Posted by: Angelo Venardos | Date: 23 March 2012
I was recently asked to speak for the Australian Institute of Company Directors to provide a business legislation update for 2012, for the Sunshine Coast chapter.
One of the topics that I discussed was the amendments to the Australian Consumer Law.
From 1 January 2012 if you are in business and choose is to provide a warranty against defects to consumers, then the document that you provide must comply with the specific requirements of the Australian Consumer Law.
Warranties against defects is a representation given by you to a consumer, that as a business you will repair or replace goods (or part of them), resupply or fix a problem with services (or part of them) and provide compensation to the consumer if the goods or services (or part of them) are defective.
If you provide goods or services to consumers with a document evidencing a warranty against defect, you must adhere to the requirements of the Australian Consumer Law;
A consumer is a person or a business if they purchase goods or services at costs less than $40,000.00, or goods or services that do cost more than $40,000.00 that are of a kind ordinarily acquired for domestic, household or personal use or consumption, or a vehicle.
A document includes any material where there is writing or printing, such as a label, sale docket or formal warranty.
This is very important. The document must state:
It is very important that you take care to ensure that any information or words in the warranty do not limit or negate the mandatory requirements and text.
Warranties against defects are provided in addition to consumer guarantees required under the Australian Consumer Law.
The requirements of the Australian Consumer Law are very important, and place a significant obligation on businesses. It is very important to ensure that your systems, procedures and documentation (including your warranties) are reviewed very carefully ensure complaints with the Australian Consumer Law.
Please do not hesitate to contact me should you have any questions regarding warranties against defects, or any consumer law questions in general.