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Beware business owners – you need to update your warranty on your products as of Jan 2012

As of 1 January 2012 there are new laws in force that affect refund policies and warranties.

You may now be required to update your policy, packaging and advertising material.

Also relevant training may need to be provided to staff members to be able to assist a customer when the customer asks about any warranties.

All Australian businesses will need to comply with The Australian Consumer Law and the Trade Practices Amendments Regulation 2010 (No.1).

If you have a warranty against a defected product or sell products that holds a warranty you need to update the wording of your warranty to ensure you comply with the new legislation.

All warranties against defects must include the following statement:-

Our goods come with guarantees that cannot be excluded under the Australian Consumer Law. You are entitled to a replacement or refund for a major failure and for compensation for any other reasonably foreseeable loss or damage. You are also entitled to have the goods repaired or replaced if the goods fail to be of acceptable quality and the failure does not amount to a major failure.”

If your business has its own specific warranty it must be stated that “The benefits under [Our Warranty] are in addition to other rights and remedies under a law in relation to the [goods/services]

You must also ensure that the warranty is accessible, legible and written in plain text as a customer would be able to understand. You must also provide all business contact details.

If you fail to comply with the new regulation you may be fined up to $1.1 million for a company and $220,000 for an individual.

Remember also – it is unlawful to sell an extended warranty that only includes benefits that are already outlined in Australian Consumer Law.

Retailers should have their warranties and policies reviewed by a solicitor to ensure compliance.

For more information call Attwood Marshall Lawyers on (07) 5536 9777 or email info@attwoodmarshall.com.au

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Charles Lethbridge

Charles Lethbridge

  • Senior Associate
  • Commercial Litigation
  • Direct line: 07 5506 8240
  • Mobile: 0421 885 195