Reading time: 2 minutes

Under Australian Consumer Law, guarantees for goods and services apply when the goods or service that you have purchased:

  • cost less than $40,000; or
  • cost more than $40,000 but will be used for personal, domestic or household purposes.

Any business which provides goods and services through hiring, selling or leasing to Australian consumers must comply with these consumer guarantees. This obligation is unaffected by any other warranties that might be given to you during the purchase.

Consumer guarantees apply to:

  • Business vehicles and trailers if they are used for the purpose of transporting goods;
  • Goods that have been gifted to you from the person who purchased them along with proof of transaction (such as receipts, invoices, credit card statements);
  • Goods and services that have been bundled together;
  • Sale items;
  • Goods and services that have been bought online from an Australian business; or
  • Goods that have been bought second hand from a business.

However, these guarantees do not apply if:

  • the services were bought before 1 January 2011 as these are covered under the Trade Practices Act;
  • The services purchased cost more than $40,000 and are for commercial or business use;
  • The goods are intended to be re-sold;
  • They are in relation to insurance or financial services;
  • They are services for transporting or storing goods for business purposes;
  • One-off sales by private sellers such as in auctions or garage sales.

Obligations of service providers

These guarantees listed above apply automatically to any service that you buy regardless of other guarantees or warranties that may be given to you. If a service that you have purchased does not meet a guarantee, you have consumer rights and remedies, which include:

  • Refunds, repairs and replacements/exchanges;
  • Cancellation of the service
  • Compensation for loss or damages

Conclusion

For more advice on when consumer guarantees apply, call LegalVision and speak with one of our business lawyers. 

Webinars

How Franchisors Can Avoid Misleading and Deceptive Conduct

Wednesday 18 May | 11:00 - 11:45am

Online
Ensure your franchise is not accused of misleading and deceptive conduct. Register for our free webinar today.
Register Now

New Kid on the Blockchain: Understanding the Proposed Laws for Crypto, NFT and Blockchain Projects

Wednesday 25 May | 10:00 - 10:45am

Online
If you operate in the crypto space, ensure you understand the Federal Government’s proposed licensing and regulation changes. Register today for our free webinar.
Register Now

How to Expand Your Business Into a Franchise

Thursday 26 May | 11:00 - 11:45am

Online
Drive rapid growth in your business by turning it into a franchise. To learn how, join our free webinar. Register today.
Register Now

Day in Court: What Happens When Your Business Goes to Court

Thursday 2 June | 11:00 - 11:45am

Online
If your business is going to court, then you need to understand the process. Our free webinar will explain.
Register Now

How to Manage a Construction Dispute

Thursday 9 June | 11:00 - 11:45am

Online
Protect your construction firm from disputes. To understand how, join our free webinar.
Register Now

Startup Financing: Venture Debt 101

Thursday 23 June | 11:00 - 11:45am

Online
Learn how venture debt can help take your startup to the next level. Register for our free webinar today.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2020 Innovation Award 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Award 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Financial Times Award 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year Award 2021 Law Firm of the Year - Australasian Law Awards
  • 2019 Most Innovative Firm - Australasian Lawyer