Consumers automatically get guarantees from businesses that provide goods or services, under the new national consumer law.

Fair Trading Minister Anthony Roberts said the new guarantees replace statutory implied warranties and more clearly set out consumer rights and responsibilities.

“Consumer guarantees are part of the new Australian Consumer Law and will help consumers assert their rights,” he said.

Consumer guarantees apply to goods and services bought on or after 1 January 2011 by a consumer from a supplier or manufacturer. They apply to:

• any type of goods or services costing up to $40,000
• goods or services costing more than $40,000 which are normally used for personal, domestic or household purposes
• a vehicle or trailer used mainly to transport goods.

“Consumer guarantees set out rights and responsibilities when something goes wrong with goods or services,” Mr Roberts said.

“Whether you’re dealing with a retailer, manufacturer or service provider, you can use the guarantees to get a problem fixed when goods or services fail to measure up.

“Whoever sold the goods or services, or made the goods, must fix a problem when they fail to meet the guarantees.

“Consumers can turn to the importers if the manufacturer does not have an office in Australia.”

Mr Roberts said consumers would also be able to use consumer guarantees to insist a supplier deal with a defective product, regardless of whether they have a warranty.

“Consumers should no longer get caught in the middle, while the supplier and manufacturer argue over who is responsible,” he said.

“The guarantees also apply to leased, hired and second-hand goods and goods given as gifts.”

Mr Roberts said businesses were responsible for understanding their legal obligations and would face bigger penalties when they break the law.

Visit the Fair Trading website for more information.

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