The proposed price signalling reforms in the Competition and Consumer Amendment Bill (No.1) 2011 (Bill) passed through the Senate on 24 November 2011, and are set to become law.
In our previous client alert titled ‘Government releases Price Signalling Bill’1, we outlined the government’s original proposal. Our client alert titled ‘Price Signalling Bill passes Lower House, with new amendments’2 discusses the latest amendments to the Bill (made in the Lower House). No further amendments were made in the Senate.
The new legislation will not apply immediately, for two reasons:
- First, there is a scheduled delay of six months between royal assent and commencement of the new legislation.
- Second, regulations must be drafted to specify the particular goods and services to which the new legislation will apply. Draft regulations have not yet been released, however they are expected to target the banking sector initially.
There may be scope to make submissions to the government on the regulations specifying relevant goods and services. As the new legislation will focus on the banking sector at first, clients in this industry should consider their position.