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ARTICLE · 15 JULY 2021

Change to consumer guarantees welcomed

From July 1, the consumer guarantees apply in any case where the price of the goods or services is less than $100,000.

AustraliaConsumer Protection

Buyers of goods like televisions or white goods are often asked if they would like an extended warranty beyond the standard warranty offered by the manufacturer. However, they may already be covered by the Australian Consumer Law. Under the ACL, 'consumers' that buy certain goods or services automatically receive 'consumer guarantees' regarding the quality of the goods/services. These guarantees cannot be removed.

Guarantees regarding goods include that they are fit for purpose, free from defects, safe and durable. The 'guarantee' will vary depending on the type of goods purchased - an expensive washing machine should be expected to last longer than a cheap children's toy. If what you have 'bought' are services, then you are entitled to expect due care and skill, fitness for purpose and the services to be provided within a reasonable time or within the time agreed.

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