Australia’s Treasury has concluded that the nation’s existing consumer protection framework is largely equipped to handle the rise of artificial intelligence in consumer markets, according to its “Review of AI and the Australian Consumer Law” final report released in October 2025. The report finds that while AI-enabled products introduce novel risks and complexities, the Australian Consumer Law (ACL) remains “principles-based and technology-agnostic,” allowing it to adapt effectively to emerging technologies.
The review, part of the government’s broader $39.9 million initiative to support safe and responsible AI adoption, analyzed whether the ACL is still “fit-for-purpose” as artificial intelligence becomes increasingly embedded in consumer goods and services. The Treasury consulted widely, receiving input from public submissions and stakeholder roundtables. Most participants agreed that the ACL’s broad, flexible protections—covering misleading conduct, safety, and consumer guarantees—already address many potential harms posed by AI systems.
The final report outlines six key findings. It confirms that the ACL’s principles-based protections are generally well adapted to AI but identifies lingering uncertainty over how the law distinguishes between goods and services—an issue that complicates regulation of software-enabled and AI-driven offerings. To clarify this, Treasury recommends amending the ACL’s definition of “goods” to explicitly include digital products and updating regulatory guidance to help businesses and consumers understand their rights and obligations.
Treasury also found that existing remedies, such as refunds, repairs, or replacements, remain appropriate for AI-enabled products, but suggested adding clarity to the definition of “manufacturer” to account for AI supply chains where developers maintain post-sale control over software. Similarly, while current manufacturer defenses for defective goods remain suitable, minor technical updates may be needed to ensure they function correctly in cases involving software updates or remote AI control.
Concerns about psychological harm from AI chatbots or avatars were discussed, but the report concluded that the ACL’s current safety provisions—combined with the government’s forthcoming Digital Duty of Care law for online platforms—already provide adequate mechanisms to address emerging risks. The report further recommends ongoing review of the Australian Competition and Consumer Commission’s (ACCC) powers to ensure they remain sufficient for AI oversight.
Internationally, Treasury compared Australia’s protections with those in the European Union, United Kingdom, and Singapore, finding that Australian consumers enjoy similar—and in some areas, stronger—safeguards. The report emphasizes that clear regulatory guidance and consumer education will be crucial to maintaining public confidence and encouraging responsible AI use in the marketplace.
Overall, the review concludes that Australia does not require sweeping new AI-specific consumer laws. Instead, targeted clarifications, ongoing oversight, and updated guidance will ensure that the ACL continues to support innovation while protecting consumers in an increasingly AI-driven economy.
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