Consumer Guarantees

Goods and services sold in Australia come with automatic guarantees that they will meet certain standards, such as:

• Fit for Purpose: Goods must be suitable for the purpose they are sold for.
  Example: If a blender is marketed for crushing ice but cannot do so, the consumer may be entitled to a remedy.
• Acceptable Quality: Goods must be free from defects, safe, and durable.
  Example: A new washing machine that breaks down within two months of purchase would likely breach this guarantee.
• Match Description or Sample: Goods must match their description or any sample shown.
  Example: If a sofa is described as genuine leather but turns out to be synthetic, this is a breach.

For services:

• They must be performed with due care and skill.
• They must be reasonably fit for the intended purpose.

Misleading and Deceptive Conduct

Businesses cannot engage in practices that mislead or deceive consumers.
Example: Advertising a “50% off sale” when prices were inflated just before the sale to make the discount appear larger.

Unfair Contract Terms

Standard form contracts (common in utilities, loans, and insurance) must not contain terms that unfairly disadvantage the consumer.
Example: A gym contract that allows the gym to change fees without notifying the customer could be deemed unfair.

Product Safety

Products sold in Australia must meet safety standards. If a product poses a risk, recalls may be initiated.
Example: A baby stroller with faulty brakes may be recalled for safety reasons.

Right to a Remedy

If goods or services fail to meet guarantees, consumers are entitled to a remedy, which can include repair, replacement, or refund.
Example: A television that stops working within a reasonable time of purchase may entitle the buyer to a repair or replacement.