A key to achieving a fair and competitive marketplace is ensuring businesses comply with consumer laws. We support businesses to be compliant by giving them information and resources, and protect consumers by acting quickly against business that are causing the most harm. We follow an intelligence-led, risk-based enforcement approach. We also focus on achieving high levels of business compliance by working with relevant industry bodies and other partners.
Promoting product safety
Products sold to consumers should be safe. In Victoria, we monitor compliance against national mandatory product safety standards. We work closely with the Australian Competition and Consumer Commission (ACCC) and other jurisdictions to administer the product safety provisions of the Australian Consumer Law. In 2022–23, we ran campaigns to promote the safe use of blind cords and button batteries and supported regulatory change to improve the safety of commercially available helium.
Blind cords that don’t meet safety standards pose a significant risk to young children. Unsecured blind or curtain cords claim the lives of one or two Australian children every year – at least 21 since 2001.
We have prioritised addressing this risk through both regulation and community outreach. A new mandatory standard for blind and curtain cords for Victorian rooming houses was introduced on 26 February 2023. It requires rooming house operators to secure loose blind and curtain cords to a wall, as described in the current Australian consumer safety standard. Operators will have 12 months to meet the new requirement.
A national mandatory product safety standard applies for corded blinds and curtains installed after 30 December 2010. However, many older rental properties still have unsecured blind cords. We offer free blind cord safety kits on request, to retrofit curtains and blinds in Victorian properties. Victorian residents ordered over 3,500 free blind cord safety kits between 1 July 2022 and 30 June 2023. After we relaunched a child safety campaign on 18 January 2023, we received almost 300 orders for blind cord safety kits in one day.
Button batteries in many consumer and household products pose serious risks to young children. If swallowed, they can become stuck in a child’s throat and cause terrible injuries and even death. Under new mandatory Australian standards, since June 2022, button batteries’ packaging must carry appropriate warnings. Products with button batteries must also meet design standards intended to keep the batteries secure. Businesses providing unsafe or non-compliant products can face serious penalties.
To ensure compliance with the new safety and information standards, our inspectors visited 97 stores across the state, seized more than 3,000 products (including 280 children’s toys and 2,000 batteries) and issued 85 official warnings. This activity was part of a national surveillance project, led by the ACCC, to check compliance with the new safety and information standards.
Our website provides information on button battery safety standards. We also host an online form for consumers to submit complaints about products they believe are unsafe or dangerous. They can make urgent complaints about products that have caused a serious injury or near miss via our staffed phone hotline.
We also supported the ACCC‘s development of a national coordinated approach for safety standards for consumer helium products. Since 16 April 2023, a new mandatory safety standard made under the Australian Consumer Law sets out the requirements for non-refillable helium cylinders. The new safety standard requires these cylinders to include product safety labels and contain an oxygen-helium blend.
Underquoting taskforce
Underquoting is an unfair business practice that makes it harder for Victorians to purchase property. It occurs when a property is advertised at a price that is less than the estimated selling price, less than the seller’s asking price or less than a price already rejected by the seller. It can cause potential buyers to waste significant time and money inspecting properties that were never in their price range. It may also distort the market, while benefiting people who break the law.
In September 2022, the Victorian Government announced $3.8 million over two years for a dedicated taskforce, embedded in CAV, to target underquoting. The taskforce builds on our ongoing focus on ensuring the estate agents only provide accurate information to the public when they are selling residential property. The new taskforce is working to:
- increase education for estate agents and the public
- collect and analyse market intelligence
- monitor sale campaigns
- increase our presence at auctions and targeted inspections.
The taskforce takes a zero-tolerance approach to non-compliance – all breaches we identify result in an enforcement response. Under the Estate Agents Act 1980, agents who underquote risk fines or penalties of almost $38,000 for each property where CAV considers that agents have failed to comply with their obligations. Even higher penalties apply for misconduct under the Australian Consumer Law, such as making false representations.
In 2022–23, we received 1677 contacts concerning underquoting, including 885 submissions via our new dedicated complaint form. From these complaints, we identified 135 estate agencies suspected of breaching underquoting laws. We inspected 80 estate agencies in person and undertook desktop monitoring of a further 101. We reviewed 375 sales files across in-person inspections and desktop compliance monitoring. We issued 48 infringements (totalling more than $520,000) and 37 official warnings to 29 estate agents for underquoting, and several matters are under ongoing review or investigation for possible further action.
