Tertiary education program

Consumer guarantees

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.

Services must:

  • 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.