A warranty is a promise made by a business to a consumer when they buy a product or service. It becomes a legal right when the consumer makes the purchase. A warranty is a bonus to the consumer guarantees.
A warranty outlines what the business will do to fix any problems with a product or service. A warranty usually will include conditions or limitations.
A warranty can’t replace, change, or remove any of the consumer guarantees.
Express warranties
An express warranty is any extra promise provided by the seller or manufacturer about the product’s or service’s:
- Quality and condition
- Characteristics,
- Performance and lifespan
- availability or servicing, parts or replacements.
The promise may be made verbally or in writing.
Money-back guarantees and lifetime guarantees are both types of express warranties.
Express warranties must be honoured as they are part of the contract between the buyer and seller.
Warranties against defects
Warranties against defects are sometimes called manufacturer's warranties. This warranty covers what a business will do if there is something wrong with a product or service. They do not limit or replace the consumer guarantees.
A warranty against defects is usually provided when the consumer buys the product or service. It usually covers repairs or replacements over a specific period of time.
Any written promise about what a business will do if something goes wrong can be a warranty against defects, even if it's not a formal document. For example, words on packaging or labels and terms in contracts.
When the warranty against defects expires
Consumers still have the right to the consumer guarantees or acceptable quality and spare parts even when the warranty ends. This means if there is a problem with a product, a consumer may still be able to get a refund, repair or replacement.
Warranty cards
To make a claim under a written warranty, the manufacturer may require registration of the product. This is often done by filling out and returning a warranty card. A manufacturer cannot deny a claim because the product was not registered. A receipt showing the details of the purchase is usually acceptable.
What warranties against defects must include
Warranties against defects must be in writing and easy to read so consumers understand the warranty and know how to make a claim.
The warranty must include:
- Contact details: Include the name, address, phone number, and email of the warranty provider
- Warranty period: Specify the duration of the warranty
- Responsibilities: Outline what the warranty provider must do to honour the warranty
- Claim process: Describe what the consumer must do to claim the warranty
- Additional benefits: Explain how the warranty offers benefits beyond legal rights
- Expenses: State whether the consumer must cover any claim-related expenses and how they can be reimbursed.
See to warranty against defects statements for mandatory text and printable statements.
Extended warranties
A business should explain what the extended warranties covers above the Australia Consumer Law. If the business doesn't offer this information, consumers should ask.
An extended warranty is an extra coverage consumers can buy. It gives consumers longer protection than the standard warranty, but you have to pay for it.
Extended warranties are usually offered by third-party companies rather than the manufacturer.
Always check the rules, as some claims during the manufacturer’s warranty could cancel the extended warranty.
Businesses must not:
- pressure a consumer into buying an extended warranty
- mislead a consumer into buying an extended warranty for rights they already have under the consumer guarantees.
Expired warranties
Once a warranty has expired, the manufacturer or seller is generally no longer obligated to repair or replace the product for free. However, consumer guarantees still apply. This means the products must be of acceptable quality, even without a warranty.