Protecting consumer money held in trust accounts
Trust accounts protect consumers who pay money (such as rent, purchase or sale deposits or advertising and maintenance fees) to real estate agents and conveyancers. Under the law, estate agents and conveyancers must deposit any client money they receive in advance into a trust account for safe keeping and face high penalties if they fail to comply.
Annual audits of estate agent and conveyancer trust accounts are an important requirement. They protect consumers by ensuring trust monies are not misused or stolen by agents or conveyancers. By law, estate agents and conveyancers must lodge an annual trust account audit with us if they held trust monies during the financial year. We have zero tolerance of non-compliance, because it may indicate more serious breaches.
Although most agents and conveyancers do the right thing, since 2021, we have run a compliance program to identify and take action where any have not complied with their trust account reporting obligations. As of 30 June 2023, 5,290 of the 5,938 estate agency businesses in Victoria operate a total of 5,835 statutory trust accounts. Three hundred and forty-four of the 706 conveyancing businesses in Victoria operate a total of 348 statutory trust accounts.
We issued 74 infringements to estate agents and 22 to conveyancers (a total of 96) for failing to meet their 2021–22 trust account audit obligations. This is slightly down from the previous audit year, indicating increased compliance as we continue our efforts to stamp out these failures.
We also took successful disciplinary against in the Victorian Civil and Administrative Tribunal against Seymour estate agent, Saowanee Howell and Caroline Springs agent, Tsun Ngai Lee for persistent failures to cause their trust accounts to be audited. In both instances the agents lost their licences to practice, Ms Howell for two years and Mr Lee for 18 months. We have identified several other cases where disciplinary proceedings may also be pursued in the coming year.
In 2022–23 we also finalised 9 criminal prosecutions and disciplinary proceedings and commenced 7 new court or disciplinary proceedings against estate agents and agents representatives for trust account mishandling.
One finalised prosecution concerned Kylie Jane Campbell, a Melbourne estate agent, who first came to our attention when two witnesses made claims against the Victorian Property Fund (VPF). The VPF provides compensation for clients who have suffered financial loss as a result of agents’ misconduct. Our investigation found that Ms Campbell had withdrawn more than $100,000 in funds belonging to clients with the intention of putting it towards a deposit on a commercial property. Ms Campbell pleaded guilty in November 2022 to two charges of causing a deficiency in her company’s trust account and wrongful conversion of funds. She was sentenced to a three-year community corrections order and 300 hours of unpaid community work. She was also ordered to pay more than $94,000 to the VPF for money paid to compensate former clients.
In another matter, a former estate agent who mishandled his clients’ trust account funds for personal use was sentenced this year to 12 months in prison and a two-year Community Corrections Order. Richard Michael Hayden, formerly the Director of Skyline Developments Pty Ltd, trading as Hayden Real Estate, pleaded guilty on 5 June 2023 to three offences. These included two charges for causing almost $1.6 million in trust account deficiencies and one charge for fraudulently transferring around $776,000 in trust funds for his own use. We launched court proceedings against Mr Hayden following complaints from consumers.
CAV’s actions against Mr Hayden, Ms Campbell and others reflect our determination to hold agents accountable if they misuse money from trust accounts, and to ensure that Victorians feel secure knowing their trust account funds are managed by regulated professionals.
Professional Engineers Registration Scheme
The Professional Engineers Registration Act 2019 (the Act) took effect on 1 July 2021. It is an important part of the government’s support for infrastructure in Victoria, to enhance innovation and productivity in our economy. Registration also gives Victorians greater confidence that only suitably qualified and experienced engineers, who meet Australian and international standards, can provide professional engineering services.
Under the Act, registration is now mandatory for professional engineers in nominated areas, unless they work under the direct supervision of a registered professional engineer, or under a prescriptive standard. Professional engineers must meet qualifications and experience or competency requirements to be registered, and also meet continuing professional development requirements every three years.
In a first for Victoria, the scheme introduced a co-regulatory model involving engineering associations operating approved assessment schemes, with:
- the Victorian Building Authority (VBA) advising on applicants’ suitability to work in the building industry
- the Business Licensing Authority managing probity checks and granting registrations; and
- CAV and the VBA monitoring compliance and enforcement.
We continued to phase in registration across the five areas of engineering throughout 2022–23. As of 1 June 2023, mandatory registration applies to fire safety, civil and structural and electrical engineers. It will also apply to mechanical engineers by 1 December 2023.
The Business Licensing Authority registered 5,561 professional engineers in 2022–23. This makes a total of 9,657 professional engineers registered across the five engineering areas within the first two years. We estimate that after four years of mandatory registration, 27,000 engineers will be registered.
