Consumers have several rights regarding the products they purchase from your manufacturing and logistics business. If you manufacture and sell a product that does not comply with Australian consumer law, customers can take legal action that could result in you having to replace their products or pay them compensation.
Therefore, it is important to understand the types of rights consumers have when buying your products. This article will explain the consumer law requirements relating to product quality, product purpose, promises you make, and providing spare parts and repairs to your customers. It will also cover some steps you can take to comply with consumer law.
Product Quality
First, you must meet several key requirements to the quality and nature of your products. Meeting these requirements prevents your customers taking legal action, which may require you to replace or pay for the defective products, costing you time and money.
Acceptable Quality
When you sell products, they must be of acceptable quality. This means they must be safe, durable, and free of defects. Additionally, they must have a satisfactory appearance and function as expected. For example, if you manufacture single bed frames, make sure they can handle a person’s weight and have no cracks or chips.
Matches Description
If you describe your products as having particular characteristics, the products must be as you have described. For example, if you manufacture fridges and advertise that they keep food under 5°C, you may violate consumer law if the fridges cannot keep food that cold.
Matches Sample Model
When a customer inspects a sample model at your business before placing an order, you must deliver products that match the sample. For instance, if you run a catering business and a customer orders a specific set of meals, you must deliver those exact meals.
Purpose of the Product
Customers may approach your business looking for products that serve a particular purpose. For example, a customer could approach your electronics parts manufacturing business asking to buy filaments capable of reaching a specific temperature. In this case, you have a legal obligation to provide the customer with a product that can serve that particular purpose. If you sell a filament that melts at the specified temperature, you may need to replace the filaments or provide a refund.
Continue reading this article below the formExtra Promises
As part of your advertising strategy, you might make specific promises to customers about the quality or excellence of your products. While this can be a great way to attract customers for your quality products, ensure you keep these promises. For example, if you guarantee that the piping your plumbing supplies business sells will last 25 years before needing replacement, you may need to replace pipes that last less than that. As a general rule, don’t make promises to customers unless you are sure you and your products can keep them.
Repairs and Spare Parts
As a manufacturer, you must provide customers with repairs and spare parts for a reasonable period after they purchase your products. The length of that time period will differ depending on factors such as what the product is, how the product is typically used, and how much use such a product could normally sustain before it stops working correctly.
What You Can Do to Make Sure You Stay in Line With Consumer Law
Ensuring that you meet your consumer law obligations does not need to be complicated. There are steps you can take to prevent upset customers and costly legal issues arising due to faulty or unsatisfactory products, such as:
- regularly check the products you manufacture before selling them;
- ensure the materials you use are of an appropriate quality for the types of products you manufacture;
- listen to what your customers ask for and ensure you only sell them products that meet their needs;
- only use reliable and trustworthy suppliers; and
- don’t make promises you cannot keep.
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Key Takeaways
It is essential to ensure that your products meet consumer law requirements. Your manufacturing and logistics business must fulfil several fundamental obligations, such as:
- your products must be of an acceptable quality and must meet any descriptions you have given them. You must ensure that any samples you use to sell your products match those you sell;
- when a customer requests products to serve a particular purpose, the products you sell must be able to do so;
- you must keep any extra promises you make about your products; and
- for a reasonable period, you must provide repairs and spare parts for products you sell and products you manufacture that others sell.
If you need help meeting your consumer law obligations, our experienced manufacturing and logistics lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
If your product doesn’t meet acceptable quality standards, customers can take legal action, requiring you to replace the product or provide compensation.
Yes, as a manufacturer, you must provide spare parts and repairs for a reasonable period after purchase, even if the product was bought from a retailer or private seller.
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