The requirements for defects warranties given by
manufacturers, retailers and service providers to consumers will be
regulated from 1 January 2012
The defects warranty in your current terms and conditions
probably says that you will repair or replace the goods or
services, if a defect occurs within the warranty period (or words
to that effect).
But from 1 January 2012, this warranty will no longer be good
enough. Regulation 90 of the new Competition and Consumer
Regulations requires your defects warranty clause to include a
bunch of other things the Australian Consumer Law (the new Trade
Practices Act) deems to be fairer on consumers.
For example, your defects warranty clause must set out the exact
procedures for claiming under the warranty, how a consumer can
claim costs they have incurred in making such a claim, as well as
the inclusion of the following words:
"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 reasonably foreseeable 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
From 2012, it will be an offence for manufacturers, retailers
and service providers to give a consumer a warranty for goods or
services that does not comply with the prescribed requirements
under regulation 90, and heavy penalties will apply.
Sorry, but you're going to have to review your terms and
conditions, warranty cards and/or marketing material to ensure your
defects warranty clause is in itself not defective. If you supply
goods or services to consumers, get onto it soon.
Questions? Give us a call.
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