The upcoming Australian Consumer Law (ACL) review will consider the hot topic of the sharing economy.

Australian Competition and Consumer Commission (ACCC) Chairman Rod Sims outlined opportunities presented by the review in a speech to the Consumer Law Roundtable in Canberra.

The rapidly developing sharing economy has created a number of regulatory and legal challenges, with significant questions over the application of insurance still unanswered.

“The review provides an opportunity to consider how these emerging business models fit within the ACL as it currently stands,” Mr Sims said.

“The sharing economy is an innovation that is here to stay, and we need to consider whether the ACL can adequately address any consumer protection issues that may arise within these transactions.”

Mr Sims also raised the “burning question” of whether penalties for breaching the ACL are severe enough.

“The maximum penalty available for a breach… is $1.1 million for a corporation or $220,000 for an individual.

“Since the regime was introduced the courts have ordered a total of more than $44 million, with penalties at or above $1 million in 18 cases.

“But are our penalties strong enough and are they keeping pace with deterrence?”

insuranceNEWS.com.au asked the Insurance Council of Australia (ICA) what the key issues are for insurers, but it declined to respond at this stage.

“ICA intends to contribute a submission to the ACCC’s review of the Australian Consumer Law,” a spokesman said. “This will involve detailed consultations with ICA’s member companies, and it is therefore too early to speculate about the likely contents of ICA’s submission.”

The review will take place next year and is expected to deliver a final report by March 2017.