AustraliaAustralian Consumer Law ss. 18, 29 and 34, Misleading Conduct and Representations about an AI Product's Capabilities
In force since .
An AI transparency rule binding private bodies.
- Private right of action
- Yes
- How the hook was established
- express
- What makes it apply
- Market targeting
- Obligation class
- Prohibition
- Audit expectation
- none
As of .
What it requires
- This binds a corporation that, in trade or commerce, supplies or promotes goods or services, as a law of the Commonwealth (Competition and Consumer Act 2010, section 131(1)).
- Do not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive, including in what you say or show about an AI product, whatever technology carries the statement (Australian Consumer Law, section 18(1)).
- Do not, in trade or commerce and in connection with supplying or promoting goods or services, make a false or misleading representation that they have particular performance characteristics, uses or benefits (section 29(1)(g)), or that services are of a particular standard, quality, value or grade (section 29(1)(b)); a claim about what an AI feature can do is such a representation.
- Do not, in trade or commerce, engage in conduct that is liable to mislead the public as to the nature, the characteristics, the suitability for their purpose or the quantity of any services (section 34).
These lines are LexLint's reading of the law's text, as of .
What it makes you log
Logging duty
Sections 18(1), 29(1)(b) and (g) and 34 of the Australian Consumer Law prohibit misleading or deceptive conduct and false or misleading representations. None of the three states a duty to keep a log or record, to document a claim or to produce a record to a regulator; the conduct prohibited is judged on what was said or done, not on a record the person was required to hold.
- Kind
- None
- As of
What this law does
Section 18(1) of the Australian Consumer Law, which is Schedule 2 to the Competition and Consumer Act 2010, prohibits a person, in trade or commerce, from engaging in conduct that is misleading or deceptive or is likely to mislead or deceive.
The Treasury's final report on its review of AI and the Australian Consumer Law states that the provisions prohibiting misleading or deceptive conduct and false and misleading representations apply regardless of the technology through which the advertising is used or enabled.
Section 29(1)(g) prohibits a person, in trade or commerce and in connection with the supply or promotion of goods or services, from making a false or misleading representation that goods or services have particular performance characteristics, uses or benefits. Section 29(1)(b) prohibits a false or misleading representation, made in the same circumstances, that services are of a particular standard, quality, value or grade.
Section 34 prohibits a person, in trade or commerce, from engaging in conduct that is liable to mislead the public as to the nature, the characteristics, the suitability for their purpose or the quantity of any services. Schedule 2 applies as a law of the Commonwealth to the conduct of corporations.
A person who suffers loss or damage because of conduct that contravened Chapter 2 or 3 of the Australian Consumer Law may recover the amount of the loss or damage by action against the other person, or against any person involved in the contravention. The Trade Practices Amendment (Australian Consumer Law) Act (No. 2) 2010 commenced its Schedules 1, 2, 4, 5 and 7 on .
When LexLint raises it
When your app profile says your app deploys a chatbot or generates content with AI.