The Australian Treasury’s Review of Artificial Intelligence and the Australian Consumer Law (ACL) confirms that existing consumer protections effectively cover AI products and services, ensuring safety and fairness comparable to traditional goods and services. The report made six findings: (1) the principles-based protections of the ACL are generally well-suited to address consumer law risks associated with AI-enabled goods and services; (2) uncertainty in distinguishing between goods and services, including those with AI, creates a barrier to ACL application, suggesting clarity could be improved by targeted amendments to the definition of ‘goods’ and updated regulatory guidance; (3) the current remedy and liability provisions remain appropriate, but clarity on obligations across the AI supply chain could be enhanced through amendments to the definition of ‘manufacturer’; (4) existing manufacturer defences for defective goods are broadly appropriate, though technical amendments may be needed to ensure they operate correctly for software-enabled goods, especially where the manufacturer retains post-supply control; (5) the nature of AI-enabled products does not require specific changes to the powers of the Australian Competition and Consumer Commission (ACCC), though regular review of these powers should continue; and (6) the ACL provides Australian consumers of AI-enabled products with similar, and sometimes enhanced, protections compared to consumers in the EU, UK, and Singapore.
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