Mandatory wording for goods & services warranties Amendment in the CCR
April 19, 2023
Author name
As of 8 June 2019, the Competition and Consumer Regulations (CCR) will require new mandatory wording to be included in all warranties against defects that are provided to consumers when businesses supply services, or goods and services together. Prior to this change, only warranties relating to the supply of goods required the mandatory text.
The wording notifies consumers and draws attention to consumer guarantee rights within the ACL that cannot be replaced by the businesses’ warranty.
What constitutes a warranty against defects?
Warranties against defects include representations made to consumers that if goods or services are defective, the supplier will repair or replace goods, provide the services again or rectify the services, or provide compensation to the consumer. The representation must be made around the time of the supply. Warranties against defects may also be referred to as manufacturer’s warranties.
The warranty may consist of writing on packaging, a pamphlet, or any document on which representations are made that accompanies the supply of goods and services.
The mandatory wording: services
Our services come with guarantees that cannot be excluded under the Australian Consumer Law. For major failures with the service, you are entitled:
- to cancel your service contract with us; and
- to a refund for the unused portion, or to compensation for its reduced value.
You are also entitled to be compensated for any other reasonably foreseeable loss or damage. If the failure does not amount to a major failure you are entitled to have problems with the service rectified in a reasonable time and, if this is not done, to cancel your contract and obtain a refund for the unused portion of the contract.
The mandatory wording: goods & services
Our goods and services come with guarantees that cannot be excluded under the Australian Consumer Law. For major failures with the service, you are entitled:
- to cancel your service contract with us; and
- to a refund for the unused portion, or to compensation for its reduced value.
You are also entitled to choose a refund or replacement for major failures with goods. If a failure with the goods or a service does not amount to a major failure, you are entitled to have the failure rectified in a reasonable time. If this is not done you are entitled to a refund for the goods and to cancel the contract for the service and obtain a refund of any unused portion. You are also entitled to be compensated for any other reasonably foreseeable loss or damage from a failure in the goods or service’.
Additional Requirements
Existing requirements under the CCR provide that any warranty against defects must:
- be transparent, including providing name, business address, and contact details of person providing the warranty;
- explain what the supplier must do to honour the warranty and what the consumer must do to claim the warranty;
- state the period within which the defect must be identified for the consumer to claim the warranty; and
- explain the procedure for the consumer to make a claim on the warranty, including any expense details.
Conclusion
Businesses that regularly supply goods or services to consumers should ensure they implement the new mandatory wording in their warranties. Failure to do so may result in breach of the ACL and consequent penalties.
If you would like assistance with any consumer or warranty matters, or for further information in relation to consumer law generally, please contact us on (08) 9321 5451 or by email at phil@bailiwicklegal.com.au.
For further information about our legal services, please visit our website: https://www.bailiwicklegal.com.au/
The above information is a summary and overview of the matters discussed. This publication does not constitute legal advice and you should seek legal or other professional advice before acting or relying on any of the content.
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