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The Albanese government has launched a review into artificial intelligence and the Australian Consumer Law to ensure consumers are protected from emerging technologies.
On Tuesday (15 October), the federal government opened for consultation a discussion paper for its Review of AI and the Australian Consumer Law.
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The consultation – which is open until 12 November – is seeking views on whether the Australian Consumer Law remains suitable to protect consumers who use artificial intelligence (AI) and support the safe and responsible use of AI by businesses.
While the review will support consideration of whether further work is required to harmonise or modify consumer protections in other laws – including those applying to the provision of financial products and services – its scope does not cover the provisions of the consumer law contained in the Australian Securities and Investments Commission Act 2001, which regulates financial products and services.
Instead, the purpose of the review is to consider
- The appropriateness of existing consumer protections under the ACL for consumers of AI-enabled goods and services.
- Uncertainty over the application of existing ACL provisions to new and emerging AI-enabled goods and services (including customer relationship management solutions).
- Remedies for consumers and liability for suppliers and manufacturers of AI-enabled goods and services.
The government has said submissions received will inform other ongoing work being conducted on Australia’s consumer protection framework and be used to clarify and strengthen existing laws to address AI-related risks and harms.
“AI is a fast-evolving class of technologies. AI may impact a range of economic activities and boost productivity growth,” the government outlines in the discussion paper.
“There is a substantial body of evidence that many consumers and small businesses are finding it difficult to obtain remedies from suppliers and manufacturers for consumer guarantees failures.
“To address these challenges, the Australian Government is currently considering options to improve the effectiveness of the consumer guarantees and supplier indemnification provisions, including consideration of penalties and enforcement mechanisms to ensure consumers and businesses (to the extent that business transactions are covered by the consumer guarantees.”
Financial Services Minister and Assistant Treasurer Stephen Jones said: “The Albanese Government is committed to ensuring consumers can safely enjoy the benefits of new and emerging artificial intelligence (AI) technologies.
“Australian consumers and businesses are increasingly accessing services and purchasing goods powered by AI.
“As part of the Government’s work to support safe and responsible AI practices we’re releasing a discussion paper on AI and the Australian Consumer Law (ACL).
“The discussion paper explores the application of the ACL to AI‑enabled goods and services and is part of the Government’s ongoing work to strengthen existing laws to address risks and harms from AI, alongside possible mandatory guardrails shaping the development and use of AI in high risk settings.”
[Related: In Focus: Utilising open banking and AI in mortgages]
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