Consumers have rights for the products and services they buy called consumer guarantees. These are set under the Australian Consumer Law (ACL).

Product guarantees

Sellers

The seller is the person or business who sold, leased or hired the products. They must provide a remedy if they do not meet the following consumer guarantees:

  • acceptable quality
  • fit for the specified purpose
  • clear title
  • products match their description
  • products match sample and demonstration model.

Manufacturers

The manufacturer is the person or business who made, assembled, or branded the product. If the maker does not have offices in Australia, then the importer takes on the responsibility of the manufacturer. They must provide a remedy if they do not meet the following consumer guarantees:

  • acceptable quality
  • products match their description
  • repairs and spare parts are available for a reasonable time

If a manufacturer sells a product directly to a consumer, they have the same responsibilities under consumer law as the seller.

For more information, see Consumer rights for products.

Service guarantees

When a consumer purchases a service, the provider guarantees:

  • they will perform the services with due care and skill
  • the services will be fit for a particular purpose
  • the services will be provided within a reasonable time.

For more information, see Consumer rights for services.

Products linked to a service

Products are often bought with a related service, like a mobile phone with a network contract.

If consumers return a product within a reasonable time and gets a refund, they can also cancel the related service contract. The consumer must cancel the service when they return the product or shortly after, as the contract won’t end automatically.

Gifts

The consumer rights apply to people who receive the product or service as a gift.

Remedies

If a product or service fails to meet a guarantee, consumers may be entitled to a remedy, such as a:

  • cancellation
  • repair
  • replacement
  • refund
  • compensation.

The specific remedy will depend on if the problem is:

  • with a product or service
  • a minor or major fault.

For more information, see returns, refunds, repairs and replacements or refunds and cancelling a service

Consumer rights can not be taken away

Consumer guarantees automatically apply. This means businesses cannot exclude them in contracts or sales terms.

A business can’t remove a consumer’s right by:

  • displaying a ‘no refunds’ sign,
  • saying refunds are not available at all or after a certain number of days
  • saying they aren’t responsible for problems with a product or service
  • saying the consumer must buy an extended warranty to avoid losing these basic rights

It is against the law for businesses to mislead consumers about their rights in these ways.

Consumer guarantees and warranties

Consumer guarantees are not the same as warranties. Consumer guarantees are rights and can’t be taken away. Warranties are extra promises a business can make as a bonus.

See Warranties for more information.

When these consumer rights apply

Personal or household use

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

Business use

A product or service bought for business use is covered by consumer guarantees, when:

  • 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 used mainly to transport goods on public roads.

When it does not apply for business

A product is not covered by consumer guarantees when it's purchased for:

  • reselling
  • use or transformation in production or manufacturing, or
  • to repair or treat other goods.

Exceptions and special rules

Hiring or leasing

Most of the consumer guarantees apply when a consumer hires or leases a product eg. matching decriptions or acceptable quality.

The consumer guarantee related to ownership (clear title) does not apply to hiring or leasing products.

Undisturbed possession applies but only for the length of the hire or lease agreement.

Private sales

Most consumer guarantees don’t apply to one-off sales between 2 people, where the seller isn’t running a business.

This includes sales at:

  • garage sales
  • fetes
  • online marketplaces like Gumtree or Facebook Marketplace.

However, the clear title consumer guarantees does apply to private sales.

This means the consumer should expect to:

  • own the product they buy
  • not have anyone try to claim it
  • have no hidden debts or charges.

Auctions

Most consumer guarantees don’t apply to products sold at a traditional auction run by an agent of the person selling the goods.

However, the clear title consumer guarantees does apply to private sales.

This means the consumer should expect to:

  • own the product they buy
  • not have anyone try to claim it
  • have no hidden debts or charges.

The law against false or misleading claims also applies to traditional auctions.

Products from overseas businesses

Overseas businesses selling products directly to consumers in Australia must follow the Australian Consumer Law.

However, it may be difficult to get a repair, replacement or refund from an overseas business if there’s a problem. The help Consumer Protection can offer is limited.

Products and services bought before 2011

The Australian Consumer Law started in 2011. Products and services bought before 1 January 2011 aren’t covered by the current ACL but may be covered by older laws.

The ACCC’s Warranties and refunds guide has advice on products and services bought before 1 January 2011.

Financial and medical products

Financial products such as insurance are not covered by the ACL because they are covered by other laws.

Services to transport or store business goods

Services to transport or store goods for business purposes are not covered by consumer guarantees. Sellers can contact Small Business Development Corporation for advice.

Engineering and architect services

The fit for purpose consumer guarantee doesn’t apply to professional services provided by a qualified architect or engineer.

Resolving problems

If you need help with asking the business for a refund, repair or replacement, view our Resolve your problem or complaint section.

This video gives an overview of the consumer guarantees. It is a helpful tool for anyone selling goods or providing services to consumers.