The ACL contains 12 guarantees that provide consumers with protection against certain business practices. There are nine consumer guarantees that relate to goods. These represent a promise from the seller to the consumer that:
- the seller has the right to sell the goods
- the consumer has the right to undisturbed possession of the goods
- there are no undisclosed securities attached to the goods
- the goods are of acceptable quality
- the goods are reasonably fit for the purchaser's particular purpose, as disclosed to the supplier
- the goods match the description given to them
- the goods don't differ from any sample or demonstration model shown to the consumer
- repair facilities and spare are reasonably available, and
- any additional express warranties provided will be complied with.
The remaining three ACL consumer guarantees relate to services. These guarantees promise that:
- the services will be provided with due care and skill
- the services provided will be reasonably fit for the purchaser's purpose, as disclosed to the seller,and
- the services will be provided within a reasonable time.
Sellers should ensure they avoid:
- misleading consumers about their consumer rights
- harassing consumers or refusing to provide these automatic guarantees when selling or supplying goods or services to customers or when dealing with other businesses.
If goods or services do not comply with a consumer guarantee the consumer has a remedy against the supplier and in some cases the manufacturer. These remedies include rejecting the goods, getting a refund or replacement, obtaining damages as compensation or having non-compliance with the guarantee remedied.
A person will only be able to rely on the consumer guarantees if they are a ‘consumer’ as defined in the ACL.