Papers by Stephen Corones
This study seeks to analyse the adequacy of the current regulation of the payday lending industry... more This study seeks to analyse the adequacy of the current regulation of the payday lending industry in Australia, and consider whether there is a need for additional regulation to protect consumers of these services. The report examines the different regulatory approaches adopted in comparable OECD countries, and reviews alternative models for payday regulation, in particular, the role played by responsible lending. The study also examines the consumer protection mechanisms now in existence in Australia in the National Consumer Credit Protection Act 2009 (Cth) (NCCP) and the National Credit Code (NCC) contained in Schedule 1 of that Act and in the Australian Securities and Investments Commission Act 2001 (Cth).
Company and securities law journal, 2012
Small-amount short-term lending began in 1994 in response to the initial exemption of such loans ... more Small-amount short-term lending began in 1994 in response to the initial exemption of such loans from consumer credit regulation. Growing demand for such loans now produces industry turnover of approximately $800 million each year. Regulators recognised early the need for consumer protection due to the vulnerability of borrowers and the emergence of various predatory practices. This led to reforms designed to regulate these loans, prevent particular misconduct and provide remedies against injustice. Some were enacted as part of the National Consumer Credit Protection Act 2009 (Cth), which also imposed licensing and responsible lending requirements on lenders and increased consumer access to remedies. The Government has now introduced the Consumer Credit and Corporations Amendment (Enhancements) Bill 2011 which limits the price that can be charged for credit and restricts access to small loans. This article examines the extensive reforms which have taken place in this sector, and compares these regulatory approaches with the "bright line approach" of the Enhancements Bill. The article argues that the repercussions of this step will require careful monitoring to ensure that further harm is not suffered by those least able to bear it, and that the government will also need to facilitate other, more sustainable, solutions to the problem that small loans are currently used to solve. After we wrote this article, the Report of the Parliamentary Joint Committee on Corporations and Financial Services and the Report of the Senate Economics Legislation Committee on the Enhancements Bill were released. These are referred to in a postscript. 34 This implements the recommendation to remove the effect that the presumption from a BPD is conclusive: Regulatory Impact Statement for SL 2007 No 302 (Consumer Credit (Bill Facilities) Amendment Regulation (No 1) 2007 p 6, 77. 35 National Consumer Credit Protection Regulations 2010 (Cth) reg 67 defines the prescribed person to be the person who obtained the declaration from the debtor, and where it was obtained by someone other than the credit provider, any person who referred the debtor, or in the course of their business suggested the debtor apply for the credit or assisted the debtor to apply for the credit. 36 Explanatory Memorandum National Consumer Credit Protection Bill 2009 (Cth) para 8.63 p255.
In its Final Report released in March 2015, the Competition Policy Review Committee (Harper Revie... more In its Final Report released in March 2015, the Competition Policy Review Committee (Harper Review Committee) made some radical recommendations for the reform of Competition and Consumer Act 2010 (Cth) (CCA), and none more so than Recommendation 30. Recommendation 30 is that s 46(1) should be amended to prohibit a corporation that has a substantial degree of market power from engaging in conduct that has the purpose, effect or likely effect of substantially lessening competition. 1
Northwestern journal of international law and business, 2000
Competition regulators ensure anti-competitive mergers challenged and pro-competitive or neutral ... more Competition regulators ensure anti-competitive mergers challenged and pro-competitive or neutral mergers proceed unchallenged. Australia's competition regulator, the Australian Competition and Consumer Commission ("ACCC"), recognises the trend towards global mergers in its 1999 Merger Guidelines. It states: Increasingly the Commission must deal with acquisitions in a global context. This may involve consideration of global competition, or even global markets, and the role of mergers in enhancing efficiency and international competitiveness.... In addition, the mergers themselves may occur on a global scale, often involving multinational companies. Where these mergers impact on a market in Australia they will generally be subject to the Act.... Firms involved in these mergers will often have to deal with multiple competition agencies around the world. The Commission is increasingly involved in discourse and cooperation with these agencies and the OECD Committee on Competition Law and Policy recently approved a report reviewing and synthesising member countries' merger notification practices into a 'Framework for a Notification and Report Form for Concentrations'.1 The purpose of this article is to examine some recent global mergers from an Australian perspective. The article begins by considering the administrative tribunal and Court structure in Australia, as well as the procedural, substantive. and remedial aspects of Australian laws regulating global mergers. 2 It then considers the Merger Guidelines and their focus on the unilateral and coordinated post-merger effects that are likely to occur. The article examines a number of recent global mergers. including
Faculty of Law; School of Law, 2003
Commercial & Property Law Research Centre; Faculty of Law, 2014
On 5 September 2016, the Federal Treasurer released the Exposure Draft legislation containing the... more On 5 September 2016, the Federal Treasurer released the Exposure Draft legislation containing the Turnbull Government’s changes to the Competition and Consumer Act 2010 (Cth) (CCA) recommended by the Harper Review Committee. The Exposure Draft legislation contains a significant reform to s 46(1), namely that it should be amended to prohibit a corporation that has a substantial degree of market power from engaging in conduct that has the purpose, effect or likely effect of substantially lessening competition. Prior to the Federal election on 2 July 2016, the Turnbull Government announced that if returned to power it would legislate to give effect to these reforms. In its Media Release the Government said that s 46 in its current form was: … not reliably enforceable and permits anti-competitive conduct. This slows the entry and expansion of new and innovative firms, delays the entry of new technologies into Australia and impedes economic growth in the long run. It is claimed that thes...
