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Understanding the Liability of Innkeepers and Accommodation Providers under the Australian Consumer Law

Understanding the Liability of Innkeepers and Accommodation Providers under the Australian Consumer Law


To Bring transparency in the trading and business and to ensure the safety and security of customers while taking service, the Australian Consumer law and the Fair Trading Act have been proposed. The legal proceedings of the Fair Trading act of 2012 have a relation to promoting and enhancing transparency in the business with the quick resolution of the disputes in the business practices. In the present case, the issue has occurred to Chia and Chun regarding their stay at the hotel. The practices of the hotel and restaurant have caused mental and physical damages. In the present case, they advise Chia and Chun regarding the issues they have faced.

Lost Jewelry Case

The issue in the present context is that the Chia and China have taken the rent of a room and after taking lunch from the room, they moved towards the pool to enjoy the weather of pool and decided to keep the expensive jewellery of $50000 at the front desk of the restaurant under the safekeeping of the restaurant. But the restaurant failed to safeguard the property of China and China.

Rules of Australian Consumer Law and fair trading has identified under no-12 of 2012 that Innkeeper’s liability is to protect the goods and items that have been brought to the Inn by the customer. Even if the customer failed to pay the amount of the rent, the Innkeeper has the right to seize those possessions of the customer (Amklaw.com.au. 2021). But the context is different in the present case, and the issue is different. The Innkeeper has failed to protect and safeguard the property of the customers. Schedule 3 of the consumer law has also identified under Section 102 and 104 that the accommodation provider has a right to protect the properties of guests. If the properties of the guest get damaged in any circumstances during staying at the accommodation, the provider is responsible for paying the amount (Ato.gov.au. 2021). Where Para 5.2 has made a comment that the damage could not be from the act of the provider or the agent of the provider, but the repay comes under the likeability of the accommodation provider.

Application of the legal proceedings of the Consumer law is only permissible under the contract period of staying at the Accommodation service, that is, in the hotel. But the motorbikes have been separated from the liability of the Innkeeper to provide the safeguard. Oakford Executive Apartments Ltd v Van der Top has been lodged to the court for the negligence of the hotel for not pertaining to the resolution of the issues (Parliament.vic.gov.au. 2021). Where the properties of Guests of the Oakford Apartments have been stolen, and for this reason, the apartment has been sued at the court (Parliament.vic.gov.au. 2021). But as the apartment has already signed an agreement regarding the no liability of the apartment for possessions of the guest, hence the apartment got relief from the court. But the same issue has been applied in the case of Carpenter v Haymarket Hotel Ltd where the Jewellery of Guest but the Hotel ignored their liability regarding the processing of the liability for the loss of the customer (Parliament.vic.gov.au. 2021).

At the end of the case, for the two cases, the accommodation p[rovider has ignored their liability in two different forms. In the first case, a bond has been signed, wherein in the second case, a notice has been put in front of the front desk to inform the customer about their responsibility of safekeeping their goods (Ato.gov.au. 2021). Hence, the liability of the Innkeeper is expected from that. But in the present case, the hotel has shown its compliance with the guidelines of the Australian Consumer law and the fair trade rule. Hence the guidelines of the rule need to be compliance in with the activities. Though the safekeeping materials could not exceed the value of $3000, the responsibility of the hotel is to keep the Jewellery safe (Amklaw.com.au. 2021). In failing to protect, the court has the power to draw a sue on the activity of the hotel and the breach of the liability.

Breach of food Selling law

The issue has been observed by Chia and Chan in the present case that the food items were not of safety standard. Hence, the food products have affected the health of Chia and Chan. As a result, the health of both has been impacted by it.

Rules related to the present case have been related to the Victorian food standard act of 1984, where the food standard and food safety has been maintained (health.vic.gov.au. 2021). It is the duty of the Innkeeper to maintain the safety of the consumer and to safeguard the security of the customer (Mondaq.com. 2021). But the provisions of Section 102 and 104 of the consumer safety and fair trade have mentioned that the loss and damages of the customer are not permissible in front of the court; in the present case, the safety and security of the guest have been damaged with it. As the safety and security of the customer have been damaged with the food poisoning and the issues of the food poisoning have impacted the health of the guest (Ato.gov.au. 2021). Hence, the innkeepers have breached the provisions of the Innkeeper’s liability. At the same time, the restaurant has also avoided the provisions of the Victorin food standard act, while operating their business in the victorian region. The breach of the two provisions has been observed in the selected case (Mondaq.com. 2021).

Application of this can not only be viewed from the perspective of the food safety or the food-related issues; the applied cases can also be reviewed from the perspective of the Intoxication issues or the health damage issues. The Chordas vs Bryant (1988) case has a connection with the present situation, where the hotel and the restaurant have failed to assess the foreseeable risks to the guests. In such cases, the issues of intoxication impact health.

