Recent amendments to regulations expand the applicability of the consumer guarantees regime under the Australian Consumer Law (ACL).

Under the current definition in section 3 of the ACL, a person is a “consumer” if the person acquires:

– goods or services that are priced at $40,000 or less;
– goods or services that are of a kind ordinarily acquired for personal, domestic or household use (regardless of the price of the goods or services); or
– a vehicle or trailer acquired for use principally in the transport of goods on public roads.

The consumer guarantees do not apply to goods acquired:

– for the purpose of re-supply;
– for using them or transforming them through processing, production or manufacture; or
– for repairing or treating other goods or fixtures on land.

From 1 July 2021, the definition of “consumer” under the ACL will be the same except that the monetary threshold of $40,000 will increase to $100,000.

Increasing the monetary threshold to $100,000 means many large commercial transactions that were previously not subject to the ACL will be subject to the consumer guarantees regime from 1 July 2021.

If you are a supplier who may be impacted by the change, you should immediately ascertain the price of your goods or services and find out whether your customers fall under the new definition of “consumer”. If your customers are considered “consumers” under the ACL, you should:

– seek advice on what consumer guarantees will be implied into your transactions and ensure that your goods or services comply with these guarantees;
– review your contracts and terms & conditions to ensure they are up to date and capture the requirements of the ACL;
– provide trainings to your employees so that they understand what rights and remedies consumers are entitled to under the ACL and ensure your employees do not accidently    mislead or misinform customers in a manner that contradicts the ACL;

Everingham Solomons have experienced Solicitors who can advise you on the Australian Consumer Law. Please do not hesitate to contact us for any legal advice you may need because Helping You is Our Business.

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