This article considers the High Court’s decision in Rural Press Ltd v ACCC [2003] HCA 75 (11 Dece... more This article considers the High Court’s decision in Rural Press Ltd v ACCC [2003] HCA 75 (11 December 2003. This is the third recent case in which it has been required to construe and apply s 46 of the Trade Practices Act 1974 (Cth) (the Act). (The other two recent cases are Melway Publishing Pty Ltd v Robert Hicks Pty Ltd (2001) 205 CLR 1 (Melway) and Boral Besser Masonry Ltd v ACCC (2003) 195 ALR 609 (Boral). Prior to these decisions the leading authority on the interpretation and application of s 46 was Queensland Wire Industries Pty Ltd v Broken Hill Pty Co Ltd (1989) 167 CLR 177 (Queensland Wire).)
Australian Business Law Review, 2014
Commercial & Property Law Research Centre; Faculty of Law, 2016
Commercial & Property Law Research Centre; Faculty of Law, Nov 1, 2015
1. Under the Terms of Reference for the Committee’s Inquiry, ‘lemons’ are defined as ‘new motor v... more 1. Under the Terms of Reference for the Committee’s Inquiry, ‘lemons’ are defined as ‘new motor vehicles with numerous, severe defects that re-occur despite multiple repair attempts or where defects have caused a new motor vehicle to be out of service for a prolonged period of time’. Consumers are currently protected in relation to lemon purchases by the Australian Consumer Law (ACL) located in Schedule 2 of the Competition and Consumer Act 2010 (Cth) (CCA). The ACL applies as a law of Queensland pursuant to the Fair Trading Act 1989 (Qld). The voluntary recall and consumer guarantees law took effect on 1 January 2011. 2. In 2006, the Government of Victoria made a commitment to introduce a lemon law into the provisions of the then Fair Trading Act 1999 (Vic). The public consultation process on the proposal to introduce a lemon law for motor vehicle purchases in Victoria was conducted by Ms Janice Munt MP, with the assistance of Consumer Affairs Victoria (CAV). CAV released an Issues Paper to canvas with industry and the community options for the development and introduction of a motor vehicle lemon law.(Consumer Affairs Victoria, Introducing Victorian motor vehicle lemon laws, Issues Paper, (September, 2007). 3. A CAV report prepared by Janice Munt MP was released in July, 2008 (Consumer Affairs Victoria, Motor Cars: A report on the motor vehicle lemon law consultations (July 2008) (Victorian Lemon Law Report). However, the Victorian proposal was overtaken by events leading to the adoption of a uniform consumer protection law in all Australian jurisdictions, the ACL. 4. The structure of this submission is to consider first the three different bases upon which consumers can obtain relief for economic loss arising from defects in motor vehicles. The second part of the submission considers the difficulties encountered by consumers in litigating motor vehicle disputes in the courts and tribunals. The third part of the submission examines the approach taken in other jurisdictions to resolving motor vehicle disputes. The final part of the submission considers a number of possible reforms that could be made to the existing law and its enforcement to reduce consumer detriment arising from the purchase of ‘lemon’ motor vehicles. 5. There are three principal bases upon which a consumer can obtain redress for defects in new motor vehicles under the ACL. The first is where the manufacturer admits liability and initiates the voluntary recall procedure provided for in s 128 of the ACL. Under this basis the manufacturer generally repairs or replaces the part subject to the recall free of charge. The second basis is where the manufacturer or dealer denies liability and the consumer is initiates proceedings in the court or tribunal seeking a statutory remedy under the ACL, the nature of which will depend on whether the failure to comply with the consumer guarantee was major or not. The third basis upon which a consumer can obtain redress is pursuant to public enforcement by the ACCC. Each basis will be considered in this part. What all three bases have in common is the need to conduct an investigation to identify the nature of the defect and how it arose.