A statutory review of the Act will commence in 2024, based on advice from the co-regulatory bodies administering the scheme, as well as input from industry stakeholders.
Domestic building response
In March 2023, Porter Davis Homes Group went into liquidation. As Australia’s 12th largest home builder, their closure affected 1,700 projects and another 779 empty blocks of land. Customers with incomplete homes faced out-of-pocket costs of tens of thousands of dollars, plus higher costs when finding another company to finish construction.
Some impacted customers could claim compensation under the builder’s Domestic Building Insurance, but many had no insurance cover due to Porter Davis Homes’ failure to take out the required insurance. In April 2023, the Victorian Government announced it would support these uninsured customers, with refunds up to the legal maximum deposit payment under the Domestic Building Contracts Act 1995. The Government also subsequently expanded the same support to customers of other builders who went into liquidation during 2022–23.
Recognising that customers needed to navigate consumer processes at a very stressful time, CAV undertook activities to inform consumers about their rights and where to go with any questions. Information was provided via CAV’s Building Information phone line, dedicated website content and social media. CAV website content on Domestic Building Insurance and insolvency was reviewed to ensure the content was easy to read and understand.
Collaboration between CAV, the VBA and the Victorian Managed Insurance Authority helped to ensure messaging was consistent, accurate, and reaching the right people. This included a co-branded VBA-CAV email that was sent to builders to reinforce their responsibilities in relation to Domestic Building Insurance. In 2022–23, CAV recorded 12,768 contacts relating to building matters, compared to 11,070 for the full 2021–22 financial year. These activities reflect CAV’s role in supporting the Victorian community through this challenging period.
CAV monitors and enforces compliance with both the Domestic Building Contracts Act 1995 and the Australian Consumer Law, and is continuing to investigate the circumstances of this builder collapse. The Victorian Government has also committed to a review of the Domestic Building Contracts Act, to modernise it and appropriately balance industry and consumer interests. This review will complement the Building System Review, which is reviewing the Building Act 1993.
Sex work reforms
The Victorian Parliament passed the Sex Work Decriminalisation Act 2022 (the Act) on 22 February 2022. Decriminalisation maximises sex workers’ safety, health, and human rights, to ensure that sex work is safe work. Reforms began in two stages, to allow time for the transition to a different regulation model.
Stage 1 began on 10 May 2022 and included:
- decriminalisation of street-based sex work in most locations
- repeal of the requirement for independent sex workers to register
- repeal of public health offences under the Sex Work Act 1994
- repeal of industry-specific advertising controls
- new anti-discrimination protections in the Equal Opportunity Act 2010.
Stage 2 will begin on 1 December 2023 and include:
- repeal of the Sex Work Act 1994 and transition to regulating the sex work industry through existing mainstream government regulators
- re-enactment of offences relating to children and coercion in other legislation, to ensure their continued operation
- establishment of appropriate liquor controls for the sex work industry
- amendments to the Public Health and Wellbeing Act 2008
- amendment of planning controls applicable to the sex work industry.
When all the reforms are implemented, existing specialist responsible agencies such as WorkSafe, the Department of Health and local governments will regulate sex work.
The Business Licensing Authority stopped registering sex workers on 10 May 2022 and will stop licensing sex work businesses on 1 December 2023. It will not have any regulatory role in the sex work industry following decriminalisation. While CAV will stop enforcing licensing for sex work businesses from 1 December 2023, we will still enforce the Australian Consumer Law in the sex work industry, as we do in all industries.
National Fundraising Principles
The National Fundraising Principles are designed to replace existing prescriptive, overlapping and outdated laws and regulations. The Principles streamline state and territory requirements on charitable fundraiser conduct and will give charities and donors a clear understanding of appropriate conduct.
In November 2021, the Council on Federal Financial Relations (CFFR) asked the National Working Group on Reform of State and Territory Fundraising Laws to propose a national model fundraising framework for charitable fundraising.
The working group was co-chaired by the Victorian and Commonwealth Governments and comprised officials from all states and territories, except the Northern Territory, together with representation from the Australian Charities and Not for Profits Commission. The working group developed a set of proposed National Fundraising Principles which were subsequently endorsed by CFFR in February 2023, for adoption by all participating jurisdictions. This major step in fundraising red tape reform will save Australia’s charity sector millions of dollars each year, which can be used instead to help more Victorians.
For more information, see the tables on pages 17-19 of the Annual Report 2022-23 (PDF, 461KB).