Section 120 Federal Competition and Consumer Protection Act 2018

Section 120 of the Federal Competition and Consumer Protection Act 2018 is about Consumer’s right to cancel advance reservation, booking or order. It is under Part XV (Consumers’ Rights) of the Act.

(1) A consumer shall have the right to cancel any advance booking, reservation or order for any goods or services, subject to a reasonable charge for cancellation of the order or reservation by the supplier or service provider.

(2) For the purpose of this section, a charge is unreasonable if it exceeds a fair amount in the circumstances, having regard to –

(a) the nature of the goods or serv1ces that were reserved, booked or ordered;
(b) the length of notice of cancellation provided by the consumer;
(c) the reasonable potential for the supplier or service provider, acting diligently, to find an alternative consumer between the time of receiving the cancellation notice, and the time of the cancelled reservation, booking or order; and

(d) the general practice of the relevant industry.

(3) A supplier or service provider may not impose any cancellation fee in respect of a booking, reservation or order if the consumer is unable to honour the booking, reservation or order because of the death or hospitalisation of the person for whom, or for whose benefit the booking, reservation or order was made.