Manufacturing or importing goods for consumers

N.B. The consumer guarantees apply to goods and services purchased from 1 January 2011. Information on your obligations for goods and services purchased prior to this date can be found on the warranty and refund pages.

Consumer guarantees on goods

Just like sellers, manufacturers and importers guarantee that goods are of acceptable quality, they match any description given by or on behalf of the manufacturer or importer and that they will abide by any express warranty they make about their goods.

Acceptable quality

Goods are of acceptable quality if a reasonable consumer would consider that they are:

  • safe, durable and free from defects
  • acceptable in appearance and finish
  • do all the things that the goods are ordinarily used for

Taking into account the nature and price of the goods, and any statements made about them on packaging or labelling.

Example
A consumer purchases a television which won’t turn on six months after purchase. The television is not of acceptable quality as a reasonable consumer would expect a television to last much longer than six months.
If the television broke down after 10 years it much more likely that the television is of acceptable quality and the consumer would not be entitled to a remedy under the consumer guarantees.

Description

Any description of a good—through verbal statements made to the consumer or representations made on packaging or labels—must be accurate.

Example
A consumer purchases a new set of blue towels online based on a colour chart available on the website. When the towels are delivered they are red. The towels do not match the description given by the seller.

Express warranty

Manufacturers and importers must also abide by any express warranty that they make about goods. 

Example
A consumer purchases an iron which states on the packaging that it will last for at least two years. If the iron breaks within this time, the manufacturer must honour this warranty in addition to the other consumer guarantees.

Spare parts and repair facilities

Manufacturers also guarantee that they will make repair facilities and spare parts reasonably available for a reasonable period of time. This applies unless they make it clear to consumers that repair facilities and/or spare parts will not be available after a specified period.

Example
A consumer purchases an expensive bicycle to use during training and competitions. One year after purchase the consumer attempts to replace the chain on the bike but is told that spare parts are not available in Australia and it will take twelve months to order them from Europe.
If the manufacturer did not take reasonable steps to explain this to the consumer prior to them purchasing the bike, the manufacturer will not have complied with the guarantee to make spare parts reasonably available.

What happens if a consumer guarantee isn't complied with?

If a seller does not meet any of the guarantees listed above, the consumer is entitled to take action against the manufacturer to recover compensation for any loss or damage suffered because of the failure to comply with the guarantee. A consumer cannot demand that a manufacturer provide them with a repair, replacement or refund.

What obligations do I have to the businesses I supply?

It is important to remember that if goods don’t meet a consumer guarantee, a consumer can take action against you or the seller of the good.

If a seller provides a remedy to a consumer for a fault that was caused by you, the seller may take action against you to recover compensation.

Example
A consumer purchases an air conditioner which has a manufacturing fault causing it to leak and damage carpet and paint. The seller replaces the air conditioner, pays for it to be installed and provides compensation to the consumer for the damage to their property. As this is a manufacturing fault, the seller is entitled to take action against the manufacturer to recover the costs of the air conditioner, the installation and the compensation for damage to the paint and carpet.

If the goods are not of a kind ordinarily acquired for domestic, household or personal use, the manufacturer may be entitled to limit their liability to the seller to the cost of replacing the goods, having the goods repaired or obtaining equivalent goods (whichever is lowest).