News & Insights

On and from 9 June 2019, warranties against defects given to consumers must include certain mandatory wording in connection with the supply of Services or the supply of Goods and Services.

The Competition and Consumer Regulations 2010 (Cth) (the Regulations) requires all warranties given by businesses to consumers, in connection with the supply of Services or Goods and Services, to comply with existing requirements under the Regulations.

What are the requirements?

Documentation evidencing a warranty against defects must include:

• Certain information relating to the business giving the warranty, entitlements to the warranty, actions required by the consumer, the warranty period, expense information and benefits, rights and remedies in respect of the warranty; and
• Mandatory wording relating to guarantees under the Australian Consumer Law (which will differ for the supply of Services vs the supply of Goods and Services together).

Businesses should be mindful that any additional information given in warranty documentation (not relating to the above) does not limit or otherwise contradict the requirements under the Regulations.   Also, the remedies set out in a warranty against defects do not replace or override the remedies available under the statutory consumer guarantees under the Australian Consumer Law.

So, what is new?

Whilst the requirement of warranties to contain certain information is not new, the mandatory wording applying to the supply of Services is.

Previously, the Regulations only required this mandatory wording in connection with the supply of Goods alone. Such that, any warranty against defects given in respect of the supply of Services, did not need to comply with the requirements under the Regulations.  From 8 June 2019, this is no longer the case.

All warranties (save for certain limited exceptions) against defects given to consumers in connection with the supply of Services or the supply of Goods and Services must include the mandatory wording. The exceptions and other relevant information can be found in our publication from earlier this year.

If your business has not yet updated its warranty documentation in readiness for 8 June 2019 or if you need advice on whether you offer Services where the mandatory wording should be included in your warranty documentation, we can work with you to ensure your business is compliant before the deadline next month.

Get in touch with our commercial team today.

This article was written by Eloise Preller, Associate – Commercial.

The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.