Commonwealth Consolidated Regulations

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COMPETITION AND CONSUMER REGULATIONS 2010 - REG 90

Requirements for warranties against defects

             (1)  For subsection 102(1) of the Australian Consumer Law, the following requirements are prescribed:

                     (a)  a warranty against defects must be in a document that is transparent;

                     (b)  a warranty against defects must concisely state:

                              (i)  what the person who gives the warranty must do so that the warranty may be honoured; and

                             (ii)  what the consumer must do to entitle the consumer to claim the warranty;

                     (c)  a warranty against defects must include:

                              (i)  in relation to the supply of goods only--the text mentioned in subregulation (2); or

                             (ii)  in relation to the supply of services only--the text mentioned in subregulation (3); or

                            (iii)  in relation to the supply of goods and services--the text mentioned in subregulation (4);

                     (d)  a warranty against defects must prominently state the following information about the person who gives the warranty;

                              (i)  the person's name;

                             (ii)  the person's business address;

                            (iii)  the person's telephone number;

                            (iv)  the person's email address (if any);

                     (e)  a warranty against defects must state the period or periods within which a defect in the goods or services to which the warranty relates must appear if the consumer is to be entitled to claim the warranty;

                      (f)  a warranty against defects must set out the procedure for the consumer to claim the warranty including the address to which a claim may be sent;

                     (g)  a warranty against defects must state who will bear the expense of claiming the warranty and if the expense is to be borne by the person who gives the warranty--how the consumer can claim expenses incurred in making the claim;

                     (h)  a warranty against defects must state that the benefits to the consumer given by the warranty are in addition to other rights and remedies of the consumer under a law in relation to the goods or services to which the warranty relates.

          (1A)  Paragraph (1)(c) does not apply in relation to:

                     (a)  services mentioned in section 63 of the Australian Consumer Law; and

                     (b)  supplies mentioned in section 65 of the Australian Consumer Law.

             (2)  For the purposes of subparagraph (1)(c)(i), the text is '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 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'.

             (3)  For the purposes of subparagraph (1)(c)(ii), the text is 'Our services come with guarantees that cannot be excluded under the Australian Consumer Law. For major failures with the service, you are entitled:

*          to cancel your service contract with us; and

*          to a refund for the unused portion, or to compensation for its reduced value.

You are also entitled to be compensated for any other reasonably foreseeable loss or damage. If the failure does not amount to a major failure you are entitled to have problems with the service rectified in a reasonable time and, if this is not done, to cancel your contract and obtain a refund for the unused portion of the contract'.

             (4)  For the purposes of subparagraph (1)(c)(iii), the text is 'Our goods and services come with guarantees that cannot be excluded under the Australian Consumer Law. For major failures with the service, you are entitled:

*          to cancel your service contract with us; and

*          to a refund for the unused portion, or to compensation for its reduced value.

You are also entitled to choose a refund or replacement for major failures with goods. If a failure with the goods or a service does not amount to a major failure, you are entitled to have the failure rectified in a reasonable time. If this is not done you are entitled to a refund for the goods and to cancel the contract for the service and obtain a refund of any unused portion. You are also entitled to be compensated for any other reasonably foreseeable loss or damage from a failure in the goods or service'.



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