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