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Competition and Consumer Act 2010
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Turn the raw legal text into a practical explanation grounded in Competition and Consumer Act 2010.
40 Assertion of right to payment for unsolicited goods or services
(1) A person must not, in trade or commerce, assert a right to payment from another person for unsolicited goods unless the person has reasonable cause to believe that there is a right to the payment.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(2) A person must not, in trade or commerce, assert a right to payment from another person for unsolicited services unless the person has reasonable cause to believe that there is a right to the payment.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(3) A person must not, in trade or commerce, send to another person an invoice or other document that:
(a) states the amount of a payment, or sets out the charge, for unsolicited goods or unsolicited services; and
(b) does not contain a warning statement that complies with the requirements set out in the regulations;
unless the person has reasonable cause to believe that there is a right to the payment or charge.
Note: A pecuniary penalty may be imposed for a contravention of this subsection.
(4) In a proceeding against a person in relation to a contravention of this section, the person bears the onus of proving that the person had reasonable cause to believe that there was a right to the payment or charge.