Australia has a set of rules that businesses must follow so that consumers are treated fairly and given legal rights when they buy goods or services. The ACL, which is Schedule 2 to the Competition and Consumer Act 2010 (CCA), contains provisions designed to provide consumers with protection against certain business practices. This module will examine the 12 consumer guarantees relating to goods or services which suppliers and manufacturers must honour.
The consumer guarantees represent an undertaking from the seller to the purchaser that the product or service will work and do what the purchaser asked for. If they do not, the consumer can seek a number of remedies. Failure to comply with a guarantee is not an offence, but seeking to prevent consumers from relying on them is against the law.
When you work in business, your employer may seek to either supply or acquire goods and services. Knowledge of the consumer guarantees will help you to ensure your employer complies with the law and makes the best use of their rights.
The ACL creates nine consumer guarantees relating to goods and three relating to services. They protect consumers by:
- imposing significant obligations on suppliers or manufacturers of goods or services
- providing consumers with powerful remedies if these obligations are not met.
In this module, you will learn about your own rights under the consumer guarantees. You will also learn how the consumer guarantees affect a business's obligations to its consumers, and its rights against other businesses.