AUSTRALIA | The ACCC has welcomed the passage of the Scams Prevention Framework Bill in Parliament.
This world-first legislation has enhanced protections across the economy by setting out consistent and enforceable obligations for businesses in key sectors where scammers operate.
“The financial crime type, scams, present an unacceptable threat to the Australian community and have had a devastating impact on hundreds of thousands of Australians,” said ACCC Deputy Chair Catriona Lowe.
“This Bill is a critical step in the fight against scams, creating overarching principles that all members of designated sectors must comply with. We know scammers will exploit weak links in the system, so these principles are key to a consistent approach.”
Under the new legislation, the ACCC will closely monitor regulated entities’ compliance with principles to prevent, detect, disrupt, respond to and report scams.
The Scams Prevention Framework empowered the ACCC to investigate potential breaches and take enforcement action where entities do not take reasonable steps to fulfil their obligations under these principles.
Businesses that do not meet their obligations under the Framework can face fines of up to AUD 50 million.
“Individuals have been bearing the brunt of the responsibility to combat scammers for too long.”
Lowe added that while the steps taken by some organisations over the last few years were welcomed, the Framework provided the opportunity for joint effort across government and industry to develop solutions to scam challenges and for consumers to access meaningful redress.
She said the Framework enabled consumers to seek redress from regulated businesses when those businesses have not met their obligations.
Banks, specific digital platforms, social media, and telecommunications providers will be the first sectors required to comply with the legislation. The ACCC has strongly supported mandatory industry scam codes and, through the National Anti-Scam Centre, has already begun preparing incrementally for the Framework.
“In reaching this important milestone, we acknowledge that there is considerable work ahead to implement the Framework, including the formal designation of sectors, development of sector codes, consumer and industry guidance,” said Lowe.
“We will continue to work closely with government, fellow regulators, industry and community agencies to make sure these elements of the Framework work for all stakeholders, most especially consumers.”
The ACCC runs the National Anti-Scam Centre and the Scamwatch service. Under the Framework, the ACCC will also enforce the digital platforms sector scams code and take enforcement action where digital platforms breach their obligations under this code.
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