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Electrical and whitegoods

Electrical and whitegoods An industry guide to the Australian Consumer Law This guide was developed by: Australian Capital Territory Office of Regulatory Services Australian Competition and Consumer Commission Australian Securities and Investments Commission Consumer Affairs and Fair Trading Tasmania Consumer Affairs Victoria New South Wales Fair Trading Northern Territory Consumer Affairs Office of Consumer and Business Affairs South Australia Queensland Office of Fair Trading Western Australia Department of Commerce, Consumer Protection Commonwealth of Australia 2013. ISBN 978-0-642-74919-2. This publication is available for your use under a Creative Commons By Attribution Australia licence, with the exception of the Australian Consumer Law logo, photographs, images, signatures and where otherwise stated. The full licence terms are available from Use of Commonwealth material under a Creative Commons By Attribution Australia licence requires you to attribute the work (but not in any way that suggests that the Commonwealth endorses you or your use of the work).

appliance such as a fridge is expected to last longer than a toaster > the price paid for the product – for example, a cheap toaster is not expected to last as long as a top-of-the-range one > representations made about the product – for example, in any advertising, on the manufacturer’s or retailer’s website or in the instruction booklet

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Transcription of Electrical and whitegoods

1 Electrical and whitegoods An industry guide to the Australian Consumer Law This guide was developed by: Australian Capital Territory Office of Regulatory Services Australian Competition and Consumer Commission Australian Securities and Investments Commission Consumer Affairs and Fair Trading Tasmania Consumer Affairs Victoria New South Wales Fair Trading Northern Territory Consumer Affairs Office of Consumer and Business Affairs South Australia Queensland Office of Fair Trading Western Australia Department of Commerce, Consumer Protection Commonwealth of Australia 2013. ISBN 978-0-642-74919-2. This publication is available for your use under a Creative Commons By Attribution Australia licence, with the exception of the Australian Consumer Law logo, photographs, images, signatures and where otherwise stated. The full licence terms are available from Use of Commonwealth material under a Creative Commons By Attribution Australia licence requires you to attribute the work (but not in any way that suggests that the Commonwealth endorses you or your use of the work).

2 Material used as supplied'. Provided you have not modified or transformed the material in any way, then the Commonwealth prefers the following attribution: Source: Commonwealth of Australia Derivative material If you have modified or transformed the material, or derived new material in any way, then the Commonwealth prefers the following attribution: Based on the Commonwealth of Australia material Inquiries regarding this licence and any other use of this document are welcome at: Manager Communications The Treasury Langton Crescent Parkes ACT 2600. Email: Introduction The Australian Consumer Law (ACL) is Australia's For more information, view: national consumer law, replacing previous consumer Australian Consumer Law website protection laws in the Commonwealth, state and territories. The ACL applies at the Commonwealth level and in each state and territory.

3 Australian Competition & Consumer Commission (ACCC). This guide provides information on the ACL for Electrical and whitegoods businesses. It covers key aspects of the law such as refunds, replacements and repairs, focusing on issues where: State and territory consumer protection >> industry bodies have requested more detailed agencies guidance for business Australian Capital Territory: Office of Regulatory Services >> consumers frequently report problems to national, state and territory consumer protection agencies. New South Wales: Fair Trading Most of the information in this guide is intended for retailers; however, some sections also deal with manufacturers' or importers' obligations. Northern Territory: Consumer Affairs This guide gives general information and examples . not legal advice or a definitive list of situations where Queensland: Office of Fair Trading the ACL applies.

4 You should not rely on this guide for complete information on all your obligations under the ACL. South Australia: Consumer and Business Services Tasmania: Consumer Affairs Other ACL guides and information and Fair Trading This guide supplements the ACL guides for business and legal practitioners, available from : Victoria: Consumer Affairs Victoria >> Consumer guarantees >> Sales practices Western Australia: Department of Commerce >> Avoiding unfair business practices >> A guide to unfair contract terms law >> Compliance and enforcement: how regulators enforce the Australian Consumer Law >> Product safety. Electrical and whitegoods Page 1. Terminology For the purposes of this guide: A supplier is anyone including a trader, a retailer or a service provider who, in trade or commerce, sells products or services to a consumer.

