The Australian Consumer Law (ACL) guarantees consumer rights when purchasing goods and services, including consumer's rights to repairs, replacements and refunds. Consumers have rights under these 'consumer guarantees' even if they do not have a warranty or extended warranty.
Your goods are covered if they were:
You are a consumer if you buy, lease or hire:
Goods are covered even if they are second-hand.
Some consumer guarantees apply regardless of whether the goods are sold in trade or commerce - these are the guarantees that you are getting goods:
You will not be covered by consumer guarantees for goods:
Either the supplier or manufacturer, depending on what the problem is. The supplier is the person or business who sold, leased or hired the goods to you. The manufacturer is the person or business who:
Both the supplier and the manufacturer guarantee that goods:
Suppliers and manufacturers also guarantee that any express warranties will be honoured.
A supplier also guarantees that you are buying goods:
A manufacturer guarantees repairs and spare parts will be available for a reasonable period of time after you buy the goods.
When goods do not meet these guarantees, the supplier or manufacturer must attempt to put the situation right by offering a 'remedy'. Common remedies are repairs, replacements and refunds.
A supplier does not have to put a situation right, and a manufacturer does not have to provide damages, when they did not meet consumer guarantees due to something:
Sometimes a manufacturer may recall goods in order to fix a potential safety issue - for example a car manufacturer may recall a car due to a suspected break defect. If so, the potential safety issue does not automatically amount to a major failure on the basis that the car is unsafe.
Whether you get a repair, replacement, refund or other 'remedy' depends on whether the problem is a major failure or a minor failure. You may also be able to claim for compensation for 'reasonably foreseeable' costs caused by a problem with goods. This is usually for financial costs but can include other costs such as lost time or productivity.
If there is a major failure with the goods you can:
You get to choose, not the supplier or manufacturer.
A major failure with goods is when:
If the problem is a minor failure and can be repaired within a reasonable time you cannot immediately reject the goods and demand a refund. You must give the supplier a chance to fix the problem, however the supplier may choose to:
It is the supplier's responsibility to return the goods to the manufacturer for repair. If the cost of repairing the goods is more than the value of the goods the supplier may offer you a replacement instead.
You must tell the supplier if you intend to reject goods and explain why, then you:
If you have agreed to or asked for a repair of the goods, because you did not know you were entitled to a refund or replacement, you do not lose the right to reject the goods. Where the problem is 'major' you can reject the goods at any time and ask for a replacement or refund.
You cannot reject goods when:
The right to return goods runs from the date the supplier provided the goods to you, until the fault or problam would reasonably be expected to appear. This depends upon:
Even if you cannot reject the goods for these reasons, you may still keep the goods and ask for compensation for any drop in the value of the goods.
You do not have to return goods in the original packaging.
When you tell the supplier that you are returning the goods, the goods become the supplier's property. You must return the goods unless the cost of returning, removing or transporting is significant, in which case the supplier must collect the goods at their own expense and within a reasonable time. Examples of goods a supplier would have to collect are:
A business does not have to give you a refund if you simply change your mind about something you bought, unless they have a store policy to offer a refund, replacement or credit note when this happens.
A business cannot refuse to give a refund, or reduce the amount, because you did not return the items in the original packaging or wrapping.
You will usually need to have a receipt or other proof of purchase but a supplier can accept your claim if you do not have this.
You have the same rights as a person who has bought the goods directly.
The person or business giving the refund must repay any money you paid for the returned good, and return any other form of payment you made - For example a trade-in. If this is not possible, they must refund the value of the item. They must not:
A supplier or manufacturer must not tell you that a consumer guarantee:
This means 'no refund' signs and similar signs are unlawful, because they imply that you cannot get a refund under any circumstances, even when there is a major fault with the goods. Signs that read 'No refunds will be given if you have simply changed you mind' are acceptable.
A person or business giving a replacement must provide goods of the same type and similar value. If such a replacement is not reasonably available you may choose to repair the goods or request a refund.
You must return the goods to the supplier. If this involves significant cost the supplier must collect the goods at their own expense.
The consumer guarantee that applied to the original goods will also apply to the replacement goods. For example - A consumer buys a new mobile telephone and due to a problem the supplier replaces it. Consumer guarantees apply to the replacement telephone as if it were a new mobile telephone.
The supplier must fix the problem within a reasonable time. What is 'reasonable' depends on the circumstances. For example - A supplier would be expected to repsond quickly to a request for a repair to an essential household item, such as a water heater. For goods used less often, such as a lawnmower, the reasonable time for repair would be longer.
If a supplier refuses or takes more than a reasonable time to repair the goods you can:
If the supplier is unable to fix the goods or cannot do so within a reasonable time you can:
For example several buttons came off a consumer's new shirt due to poor stitching and the tailor who made the shirt did not have matching buttons. The consumer is entitled to ask for a refund or replacement.
If you have no choice but to take the goods elsewhere for repair, you do not have to get the supplier's agreement or provide quotes. However, the supplier only has to pay the 'reasonable costs' of the repair.
