Transcript
Here at Consumer Protection, we’re very passionate about the ACL and believe, as a consumer, you should be too.
What is the ACL? People often think we mean the knee injury, but we’re talking about the Australian Consumer Law: an important set of legal rules and consumer protections that ensure when you buy products or services in Australia, you’re treated fairly and get what you paid for.
Highlights
The ACL sets out clear rules for how businesses should operate in the marketplace. Some highlights include:
Consumer guarantees.
You have the right to expect certain things when you buy products and services, whether in person, online, or by phone. Products must do what they’re supposed to do, be of acceptable quality, match the description, and be fit for purpose; and services must be provided with due care and skill, within a reasonable time, and be fit for purpose too.
When things go wrong, and one of the consumer guarantees hasn’t been met, you have the right to a remedy. For products - if it’s a minor problem, the seller can choose to repair it for free, or offer a refund or replacement; if it’s a major problem or can’t be fixed, you can choose – either a refund or replacement…or you can keep the product but be compensated it it’s worth less. For services - if it’s a minor problem, the seller can choose to repair it for free or offer a refund; if it’s a major problem or can’t be fixed, you can choose to cancel the contract and get your money back…or continue it but pay a lower price that takes the problem in to account.
For example, imagine you’ve bought a new silver toaster from Appliances R Us. The ACL ensures that your toaster:
- actually toasts bread
- doesn’t have any scratches, and
- is silver and not red.
If the toaster fails to meet any of these guarantees, Appliances R Us will have to provide a repair, replacement, or refund, depending on whether the failure is major or minor.
Consumer guarantees apply regardless of any additional warranties offered at the time of sale, such as a manufacturer’s 12-month replacement warranty, or when a business offers for you to buy an extended warranty to lengthen the coverage of the manufacturer’s warranty.
Misleading or deceptive conduct
Businesses must give you clear, honest, and accurate information about their products or services. They can’t take advantage of you or use unfair tactics – like not taking no for an answer – to get you to buy something, and they can’t take your money for products or services without supplying them.
Unfair contract terms
Businesses cannot use unfair contract terms in standard form consumer contracts. These are pre-prepared contracts that you may be asked to sign when buying services through businesses like phone and internet providers, gyms, motor vehicle hire companies and in the travel industry.
Examples of unfair contract terms include:
- a term allowing a gym owner to change the location of the gym; or
- a term allowing a business to increase a consumer’s direct debit payments without notifying the consumer.
Telemarketing and door-to-door sales
Salespeople must follow specific rules when making uninvited calls and visits or approaching you in public to sell you a product or service. And there are rules to protect you if you agree to make a purchase on the spot, including a cooling-off period to allow you to reconsider your decision. Sales made using these methods are called unsolicited consumer agreements.
Product safety requirements
Businesses must ensure their products are safe for you to use by complying with safety and information standards. They cannot sell banned or recalled products.
Many people think the ACL only applies when you buy from retail shops or big box stores. Not true! These laws apply whether you’re buying from a mechanic, hairdresser, real estate agent, tree lopper, personal trainer, or other service provider! It’s simply about making sure businesses treat you fairly.
Australia-wide law
The Australian Consumer Law applies the same way for consumers and businesses in each state and territory. This means no matter where you are in Australia, when you buy something, you can trust your rights as a consumer and the business’ obligations as a seller remain the same.
It promotes fair play between consumers and businesses, making sure everyone follows the same rules, Australia-wide. The ACL also applies if you buy something online from a seller based overseas, although it can be more difficult to enforce your rights in this situation.
Compliance & enforcement
The ACL is enforced by the Australian Competition and Consumer Commission (ACCC) and the state and territory consumer protection agencies – that’s us here in WA! So, if a business breaks these rules, they can face penalties and legal action.
Complaints
So, what happens if things go wrong?
Businesses are responsible for resolving problems with products and services quickly and fairly. They cannot tell you to go to the manufacturer for a remedy.
If you have a problem with a product or service you’ve paid for, your first step is to contact the business and explain what the problem is and the outcome you want. Often consumer issues can be resolved with a phone call or email. However, if a business is unwilling or unable to fix the problem, we’re here to help.
Closing
As a consumer, knowing your rights and understanding the remedies available to you under the ACL is like having superpowers when you shop for products and services. It empowers you to make informed choices, recognise when a business isn’t doing the right thing and be able to stand up for your rights.
This is why we’re keen for you to be passionate about the ACL too!
For more information about the Australian Consumer Law and your consumer rights visit our website at consumerprotection.wa.gov.au or call us at 1300 30 40 54.