Pursuing a consumer guarantee claim under Australian Consumer Law
The Australian Consumer Law provides automatic consumer guarantees for goods and services that cannot be excluded by contract. When goods or services fail to meet a guarantee, the consumer is entitled to a remedy. For a major failure, the consumer can choose a refund, replacement, or compensation. For a minor failure, the supplier can choose the remedy. These rights apply regardless of any manufacturer warranty.
This is an 8-step workflow for pursuing a consumer guarantee claim under the Australian Consumer Law (ACL), covering both goods guarantees (ss 54-59) and services guarantees (ss 60-62). It addresses the major/minor failure distinction and available remedies.
Before you start
- Proof of purchase (receipt, bank statement, or invoice)
- Evidence of the defect or failure (photographs, expert reports, correspondence)
- Details of any attempts to obtain a remedy from the supplier
- Confirmation that the goods or services were acquired for personal, domestic, or household use (or under $100,000 for business use)
The workflow
Identify the applicable consumer guarantee
Determine which consumer guarantee has been breached. For goods: acceptable quality (s 54), fitness for purpose (s 55), description (s 56), sample (s 57), or repairs and spare parts (s 58). For services: due care and skill (s 60), fitness for purpose (s 61), or reasonable time (s 62).
Classify the failure as major or minor
Assess whether the failure is major or minor under s 260 (goods) or s 268 (services). A major failure for goods means a reasonable consumer would not have purchased them, they are substantially unfit for purpose, they are unsafe, or they cannot easily be remedied. The classification determines who chooses the remedy.
Request a remedy from the supplier
Write to the supplier requesting the appropriate remedy. For a major failure, the consumer chooses: refund, replacement, or compensation. For a minor failure, the supplier can choose to repair, replace, or refund. Set a reasonable timeframe for the supplier to respond.
Escalate to a formal letter of demand
If the supplier refuses or does not respond, send a formal letter of demand identifying the consumer guarantee breached, the nature of the failure, the remedy sought, and the amount claimed. State that proceedings will be commenced if the matter is not resolved.
Lodge a complaint with the ACCC or state fair trading body
Consider lodging a complaint with the ACCC (for national matters) or the relevant state fair trading body. While these bodies do not resolve individual disputes, they can investigate systemic conduct and may contact the supplier on the consumer's behalf.
Attempt alternative dispute resolution
Before filing in court, explore alternative dispute resolution options: the supplier's internal complaint process, an industry ombudsman (if applicable), or mediation through a community justice centre. Many small claims tribunals require ADR before listing for hearing.
File in the relevant tribunal or court
If unresolved, file the claim in the appropriate forum. For claims under the jurisdictional limit, use the state civil and administrative tribunal (e.g. NCAT in NSW, VCAT in Victoria). For larger claims, file in the relevant court. Prepare a statement of claim identifying the guarantee breached and the remedy sought.
Prepare for the hearing
Prepare evidence for the hearing: proof of purchase, photographs or videos of the defect, expert reports (if applicable), correspondence with the supplier, and evidence of consequential losses. Present the claim referencing the specific ACL consumer guarantee provisions.
What you will have at the end
A refund, replacement, or repair of the defective goods or services, plus compensation for any reasonably foreseeable consequential losses caused by the failure. For major failures, the consumer's choice of remedy prevails.
Common issues
- Confusing manufacturer warranties with ACL consumer guarantees — guarantees cannot be excluded
- Misclassifying a minor failure as major, leading to rejection of the remedy request
- Accepting a repair when the failure is major and the consumer is entitled to a refund
- Not claiming consequential losses (such as lost income or alternative hire costs) in addition to the primary remedy
- Filing in the wrong jurisdiction or forum for the value of the claim
Run this workflow on a real matter
Quillio identifies the applicable consumer guarantee, classifies the failure as major or minor, and drafts demand letters and tribunal claims. It surfaces relevant ACCC guidance and case law on consumer guarantee remedies. See /practice-areas/commercial-lawyers or start a free trial.
This workflow is a general guide. Consumer guarantee rights interact with manufacturer warranties, extended warranties, and state fair trading legislation. The applicable forum and jurisdictional limits vary by state.
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