Defining consumer transactions and how you can reduce your liability

Businesses involved in business to business (B2B) transactions are often confused as to whether or not their transactions fall within the ambit of the Australian Consumer Law (ACL) and if so, what that implies.

The purpose of this article is to provide clarity around what constitutes a consumer transaction and a timely reminder as to how a business might legitimately seek to limit its liability in relation to certain B2B transactions.

When are you a consumer?

The Competition and Consumer Act 2010 defines a person (whether an individual or an entity) as having acquired particular goods as a 'consumer' if, and only if:

1. The amount payable for the goods or services did not exceed $40,000; or