https://www.accc.gov.au
The New Energy Tech Consumer Code sets minimum standards of good practice and consumer protection in relation to solar generation systems, energy storage systems, electrical vehicle charging and other emerging energy products and services. It applies to all aspects of customers' interactions with participating retailers, including marketing, sales, finance and payments, warranties and complaints handling processes.
In the ACCC's authorisation decision in
The Tribunal varied the conditions of authorisation in relation to the requirements that BNPL finance providers must meet in order for signatories to offer such finance arrangements under the Code, and imposed a condition removing the prohibition on BNPL finance being offered in unsolicited sales of new energy tech.
The varied conditions also remove the Code administrators' ability to impose mandatory standards on signatories that would apply to future new energy tech products and services.
"The New Energy Tech Code aims to provide consumers with added protections and more information to help them make better informed decisions around what can be complex, expensive purchases," ACCC Commissioner
"The ACCC considered that the option to choose "buy now pay later" finance was valued by consumers but that, based on the submissions made to the ACCC, greater protections around responsible finance and a prohibition on "buy now pay later" finance being offered in unsolicited sales of new energy tech were appropriate to reduce the risk of harm to consumers from entering into unsuitable or unaffordable finance arrangements,"
After conducting a hearing, the Tribunal concluded that the detailed evidence before it did not establish that the provision of BNPL finance with new energy tech products generated material consumer harm. It also found that there was substantial detriment in restricting BNPL finance options to consumers and that BNPL was a significant and popular form of finance that provided economic benefits.
The Tribunal also considered that any harm which may arise by unlawful selling of these products could be reduced by the consumer protections contained in the Code.
The Tribunal further noted that ASIC has been actively considering whether the National Consumer Credit laws should be extended to cover BNPL finance and that ASIC's review of the sector will have more evidence before it to consider whether such an extension is warranted.
A summary of the Tribunal's Determination can be found here: Tribunal Summary of Determination.
Background
On
On
This matter was heard by the Tribunal between 9 and
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(C) 2020 M2 COMMUNICATIONS, source