58BZASafe harbour for taking actions to disrupt an activity while investigating whether the activity is a scam

58BZA Safe harbour for taking actions to disrupt an activity while investigating whether the activity is a scam

(1) This section applies if a regulated entity has actionable scam intelligence about an activity relating to, connected with, or using a regulated service of the entity.

(2) The regulated entity is not liable in a civil action or civil proceeding for taking action to disrupt the activity if the action:

(a) is taken in good faith; and

(b) is taken in compliance with the SPF provisions; and

(c) is reasonably proportionate to the activity, and to information that would reasonably be expected to be available to the entity about the activity; and

(d) is taken during the period:

(i) starting on the day that the intelligence becomes actionable scam intelligence for the entity; and

(ii) ending when the entity reasonably believes that the activity is or is not a scam, or after 28 days, whichever is the earlier; and

(e) is promptly reversed if:

(i) the entity identifies that the activity is not a scam; and

(ii) it is reasonably practicable to reverse the action.

Note: Assume the regulated entity temporarily blocks an SPF consumer’s website while investigating whether an activity relating to the website is a scam. This subsection protects the regulated entity from civil actions brought by the consumer when the regulated entity is acting appropriately.

(3) For the purposes of paragraph (2)(c), matters relevant to whether the action is reasonably proportionate to the activity include:

(a) the potential loss or damage to SPF consumers, or to persons carrying on the activity, if the action is not taken; and

(b) the potential loss or damage to SPF consumers, or to persons carrying on the activity, if the action is taken and the activity is not a scam.