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. 

Ursula Hogben

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