Consumer Protection FAQ

The Australian Consumer Law (ACL) is a single national consumer protection law applying across all states and territories. It is Schedule 2 of the Competition and Consumer Act 2010 and covers guarantees, misleading conduct, unfair terms, and safety.

A consumer is any person or business acquiring goods or services of a kind ordinarily for personal use, or where the price is $100,000 or less (threshold indexed). Many business purchases therefore qualify, not just individuals.

Consumer guarantees are automatic statutory guarantees that apply to all consumer goods and services — including acceptable quality, fitness for purpose, matching description, and due care and skill. They cannot be excluded by contract.

Goods are of acceptable quality if they are fit for their common purposes, acceptable in appearance and finish, free from defects, safe, and durable — judged by a reasonable consumer aware of the goods' condition.

Consumers are entitled to a refund, repair, or replacement for a "major failure" (significant defect, unsafe, or unfit for its stated purpose). For minor failures the supplier chooses the remedy but must act within a reasonable time.

A major failure is one where a reasonable consumer would not have bought the goods if aware; the goods significantly depart from description or sample; are substantially unfit for purpose; or are unsafe. Consumers choose the remedy for major failures.

No. Signs stating "no refunds" or "no exchanges" are misleading because they imply the consumer guarantees don't apply. They breach the ACL and attract penalties. Stores can limit voluntary returns but cannot override statutory rights.

Section 18 prohibits conduct in trade or commerce that is misleading or deceptive or likely to mislead or deceive. It covers statements, silence, half-truths, and omissions. Intent is not required — objective likelihood of misleading is enough.

Unfair terms in standard-form consumer or small business contracts are void. A term is unfair if it creates a significant imbalance, is not reasonably necessary to protect legitimate interests, and would cause detriment to the other party.

Since 9 November 2023, proposing, applying, or relying on an unfair term in a standard-form contract is a civil penalty offence, attracting penalties of up to $50 million or more for businesses, per contravention.

An unsolicited consumer agreement is one negotiated away from the supplier's place of business (for example door-to-door or telephone sales) for goods or services over $100. The ACL imposes disclosure, form, and cooling-off requirements.

Unsolicited consumer agreements have a 10-business-day cooling-off period during which the consumer can terminate without penalty. Suppliers cannot demand payment or supply goods during that period in most cases.

The ACCC sets mandatory safety standards and can ban unsafe products. Suppliers must comply and report serious injury or death associated with goods within 2 days. Non-compliance attracts penalties and recall obligations.

Express manufacturer or supplier warranties must comply with prescribed form requirements, including a mandatory statement that the warranty is in addition to, not in substitution for, consumer guarantees under the ACL.

The ACCC is the national competition and consumer regulator. It enforces the ACL, accepts complaints, conducts investigations, seeks court-ordered penalties and remedies, and issues guidance. State fair trading agencies share enforcement.

Maximum penalties per contravention are the greater of $50 million, three times the benefit, or 30% of adjusted turnover (for corporations) and $2.5 million for individuals. Penalties are per contravention and were increased in 2022.

Yes. Consumers can seek damages or injunctions for ACL breaches directly in Federal or state courts, as well as lodging complaints with the regulator. Small claims tribunals handle disputes below jurisdictional limits in each state.

Since November 2023, a small business contract is one where at least one party employs fewer than 100 people or has annual turnover under $10 million. The unfair contract terms protections extend to these contracts.

Yes. Digital products (apps, downloads, in-game purchases, subscription streaming) and digital services are covered by consumer guarantees. The ACCC has taken enforcement action over misleading auto-renewal and cancellation practices.

Most ACL claims must be commenced within 6 years of the cause of action accruing. Some remedies have shorter limits. State tribunal claims have their own time limits (typically 3-6 years).