Free tool
Consumer guarantees + remedies checker
Under the Australian Consumer Law (Schedule 2 to the Competition and Consumer Act 2010) every product and service comes with automatic consumer guarantees. This tool walks through whether a guarantee applies, whether the failure is major or minor, and the remedy — including who gets to choose it. Useful for both sellers checking their obligations and consumers checking their rights.
Minor failure — the supplier chooses the remedy
Amount paid or payable is $100,000 or less
Guarantee engaged: Guarantee of acceptable quality (goods)
What the remedy looks like
- The supplier may choose to repair, replace or refund, and must do so within a reasonable time and at no cost to the consumer.
- If the supplier refuses, takes an unreasonable time, or cannot fix the problem, the consumer may have it fixed elsewhere and recover the reasonable cost, or reject the goods and treat it as a major failure.
Reasoning
- The amount paid or payable is $100,000 or less, so the acquisition is covered as a "consumer" acquisition under the ACL (threshold raised to $100,000 on 1 July 2021). It does not matter that the buyer is a business.
- The problem engages the guarantee of acceptable quality (goods).
- On the guided answers this is a MINOR failure — the problem is safe, can be fixed within a reasonable time, and a reasonable consumer would still have bought the item. If any of those change, it may become a major failure.
Know your obligations
- "No refunds" or "No refunds on sale items" signs are unlawful and can be misleading conduct — consumer guarantee rights still apply to discounted and sale items.
- Consumer guarantees cannot be excluded, restricted or modified by contract, terms and conditions, or store policy (ACL s 64).
- Consumer guarantees apply in addition to any voluntary or manufacturer's warranty — a warranty does not replace or limit them.
- The manufacturer or importer can also be directly liable for some guarantees (for example acceptable quality and matching description), so a supplier may be able to recover from them.
Sources
Indicative guidance only — not legal advice. Whether a guarantee applies and whether a failure is major depends on the full facts. Confirm with the ACCC, your state or territory consumer protection agency, or a lawyer for material decisions.
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Frequently asked questions
- Who is a "consumer" under the Australian Consumer Law?
- You are a consumer if the goods or services cost $100,000 or less, OR they are of a kind ordinarily acquired for personal, domestic or household use or consumption, OR they are a vehicle or trailer used mainly to transport goods on public roads. The $100,000 threshold was raised from $40,000 on 1 July 2021. It does not matter that the buyer is a business, as long as one of these limbs is met.
- What is the difference between a major and a minor failure?
- A failure is major if a reasonable consumer would not have bought the item had they known about the problem, the goods are significantly different from their description, the goods or service are substantially unfit and can't easily be fixed within a reasonable time, or they are unsafe. Anything else is a minor failure. Major failures let the consumer choose the remedy; minor failures let the supplier choose.
- Who chooses whether it's a refund, replacement or repair?
- For a major failure the consumer chooses — a refund or a replacement for goods (plus compensation for any drop in value), or cancelling and a refund for services. For a minor failure the supplier chooses to repair, replace or refund, and must do so within a reasonable time. If the supplier refuses or takes too long on a minor failure, the consumer can get it fixed elsewhere and recover the cost, or treat it as a major failure.
- Can a business exclude consumer guarantees or refuse refunds on sale items?
- No. Consumer guarantees cannot be excluded, restricted or modified (ACL s 64), and they apply in addition to any voluntary or manufacturer's warranty. "No refunds" and "No refunds on sale items" signs are unlawful and can amount to misleading conduct — the guarantees still apply to discounted and sale items.
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