Supermarkets in Australia may have substantial market power as buyers in wholesale markets for gr... more Supermarkets in Australia may have substantial market power as buyers in wholesale markets for grocery products. They may also have substantial bargaining power in negotiating contracts with their suppliers of grocery products. The Competition and Consumer Act 2010 (Cth) (CCA) regulates misconduct by supermarkets as customer/acquirers in three ways. First, s 46(1) of the CCA prohibits the ‘taking advantage’ of buyer power for the purpose of damaging a competitor, preventing entry or deterring or preventing competitive conduct. Secondly, s 21 of the ACL prohibits unconscionable conduct in business–to–business transactions. Thirdly, Pt IVB of the CCA provides for the promulgation of mandatory and voluntary industry codes of conduct. Since 1 July 2015 the conduct of supermarkets as customer/acquirers has been regulated by the Food and Grocery Industry Code of Conduct. This article examines these three different approaches. It considers them against the background of the misconduct at i...
The Commonwealth Department of Treasury (Commonwealth Treasury) on behalf of Consumer Affairs Aus... more The Commonwealth Department of Treasury (Commonwealth Treasury) on behalf of Consumer Affairs Australia and New Zealand (CAANZ) has engaged the Queensland University of Technology (QUT) to conduct a comparative review of international consumer policy frameworks. The principal jurisdictions identified for the purposes of the comparison are the European Union, the United Kingdom, the United States of America, Canada, and Singapore. This comparative analysis identifies emerging issues and key developments in consumer policy and possible alternative approaches for providing consumer protection. It highlights where the chosen jurisdictions adopt different approaches to Australia, but does not identify best practice models in other jurisdictions.
The policy objectives of the continuous disclosure regime augmented by the misleading or deceptiv... more The policy objectives of the continuous disclosure regime augmented by the misleading or deceptive conduct provisions in the Corporations Act are to enhance the integrity and efficiency of Australian capital markets by ensuring equality of opportunity for all investors through public access to accurate and material company information to enable them to make well-informed investment decisions. This article argues that there were failures by the regulators in the performance of their roles to protect the interests of investors in Forrest v ASIC; FMG v ASIC (2012) 247 CLR 486: ASX failed to enforce timely compliance with the continuous disclosure regime and ensure that the market was properly informed by seeking immediate clarification from FMG as to the agreed fixed price and/or seeking production of a copy of the CREC agreement; and ASIC failed to succeed in the High Court because of the way it pleaded its case. The article also examines the reasoning of the High Court in Forrest v A...
Melbourne University Law Review, 2014
Despite the very substantial body of primary sources and secondary literature on Australia's ... more Despite the very substantial body of primary sources and secondary literature on Australia's much-litigated statutory provisions proscribing misleading or deceptive conduct, the courts have provided little in the way of assistance about how to establish the knowledge base of the target audience at whom the public statement was directed. The purpose of this case note is to compare and contrast two recent decisions of the High Court of Australia that highlight the difficulties faced by applicants in attempting to establish a contravention of the relevant legislation where conduct is directed at a segment of the public or the public as a whole.
This study seeks to analyse the adequacy of the current regulation of the payday lending industry... more This study seeks to analyse the adequacy of the current regulation of the payday lending industry in Australia, and consider whether there is a need for additional regulation to protect consumers of these services. The report examines the different regulatory approaches adopted in comparable OECD countries, and reviews alternative models for payday regulation, in particular, the role played by responsible lending. The study also examines the consumer protection mechanisms now in existence in Australia in the National Consumer Credit Protection Act 2009 (Cth) (NCCP) and the National Credit Code (NCC) contained in Schedule 1 of that Act and in the Australian Securities and Investments Commission Act 2001 (Cth).
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Papers by Stephen Corones