Information Standards</li></li></ul><li>Introduction to the Australian Consumer Law<br /><ul><li>Replaces previous Federal and State legislation to create uniform law – standard terms and definitions
Businesses have the same responsibilities and obligations</li></li></ul><li>Consumer Guarantees <br /><ul><li>Previously implied warranties had to be enforced as breach of contract – now a breach of the ACL
Guarantees now automatically provided regardless of any warranty
The description of the goods in any catalogue is accurate
The goods will match any sample or demonstration model
Suppliers and manufacturers will honour any express warranties
The goods will have clear title and be free of hidden securities
Manufacturers or importers will provide spare parts and repair facilities. </li></li></ul><li>What if the product fails?<br /><ul><li>If a product fails to meet a consumer guarantee, consumer may be entitled to a replacement, repair, refund or other remedy
But not if consumer changes their mind, damages the goods or were told about any defects before purchase
Remedy depends on whether major or minor issue</li></li></ul><li>Minor problems<br /><ul><li>Problems that can normally be fixed or resolved (eg repairing stitching on clothing)
Supplier can choose refund, repair or replacement
Supplier must have a chance to fix the problem</li></li></ul><li>Major problems<br /><ul><li>If there is a major failure with the goods, the consumer can:
Original packaging not required</li></li></ul><li>Guarantees for services <br /><ul><li>Services costing less than $40,000
Services costing more than $40,000 but used for household or domestic purposes
A supplier must supply services;</li></ul> with due care and skill<br /> which are fit for their purpose<br /> within a reasonable time<br />
Services - dealing with problems<br /><ul><li>Minor - supplier can choose to refund or repair (free of charge and in reasonable time)
Major – consumer can cancel the services and get refund or seek compensation for difference in value</li></li></ul><li>Business transactions<br /><ul><li>Suppliers can limit liability where not for household or domestic purposes to:</li></ul> - replacing or repairing<br /> - reimbursing for replacement or repair<br /> - re-supplying services<br /> - reimbursing for re-supply<br />
Lay-By agreements<br /><ul><li>A 'lay-by' is essentially a contract where you pay for a product over a period of time rather than upfront.
A lay-by agreement must be in writing and specify all the terms and conditions, including any termination charge.
The trader may charge a termination fee (if a lay-by agreement cancelled) of not more the trader’s ‘reasonable costs’ relating to the agreement.
If cancelled all amounts paid must be refunded except for the termination charge.
Trader can only terminate for breach of the agreement</li></li></ul><li>Avoiding Unfair Business Practices:<br />Unfair Contract Terms (ACL ss 23-28)<br /><ul><li>Unfair contract terms in standard form contracts are void.
Consumer contracts entered into on or after 1 July 2010 and to the terms of existing contracts that are renewed or changed on or after 1 July 2010.