Australian Consumer Law
If you buy a product from a shop and it breaks, what do you do? All products and services provided by a business in Australia are subject to Australian Consumer Law (‘ACL’). This chapter explains the types of products and services that come under ACL as well as the major protections provided for consumers (guarantees, unfair practices, misleading and deceptive conduct) as well as providing information on the process of making a claim under ACL and the relevant statutory bodies that apply.
Acknowledgement
We would like to thank Dr Nicholas Seddon and the ACT Law Handbook for contributing this section on Contract Law.
What remedies are available?
The remedies available under the ACL legislation are much more generous than under the law of contract. A person complaining of misleading conduct may: Seek compensation for damages under Section 236; Seek an injunction (this usually happens to stop misleading advertisements) under Sec...
Introductions to ACL
In Australia governments have introduced laws which aim to protect consumer rights and stop misleading and deceptive business practices. Today, most of these laws are contained in the Australian Consumer Law (ACL), which is located in Schedule 2 of the Competition and Consumer Act 2010 (Cth). ...
What are Australia’s Consumer Remedies and when do they Apply?
In general the ACL applies when a person buys goods or services from a business. It is important to note the ACL does not apply to private sales. This means if you buy something from a private-seller (a person) and not from a business you do not have the protections provided by the ACL. ...
Rights under the ACL Cannot be Excluded
Importantly, under Section 150 if a contract is signed, which says you’ve waived your rights under the ACL, that contract is void.
What if the seller does not have the right to sell goods?
It can happen in consumer transactions that the owner of the goods agrees to sell them but in fact does not have the right to do so, that is, does not have title to the goods. Where another person has a right to the goods and the seller neglects to tell the buyer, the seller will be in breach of...
ACL Guarantees Buyer Rights to Possession
Section 52 of the ACL guarantees that the buyer will enjoy undisturbed possession of the goods. This would be so even if the goods were leased or bought on hire purchase and title remained with the supplier. Let’s use the example of a second-hand car. If someone sells a vehicle but fails to t...
Free from any Security, Charge or Encumbrance
The ACL at Section 53 guarantees that goods are free from any security, charge or encumbrance. This section of the Act is generally referring to where someone has registered an interest over an item on the Personal Property Security Register (PPSR). The PPSR is a register, maintained by the Fed...
Goods Must be of Acceptable Quality
Where a person supplies goods to a consumer in the course of business, there is an implied condition that the goods supplied are of acceptable quality Section 54. This means that the goods must be as; (a) Fit for all the purposes for which goods of that kind are commonly supplied; and (b) ...
Sale by description (goods as described)
Under Section 56 of the ACL when a person buys goods based on how they’re described – without seeing what they’re buying – the goods need to correspond with that description. Many consumer transactions are by description, that is, the consumer does not actually see the goods being purchased. T...
Repairs and Spare Parts
Section 58 of the ACL guarantees a manufacturer will take reasonable action to ensure that facilities for the repair of the goods, and parts for the goods, are reasonably available. This guarantee can also apply to retailers in some cases. It is difficult to know what action can be taken ag...
What goods are covered by the ACL?
There is a two-part test for working out which goods will be covered by the ACL and which goods are not. The first is whether, or not, the item that has been purchased, hired, or leased cost more than $40,000. From July 2021 this amount will increase to $100,000. This said at time of wri...
What Remedies are Available for Defective Goods?
The remedies available under the ACL legislation are much more generous than under the law of contract. A person complaining of misleading conduct may: Seek compensation for damages under Section 236; Seek an injunction (this usually happens to stop misleading advertisements) under Sec...
Remedies Against Manufacturers
Minimum standards for goods are enforceable against manufacturers. The ACL provides a right of action to a ‘person affected’ (which means the purchaser or a person who has received the goods as a gift) against a manufacturer who supplies faulty products. This applies to goods that are not o...
What Services are Covered by the ACL?
Services are widely defined in Section 2 of the ACL. They include most things normally thought of as services such as contracts for work (but not employment). They also include professional work, provision of recreational and amusement facilities, a contract between a banker and customer and a ...
What Remedies are Available for Defective Services?
Section 60 of the ACL makes it so when people supply services in a business context there s a guarantee they will be rendered with due care and skill. Services need to be fit for the express or implied purpose they were purchased for. The same is true for any products which result from the serv...
Misleading or Deceptive Conduct under the ACL
The ACL Section 18(1) provides that “A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.” In addition to applying to persons generally, this section applies as a Commonwealth law to the conduct of corporations (Section ...
Unconscionable Conduct under the ACL
Under the ACL people who are the victims of unconscionable conduct, by a business, are able to take legal action in accordance with Section 21. There are a large number of factors which can help the courts decide if an agreement to purchase goods, or services, is unconscionable. &...
Other unfair practices under the ACL
Unsolicited Supplies There are also provisions dealing with unsolicited supplies. They provide for: prohibition of sending unsolicited credit or debit cards (s39); prohibition on asserting a right to payment for unsolicited goods or services or for making an entry in a directory (ss40a...
Lay-By Agreements Under the ACL
Lay-by agreements are regulated under Part 3-2 Division 3 of the ACL. Breaches of these provisions constitute offences under ACL Part 4-2 Division 3. What is a lay-by agreement? For the average person a lay-by agreement is just an arrangement where you pay for an item in a number of smal...
Other Consumer Protection Legislation
Pawnbrokers Pawnbroking in Tasmania is governed by the Second Hand Dealers and Pawnbrokers Act 1994 (Tas). A pawnbroker is a person who carries on the business of lending money on the security of an article taken by the person by way of pawn, pledge or as security. To be able to operate as...
Consumer Affairs Contacts and Resources
There are many agencies operated by both the Commonwealth and Tasmanian governments responsible for the receipt and resolution of complaints, as well as private, independent industry-based dispute resolution schemes. Most of these are referred to in the relevant subject chapters of the Law Han...
Page last updated 19/03/2018