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What is a consumer guarantee?

The Australian Consumer Law (ACL) automatically gives consumers' rights when they buy goods and services. There are:

Warranties v's consumer guarantees

A warranty is different from a consumer guarantee. It is a voluntary promise to the consumer from the seller, manufacturer or supplier. Warranties are separate and do not replace ACL consumer guarantees.

Businesses and the Australian Consumer Law

As a business, you have certain protections under the ACL and more broadly, the Competition and Consumer Act 2010.

Your business is considered to be a consumer and entitled to certain remedies under consumer guarantees if something goes wrong when you buy goods or services for your business which are:

  • under $40,000
  • over $40,000 and normally bought for personal, domestic or household use or consumption
  • vehicles and trailers used mainly to transport goods on public roads.

NOTE:  these consumer rights do not apply if goods are purchased to be re-sold or transformed into a product that is sold.

If your business is not a company (such as a sole trader, a joint venture or a partnership), it will need to be registered in each state and territory where it operates.

Related information

Updated: 09 Jul 2020

This page has been produced and published by the Consumer Building and Occupational Services Division of the Department of Justice. Although every care has been taken in production, no responsibility is accepted for the accuracy, completeness, or relevance to the user's purpose of the information. Those using it for whatever purpose are advised to verify it with the relevant government department, local government body or other source and to obtain any appropriate professional advice. The Crown, its officers, employees and agents do not accept liability however arising, including liability for negligence, for any loss resulting from the use of or reliance upon the information and/or reliance on its availability at any time.