consumer protection Tag

When a retailer purchases from a wholesaler or a manufacturer the retailer must ensure that they know the limitations of the goods purchased.  If the goods are faulty then the retailer may be liable to any subsequent buyer.

Whenever a retailer sells goods to a consumer there is a sale agreement and conditions are implied into that agreement.  Consumers may make use of these conditions to successfully claim against a retailer.

The stakes can be high!  If a product is not fit for a purpose it may cause damage and necessitate rectification works the cost of which may go well beyond the cost of the goods supplied.

The Australian Consumer Law has replaced various State and Territory laws from 1 January 2011.  This means that business and consumers throughout Australia are now governed by the same consumer laws.

The ACL is found in Schedule 2 of the Competition and Consumer Act 2010 (Cth) The Trade Practices Act 1974 (Cth) has been repealed and many of its provisions now appear in the Competition and Consumer Act. Some parts of the Competition and Consumer Act mirror the wording of the Trade Practices Act, however there have been significant changes to the provisions of the Trade Practices Act. The numbering of the Act has changed therefore Businesses that use documents that refer to the Trade Practices Act and its various provisions should amend those documents so that they now refer to the correct provision of the Competition and Consumer Act.

The Competition and Consumer Act makes "unfair" contract terms void. If a clause is void it cannot be enforced.

Business people should review their standard form contracts regularly to ensure that they are fair. Consumers should be aware that they may not be bound by the terms of any contract that they have entered into if those terms are not fair. In order for the act to make an unfair contract term void, the contract must be a consumer contract and the contract must be  in standard form. A consumer contract is a contract for the supply, to an individual of goods or services or land for  reasons of personal, household or domestic use or consumption. It is hard to be sure what a standard form contract is. It is likely however that any contract which is based on a document prepared in advance of any negotiations, that is little changed as a result of negotiations or the considerations of the particular circumstances are likely to be standard form contracts.