Recent amendments to the Australian Consumer Law (ACL) which came into effect on 18 December 2020 have expanded the scope of what constitutes a “major” failure under the consumer guarantee provisions.

A good will be deemed to have a major failure if it:

(a) is unsafe;

(b) departs from the description or sample model;

(c) is substantially unfit for a common or specific purpose, and the defect cannot be easily and quickly repaired; or

(d) would not have been bought by a reasonable customer knowing the nature and extent of the failure.

Where the fault is deemed to be a major failure, a consumer has the right to choose whether to have the good repaired, replaced or refunded from the supplier.

Please also note that the monetary threshold for the definition of consumer will rise from $40,000 to $100,000 as of 1 July 2021.

If you are concerned about the nature of the good (or service) that you have acquired or seeking advice as to the prospect of a potential claim made by a consumer, contact us to discuss your rights: (03) 9005 0829 or