The Australian Treasury has launched a significant review of how the Australian Consumer Law (ACL) applies to artificial intelligence (AI) enabled products and services, releasing a discussion paper this month that seeks stakeholder input on crucial consumer protection issues in the AI era.
This initiative follows the Department of Industry’s broader examination of AI safety in 2023 and comes amid growing global scrutiny of AI regulation. The review specifically addresses three key areas:
- The ACL’s effectiveness in protecting AI consumers
- Clarity in applying existing laws to AI products, and
- The appropriateness of current remedies for AI-related breaches.
A central concern highlighted in the discussion paper is the autonomous nature of AI systems, which may be less controllable than traditional products and services, potentially increasing consumer risk. The review also notes the absence of specific safety standards for AI-enabled consumer goods, despite the government’s ability to impose such standards under the ACL.
Key uncertainties being examined include whether AI-enabled products and services align with existing legal definitions and how current principles-based standards can be applied to these emerging technologies. The review aims to clarify these ambiguities and determine if additional protections are needed.
The consultation process, running until 12 November 2024, is expected to inform broader AI policy reforms in Australia, including the government’s proposed mandatory guardrails for high-risk AI applications. Stakeholders have until the November deadline to submit their views to the Treasury, with the outcomes likely to shape the future landscape of consumer protection in Australia’s growing AI sector.
For a full reading of the consultation paper, see here.
