> Consumer advice  > Making a complaint  > Compulsory conciliation conferences

Amendments to the Fair Trading Act 1987 have given the Commissioner for Consumer Affairs the power to call a “compulsory conciliation conference”. A compulsory conference is an intermediate and alternative resolution process that aims to avoid the need for legal action in the Magistrates Court.

Court action is stressful, expensive and time consuming and is usually the last resort when all other means of resolution have been exhausted.


Why call a Compulsory Conciliation Conference?
It is in everyone's best interest to resolve a dispute at an early stage - no conciliation is required if a trader and a consumer can agree without the need for further intervention.

However, if a trader has demonstrated that they have no interest in participating in the dispute resolution process, then a compulsory conference may be called in order to bring about a resolution.

In taking the decision to call a compulsory conference CBS will consider such things as the complaint numbers against a trader, any conduct that may be in breach of consumer legislation or whether a trader has a poor approach to customer complaint handling. Other criteria may also apply.

How compulsory conciliation works
Conciliation can only occur when parties are able to discuss the relevant issues in good faith using a third person as the conciliator. A compulsory conference is called by the Commissioner for Consumer Affairs at a venue determined by the Commissioner.

CBS officers will be the conciliator and, by making attendance compulsory, there is a better chance of the parties reaching a resolution when they are in each others presence.

What happens if either party does not attend the conference
If the Commissioner calls a conference and a consumer, without reasonable excuse, fails to attend the conference, the Commissioner may refuse to take any further action in relation to the dispute.

A trader who is asked by the Commissioner to attend a compulsory conciliation conference must attend or risk being penalised.

Section 8A(4) of the Fair Trading Act 1987 provides:

A trader who is asked by the Commissioner to attend a conference under this section must attend the conference if the Commissioner indicates in the request that attendance is compulsory. Maximum penalty: (a) in the case of a minor offence—$5 000; (b) in any other case—$10 000. Expiation fee: In the case of a minor offence—$315.

Section 8A(10) of the Fair Trading Act 1987 provides:

In this section - minor offence means an offence where the value of the goods or services the subject of the dispute is not more than $1 000 or, if some other amount is prescribed by the regulations, that amount.

What if you cannot attend the conference in person?
There may be some special circumstances that will be considered so that a party who cannot attend the conference can do so by electronic means (i.e. by phone, teleconference, videoconference, etc.).

You must apply to the Commissioner for Consumer Affairs for approval to attend by electronic means stating the reasons for why you cannot attend in person. The Commissioner will consider the request and advise whether the reasons are acceptable.


What happens if a resolution is reached?
If an agreement is reached as a result of the conciliation it will be documented and signed by the Commissioner and the parties to the agreement. A copy of the agreement will be given to each party and each party must then comply with the terms of the agreement.

If either party fails to carry out their obligations under the written agreement then the Commissioner or the other party may apply to the Magistrates Court for an order enforcing the terms of the agreement.

What if an agreement is not reached?
If an agreement is not reached at the conference it is likely that the Commissioner will cease to be involved with the dispute and it will be for the parties to decide whether to take any further action to resolve the matter. This may mean civil legal action or arbitration.

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