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Topic 10 of 13

2. Selling your goods or services

2.4 Consumer Guarantees

Under the ACL, suppliers and manufacturers of goods and services automatically provide guarantees about certain goods they sell, hire or lease, and services they provide to consumers. These are known as Consumer Guarantees. These rights exist regardless of any warranty provided by the supplier or manufacturer.

There are 9 guarantees that apply to goods including:

  • Suppliers and manufacturers guarantee that goods are of acceptable quality when sold;
  • Suppliers and manufacturers guarantee that goods will be reasonably fit for the purpose specified by the consumer or supplier;
  • Suppliers and manufacturers guarantee that their description of goods is accurate;
  • Suppliers guarantee that goods will match any sample or demonstration model and any description provided;
  • Suppliers and manufacturers guarantee that goods will satisfy any extra promise made about them (express warranty);
  • Suppliers guarantee that they have the right to sell the goods (clear title);
  • Suppliers guarantee that no one will try to repossess or take back goods or prevent the consumer from using the goods (undisturbed possession);
  • Suppliers guarantee that good are free from any hidden securities or charges;
Manufacturers or importers guarantee they will take reasonable steps to provide spare parts and repair facilities for a reasonable time after purchase. A supplier guarantees that services are provided:

  • with due care and skill
  • are fit for any specified purpose
  • within a reasonable time (when no time is set).
Consumer guarantees apply to goods and services bought on or after 1 January 2011 by a consumer from a supplier or manufacturer, in the course of trade.

They apply to:
  • any type of goods or services costing up to $40,000
  • goods or services costing more than $40,000, which are normally used for personal, domestic or household purposes
  • a vehicle or trailer (the cost of the vehicle or trailer is irrelevant).
For more information about Consumer Guarantees refer to the publication, ‘Consumer Guarantees’.

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