• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Legal123.com.au

Legal123.com.au

  • Individual Templates
    • Confidentiality Agreement (NDA)
    • Contractor Agreement
    • Copyright Infringement Notice
    • Disclaimer Templates
    • Holiday Rental Agreement
    • Letter of Demand
    • Power of Attorney
    • Privacy Policy
    • Privacy Policy GDPR Clauses
    • Trademark Registration
    • Website Contract
    • Will & Codicil
  • Legal Packages For
    • App Developers
    • Coaches
    • Consultants
    • Copywriters
    • Graphic Designers
    • Personal Trainers
    • Photographers
    • Property Managers
    • Web Developers
    • Website Legal Package [most popular]
  • Free Legal Guides
  • Contact

Everything You Sell Must Have a Consumer Guarantee

If you sell products or service, did you know you have to provide a guarantee – even if you did not manufacture or do not provide the service?

There seems to be a lot confusion about what you must do as a business when you sell goods and services. Australian Consumer Law requires all goods and services to be provided with minimum guarantees.

There have been a number of recent cases where the ACCC has been cracking down to ensure businesses are honouring and providing guarantees with Harvey Norman being the most recent to receive a fine of $234,000. A number of their sales staff were caught stating things such as the store did not offer any repairs for goods, they did not offer a remedy when it was still under the manufacturers warranty and other misleading statements to their customers.

The top 4 guarantee myths for selling consumer goods

MYTH 1: Any goods over 3 months old do not have be provided with a repair/replace guarantee.

FACT: You are required to repair or replace a faulty good for a ‘reasonable period’ after point of sale. If you do not have a facility available to repair the goods, you have to replace it. What is ‘reasonable’ depends on the goods themselves but, for example, offering a repair or replacement guarantee on a refrigerator or any large appliance for a period of only 3 months would not be seen to be reasonable.

MYTH 2: There is no requirement for businesses to provide a remedy to customers for goods still under manufacturer’s warranty, including a replacement or a return of goods.

FACT: For any goods you sell, you have an obligation to provide a remedy if the goods are faulty or unsuitable, even if they are still under manufacturer’s warranty. You are responsible as a seller, even if you did not manufacture the goods. You can then go back to the manufacturer yourself. If a customer purchased any goods from your business, they have a right to come back to you for any refunds, faults and other manufacturer issues. They are not required to go to the manufacturer directly.

MYTH 3: Businesses can require the customer to pay postage and handling to send the damaged goods back and to pay to have any replaced or repaired goods sent back to them.

FACT: If there is a substantial fault in the goods, the seller must replace the goods and refund the price paid and any costs at the option of the customer. If it is a minor repair, the option is up to the seller to refund the price or pay the cost of the repair. Either way, the customer cannot be required to pay the cost of the goods to be returned to them after sending it for repair.

MYTH 4: Businesses who only sell the goods don’t need to worry about availability of repairs or spare parts-it’s up to the manufacturer to ensure this.

FACT: As a seller of goods, it is your obligation to ensure that the manufacturer will have spare parts and there is a repair facility available for a reasonable amount of time after the date of sale. If no facilities or spare parts are available for a ‘reasonable time’ after sale, the goods should not be offered for sale.

What guarantees do businesses need to provide?

According to Australian Consumer Law, any goods purchased after 1 January 2011 have a number of minimum guarantees attached. If you have a business that sells any goods, you must ensure your goods:

  • Are of an acceptable quality;
  • Match the description that they are sold under;
  • Are reasonably fit for any disclosed purpose;
  • Have spare parts available and a means to repair or a facility available to repair goods for a reasonable time from the date of sale.

This obligation is on every business selling any goods to customers under $40,000, in addition to any goods that are purchased for personal, domestic, or household use or consumption irrespective of price and even on motor vehicles and trailers regardless of the price.

So if you have a business selling goods to Australian consumers, you need to check your terms and conditions as well as your refund policy to ensure you comply with the laws to sell goods.

We’ve combined all the legal notices you’ll need to set up your online business (Privacy Policy, Disclaimers and Terms & Conditions) into one easy package:

Website Legal Package »

Published on 27 June 2014 Filed under Selling Online

About Vanessa Emilio

Vanessa Emilio (BA Hons, LLB, ACIS, AGIA) is the Founder and CEO of Legal123.com.au and Practice Director of Legal123 Pty Ltd. Vanessa is a qualified Australian lawyer with more than 20 years experience in corporate, banking and trust law. Follow this link to read the full bio of Vanessa Emilio.

Primary Sidebar

Subscribe to the Legal123 Blog

Sign up for our free email updates about legal issues affecting online businesses, startups and everyday Australians.

