The ACCC sent out a pretty handy media release not long ago which I think business owners and consumers should be aware of.
As a business owner, do you know you must, by law, guarantee the products or services you sell?
Here are some must know points:
Your customers now have the right to ask for a repair, replacement or refund if the products you sell are faulty, unsafe or don’t work as intended.
These rights are called consumer guarantees and they have been law since January 1, 2011.
In broad terms, consumer guarantees state that all goods sold in Australia must be of acceptable quality, be fit for any purpose that the consumer made known and match the description given.
Services must be delivered with due care and skill, and completed within a reasonable time if no set timeframe is agreed.
If the goods or services don’t meet the consumer guarantees, the most appropriate remedy will depend on how serious the problem is.
If there is a major problem, your customers are entitled to choose a refund or a replacement product (or receive compensation in the case of services). If the problem is minor you can choose whether you will repair, replace or refund the product or fix the problem with the service.
You can’t limit or refuse a consumer guarantee.
The ACCC has produced an online education module for businesses. See http://www.accc.gov.au/consumerguarantees.
