The **[[Competition and Consumer Act 2010]]** is the Australian legislation aimed at promoting fair trading and competition while protecting consumers and businesses from unfair practices. ^about It notably the pieces of legislations that defines [[Competition and Consumer Act 2010|Australian Consumer Law]] within schedule 2 of volume 4. The most recent version of the act can be found online at [legislation.gov.au](https://www.legislation.gov.au/C2004A00109/latest/text) --- ## Selected excerpts of the ACL *Referencing C152 released 2024-06-01* >[!warning] This page is not legal advice >The information below has been notated for personal reference and informational purposes only. Excerpts should not be relied upon without understanding it in the context of the entire document. > >Refer to [legislation.gov.au](https://www.legislation.gov.au/C2004A00109/latest/text) for the most recent version of the act. If you require legal advice or assistance, it is recommended that you consult with a qualified legal professional. ### Chapter 1 - Introduction >[!abstract] #### 2 - Definitions > > >[!example]- consumer goods > > **consumer goods** means goods that are intended to be used, or are of a kind likely to be used, for personal, domestic or household use or consumption, and includes any such goods that have become fixtures since the time they were supplied if: > > >**(a)** a recall notice for the goods has been issued; or > > > > >**(b)** a person has voluntarily taken action to recall the goods. > > >[!example]- express warranty > >express warranty, in relation to goods, means an undertaking, assertion or representation: > > > > >**(a)** that relates to: > > > > > > >**(i)** the quality, state, condition, performance or characteristics of the goods; or > > > > > > >**(ii)** the provision of services that are or may at any time be required for the goods; or > > > > > > >**(iii)** the supply of parts that are or may at any time be required for the goods; or > > > > > > >**(iv)** the future availability of identical goods, or of goods constituting or forming part of a set of which the goods, in relation to which the undertaking, assertion or representation is given or made, form part; and > > > > >**(b)** that is given or made in connection with the supply of the goods, or in connection with the promotion by any means of the supply or use of the goods; and > > > > >**(c)** the natural tendency of which is to induce persons to acquire the goods. > > >[!example]- goods > > **goods** includes: > > > > >**(a)** ships, aircraft and other vehicles; and > > > > >**(b)** animals, including fish; and > > > > >**(c)** minerals, trees and crops, whether on, under or attached to land or not; and > > > > >**(d)** gas and electricity; and > > > > >**(e)** computer software; and > > > > >**(f)** second‑hand goods; and > > > > >**(g)** any component part of, or accessory to, goods. > > >[!example]- services > >**services** includes: > >> > > > **(a)** any rights (including rights in relation to, and interests in, real or personal property), benefits, privileges or facilities that are, or are to be, provided, granted or conferred in trade or commerce; and > > > > >**(b**) without limiting paragraph (a), the rights, benefits, privileges or facilities that are, or are to be, provided, granted or conferred under: > > > > > > >**(i**) a contract for or in relation to the performance of work (including work of a professional nature), whether with or without the supply of goods; or > > > > > > >**(ii)** a contract for or in relation to the provision of, or the use or enjoyment of facilities for, amusement, entertainment, recreation or instruction; or > > > > > > >**(iii)** a contract for or in relation to the conferring of rights, benefits or privileges for which remuneration is payable in the form of a royalty, tribute, levy or similar exaction; or > > > > > > >**(iv)** a contract of insurance; or > > > > > > >**(v)** a contract between a banker and a customer of the banker entered into in the course of the carrying on by the banker of the business of banking; or > > > > > > >**(vi)** any contract for or in relation to the lending of money; > > > > but does not include rights or benefits being the supply of goods or the performance of work under a contract of service. >[!abstract] #### 3 - Meaning of consumer >[!abstract] #### 7 - Meaning of manufacturer ### Chapter 2 - General protections > [!abstract] #### Part 2-3 - Unfair contract terms > > >[!example]- 23 Unfair terms of consumer contracts and small business contracts > > ... > > >**(3)** A consumer contract is a contract for: > > > > > > >**(a)** a supply of goods or services; or > > > > > > >**(b)** a sale or grant of an interest in land; > > > > > >to an individual whose acquisition of the goods, services or interest is wholly or predominantly for personal, domestic or household use or consumption. > > > > >**(4)** A contract is a small business contract if: > > > > > > >**(a)** the contract is for a supply of goods or services, or a sale or grant of an interest in land; and > > > > > > >**(b)** at least one party to the contract satisfies either or both of the following conditions: > > > > > > > >**(i)** the party makes the contract in the course of carrying on a business and at a time when the party employs fewer than 100 persons; > > > > > > > >**(ii)** the party’s turnover, worked out under subsection (6) for the party’s last income year (within the meaning of the Income Tax Assessment Act 1997) that ended at or before the time when the contract is made, is less than $10,000,000. > > ... ### Chapter 3 - Specific protections > [!abstract] #### Part 3-2 - Consumer transactions > >**Division 1 - Consumer guarantees** > >**Subdivision A - Guarantees relating to the supply of goods** > > >[!example]- 53 Guarantee as to undisclosed securities etc. > > >**(1)** If: > > > > > > >**(a)** a person (the supplier) supplies goods to a consumer; and > > > > > > >**(b)** the supply is not a supply of limited title; > > > > > >there is a guarantee that: > > > > > > >**(c)** the goods are free from any security, charge or encumbrance: > > > > > > > > >**(i)** that was not disclosed to the consumer, in writing, before