Supplying Consumers and Small Business

Useful for: Business, Government, Local Government, Not for Profit

In Brief

  • The Consumer Guarantees are a set of assumptions that the Australian Consumer Law makes about the provision of goods and services to a consumer. They include guarantees by suppliers that goods and services will (among other things) be:
    • Fit for purpose.
    • Delivered with due care and skill;
    • Match descriptions; and
    • Be provided within reasonable timeframes.
  • Where a consumer guarantee is breached remedies the consumer is entitled to may include one or more of the following:
    • Refund
    • Repair
    • Replacement or exchange
    • Compensation
    • The right to cancel a contract.
  • Suppliers and manufacturers cannot contract out of, or otherwise refuse to abide by the consumer guarantees. Similarly, consumers cannot sign their rights away.
  • The consumer guarantees operate in addition to any express warranties that may be provided by the supplier or manufacturer.
  • Significant penalties for breach of laws may be imposed as well as damages to injured consumers or small businesses.
  • The ACL binds State and Territory Governments and their authorities to the extent that they are carrying on a business.
  • More detailed information and publications about consumer guarantees, unfair contract terms and other aspects of the Australian Consumer Law can be found on the Australian Competition and Consumer Commission website.

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