The definition of a “consumer” under the Australian Consumer Law (ACL) changed as at 1 July 2021. A party is now defined as a consumer if the party purchases goods or services that are:
– valued less than $100,000; or
– valued at more than $100,000 but are of a kind ordinarily acquired for personal, domestic or household use or consumption; or
– a car or a trailer.
This threshold amount has increased from $40,000.
This increase will markedly increase the cover of the ACL.
The ACL imposes mandatory guarantees in relation to the supply of goods or services to consumers. These guarantees include that:
Goods must:
o be of an acceptable quality (safe, durable and free from defects);
o be fit for the purpose that the business told you it would be fit for;
o be fit for any purpose for which goods of that kind are commonly supplied for;
o match the description, model or sample;
o meet any promises as to performance;
o come with full title and ownership with undisturbed possession; and
o have spare parts and repair facilities available for a reasonable time after purchase;
Services must:
o be supplied with due care and skill;
o be fit for purpose; and
o be delivered within a reasonable timeframe.
For assistance with commercial issues please contact Fleur Craig of Armour-Craig Legal on 03 5636 4986 or fleur@armourcraiglegal.com.au.