Consumer guarantees

Most goods or services you purchase come with automatic consumer guarantees ensuring you will get what you asked for and that it will be of acceptable quality.

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An explanation of consumer guarantees

Under Australian Consumer Law, most products and services bought in Australia after 1 January 2011, come with automatic consumer guarantees that the product or service you purchased will:

be of acceptable quality
fit for a particular purpose
matches the description, or
sample or demonstration model.

Products must be of acceptable quality, which means the product will:

be safe, lasting and free from defects
look acceptable
do all the things similar products are commonly used for.

'Acceptable quality’ means what would normally be expected for the type of product and cost.

These guarantees apply automatically regardless of any other warranties businesses give or sell you. Depending on whether it was a minor or major problem, if a business does not meet these guarantees, you may have the right to a repair, replacement, or refund, to cancel a service, or get reimbursement for damages and loss.

For information on your rights for products or services bought before 1 January 2011, go to the Australian Competition and Consumer Commission (ACCC) website.

Fit for purpose

This guarantees that services will be reasonably fit for any purpose specified by the customer and that any resulting products are also fit for that purpose.

Fit for purpose example

A customer asks a carpenter to build a carport to cover their 4WD vehicle, which is 2 metres wide. If the carpenter builds a 1.8 metre wide carport that does not cover the car, the carpenter will not have met the ‘fit for purpose’ guarantee.

Service standard

Suppliers guarantee that services, and any resulting products, are of a standard expected to achieve the results that the customer said they wanted.

Service standard example

A customer tells their eye surgeon that they want to be able to drive without glasses. They are assessed as suitable for laser surgery and goes ahead with the procedure. If their vision does not meet the standard for driving without glasses, the surgeon will not have met the ‘fit for purpose' guarantee.

Skill and judgement

This guarantee will not protect the customer if they did not rely, or it was unreasonable for them to rely, on the service provider's skill or judgement when agreeing to particular services.

Unreasonable reliance on the skill or judgement of a person example

It may not be reasonable for a consumer to rely on a receptionist in a large service company for advice about which service is suitable.

Industries where the fit for purpose guarantee do not apply

This guarantee does not apply to professional services provided by a qualified architect or engineer.

However, an architect or engineer who provides a service outside their area of professional expertise, for example, building services, must still meet the guarantee.

Architects or engineers must provide services with due care and skill. You can find relevant information on architects or engineers, by referring to the relevant industry associations.

The difference between a warranty and consumer guarantee

A consumer guarantee is an automatic right given to consumers buying a product or service. By exchanging money for the product or service, consumers are entitled to a product or service: that

is safe and without fault
looks acceptable
does all the things similar products are commonly used for.

If the product or service does not, consumers have a right to a:

repair
replacement
refund, or
cancellation.

A warranty is a voluntary promise or commitment made by the business selling the product or service to you. When you buy the product or service, the warranty becomes a right. It operates in addition to a consumer guarantee.

Product guarantees

Products must:

match descriptions made by the salesperson, on packaging and labels, and in promotions or advertising
match any demonstration model or sample you asked for
be fit for the purpose the business told you it would be fit for, and for any purpose that you made known to the business before purchasing
come with full title and ownership, meaning the supplier has the right to sell the goods, and that you will own the product in full after purchase, except if the product was hired or leased
not carry any hidden debts or extra charges
come with undisturbed possession, so no one has a right to take the goods away or prevent you from using them
meet any extra promises made about performance, condition and quality, such as lifetime guarantees, and money back offers
have spare parts and repair facilities available for a reasonable time after purchase unless you were told otherwise.

Service guarantees

Services must be:

provided with acceptable care and skill or technical knowledge
fit for purpose or give the results that you and the business had agreed to
delivered within a reasonable time when there is no agreed end date.

When delivering a service, the business must take all necessary steps to avoid loss and damage.

Products and services that are guaranteed

Consumer guarantees for personal use

Products and services that are normally bought for personal or household use are covered by consumer guarantees.

Consumer guarantees on products and services also apply to:

bundled products and services, for example, internet and modem
gifts with proof of transaction like a receipt, invoice or credit card statement
sale items
products and services bought online
second-hand products from businesses, considering age and condition.

Consumer guarantees for business use

Consumer guarantees cover products and services bought for business use, when it meets at least one of the following conditions:

it costs less than $100,000 including GST
it is a product or service commonly bought for personal, domestic or household use
the good is a vehicle or trailer that is used mainly to transport goods on public roads.

There are some exceptions. Even meeting one of these conditions, a product is not covered by consumer guarantees when it's purchased:

for resupply
for use or transformation in production or manufacturing, or
to repair or treat other goods.

Guarantees for business vehicles

Business vehicles and trailers are also covered, regardless of cost, if they are used mainly to transport goods.

Exceptions to guarantees

Consumer guarantees do not apply if you:

misused a product in any way that caused the problem
knew of or were made aware of the faults before you bought the product
bought a one-off item from a private seller, for example at a garage sale or fete
plan to on-sell or change the product so that you can re-supply it as a business.

The consumer guarantees do not apply if you got what you asked for, but you changed your mind, because you:

saw it cheaper elsewhere
decided you did not like the purchase, or
had no use for it.

However, any business with a ‘change of mind’ policy must follow it.

Making a complaint

You can lodge a complaint:

Online

If you cannot resolve your matter, submit your complaint by using our form.

Make a complaint

By mail

Post your complaint form and documentation to:

NSW Fair Trading

PO Box 972

Parramatta NSW 2124

Ask a question

If you are unable to find the information you need, you can call us between 8:30am to 5pm on Monday to Friday. You can also use our form to make an enquiry.

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