Who is protected as a 'consumer'?
Consumer guarantees protect any individual or business that comes within the definition of 'consumer' in section 3 of the ACL. This is a definition that goes beyond the common sense understanding of the term, applying to anyone who acquires:
- any type of goods or services that cost $40 000 or less
- goods or services costing more than $40 000 if those goods or services are normally acquired for personal, domestic or household use or consumption, or
- a vehicle or trailer principally used to transport goods on public roads.
A person will not be a consumer in these cases if they acquired the goods for re-supply, or to use or transform them in a manufacturing or production process, or in the course of repairing or treating other goods.
|Examples of consumers||Examples of non-consumers|
|The purchaser of a $10 000 second hand car for personal use||The purchaser of a $10 000 second hand car acquired as part of a hobby of restoring and selling old cars|
|A printing company that leased a commercial printer for $35 000 for use in its business||The purchaser of a new $2000 television set who acquired it to lease to a friend|
|A company that purchased a $300 000 car for an executive for their personal use||A small farmer who purchased a second hand tractor to use on her farm for $50 000|
|A furniture removal company that purchased a new vehicle to transport goods on public roads for its business||A commercial furniture maker who purchased timber for $20 000 to be used in its business|
|A farmer who purchased a stud ram for $40 000||A farmer who purchased a stud ram for $41 000|
|A small business when it purchases toilet paper for use by its employees and visitors||A school child who purchased lemons for $30 to make drinks to sell at a school fete|