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ARTICLE · 20 OCTOBER 2024

What Businesses Need to Know About Offering Warranties

Before offering a warranty against defects business should consider customer's rights under the ACL.

AustraliaConsumer Protection

In Short

  • Warranties must comply with the Australian Consumer Law (ACL), including mandatory information and clear documentation.
  • A separate warranty document is recommended, especially for warranties against defects.
  • Misleading warranty references in advertising can lead to penalties under ACL.

Tips for Businesses

If offering warranties, ensure compliance with ACL by preparing a clear, separate warranty document outlining terms, claim processes, and coverage periods. Review any manufacturer warranties and avoid inadvertently providing warranties in your advertising. Seek legal advice to avoid potential breaches and penalties.

Two leading retailers face class-action lawsuits over allegations they sold extended warranties that customers called "junk" and a "waste of money." The class actions claim that the retailers' extended warranties were "worthless" and offered no additional protection beyond what Australian Consumer Law (ACL)

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