Do you say eg “All repairs are guaranteed for 12 months”?  If so, are you ready for the change in the law that starts on 8 June 2019?  This requires you to give consumers a document about your warranty that sets out detailed information including:

  • How the warranty is to be claimed;
  • Who bears the expense of claiming on the warranty;
  • A statement about the consumer’s other rights;
  • Compulsory wording which differs depending on whether you supply services only or goods and services together.

One aim of the changes is to ensure that consumers of services understand that your warranty is in addition to the consumer’s other rights under the Australian Consumer Law.

A “warranty against defects” in services means a statement to a “consumer” around the time of supply that you will rectify services if they are defective or compensate the customer.

A “consumer” is not limited to consumers of household items.  A “consumer” also includes anyone who purchases goods and/or services worth less than $40,000 (with limited exceptions) including for commercial purposes.

If you do wish to offer warranties against defects either for services or for goods and services (eg repairs with replacement parts) after 8 June 2019, you will need to comply with the new law or risk fines of up to $50,000 for companies and $10,000 for individuals for each breach.

The new law is very detailed in its requirements and is only summarised here. I can review your warranty documentation and advise on how to comply with these new requirements.

Categories: Consumer law