If you run a business that accepts goods for repair, you will most likely require a repair notice. When repairing goods such as phones and laptops, there is a risk that in the process, some data will be lost. As a business owner, you should understand that you need to notify customers about this risk. This article will answer some important common questions that you may have about repair notices.
What is a Repair Notice?
A repair notice allows a consumer to back up data on their device before you repair it. You must give customers a repair notice when a repair:
- will be made to a product that can store user data; or
- may use refurbished parts.
Repair notice rules apply to all products that are covered by basic rights set out in the Australian Consumer Law (ACL), also known as consumer guarantees. These products must be:
- under $100,000; or
- over $100,000 that are normally bought for personal or household use.
As a repairs business, you should note your practice is to supply refurbished goods rather than repair defective ones. These obligations apply whether or not the products are second-hand goods.
How Do I Provide the Repair Notice?
If you accept the goods for repair in person, your business must provide the consumer with a written repair notice. The consumer can then sign the notice and keep a copy. You must provide the repair notice before the product is accepted for the repair.
Sometimes, the consumer may choose to post the goods to the repairer. In these situations, you must still provide written notice before accepting the goods for repair either by email, mail or fax.
In practice, if you mail a notice, it will take longer to arrive than an email or fax. Therefore, you must provide a reasonable time in which the consumer can receive the notice before accepting the goods for repair. The ‘reasonable time’ varies depending on the situation. As a general rule, it should provide the consumer with sufficient time to receive the notice, consider the potential risks involved and respond to it.
Providing the consumer with the repair notice allows the consumer to consider whether they want to proceed, as well as the opportunity to back up their data before handing their device over to you. This is important, as the data may include sensitive and valuable details such as personal information or finances.
Continue reading this article below the formHow Do I Display a Repair Notice?
Displaying a sign in your repair shop that there is a risk of losing data during the repair process is not enough to notify the consumer. If you simply display a sign, you are putting a burden on your customers to read it before giving in their goods, and you cannot ensure they have seen it.
You must go beyond this and provide the consumer with a written notice, making sure that they read it. It is also best practice to advise the consumer verbally and to get written consent before proceeding with the repairs.
It is recommended to include the repair notice as part of another document, such as repair terms and conditions. If you include the notice in this way, you should ensure that it:
- is easy to see;
- is clearly apart from the other information in the document; and
- outlines that the notice is given under the ACL.
What Do I Include if I Am Using Refurbished Parts?
Some businesses use refurbished parts when repairing or replacing faulty goods. If your business does this, you should notify the consumer so that they can decide whether they want to go ahead. Sometimes, a consumer may prefer not to have the parts replaced with refurbished parts.
The Australian Competition & Consumer Commission (ACCC) have provided specific wording that you must include in a repair notice when a product may be repaired with refurbished parts: “Goods presented for repair may be replaced by refurbished goods of the same type rather than being repaired. Refurbished parts may be used to repair the goods.”
You may also need to include specific wording or detailed information about the repair possibly causing data to be lost. You should always advise customers to save their data elsewhere before submitting their device for repair.
For example, if you run a business that repairs mobile phones with refurbished parts, the repair notice should explicitly state that ‘refurbished goods and parts may be used in repairs’. Additionally, it must inform customers that the repair process might result in potential data loss, and they should back up their data beforehand.
How Do I Know If I Have to Provide the Repair Notice?
You will be responsible for providing a repair notice if your business accepts the product for repair. In general, businesses that can have this responsibility may be:
- the business that sold the product to the consumer;
- the manufacturer;
- an insurer that accepts a product for repair on behalf of a repairer; or
- a general repairer unrelated to the product’s sale or manufacture.
This guide provides key information on how to manage a business dispute as quickly and cost-effectively as possible.
Key Takeaways
Repair notices address customers’ concerns by giving them an opportunity to understand potential issues and make an informed decision. You need to take steps to ensure your customers know the risks before you accept their goods for repair. It gives them an opportunity to backup their data and also to decide whether they want to go ahead. Not providing consumers with a written notice may cause serious legal repercussions.
If you would like assistance regarding repair notices, our experienced consumer law 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.
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