The guarantees under the ACL are automatic and are in addition to any other warranties or guarantees that might accompany the product.
Consumer Guarantees for Goods
The consumer guarantees for goods or products require that the goods be of acceptable quality, meaning they are safe, long-lasting, and able to do what they are expected to do. The cost and type of product are relevant when determining whether it is of acceptable quality.
Products must also match the description made by the salesperson, on packaging and labels, and within advertising or promotions. Goods must match any demonstration model or sample and be fit for the purpose stated by the business or communicated by the consumer prior to purchase.
Purchasing a product must confer full title and ownership and must not carry hidden debts or additional charges.
Remedies for Goods Not Meeting Consumer Guarantees
If goods fail to meet a consumer guarantee, you may need to provide a remedy to the customer. The remedy depends on the failure:
- Repair for minor failures
- Replacement or refund for major failures
In some cases, compensation may also be payable if the loss or damage was reasonably foreseeable prior to the sale.
Consumer Guarantees for Services
Services sold by a business must be provided with acceptable care and skill, taking all necessary steps to avoid loss or damage. Services must be fit for purpose or deliver the agreed results and be completed within a reasonable time when no end date is agreed.
Remedies for Services Not Meeting Consumer Guarantees
Consumers may be entitled to cancel the service and, in some cases, receive compensation for reasonably foreseeable damage or loss. Clear communication about service inclusions and costs can help avoid disputes and cancellations.
Exceptions to Consumer Guarantees
Consumer guarantees do not apply if a consumer changes their mind, finds a cheaper price, misuses a product, is aware of faults prior to purchase, or requests a service be done contrary to advice.
Conclusion
Receiving a complaint about a product or service can be stressful. Handling complaints promptly and understanding your obligations under the ACL and any other warranties is key to minimising disputes and maintaining customer trust.
This is general information only. For legal advice specific to your business, please call 02 9150 6991 or email ad***@**********om.au.