Most Popular Templates

image of website legal template

Website Legal Package

image of app developer contract

App Developer Contract

image of contractor agreement template

Contractor Agreement Template

‘How To’ Guides

  • Do I Need a Will?
  • How to Avoid Copyright Infringement
  • How to Choose the Right Business Structure
  • How to Comply with GDPR
  • How to Develop an App: The Legal Issues
  • How to Divorce in Australia
  • How to Hire an Independent Contractor
  • How to Manage a Holiday Rental Property
  • How to Run an Online Forum
  • How to Set Up an App Business
  • How to Set Up an Online Business
  • How to Trademark Your Business Name
  • How to Write a Confidentiality Agreement
  • How to Write a Letter of Demand
  • How to Write a Power of Attorney
  • How to Write a Privacy Policy
  • How to Write a Shareholder Agreement
  • How to Write Terms and Conditions
  • How to Write a Will in Australia
  • Legal Guide for Bloggers
  • Legal Guide for Consultants
  • Legal Guide for Copywriters
  • Legal Guide for Graphic Designers
  • Legal Guide for Life Coaches and Mentors
  • Legal Guide for Personal Trainers
  • Legal Guide for Photographers
  • Legal Guide for Property Managers
  • Legal Guide for Social Media Marketers
  • Legal Guide for Web Developers
  • Legal Guide to Coronavirus (COVID-19)
  • What Legals Do I Need for My Website?
  • … More Articles in the Legal123 Blog

Blog Topics

  • App Developer Contract (1)
  • Confidentiality Agreement (2)
  • Contractor Agreement (4)
  • Copyright Infringement (1)
  • Email Disclaimer (6)
  • Legal FAQs (1)
  • Legal123 News (1)
  • Online Business Legals (1)
  • Online Startup (5)
  • Power of Attorney Form (1)
  • Selling Online (6)
  • Trademark Registration (3)
  • Website Disclaimer (5)
  • Website Privacy Policy (9)
  • Website Terms and Conditions (9)

Search Legal123

Footer

About Legal123

Legal123 was the first 100 per cent online law firm in AustraliaLegal123 is an Australian full-service law firm founded in 2009. We were the first 100% online law firm in Australia and are proud to be part of a growing movement to provide value-for-money legal services online. We offer both online legal templates and customised legal work. Our templates are designed for standard situations. We also do custom legal work for clients who have non-standard requirements or need legal advice. More »

(02) 8003 7317

[email protected]

9am - 5pm Mon. to Fri.

Sydney NSW Australia

Legal123.com.au

Free ‘How To’ Guides

Do I Need a Will?
How to Avoid Copyright Infringement
How to Choose the Right Business Structure
How to Comply with GDPR
How to Develop an App
How to Divorce in Australia
How to Hire an Independent Contractor
How to Manage a Holiday Rental Property
How to Run an Online Forum
How to Set Up an App Business
How to Set Up an Online Business
How to Trademark Your Business Name
How to Write a Confidentiality Agreement
How to Write a Letter of Demand
How to Write a Power of Attorney
How to Write a Privacy Policy
How to Write a Shareholder Agreement
How to Write Terms and Conditions
How to Write a Will in Australia
Legal Guide for Bloggers
Legal Guide for Consultants
Legal Guide for Copywriters
Legal Guide for Graphic Designers
Legal Guide for Life Coaches and Mentors
Legal Guide for Personal Trainers
Legal Guide for Photographers
Legal Guide for Property Managers
Legal Guide for Social Media Marketers
Legal Guide for Web Developers
Legal Guide to Coronavirus (COVID-19)
What Legals Do I Need for My Website?

Latest Articles

image of lessons learned starting online business
10 Lessons Learned from Starting an Online Business
are you accidentally sending spam
Are You Accidentally Sending Spam Email? You Need to Pass These 9 Tests
image of fake mcdonalds china
3 Things You Should Know About Business Names, Company Names and Trademarks
image of cybersquatting
Cybersquatting: Defending Your Brand Name Just Got Way More Complicated

© Copyright 2009 - 2021 · Registered Trademark of Legal123 Pty Ltd · ABN 66 153 012 269

We're Hiring · Join our Affiliate Program · Disclaimer · Privacy Policy · Terms & Conditions · Affiliate Terms

image of Law Society of NSW badge

Legal123 Pty Ltd is an Incorporated Legal Practice (ILP) registered with ASIC. Information and templates sold on Legal123.com.au are not legal advice. Use of this website is subject to the Disclaimer and Terms & Conditions. Liability limited by a scheme approved under Professional Standards Legislation.