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)