As a business operator it's important you're familiar with consumers' rights for purchases of goods and services. Under Australian Consumer Law (ACL), businesses that provide goods by selling, leasing or hiring, or services to consumers in Australia, need to comply with automatic consumer guarantees. Manufacturers and importers also need to comply with certain consumer guarantees.
If you sell goods, you need to guarantee the goods:
- are of acceptable quality
- match descriptions made by a salesperson, packaging, labels, in promotions or advertising
- match demonstration models or samples
- are fit for the intended purpose
- come with full title and ownership
- don't come with hidden debts or extra charges
- meet any extra promises about performance, condition and quality
- have spare parts and repair facilities available for a reasonable time after purchase, unless stated otherwise.
If you provide services, you need to guarantee the services are:
- provided with acceptable care and skill or technical knowledge and take all necessary steps to avoid loss and damage
- fit for the purpose and/or give the intended results
- delivered within a reasonable time when there is no agreed end date.
Businesses must provide these automatic consumer guarantees even if the customer doesn’t have a warranty or extended warranty on the goods or services they’ve purchased.
If your business does not meet consumer guarantees, you may be required to:
- provide a repair, replacement or refund
- cancel the service
- provide compensation for damages or loss to the customer.
Under ACL, businesses also need to comply with requirements for:
- warranties, separate to automatic consumer guarantees, and
- providing proof of transactions.
For more information about consumer guarantees, warranties and refunds , visit NSW Fair Trading website.