09 Jul Changes To Consumer Guarantees From 1 July 2021
On 1 July 2021, the value of goods covered by the definition of ‘consumer’ under the Australian Consumer Law increased from $40,000 to $100,000. This means that the consumer guarantees will apply to more transactions, including when businesses sell to other business. The guarantees also apply to those who only have an online presence and no retail outlets in Australia. The critical issue is that sales are to Australian consumers. Valve, one of the world’s largest online video game retailers, incurred a $3 million penalty for non-compliance and was unsuccessful in its special leave application to the High Court in April 2018. The following is an update of my earlier blog and is a useful summary. What is covered? Businesses must guarantee products and services they sell, hire or lease that are: • under $100,000 • over $100,000 if they are normally bought for personal or household use • business vehicles and trailers, provided they are used mainly to transport goods. There are some exceptions. For example, products purchased to be resold, or to be transformed into a product that is sold, are not covered. What are consumer guarantees? Businesses must provide these automatic guarantees regardless of any other warranties. If a product or service fails to meet a consumer...
