Consumer Guarantee Rights: What You Need to Know

In 2023, the Australian Competition and Consumer Commission (ACCC) received 28,000 reports and inquiries related to consumer guarantees or warranties, with 73% of these contacts concerning automotive issues. According to ACCC deputy chair Catriona Lowe, consumer guarantee problems continue to be a significant area of concern, remaining at consistent levels since 2020. The ACCC is now urging Australians to assert their consumer guarantee rights under the Australian Consumer Law when dealing with businesses over defective products or poorly performed services.

Under the Australian Consumer Law, consumers have automatic rights called ‘consumer guarantees’ regardless of any warranty offered by the business. These guarantees apply to all products and services, ensuring that they are of acceptable quality, match their description, and do what the business claims they can do. In case of a major problem, consumers are entitled to a free repair, replacement, or refund.

Lowe emphasises that consumers can still use their consumer guarantee rights under the Australian Consumer Law even if a voluntary, manufacturer’s, or extended warranty has expired. The guarantees apply for a reasonable period of time, which may be longer than the period covered by warranties provided by retailers or manufacturers, depending on the nature of the products or services and the price paid.

The ACCC has taken action against several companies for misleading consumers about their consumer guarantee rights, including Stellantis Australia, the distributor of Jeeps in Australia, for the handling of consumer complaints. The ACCC urges businesses to provide accurate information about consumer guarantee rights and obligations as it is against the law to mislead consumers in this regard.

Common misleading statements by businesses include claims that a product is out of warranty, that a refund is not possible under any circumstances, and that the consumer should contact the manufacturer for issue resolution, all of which are not in line with consumer guarantee rights.

Consumers who encounter problems with a product or service should first approach the business from which they purchased it. If they are unable to resolve the issue with the business directly, they can seek assistance from their State or Territory consumer protection agency, which may help negotiate a resolution.

The ACCC seeks changes to the law to make business non-compliance with consumer guarantee obligations illegal and to enhance consumer rights protection. As of now, the consumer guarantees provide a private right enforceable by consumers along with enforcement actions taken by the ACCC and State and Territory consumer protection agencies. It’s important for consumers to understand their rights and take the necessary steps to ensure that they are not misled or mistreated by businesses.

For more information and assistance with consumer rights and guarantees, consumers can visit the ACCC website and other relevant resources.

Consumer Guarantees: Understanding Your Rights and Obligations