The Australian Competition and Consumer Commission (ACCC) has welcomed the passage of the Scams Prevention Framework Bill, which establishes a comprehensive set of obligations for businesses in sectors vulnerable to scams. This legislation aims to enhance protections for consumers and create a unified approach to combatting financial crimes associated with scams.

According to ACCC Deputy Chair Catriona Lowe, scams pose a serious threat to the Australian community, affecting hundreds of thousands of individuals. The new framework introduces overarching principles that designated sectors must adhere to, ensuring that businesses take proactive measures to prevent, detect, and respond to scams.

The ACCC will monitor compliance with these principles and has the authority to investigate breaches, imposing fines of up to $50 million on businesses that fail to meet their obligations. This legislation shifts some responsibility from individuals to businesses, promoting a collaborative effort between government and industry to tackle scam-related challenges.

Initially, banks, digital platforms, and telecommunications providers will be the first sectors required to comply with the new laws. The ACCC has already begun preparations for the framework through its National Anti-Scam Centre, which aims to disrupt scams before they reach consumers by analyzing data and raising awareness.

The framework also mandates that regulated businesses provide consumers with avenues for redress if they do not fulfill their obligations. The ACCC is committed to working with various stakeholders to ensure the effective implementation of the framework, which includes the development of sector-specific codes and guidance for both consumers and businesses.