The ACL contains guarantees that provide consumers with protection when purchasing goods and services. Module 9 sets out the guarantees and the remedies available to consumers when these guarantees are breached.
The guarantees apply to goods or services:
- under $40 000
- over $40 000 that are normally bought for personal, domestic or household use or consumption
- vehicles and trailers are also covered, irrespective of cost, provided they are used mainly to transport goods on public roads.
These guarantees apply automatically regardless of any warranties provided by a supplier or manufacturer.
Goods must be of acceptable quality, that is:
- safe, lasting, free from defects
- look acceptable in appearance and finish
- do all the things someone would normally expect them to do.
Acceptable quality takes into account what would normally be expected for the type of good and cost.
Goods must also:
- match descriptions made by the salesperson, on packaging and labels, and in promotions or advertising
- match any demonstration model or sample
- be fit for the purpose the business indicated it would be fit for and for any purpose made known to the business
- come with full title and ownership
- not carry any hidden debts or extra charges
- come with undisturbed possession
- meet any extra promises made about performance, condition and quality, such as life time guarantees and money back offers
- have spare parts and repair facilities available for a reasonable time after purchase unless advised otherwise.
- be provided with acceptable care and skill or technical knowledge
- be fit for the purpose or give the results agreed between the business and consumer
- be delivered within a reasonable time when there is no agreed end date.
Consumer guarantees on goods or services also apply to:
- bundled goods and services
- gifts with proof of purchase
- sale items
- online goods and services bought from Australian businesses
- second-hand products from businesses, taking into account age and condition.
If a business fails to deliver any of these guarantees, a consumer has a right to:
- a repair, replacement or refund
- cancel a service
- compensation for damages and loss.