Consumers often rely on referrals from third parties, like agents and price comparison websites, when deciding what to buy. Sometimes these businesses receive a fee for recommending specific products or services. Under these changes, businesses will be up front about receiving referral fees.
The Better Business Reforms will give consumers the tools they need to make informed decisions and help good businesses compete.
The changes will also create greater transparency around extended warranties. Consumers may not know their rights are sometimes already protected by the Australian Consumer Law and buying an extended warranty may be a waste of money.
The proposed changes, part of the Better Business Reforms, will transform the NSW consumer laws to put buying power back in the hands of consumers and small businesses.
Minister for Innovation and Better Regulation Matt Kean said the reforms are a win-win to empower consumers and help small businesses that put consumers first.
“I want to see people getting ahead because they offer the best products and services, not the biggest commission or kickback. Under my reforms, referral businesses will need to be clear up front about any commissions they’re receiving,” Mr Kean said.