Controversy Erupts over Scam Prevention Bill’s Impact and Efficiency
The government faced criticism from the Opposition for hastily conducting consultations, resulting in a convoluted and ambiguous framework that puts consumers at a disadvantage.
The Albanese government’s proposed anti-scam legislation came under fire from the Opposition, who labeled it rushed and incomplete.
During a parliamentary session, Liberal MP Luke Howarth pointed out the lack of specific mandatory codes for different sectors and a straightforward system for consumer redress.
According to him, while stakeholders like banks, telcos, and digital platforms broadly support the idea of a scams prevention framework, the crucial protections in the bill are still missing.
Howarth criticized the rushed consultation process, where stakeholders were only given a three-week window to review the draft legislation.
He described the bill as rushed, complex, unclear, and biased against consumers, as it was introduced on Nov. 7 with stricter rules for businesses to monitor and prevent scams.
The bill aims to empower regulators like the ACCC with more oversight and impose hefty penalties for non-compliance.
It also mandates financial institutions to enhance transaction checks and requires digital platforms to verify advertisers more rigorously, along with providing simpler reporting mechanisms for consumers to report scams.
Minister for Financial Services Stephen Jones highlighted that this bill would make Australia one of the toughest places for scammers to operate.
Greens Oppose Bill Over Lack of Victim Support
The Greens opposed Labor’s Scams Prevention Framework Bill, arguing that it prioritizes corporate profits over the welfare of scam victims.
Senator Nick McKim, Greens economic justice spokesperson, criticized the bill for favoring big banking corporations and making it challenging for scam victims to seek compensation.
He pointed out that the legislation could lead scam victims into lengthy battles against major financial institutions and digital platforms to recover their losses, creating an arduous process for seeking redress.
The parliamentary debate on the bill has been adjourned, with uncertainties surrounding its passage.
Criticism of Implementation Delays
Howarth raised concerns about the prolonged delays in drafting the legislation, which took over two years to develop but was swiftly pushed into Parliament in the government’s final months.
He expressed doubts about the timeline for implementing scam prevention rules in sectors like superannuation, insurance, and cryptocurrency, emphasizing that Australians remain susceptible to scams in the interim.
