Changes to the Australian Consumer Law (ACL) from July 2021 – do they affect your business?
The financial threshold definition of a consumer within this law will increase from $40,000 to $100,000.
The law change means that businesses that sell goods or services with a value up to $100,000 must comply with the consumer guarantees provided by the ACL.
Certain ACL guarantees automatically protect consumers if they purchase goods up to the new threshold, regardless of warranties provided or purchased as an extra. The law will now apply to a broader range of goods and services because of the increased threshold. Even if you offer or sell warranties, the ACL guarantees will still apply in addition to any company warranties.
The guarantees apply to aspects such as safety, quality of products, expectations of function, description, being fit for purpose and having spare parts available. There are exceptions to guarantees that protect the supplier, for example, if a customer changed their mind or misused a product.
Businesses must guarantee products and services they sell, hire or lease. If a business fails to deliver guarantees, consumers have the right to pursue the supplier for repair, replacement, refund, cancellation or compensation.
It’s important to understand the Australian Consumer Law and how it impacts your business so you don’t get caught out by the changes. If you’re not sure what it means for your business, we can help you understand so you can focus on looking after your customers.