Here is some new consumer legislation courtesy HIA... I have highlighted the most important change... although I think current law covers it.
CHANGES TO DEFECTS WARRANTY LAWS FOR GOODS & SERVICES
-- COMMENCES 1 JANUARY 2012 –
It is common for manufacturers and suppliers of goods and services to offer defects and
extended warranties as part of their terms and conditions of sale. Those warranties
generally say that the business will repair or replace the goods or services if a defect
occurs within the warranty period and are included in warranty documents packaged with
goods or in terms and conditions of supply.
What is a warranty against defects?
The Australian Consumer Law (ACL) (which replaced the Trade Practices Act)
automatically provides guarantees for goods and services purchased by consumers.
These statutory consumer guarantees require amongst other things that goods must be
free of defects and fit for purpose and that services must be provided within a reasonable
time. These guarantees cannot be removed, excluded or contracted out of, and have no
time limit – the time limit will depend on the price and quality of goods purchased.
Some suppliers and manufacturers also provide additional promises or warranties as
part of their service to customers. These express warranties (sometimes called
manufacturers warranties), set out the terms and conditions under which the
manufacturer agrees to repair or replace the product or refund the purchase price. Some
manufacturers offer extended warranties on top of this. The offering of express warranties
is not compulsory, but if provided they must comply with the ACL.
Whilst the ACL provided a 12 month transition for businesses to update their systems,
operations and documentation, this period ends on 31 December 2011. From 1 January
2012, it will be an offence for businesses to give a consumer an express warranty for
goods or services that does not comply with Regulation 90 of the Competition &
Consumer Regulations.
What is Regulation 90?
Regulation 90 lists the items that must be included in an express (including extended)
warranty clause or statement. This includes the processes a consumer can take to
enforce the warranty.
The warranty must:
- 1. be in a document that is legible, presented clearly and expressed in reasonably
plain language (this is defined as 'transparent') and must also:
2. concisely state
- what the person who gives the warranty must do so that the warranty may
be honoured; and
what the consumer must do to entitle the consumer to claim the warranty;
3. prominently state the name, business address, telephone number and email
address of the person or entity giving the warranty;
4. state the period or periods within which a defect in the goods or services must
appear if the warranty is to apply;
5. set out the procedure for claiming under the warranty, including the address to
which a claim may be sent;
6. state who will bear the expense of claiming under the warranty and, if it is the
party giving the warranty, how the consumer can claim expenses incurred in
making the claim;
7. state that the benefits to the consumer under the warranty are in addition to other
rights and remedies of the consumer under a law in relation to the goods or
services to which the warranty relates.
8. The warranty must also contain the following words:
"Our goods come with guarantees that cannot be excluded in the Australian Consumer Law.
You are entitled to a replacement or refund for a major failure and for compensation for any
other reasonably foreseeable loss or damage. You are also entitled to have the goods
repaired or replaced if the goods fail to be of acceptable quality and the failure does not
amount to a major failure."