Sydney, Jan 18: In a bid to empower consumers, the Australian Competition and Consumer Commission (ACCC) is urging Australians to be aware of their consumer guarantee rights under the Australian Consumer Law, especially when dealing with businesses over defective products or poorly performed services.
The ACCC’s call comes in the wake of a staggering 28,000 reports and inquiries received last year regarding consumer guarantees or warranties.
Consumer guarantee issues have consistently accounted for a significant portion of ACCC contacts, remaining at around 30 per cent of the more than 98,000 total contacts (reports and inquiries combined) in 2023, excluding scams.
Motor vehicles, electronics and whitegoods, and homewares were the categories with the highest number of reported issues concerning consumer guarantees or warranties.
The Deputy Chair of the ACCC, Catriona Lowe, emphasized the importance of understanding consumer rights, stating, “When you buy a product or service from a business, you have automatic rights called ‘consumer guarantees’ under the Australian Consumer Law and they exist regardless of any warranty offered by the business.”
These consumer guarantees remain valid even after any voluntary or manufacturer’s warranties have expired.
They are contingent on the nature of the product or service and the price paid, often extending beyond the warranty period.
In essence, consumers are entitled to products of acceptable quality, which match their description and perform as advertised.
Lowe illustrated the distinction between minor and major problems, explaining that minor issues should be repaired for free, while major problems warrant a replacement or refund. For instance, a malfunctioning car radio might constitute a minor problem, while faulty brakes due to manufacturing defects are considered major.
The guarantee of acceptable quality also encompasses the durability of products, taking into account factors such as the product type, price, and intended usage.
The ACCC has taken legal action against several companies for misleading consumers about their consumer guarantee rights and continues to investigate and address deceptive practices.
Lowe stressed that businesses are prohibited from providing false or misleading information about consumer guarantee rights. If a product develops a major problem, consumers should promptly notify the business and request a remedy, specifying the problem’s severity.
Recognizing that many consumers may not feel confident challenging businesses, Lowe pointed out that resources are available online to help individuals assert their rights, including information on contacting businesses and a complaint letter tool.
Organizations are also available to assist with complaint resolution.
Furthermore, the ACCC is advocating for changes to the law that would make non-compliance with consumer guarantee obligations by businesses illegal.
Currently, consumer guarantees are enforceable by consumers individually, with the ACCC and state and territory consumer protection agencies able to take action against businesses for misleading consumers about their entitlements.
The ACCC provided a list of common misleading statements consumers should be cautious of, along with explanations of their rights.
These include misleading statements about warranties, refund eligibility, time limits for returns, and redirecting consumers to manufacturers.
In case a business fails to meet a consumer guarantee, consumers are encouraged to contact the business directly and, if necessary, seek assistance from their local state or territory consumer protection agency.
Public reports of false or misleading statements about consumer guarantees can be made to these agencies and the ACCC, helping to inform enforcement efforts.
For more information on consumer rights and guarantees, consumers can visit the ACCC’s website or contact their local consumer protection agency.
The ACCC remains committed to ensuring that consumers are well-informed and protected in their dealings with businesses.
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