Consumer Guarantees under the Australian Consumer Law

When you buy a product (or service) from a business, the business must guarantee the product (or service) provided it is under $40,000 or over $40,000 but is normally bought for personal or household use.

These consumer guarantees are implied into every contract for sale of goods and or services by the Australian Consumer Law.

The consumer guarantees include that:

  • Goods must be of an acceptable quality. This means that the goods must be fit for purpose for which goods of that kind are commonly supplied, acceptable in appearance and finish, free from defects, safe and durable. (However, if the goods are not of an acceptable quality and the reason or reasons why the goods are not of an acceptable quality were specifically drawn to the customer’s attention, the goods are taken to be of acceptable quality).
  • Goods must be fit for any disclosed purpose or for any purpose for which the supplier represents that they are reasonably fit.
  • Goods must correspond to a description if the goods are supplied by description to a consumer.
  • Goods must correspond with the sample or demonstration model in quality, state and condition. 

These consumer guarantees can’t be excluded by contract.

If a supplier fails to comply with one or more consumer guarantees, your remedy as a consumer will depend largely on whether the failure to comply is a “major failure”.

There is a major failure if the goods would not have been acquired by a reasonable consumer had they known about the failure, the goods are substantially unfit for a purpose for which goods of the same kind are common supplied or they can’t be easily fixed to make them fit for purpose or if the goods are unsafe.

If there has been a major failure, then you must notify the supplier that you reject the goods and return the goods to the supplier (depending on the size, height and attachment of the goods). You may then elect to accept a refund or have the goods replaced.

If the failure is not a major failure, then you still have other remedies available to you. Contact Conditsis Lawyers today on (02) 4324 5688 for all your consumer law questions.

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