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Consumer guarantees

As a consumer, the Australian Consumer Law automatically provides you with guarantees on certain goods and services sold, hired or leased to you. These are called consumer guarantees.

You are guaranteed that the goods you buy, including those that are second-hand:

  • are of ‘acceptable quality’, that is, fit for their intended purpose, acceptable in appearance and finish, free from defects, safe and durable. Goods that have a fault should be labelled as ‘seconds’ or ‘damaged stock’
  • are and remain free of debt, charges or mortgages (have ‘clear title’), unless this debt is disclosed or known to you before you agree to buy the goods
  • match the description or demonstration model/sample
  • suit a particular purpose if you have made a specific purpose known to the seller and have relied on the seller’s skill or judgement
  • comply with any express warranty
  • have repair facilities and spare parts reasonably available.

Goods bought at auction are not covered by all the consumer guarantees. However, the seller is obliged to provide ‘clear title’ unless any debt, charge or mortgage is communicated or known to you before you agree to buy the goods.

You are guaranteed that the services you buy are:

  • provided with due care and skill
  • fit for purpose
  • supplied within a reasonable time.

Goods and services covered

Consumer guarantees apply to:

  • any type of goods or services costing up to $40,000
  • goods or services costing more than $40,000, and purchased for personal, domestic or household use
  • vehicles and trailers.

Goods and services not covered

Consumer guarantees do not apply to goods or services that:

  • were bought before 1 January 2011 (these are covered under previous laws)
  • were bought from one-off sales by private sellers, such as garage sales and school fetes
  • were bought at auctions where the auctioneer acts as agent for the owner
  • cost more than $40,000 and normally for business use
  • a person buys to on-sell or re-supply
  • a person wants to use, as part of a business, to manufacture, produce or repair something else
  • are for the transportation or storage of goods for a business, trade, profession or occupation
  • are insurance contracts.

If the goods or services fail to meet a guarantee, you have rights against the seller, and in some cases the manufacturer, who will have to provide a remedy.

TIP: Always keep your receipts as may need them if you want to return, repair or exchange the goods.

To find out more about the Australian Consumer Law (ACL) or consumer guarantees visit the ACL website www.consumerlaw.gov.au


 

Copyright © 2011 Money Stuff

An initiative from NSW Fair Trading

 

Last Updated: 03 July 2013

Page URL: http://www.moneystuff.net.au/infopage?id=geyukqdg

This information must not be relied upon as legal advice. For more information about this topic, refer to the appropriate legislation.

© State of New South Wales through NSW Fair Trading
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