Client update: The Australian Consumer Law and consumer guarantees

Do you or your franchisees mislead consumers about their rights?

The Australian Consumer Law (ACL) provides consumers with a set of rights called consumer guarantees in relation to goods and services which businesses sell, hire or lease for:

• under $40,000;
• over $40,000 that are normally bought for personal or household use.

In relation to goods, these include guarantees that:

• the goods are of acceptable quality;
• the goods are fit for any disclosed purpose;
• the goods will match any description under which they are sold;
• the goods will have spare parts available for a reasonable time; and
• all express warranties offered will be honoured.

Misleading a consumer about their rights in relation to these consumer guarantees can have serious consequences. This has significant implications for retail businesses and franchisees of businesses selling goods to consumers which are subject to the consumer guarantees. While businesses can offer