New section 30H: Remedial action under a consumer redress order
586.Subsection (1) provides a non-exhaustive list of things that a regulated person may be required to do by a consumer redress order. For example, a consumer redress order may require a regulated person to pay compensation to affected consumers, prepare and distribute a statement setting out the contravention and its consequences and may impose a requirement on a regulated person to terminate or vary any contract with the affected consumers. As an example, it may be necessary to require a regulated person to terminate or vary a contract if the terms of the contract are contraventions of the regulated person’s supply licence or are the cause of the loss which a consumer has sustained.
587.Subsection (2) sets out what must be included in the order if the remedial action includes the payment of compensation.
588.Subsections (3) and (4) explain what the order must specify if the remedial action includes the preparation and distribution of a statement and how the statement might be distributed.
589.Subsection (5) sets out what the order should contain if the remedial action includes the termination or variation of a contract with an affected consumer. Subsection (5)(b) makes it clear that a requirement to terminate or vary a contract with a consumer only has effect if, and to the extent that, the affected consumer consents to the termination or variation of the contract.