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The Australian Consumer Law (ACL) protects consumers when they buy goods or services in Australia. The ACL is part of the Competition and Consumer Act 2010 (CCA).

All businesses selling goods and services in Australia must comply with the ACL. This includes businesses that are overseas. 

Examples of how your business must comply with the ACL:

  • You must give customers truthful information about your goods and services.
  • Your contracts must be easy to understand and not include unfair terms or hidden fees.
  • You must give a receipt for goods or services costing over $75.
  • Your customers can ask for a refund, replacement or repair if your goods or services don’t meet a consumer guarantee.
  • You can’t have a store policy that overrides a consumer guarantee rights, such as ‘no refunds’ signs.

The Australian Government and state and territory governments manage the ACL. 

These regulators enforce the ACL:

  • The Australian Competition and Consumer Commission (ACCC) deals with widespread issues but not individual complaints.
  • State and territory consumer protection agencies manage individual complaints and issues with businesses in their state or territory. They may offer voluntary dispute services.
  • The Australian Securities and Investments Commission (ASIC) enforces the unfair contracts rules for financial products and services.
  • Australian courts and tribunals (including those of the states and territories) can enforce the ACL.

Consumer guarantees

Consumer guarantees are a set of basic rights included in the ACL. The guarantees cover goods and services that either:

  • cost less than $100,000
  • cost more than $100,000 but are normally bought for personal, domestic or household use
  • are vehicles or trailers mainly used to transport goods on public roads.

Your business must meet the consumer guarantees when you sell any goods or services.

Any goods you sell must:

  • be of an acceptable quality
  • match the description you give
  • meet any promises you make about their quality or standard. For example, a table you say holds up to 100 kg must do so
  • be fit for the purpose stated.

Any services you sell must be:

  • carried out with due care and skill
  • fit for the purpose stated
  • supplied in a reasonable time (if you haven’t agreed on a timeframe with the consumer).

Consumer guarantees may apply even after a manufacturer's warranty period has ended. The length of a consumer guarantee period depends on things like:

  • the type of good or service
  • how much time has passed since the consumer bought it
  • how a consumer is likely to use it
  • the length of time it’s reasonable to use it
  • the amount of use it could reasonably expect to tolerate before the failure becomes noticeable.

Consumer guarantees don’t apply to financial products such as insurance. ASIC regulates these by other laws.

Consumer rights when your business buys goods and services

Your business has consumer rights if you buy goods or services to help run it that meet any of these conditions:

  • they cost less than $100,000
  • they cost more than $100,000 but are normally bought for personal, domestic or household use
  • they are vehicles or trailers that you mainly use for transporting goods on public roads.

For example, consumer rights apply if you buy a:

  • microwave oven to use in your office kitchen
  • business van for delivering goods to your customers.

Consumer rights don’t apply to goods that you buy for resale or change into a product that you sell.

When your business must give a remedy to the consumer

Under the ACL, your customers can ask you for a remedy for goods or services that don’t meet the consumer guarantees. The remedy options are repair, replace, refund or cancel. 

The remedy you must give to the customer depends on whether the problem is major or minor:

  • goods with major problems – customers can choose a refund or replacement
  • services with major problems – customers can change or cancel their agreement with you
  • goods or services with minor problems – you must fix or repair the problem for free.

Customers can also seek compensation for damages or loss.

There are times when you don’t have to give your customer a remedy. For example, if the customer caused the problem by misusing the goods.

Dealing with the manufacturer

You can't refuse to help a customer by sending them to the manufacturer or importer for a remedy. This applies even when the manufacturer caused the fault.

If you’ve given the customer a remedy, you can ask the manufacturer or importer to reimburse your costs.

Warranties

Warranties are extra promises you can make to your customers when you sell goods or services.

A warranty can’t override the consumer guarantees. For example, if a good suffers a failure outside a warranty period, consumer guarantees may still cover the right to a repair, refund or replacement.

You must comply with a warranty if you issue one. If you fail to comply with a warranty, your customers have rights against you under the ACL’s consumer guarantees.

Unfair standard contract terms

The ACL protects small businesses and consumers from unfair terms in standard form contracts. These are contracts a business prepares that give the consumer little or no opportunity to negotiate the terms. For example, when you sign up to a new business phone plan, you agree to a standard form contract and can’t negotiate the terms.

Your business needs to make sure your standard contract terms don’t unfairly disadvantage your customers, including any small business customers.

Under the ACL, a contract term is unfair if:

  • it causes a big imbalance between the parties’ rights or obligations
  • the contract doesn’t need the term to protect the interests of the party who would benefit from it
  • it would cause financial or other harm to either party.

An example of an unfair contract term is where only one of the contracted parties can:

  • vary the terms of the contract, such as the price
  • decide whether to renew the contract (or not)
  • decide if the other party has breached the contract.

If a court finds a contract term unfair, then the term is void. Only a court can find a contract term unfair.

What to do about unfair contract terms

If you think a term in your contract is unfair you can:

Consumer product safety

The ACL governs product safety in Australia.

Any goods you supply must be safe. Services you provide to install, maintain, repair, clean, assemble or deliver consumer goods must also follow product safety rules.

Under the ACL:

  • you can’t sell banned or recalled products
  • goods must comply with relevant mandatory safety and information standards before
  • you offer them for sale you must make a report to the ACCC within 2 days of becoming aware of a death, serious injury or illness linked to goods you’ve supplied. Use this form to make a report.

Consumer product safety recall guidelines

If a consumer product presents a safety risk or doesn’t comply with a mandatory safety standard or ban, you may need to recall it. Read the ACCC’s information on recalling an unsafe product before you start the recall.

Unfair business practices

The ACL protects consumers from other types of unfair behaviour by businesses.

Unfair sales practices include:

  • referral selling
  • pyramid schemes
  • unconscionable conduct
  • pressuring or harassing customers
  • unsolicited supplies
  • not providing goods or services a customer has paid for. 

Businesses found conducting any of these practices may face penalties.

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