The Australian Government is working to support safe and responsible Artificial Intelligence (AI) uses. The Government conducted reviews of laws to assess how they apply to AI use. This review of AI and the Australian Consumer Law (ACL) is part of this work.

The report outlines that the ACL, when combined with other laws, can generally handle challenges that come with AI products and services. The ACL is a national law which aims to protect consumers and improve their wellbeing. While several opportunities are identified to improve clarity and certainty within select provisions, the breadth of the ACL’s principles-based consumer protections remain a key strength of the framework.

This review aimed to understand:

• how the ACL applies to AI goods and services
• whether ACL protections are suitable.

Findings

1. The principles-based protections provided under the ACL are generally well adapted to address the potential consumer law risks of AI enabled goods and services.
2. Uncertainty regarding the distinction between goods and services, including AI-enabled goods and services, presents a barrier to applying the ACL to new and emerging technologies.
3. The existing remedy and liability provisions under the ACL are broad and remain appropriate in an AI context.
4. Existing manufacturer defences to defective goods actions available under the ACL remain broadly appropriate in an AI context.
5. The nature of AI enabled goods and services does not necessitate specific changes to current powers available to the Australian Competition and Consumer Commission (ACCC).
6. The protections available under the ACL provide Australian consumers of AI-enabled goods and services with similar, and in some cases enhanced, protections when compared to those available to consumers in the European Union, United Kingdom and Singapore.