procedures of credit providers. Prior to 1996, the Credit Act 1984 (NSW) was introduced as the only piece of legislation that regulated customer credit. However, because it only offered protection for less than 20% of consumers, the Consumer Credit Code was established in 1996 under the Consumer Credit (NSW) Act 1995 (NSW). This code is a set of uniform national rules about consumer credit transactions and has been adopted by all governments throu...

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... and penalties may apply if they breach the law. This is evident in the case of 24 x 7 Direct Pty Ltd, where the company was penalised with a fine of $8800 for breaching the legislation. Therefore, the role of law reform is fairly effective in protecting the rights of consumer, but it is the consumer’s awareness to register the telemarketer’s number, leading to why it is effective.

The role of law reform has been exceedingly significant and effective in protecting the rights of consumers. The amendments and reforms made to the failure of existing laws have certainly increased the protection for consumers, improving access and awareness, however loopholes still exist that detracts from the overall effectiveness of the legal system in protecting consumers. Therefore, indicating that further reforms are required to improve the effectiveness of the legal system.

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