But the final comment on the Judgement has said the license of the hotel would not be impacted for it as the Injuries suffered by the K. was not the direct impact of the activities of the restaurant. But in this case, the issue has been caused by the direct activity of the hotel. Hence the license will be scheduled to be reviewed.

Liquor License Related issues

The federal government has the right to impose taxation as well as the customers on the selling of the liquor within the country. In the same way, the excise duty of the federal government has the power to regulate the sales activity of the Alcohols within the country. The liquor control act has been processed in the year 1998 at Victoria, and it has strongly recommended having a license for selling the Liquors within the victoria Region (Legislation.vic.gov.au. 2021b). VCGLR is the standard statutory body of the country that regulates and administers the process of alcohol regulation within the country. It has observed the compliance of the firms with the Victorian Liquor control act.

As per the analysis of the above situation, the Prudent Resort is required to have strong compliance with the regulations of licensing for liquor selling in Australia. As per the perceived situation, liquor selling in Australia has been divided into four segments, and all of these segments have their specific regulations and relevance (Legislation.vic.gov.au. 2021). The temporary license for the limited operation has been offered to events or a series of events for a three months period. Limited period license with renewable facility has offered the right to internet vendors and small wineries, which is not applicable to the present case. In the present case, the Prudent resort is required to have a Package Liquor License and Late night Licenses (Content.legislation.vic.gov.au. 2021). Late Night Alcohol license has been offered for selling alcohol after 1 AM at night. Along with it, the basic licenses can also be acquired by the firm, as the Restaurant and Cafe licenses where the restaurant and cafe can sell the Liquors to the customers at the premises of the hotel. Where the chair table facility should be available and the 75% seat capacity should be available for the patrons (Legislation.vic.gov.au. 2021b). Section 34 of the Liquor law has ordered that the copy of the liquor license should be placed at the hotel so that customers can notice the application for the Liquor license, where section 33 provision has claimed that one copy of the application for the license should be kept at the Chief Commissioner of the police department as well as the local administrative bodies (Content.legislation.vic.gov.au. 2021).

As a part of the consumer compliance to the Liquor policy and the legal guidelines, it has been required for the Alcohol supplier to check the age proof of the customer as well as the relevant question reading the buying of the liquor.


The Prudent Resort has violated a series of laws and guidelines in its activities. The experience of two guests was severe under the different issues, where the belongings of the Guests had been stolen for the negligence of the safe keeper. But the Safekeeping activity has some guide, lines and restrictions regarding the permission valuation of the items for safekeeping. Yet negligence in the activity maintenance has been observed, which has impacted the food quality of the restaurant of the hotel. This issue of food quality has impacted the health status of the guest. But for the legal compliance for selling alcohol, the Product is required to have relevant licenses and requirements.


Amklaw.com.au. 2021. amklaw.com.au. [online] Available at: <https://amklaw.com.au/employee-or-an-independent-contractor/> [Accessed 20 May 2021].

Ato.gov.au. 2021. Ato.gov.au. [online] Available at: <https://www.ato.gov.au/business/employee-or-contractor/> [Accessed 20 May 2021].

Content.legislation.vic.gov.au. 2021. Content.legislation.vic.gov.au. [online] Available at: <https://content.legislation.vic.gov.au/sites/default/files/2020-02/12-21aa028%20authorised.pdf> [Accessed 20 May 2021].

health.vic.gov.au. 2021. health.vic.gov.au. [online] Available at: <https://www2.health.vic.gov.au/public-health/food-safety/food-safety-laws-local-government-and-auditors/food-safety-laws-and-regulations/food-act-1984#:~:text=The%20Victorian%20Food%20Act%201984,Victoria%20is%20safe%20to%20eat.> [Accessed 20 May 2021].

Legislation.vic.gov.au. 2021. Legislation.vic.gov.au. [online] Available at: <https://www.legislation.vic.gov.au/in-force/acts/liquor-control-reform-act-1998/094> [Accessed 20 May 2021].

Legislation.vic.gov.au. 2021b. Legislation.vic.gov.au. [online] Available at: <https://www.legislation.vic.gov.au/in-force/acts/liquor-control-reform-act-1998/094> [Accessed 20 May 2021].

Mondaq.com. 2021. Mondaq.com. [online] Available at: <https://www.mondaq.com/australia/outsourcing/189016/what-is-the-difference-between-an-independent-contractor-and-an-employee> [Accessed 20 May 2021].

Parliament.vic.gov.au. 2021. Parliament.vic.gov.au. [online] Available at: <https://www.parliament.vic.gov.au/archive/sarc/Carriers_Innkeepers_Act/Report/Carriers%20-%20Chapter%205.html#168note> [Accessed 20 May 2021].

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