Australian Consumer Law

What consumer guarantees apply in Australia?

Australian Consumer Guarantees

Consumer Guarantee means?

The promises +/or assurances that automatically apply (imposed as protection for consumers by Australian Consumer Law) to the sale of products and services to consumers in Australia.

Consumer Guarantees apply regardless of anything the seller states to the contrary, inlcudes inter terms + conditions, or warns about on their website or the place of purchase of the product or service.

Who is a Consumer?

From 1 July, 2021:

👨‍💻 A consumer includes any purchaser (including a business) where the purchase amount is less than a monetary threshold of $100,000 (previously the monetary threshold was $40,000); or

🏡 Consumers of goods or services (for any price) if the goods or services are of a kind ordinarily purchased for personal, domestic or household use; or

🚚 A vehicle or trailer purchased primarily for use in the transport of goods on public roads.

Scope of Protection

➲ Bundled products and services;

➲ Gifts with proof of purchase;

➲ Sale items;

➲ Online products and services bought from Australian businesses; and

➲ Second-hand products from businesses, taking into account age and condition.

Exceptions do apply.

Consumer rights

If a business fails to deliver any of these guarantees, consumers are granted the following legal rights:

⚖️ Repair, replacement or refund

⚖️ Cancelling a service

⚖️ Compensation for damages & loss.

Consumer Product Guarantees

Since 1 January 2011, the following consumer guarantees on products and services apply.

Products must be of acceptable quality, that is:

🔎 Safe, lasting, with no faults;

🔎 Look acceptable; and

🔎 Do all the things someone would normally expect them to do.

Acceptable quality takes into account what would normally be expected for the type of product and cost.

Products must:

✅ Match descriptions made by the salesperson, on packaging and labels, and in promotions or advertising;

✅ Match any demonstration model or sample you asked for;

✅ Be fit for the purpose the business told you it would be fit for and for any purpose that you made known to the business before purchasing;

✅ Come with full title and ownership;

✅ Not carry any hidden debts or extra charges;

✅ Come with undisturbed possession, so no one has a right to take the goods away or prevent you from using them;

✅ Meet any extra promises made about performance, condition and quality, such as life time guarantees and money back offers; and

✅ Have spare parts and repair facilities available for a reasonable time after purchase unless you were told otherwise.

Consumer Service Guarantees

Services must be:

✅ Provided with acceptable care and skill or technical knowledge and taking all necessary steps to avoid loss and damage;

✅ Fit for the purpose or give the results that you and the business had agreed to; and

✅ Delivered within a reasonable time when there is no agreed end date.

Source: ACCC website.

Important Notice:

This FAQ is intended for general interest + information only.

It is not legal advice, nor should it be relied upon or used as such.

We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.

What are my rights after the express warranty has expired?

Australian Consumer Guarantees

Under the Australian Consumer Law (ACL), Australian Consumer Guarantees apply to many products and services you buy regardless of any other warranties suppliers sell or give to you.

It is often assumed that when an express warranty expires a consumer has no legal rights to pursue.

All may not be lost if your express warranty has expired

For example:

If an express warranty against defects is provided it will operate in addition to the Australian Consumer Guarantees.

The express warranty does not limit or replace them.

This means that if you buy a motor vehicle that comes with a three-year or 100,000 km written express warranty outlining what the manufacturer will do if there are certain problems with the vehicle, and a defect becomes apparent outside of the time/usage provided for in the express warranty (that is, 3 years and 1 month, or 105,000 km) there is still a possibility that the Australian Consumer Guarantees may apply!

If you need assistance to understand your rights under Australian Consumer Law we recommend that you contact our legal team.

Further reading: What consumer guarantees automatically apply to products and services sold in Australia?

Important Notice:

This FAQ is intended for general interest + information only.

It is not legal advice, nor should it be relied upon or used as such.

We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.