Consumer guarantees

The Australian Consumer Law (ACL) creates a set of minimum standards, called consumer guarantees, that apply when a consumer buys goods or services from an Australian supplier, manufacturer or importer. The consumer guarantees are statutory implied conditions (essential terms) or warranties (inessential terms) of the contract. NOTE There are parallel statutory warranties in s 12ED of the Australian Securities and Investments Commission Act 2001 (Cth) (‘ASIC Act’) that financial services will be provided with due care and skill, and that they will be fit for their purpose. These are administered by the Australian Securities and Investments Commission (ASIC).

When a consumer buys goods, the seller (the ‘supplier’) is required by the ACL to provide a ‘consumer guarantee’ that:

• the goods are acceptable quality and that any goods are fit for any disclosed purpose;
• the goods match their description, sample or demonstration model;
• the consumer has title to the goods, undisturbed possession of the goods, and there are no undisclosed securities. When a consumer buys goods, the manufacturer is required by the ACL to guarantee that:
• the goods are acceptable quality;
• the goods match their description;
• it will honour any express warranty;
• it will provide repairs and spare parts for a reasonable time. When a consumer buys services, the service provider guarantees that:
• the services will be provided with due care and skill;
• the services will be fit for any specified purpose;
• the services will be provided within a reasonable time. If the goods or services fail to comply with one of the consumer guarantees, the consumer may have access to a number of remedies, including repair, replacement, refund, compensation or cancellation of the contract. These remedies apply in addition to any remedy under contract or an express warranty. The ACL is set out in schedule 2 of the Competition and Consumer Act 2010 (Cth) and has applied since 1 January 2011. Different laws apply to goods and services purchased before 2011. NOTE