May 2019

It is common for businesses to provide a warranty against defects to consumers such as to the nature, quality or performance of the Goods or Services. Warranties can be provided in documents, advertisements in your business premises, or in discussions with the customer.  In such situations the warranty document you provide must comply with specific Australian Consumer Law (ACL) requirements. The ACL requirements override anything else you state. You may say that you will: Repair or replace goods (or part of them) Resupply or fix a problem with services (or part of them) Provide compensation to the consumer if any fault arises within 12 months of the purchase of the goods or the supply of services or a combination of goods and services by saying ‘1 year warranty’. In such circumstances the ACL may still give the consumer rights if defects occur after 12 months. Furthermore the ACL sets out what you need to state in a document about warranties, such as procedures to be followed. There is also what is referred to as the Mandatory Text requirement. This is essential for you to state. It is specified in the ACL. The text relates to the guarantees that cannot be excluded. The text specifies the circumstances when the consumer has the choice to have goods or services repaired,...

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