By Melissa Higham - 21 Dec 2011
If you sell 'consumer products' in Australia you need
to be sure that as from 1 January 2012 any warranties against
defects in those consumer products comply with the mandatory
requirements of Australia's new consumer law.
The new law is extremely strict. It will in all likelihood
require you to change your packaging to ensure you comply.
The warranty must be in a document that is "transparent",
meaning it is expressed in reasonably plain language, is legible
and is presented clearly. The warranty must state:
- what the person who gives the warranty must do so that the
warranty may be honoured - for example, the supplier will repair
the goods or replace the goods within a certain time period
- what the consumer must do to entitle the consumer to claim the
warranty - for example, contact the supplier or manufacturer and
point to the defect
- the following details in relation to the person giving the
warranty: the person's name, business address, telephone number and
email address (if any)
- the period within which a defect in the goods or services to
which the warranty relates must appear if the consumer is entitled
to claim the warranty
- the procedure for the consumer to claim the warranty including
the address to which a claim may be sent
- who will bear the expense of claiming the warranty and if the
expense is to be borne by the person who gives the warranty - how
the consumer can claim expenses incurred in making the claim
- a warranty against defects must state that the benefits to the
consumer given by 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, and
- the document must also contain the following mandatory
statement:
Our goods come with guarantees
that cannot be excluded under 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.
If you would like further information on how this law may affect
your business, please contact Melissa Higham.