Recent amendments to the Competition and Consumer Regulations 2010 impose new mandatory wording requirements in relation to the supply of services and also the supply of goods in combination with services.
The new requirements take effect on 9 June 2019. Failure to comply with the new laws can attract a $50,000 fine.
Australian businesses that have not updated their trading terms and conditions, product manuals, warranty cards, marketing materials, product packaging and websites must act quickly to avoid breaching the new laws.
The new mandatory wording requirements make it compulsory for businesses to inform consumers that any warranties or guarantees against defects that are contained in a business’ documents or website do not override the statutory consumer guarantees provided in the Australian Consumer Law (the ACL).
The new requirements apply in respect of any services supplied at a value of $40,000 or less or in respect of any services of a kind that are usually acquired for personal, domestic, or household use or consumption.
The new laws prescribe mandatory text that must be reproduced verbatim. The specific wording required depends on whether the warranty or guarantee against defects applies in relation to the supply of services or the supply of goods in combination with services. The supply of goods alone is already covered by mandatory text requirements that have been part of the ACL for some time.
The ACL also imposes other requirement that warranty documentation and T&C’s must comply with. Now is a good time to ensure your documents and websites are up to date.
