A warranty is a promise to a customer that creates enforceable rights/guarantees under Australian Consumer Law.
EXPRESS WARRANTIES are verbal or written promises about the quality or standard of a good. Auction purchases are not covered.
Warranties against defects are promises about what will happen if something goes wrong with the good or service. A.K.A. ‘voluntary warranty’ or ‘manufacturer’s warranty’. This is a promise to:
- Repair/replace part or all of the goods;
- Provide them again;
- Rectify the service;
- Wholly/partly re-compensate the purchaser.
These must be written in plain language that is easy to read and understand. It must be accompanied by documentation which includes:
- The business name;
- Contact information of the person/business offering the warranty;
- What is required of the purchaser to make a claim;
- A statement that the warranty is offered in addition to existing guarantees.
A customer can choose to receive an extended warranty against a defect for a longer period of time at an extra cost. Businesses must accurately describe the extended warranty, and ensure customers are aware that the rights given are not the same as ordinarily covered by existing consumer guarantees.
IMPLIED WARRANTIES mean that any goods supplied in trade or commerce must be of acceptable quality, meaning they are:
- Fit for the purposes that they are commonly supplied;
- Acceptable in appearance and finish;
- Free from defects;
Goods must also be fit for any purpose for which the supplier represents that they are reasonably fit, or for a purpose that the consumer discloses. This must be expressly or impliedly informed to the supplier, and can also be made to the manufacturer either directly or through the supplier.