Often when we think about warranties, the focus is on the purchase of goods, such as personal items and household appliances.
However, if you’re in the business of providing services, as of June this year, you will need to include additional wording in your warranty documents, which highlight a consumer’s rights if your services fail to comply with the statutory consumer guarantees.
Businesses which fail to incorporate this mandatory wording into their warranty documents could face significant penalties of up to $50,000 for companies and $10,000 for individuals.
The changes to the laws around consumer warranties is a timely reminder to providers of both goods and services that compliance with the consumer law is squarely on the ACCC’s radar.
Last year the ACCC commenced legal action against Jetstar, which recently agreed to pay $1.95 million in penalties for making misleading representations to customers regarding their rights under the consumer law, including statements that some sale fares were non-refundable.
If you need assistance to review and update your warranty documents, or to better understand your rights under the Australian consumer law, our experienced commercial team is here to help.