Stephens Lawyers explains new ACL regulations; active from 1st Jan 2012

The recent overhaul of the Australian Consumer Law (ACL) came in to operation on 1st January 2011. The first phase went active on 1st July 2011, and covered mandatory wording and inclusions of warranty/guarantee documentation. With phase 2 coming into action from 1st January 2012 Stephens Lawyers provides an update on what this means for Australian suppliers of products and services.

Q. Who needs to be aware of the ACL regulations?

A. Any business or franchise that supplies goods or services to consumers, must abide by the ACL statutory regulations and guarantees.

Q. Who enforces the regulations?

A. The Australian Competition & Consumer Commission (ACCC)

Q. What happens on 1st January 2012?

A. New regulations come into force with regards warranties against defects. Significantly businesses that provide written guarantees must review all written material to ensure that they adhere and include specific information and mandatory wording as set out by the ACL.

Q. What counts as a written warrantee?

A. The ACCC advises that any material that contains writing, printing, symbols or marks will be counted as a warrantee including, but not limited to:

• warranty cards
• leaflets
• advertising material, and
• packaging.

A. The documentation must me transparent and concisely state:

• what the warranty giver must do to honour it;
• what the purchaser must do to be entitled to claim;
• the name of the warranty giver;
• the business address, telephone number and email of the warranty giver;
• the length of the warranty; the claims procedure;
• who bears the cost of a claim;
• that the benefits set out in the warranty are in addition to consumer guarantees; and
• mandatory text.

A. “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.”

Q. Is there anything else that I need to do?

A. Yes. Warranty material must be available at the time of purchase or by the time of delivery. It is insufficient to direct the consumer to a website for further information.

Q. What happens if my warranty documentation fails to comply with the new ACL regulations?

A. Failure to comply can have a number of implications, including:

• providing damages to the consumer;
• prosecution;
• poor company reputation;
• legal proceedings; and
• fines of up to £1.1million.

A. Visit Stephen Lawyers’ website for more information about statutory guarantees, extended warranties and repair notices.

Q. What should I do in order to comply with the new ACL regulations?

A. Stephens Lawyers advises that companies and franchises involved with the provision of products and/or services conduct a full review of consumer law to ensure that all warranty documentation and packaging is consistent and correct.

Stephens Lawyers is able to help you review your documentation and advise you on all aspects of compliance with Australian Consumer Law and the Competition and Consumer act.