Warranties against defects

Saturday, 23 July, 2011

From 1 January 2012, any warranties against defects in any consumer products sold in Australia will need to comply with the mandatory requirements of the new Australian Consumer Law.

In particular these warranties must include the following statement:

"Our goods come with guarantees that cannot be excluded under the Australian Consumer Law. You are entitled to a replacement or refund for a major failure and for compensation for any other loss or damage. You are also entitled to have the goods repaired or replaced if the goods fail to be of acceptable quality and the failure does not amount to a major failure."

If additional retailer or manufacturer specific warranties are offered, the following words must be added to the statement: "The benefits under [Our Warranty] are in addition to other rights and remedies under a law in relation to the [goods/services]".

Retailers are encouraged to determine their compliance obligations in this area as soon as possible because of the implications for packaging and the need to replace non-compliant warranty statements for goods sold after 1 January 2012.

For more information visit www.consumerlaw.gov.au

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