5 A manufacturer is a person or business that makes or puts products together or has their name on the products. It includes the importer, if the maker does not have an office in Australia. Trade or commerce means in the course of a supplier's or manufacturer's business or professional activity, including a not-for-profit business or activity. A consumer is a person who buys any of the following: > any type of products or services costing up to $40,000 (or any other amount set by the ACL in future) for example, a photocopier or cash register > a vehicle or trailer used mainly to transport goods on public roads. The cost of the vehicle or trailer is irrelevant > products or services costing more than $40,000, which are normally used for personal, domestic or household purposes. A person is not a consumer if they buy products to: > on-sell or resupply > use, as part of a business, to: manufacture or produce something else (for example, as an ingredient).

6 Repair or otherwise use on other goods or fixtures. Major failure and minor failure refer to failures to comply with consumer guarantees. The ACL does not use the term minor'; it only makes reference to a failure that is major' and not major'. However, throughout this guide the term minor failure' is used for simplicity and will apply to circumstances where a failure will not be major. A representation is a statement or claim. Page 2. Consumer guarantees on products Under the ACL, there are nine consumer guarantees Products sold by auction are not covered by the that apply to products: guarantees, other than those relating to clear title, undisturbed possession and undisclosed securities. 1. Suppliers and manufacturers guarantee that products are of acceptable quality when sold to a consumer Acceptable quality 2. A supplier guarantees that products The test for acceptable quality is whether a reasonable will be reasonably fit for any purpose consumer, fully aware of a product's condition the consumer or supplier specified (including any hidden defects) would find it: 3.

7 Suppliers and manufacturers guarantee that >> fit for all the purposes for which products of that their description of products (for example, in a kind are commonly supplied for example, a catalogue or television commercial) is accurate toaster must be able to toast bread >> acceptable in appearance and finish for example, 4. A supplier guarantees that products will a new toaster should be free from scratches match any sample or demonstration model >> free from defects for example, the toaster's timer 5. Suppliers and manufacturers guarantee knob should not fall off when used for the first time that the products will satisfy any extra >> safe for example, sparks should not fly out of promises made about them (express the toaster warranties). See Warranties' on page 8. >> durable for example, the toaster must function 6. A supplier guarantees they have the right to sell for a reasonable time after purchase without the products (clear title), unless they alerted the breaking down.

8 Consumer before the sale that they had limited title'. This test takes into account: 7. A supplier guarantees that no one will try to repossess or take back products (clear >> the nature of the product for example, a major title), or prevent the consumer using the appliance such as a fridge is expected to last longer products, except in certain circumstances than a toaster >> the price paid for the product for example, a 8. A supplier guarantees that products are free cheap toaster is not expected to last as long as a of any hidden securities or charges and will top-of-the-range one remain so, except in certain circumstances >> representations made about the product for 9. Manufacturers or importers guarantee they will take example, in any advertising, on the manufacturer's reasonable steps to provide spare parts and repair or retailer's website or in the instruction booklet facilities for a reasonable time after purchase.

9 >> anything you told the consumer about the product before purchase, and Whether new or second-hand, products will be covered >> any other relevant facts, such as the way the by the consumer guarantees, and the guarantees consumer has used the product. cannot be excluded even by agreement. Leased or hired products are covered by the consumer guarantees, with the exceptions of the guarantees as to title and undisclosed securities. The guarantee for undisturbed possession applies only for the term of the lease or hire. Electrical and whitegoods Page 3. The guarantee of acceptable quality does not apply if: >> the product is substantially unfit for a purpose that the consumer told the supplier about, and >> you alert the consumer to the defect before the cannot be made fit within a reasonable time. consumer agrees to the purchase For example, a video card is unsuitable for a >> the consumer examines the product before buying consumer's computer despite the consumer and the examination should have revealed it was telling the supplier their computer specifications not of acceptable quality >> the product is unsafe.

10 For example, an electric >> the consumer uses the product in an abnormal blanket has faulty wiring. way see Abnormal use' on page 5. When there is a major failure, the consumer can For more information on the guarantee of acceptable choose to: quality, see Consumer guarantees: a guide for >> reject the product and choose a refund or an business and legal practitioners, available from identical replacement (or one of similar value if reasonably available), or >> keep the product and ask for compensation for any drop in its value caused by the problem, and Major vs minor failures >> seek compensation for any other reasonably When a product fails to meet a consumer guarantee, foreseeable loss or damage. your obligations depend on whether the failure is major or minor. Minor failures Major failures A minor failure is where a problem with a product A major failure with a product is when: can be fixed in a reasonable time and does not have the characteristics of a major failure (see Major >> a reasonable consumer would not have bought failures' above).


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