No Comments

The liability of a business for a consumer transaction (which can include business-to-business transactions) under the Australian Consumer Law will increase to $100,000 (up from $40,000).

This means that a broader range of commercial transactions will be afforded the protections of the “consumer guarantees” in the Australian Consumer Law which include amongst other things:

  • goods must be of acceptable quality and fit for any disclosed purpose
  • goods must match any description, sample or model
  • services must be performed with due care and skill
  • services must be supplied within a reasonable time

If a consumer guarantee is breached then, depending on the nature and severity of the breach, the consumer (which may include a business customer) may be entitled to:

  • the repair, replacement or re-supply of the goods or services
  • a refund
  • termination of the contract for the supply of services
  • compensatory damages

The consumer guarantees and remedies cannot be excluded by contract.

Action Item

Businesses must review and update their terms of trade to ensure they are compliant with the consumer guarantees and remedies available under the Australian Consumer Law.