Voluntary and express warranties (including 'guarantees')
A retailer, manufacturer or service provider may voluntarily make extra promises to you as a way of giving you a bit more confidence in the quality of the good or service you are purchasing or the level of protection you have if something goes wrong.
The Trade Practices Act does not require any business to make extra promises, but if a business does make extra promises, it is legally obliged to stand by what it has told you.
These extra promises can be made in writing or in person and, because they are stated or expressed, they are known as express warranties or voluntary warranties.
A guarantee is one example of an express warranty. Other examples include:
store warranty
manufacturer's warranty
voluntary warranty
money-back guarantee
store refund policy
store exchange policy
verbal promises made by the retailer or supplier.
Always check the fine print. If you do not follow the terms and conditions, you may not be able to rely on a voluntary or express warranty.
Purchased and extended warranties
Sellers sometimes encourage you to buy a service contract where no voluntary warranty is otherwise provided, or pay to extend a voluntary warranty that is provided.
Although they are often called purchased warranties or extended warranties these are actually service or insurance contracts, not warranties. Such contracts are sold separately to the good or service and provide repair and maintenance for a specified period.
Check that the benefits are worth the extra money and that the extended warranty does not simply repeat items covered under a statutory one.
Retailers or suppliers must not mislead or deceive you about the real benefits of extended warranties or your need for them. If they do, it could be a breach of the Trade Practices Act.
