Amendments to The Competition and Consumer Regulations

Public news

The Competition and Consumer Regulations 2010 have been amended and from the 8th of June this year, the current mandatory text regarding warranty against defects needs to be updated. The new text provides more clarity to consumers on their rights to compensation.

Click here to access the ACCC’s webpage which gives current examples of warranties against defects.

Automotive businesses that are currently providing consumers with a warranty against defects in connection with the supply of services must update their warranty documentation to include new mandatory text by the 8th of June 2019.

It is important to note that if you also provide customers with a warranty against any defects that are in connection with the supply of goods AND services, your warranty documentation must reflect this. This must also be done by the 8th of June 2019. This must be done by replacing the current mandatory text applying to goods with new mandatory text that applies to goods AND services.

Generally, most members will provide goods and services, therefore the following statement is required to be included in your warranty wording:

Our goods and services come with guarantees that cannot be excluded under the Australian Consumer Law. For major failures with the service, you are entitled:

* to cancel your service contract with us; and

* to a refund for the unused portion, or to compensation for its reduced value.

You are also entitled to choose a refund or replacement for major failures with goods. If a failure with the goods or a service does not amount to a major failure, you are entitled to have the failure rectified in a reasonable time. If this is not done you are entitled to a refund for the goods and to cancel the contract for the service and obtain a refund of any unused portion. You are also entitled to be compensated for any other reasonably foreseeable loss or damage from a failure in the goods or service.

If you are not already using standard terms and conditions, warranty terms and conditions, and required mandatory text we recommend you use the MTA’s Repair Authority document to comply with the Regulations.

You can order MTA Repair Authority Terms and Condition by clicking here.

Other mandatory text includes specific wording you must use where you have the option to fit ‘reconditioned’ or ‘refurbished parts’ in any of your repairs or services.

If you are concerned about your obligations under ACL, it is important that you contact the MTA’s Workplace Relations (WR) Department for advice.

Click here to contact the WR team or call the MTA on 8291 2000.