A reasonable cost would be within the normal range charged by repairers of such goods and include:
For example - The zip on a pair of trousers broke within a week of purchase. The retailer tells the consumer the repair will take a month. The consumer explains they need the trousers for work urgently but the retailer offers no other option. The consumer gets the zip replaced by a tailor for $25.00. When the consumer asks the retailer to pay for this, the retialer says that their tailor would have done it for $2.00. If the higher price is a normal price for the repair the retailer would have to reimburse the consumer.
A repairer of goods, regardless of whether they were the supplier or not, must notify you of particular information before accepting the goods for repair including:
Repairers that fail to comply may face:
When goods fail to meet a consumer guarantee, you may also be able to claim for compensation for your costs caused by the problem. This is usually for financial costs but can include other costs such as lost time or productivity.
You will usually need to show that you obtained the goods from that supplier or manufacturer and the same applies to gift recipients. The best proof of purchase is a receipt or tax invoice, which should always be kept.
A number of other forms of evidence are also generally acceptable including:
You may sometimes need to give more than one of these to support your claim that you bought the goods from a particular supplier. If you cannot demonstrate that you bought their goods, a supplier or manufacturer may still choose to accept your claim. If there is a dispute about this, you may wish to take the matter to an Australian court or tribunal.
You automatically get consumer guarantees from the person or business when you buy, lease or hire their goods. This is different to a warranty, which is a voluntary promise offered by the person or business who sold the goods, or who made the goods.
You have consumer guarantees regardless of any warranty offered by a supplier or manufacturer.
Express Warranties are extra promises a supplier or manufacturer may make about such things as the quality, state condition performance or characteristics of goods. An express warranty is not necessarily about the product breaking, it is about living up to promises. For example - when a consumer buys a deck chair, the supplier says the chair can hold up to 100kg. This is an express warranty about what the goods can do.
If the manufacturer or supplier provides an express warranty, they guarantee the goods will satisfy that warranty. For example - A supplier tells the consumer that a bed will last for 10 years. If the bed only lasts for 6 years, the consumer will be entitled to a remedy.
Warranties against defects or manufacturer's warranties provide promises to consumers that:
This is called a 'warranty against defects', or also commonly called a 'manufacturers warranty'. For example - A consumer buys a deck chair that comes with a written warranty. The warranty says the manufacturer will replace it if it breaks within 2 years of the purchase date. From 1 January 2012 a warranty against defects must be in writing and:
There are penalties if suppliers or manufacturers fail to comply.
A warranty against defects may also contain an express warranty. Suppliers and manufacturers both guarantee goods will meet express warranties. This means you can insist a supplier meets their responsibilities under the consumer guarantees to fix a problem, even if it is covered by other warranties.
For example - When a consumer buys a deck chair with a written warranty against defects and the chair states it can hold up to 100kg this is an express warranty. If the chair breaks after a 50kg person sits on it, the consumer can insist that the express warranty contained in the warranty against defects be honoured.
Another example is where an advertisment or a promotional brochure that simply mentions a car comes with a 'four year warranty' does not give enough detail about the nature of the warranty to determine whether it is a warranty against defects or an express warranty.
Extended warranties are offered by suppliers and manufacturers to lengthen the coverage of their basic manufacturer's warranty. You may be offered a chance to buy an extended warranty after, or at the time, you buy the goods. For example - a consumer buys a deck chair the retailer says the consumer can pay an extra $20.00 for an extended warranty to make sure the manufacturer's warranty applies for 3 years instead of 2.
Some suppliers or manufacturers may also tell you an extended warranty provides extra protection which you would not have unless you buy it. This is not necessarily true. The consumer guarantees provide rights that exist despite anything the supplier or manufacturer may say or do. Extended warranties are optional and a supplier or manufacturer must not:
When asked to buy an extended warranty, ask what it would provide over and above your rights under the consumer guarantees. For example - A consumer buys a plasma television for $6,000.00. It stops working two years later. The supplier tells the consumer they have no rights to repairs or other remedy as the television was only under the manufacturer's warranty for 12 months. The supplier says the consumer should have bought an extended warranty, which would have given 5 years cover.
A reasonable consumer would expect more than two years use from a television costing $6,000.00. Under the consumer guarantees, the consumer has a legal right to a remedy as the television is not of acceptable quality. The supplier may also have misled the consumer about their rights.
People often buy goods linked to services. An example of this is a mobile telephone which is linked to a contract for network services. This is sometimes called a 'linked service contract'.
If you are returning goods within a reasonable time and are entitled to a refund, you can also cancel the linked service contract. You can do this when returning the goods or within a reasonable time, however these contracts do not automatically end.
An example is where a consumer signs up for a package that includes a modem and internet access. The consumer rejects the modem because it is faulty, but chooses to keep the internet connection. Alternatively the consumer may reject the faulty modem and cancel the internet access.
When you cancel a linked service contract, you are entitled to a refund or can refuse to pay for any services that you have not yet receive. The supplier does not have to give a refund for any services you received up to the time you rejected the goods.
An example is where a consumer subscribes to 12 editions of a cooking magazine for $200.00, including $80.00 delivery. The consumer receives only 3 editions in six months, so cancels the subscription and delivery. The supplier must refund $150.00 for nine magazines not received and $60.00 for the delivery.
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