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A free review before June 8

As the ACCC will be enforcing tough fines and other penalties – call us now for a FREE review on 1300 993 624

Do you offer warranties?

You must amend your agreements by June 8 with new wording, whether you offer goods, services or both!

Any business that is offering a warranty against defects on either goods or services must, by 8 June 2019, ensure that its agreements comply with changes to the Australian Consumer Law (ACL)!

Regulation 90 currently requires that a mandatory statement in words must be contained in a document that includes a warranty against defects for the supply of goods to a consumer.The Regulation has now been amended and requires similar mandatory wording for warranties against defects for the supply of services or goods and services to consumers.

The intent of the mandatory wording requirements is to make it clear to a consumer that any express warranty that is given by a supplier of goods or services does not exclude the statutory guarantees that are imposed by the ACL.

If you do not already have this mandatory wording in your documentation, now is the time to act. It is inevitable that the Australian Competition and Consumer Commission (ACCC) will be enforcing these requirements and therefore there is a greater chance that you will receive a fine or other penalties if the requirements aren’t met.

In general, the ACL seeks to protect consumers and so, with this idea in mind, the new legislative changes seek to better advise consumers as to their rights, including the right to cancel the contract and/or receive a refund/compensation where there are errors or issues with either the goods/services provided and/or the manner in which these were provided to the consumer.

These changes will not, however, impact on those who are not providing goods or services to consumers i.e. services for transportation or storage for business purposes. Keep in mind however that the definition of ‘consumer’ includes other businesses and so supply from a business to another business is treated the same as supply to an individual consumer. Under section 3 of the ACL, goods or services are taken to have been acquired by a person as a consumer, in brief summary, if:

  1. The amount payable for the goods or services does not exceed $40,000; or
  2. The goods or services are of a kind ordinarily acquired for personal, domestic or household use or
  3. Consumption; or (for goods) the goods consist of a vehicle or trailer acquired principally for use in the transport goods on public roads.

Finally, these legal changes will require you to be clear on what the warranty is about, how it can be called on and who is actually giving this warranty.With the deadline in 2 weeks from today, now is the time that you are encouraged to review and update your warranty.
Not sure where you stand?

DC Strategy Lawyers will give you a free review of your warranty policies on your goods and services and where the gaps might be!

Call us on 1300 993 624 or email us at legal@dcstrategy.com.

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