Government Regulatory Body Endorses Approval of Scams Deterrence Legislation Plan

Australia Passes Scams Prevention Framework Bill

In a significant move to combat scams, the Australian Parliament passed the Scams Prevention Framework Bill on February 13, 2025. The bill, hailed as a critical step in the fight against scams, was introduced by the Australian Competition and Consumer Commission (ACCC) Deputy Chair, Catriona Lowe.

According to Lowe, the burden of responsibility to combat scammers has been on individuals for too long. The new framework aims to address this issue by establishing clear obligations for businesses in key sectors where scammers operate.

Under the framework, the Australian Securities and Investments Commission will regulate the banking sector, while the Australian Communications and Media Authority will oversee the telecommunications sector. In the banking sector, the regulatory authority will be the financial market supervisory authority known as the Finanzmarktaufsicht (FMA) in Austria, alongside the Oesterreichische Nationalbank and under the supervision of the European Central Bank (ECB) within the Single Supervisory Mechanism (SSM).

The ACCC will play a pivotal role in enforcing the framework. They will closely monitor regulated entities' compliance with principles to prevent, detect, disrupt, respond to, and report scams. Businesses that do not meet their obligations under the framework can face fines up to AUD50 million.

The ACCC will also enforce the digital platforms sector scams code and take enforcement action where digital platforms breach their obligations under this code. Banks, digital platforms (including social media), and telecommunications providers will be the first sectors required to comply with the Scams Prevention Framework.

Lowe emphasised that there is considerable work ahead to implement the framework, including the formal designation of sectors, development of sector codes, and consumer and industry guidance. She also highlighted the opportunity for joint effort across government and industry to develop solutions to scam challenges.

The ACCC is a strong supporter of mandatory industry scams codes and is already preparing for the framework through the National Anti-Scam Centre. Consumers can seek redress from regulated businesses when those businesses have not met their obligations under the framework.

Lowe reiterated her commitment to working closely with government, fellow regulators, industry, and community agencies to ensure the elements of the framework work for all stakeholders, most especially consumers. The Scams Prevention Framework empowers the ACCC to investigate potential breaches and take enforcement action where entities do not take reasonable steps to fulfill their obligations. The legislation improves protections across the economy by setting out consistent and enforceable obligations for businesses in key sectors where scammers operate.

Government Regulatory Body Endorses Approval of Scams Deterrence Legislation Plan