the consumer agreed to the supply; or > > > > > > > > >(**ii)** that was not created by or with the express consent of the consumer; and > > > > > > >**(d)** the goods will remain free from such a security, charge or encumbrance until the time when the property in the goods passes to the consumer. > > > > >**(2)** A supplier does not fail to comply with the guarantee only because of the existence of a floating charge over the supplier’s assets unless and until the charge becomes fixed and enforceable by the person to whom the charge is given. > > > > > >> Note: Section 339 of the Personal Property Securities Act 2009 affects the meaning of the references in this subsection to a floating charge and a fixed charge. > > > > >**(3)** If: > > > > > > >**(a)** a person (the supplier) supplies goods to a consumer; and > > > > > > >**(b)** the supply is a supply of limited title; > > > > > >there is a guarantee that all securities, charges or encumbrances known to the supplier, and not known to the consumer, were disclosed to the consumer before the consumer agreed to the supply. > > > > >**(4)** This section does not apply if the supply is a supply by way of hire or lease. > > >[!example]- 54 Guarantee as to acceptable quality > > >**(1)** If: > > > > > > >**(a)** a person supplies, in trade or commerce, goods to a consumer; and > > > > > > >**(b)** the supply does not occur by way of sale by auction; > > > > > >there is a guarantee that the goods are of acceptable quality. > > > > >**(2)** Goods are of acceptable quality if they are as: > > > > > > >**(a)** fit for all the purposes for which goods of that kind are commonly supplied; and > > > > > > >**(b)** acceptable in appearance and finish; and > > > > > > >**(c)** free from defects; and > > > > > > >**(d)** safe; and > > > > > > >**(e)** durable; > > > > > >as a reasonable consumer fully acquainted with the state and condition of the goods (including any hidden defects of the goods), would regard as acceptable having regard to the matters in subsection (3). > > > > >**(3)** The matters for the purposes of subsection (2) are: > > > > > > >**(a)** the nature of the goods; and > > > > > > >**(b)** the price of the goods (if relevant); and > > > > > > >**(c)** any statements made about the goods on any packaging or label on the goods; and > > > > > > >**(d)** any representation made about the goods by the supplier or manufacturer of the goods; and > > > > > > >**(e)** any other relevant circumstances relating to the supply of the goods. > > > > >**(4)** If: > > > > > > >**(a)** goods supplied to a consumer are not of acceptable quality; and > > > > > > >**(b)** the only reason or reasons why they are not of acceptable quality were specifically drawn to the consumer’s attention before the consumer agreed to the supply; > > > > > >the goods are taken to be of acceptable quality. > > > > >**(5)** If: > > > > > > >**(a)** goods are displayed for sale or hire; and > > > > > > >**(b)** the goods would not be of acceptable quality if they were supplied to a consumer; > > > > > >the reason or reasons why they are not of acceptable quality are taken, for the purposes of subsection (4), to have been specifically drawn to a consumer’s attention if those reasons were disclosed on a written notice that was displayed with the goods and that was transparent. > > > > >**(6)** Goods do not fail to be of acceptable quality if: > > > > > > >**(a)** the consumer to whom they are supplied causes them to become of unacceptable quality, or fails to take reasonable steps to prevent them from becoming of unacceptable quality; and > > > > > > >**(b)** they are damaged by abnormal use. > > > > >**(7)** Goods do not fail to be of acceptable quality if: > > > > > > >**(a)** the consumer acquiring the goods examines them before the consumer agrees to the supply of the goods; and > > > > > > >**(b)** the examination ought reasonably to have revealed that the goods were not of acceptable quality. > > >[!example]- 55 Guarantee as to fitness for any disclosed purpose etc. > > >**(1)** If: > > > > > > >**(a)** a person (the supplier) supplies, in trade or commerce, goods to a consumer; and > > > > > > >**(b)** the supply does not occur by way of sale by auction; > > > > > >there is a guarantee that the goods are reasonably fit for any disclosed purpose, and for any purpose for which the supplier represents that they are reasonably fit. > > > > >**(2)** A disclosed purpose is a particular purpose (whether or not that purpose is a purpose for which the goods are commonly supplied) for which the goods are being acquired by the consumer and that: > > > > > > >**(a)** the consumer makes known, expressly or by implication, to: > > > > > > > > >**(i)** the supplier; or > > > > > > > > >**(ii)** a person by whom any prior negotiations or arrangements in relation to the acquisition of the goods were conducted or made; or > > > > > > >**(b)** the consumer makes known to the manufacturer of the goods either directly or through the supplier or the person referred to in paragraph (a)(ii). > > > > >**(3)** This section does not apply if the circumstances show that the consumer did not rely on, or that it was unreasonable for the consumer to rely on, the skill or judgment of the supplier, the person referred to in subsection (2)(a)(ii) or the manufacturer, as the case may be. > > >[!example]- 58 Guarantee as to repairs and spare parts > > >**(1)** If: > > > > > > >**(a)** a person supplies, in trade or commerce, goods to a consumer; and > > > > > > >**(b)** the supply does not occur by way of sale by auction; > > > > > >there is a guarantee that the manufacturer of the goods will take reasonable action to ensure that facilities for the repair of the goods, and parts for the goods, are reasonably available for a reasonable period after the goods are supplied. > > > > >**(2)** This section does not apply if the manufacturer took reasonable action to ensure that the consumer would be given written notice, at or before the time when the consumer agrees to the supply of the goods, that: > > > > > > >**(a)** facilities for the repair of the goods would not be available or would not be available after a specified period; or > > > > > > >**(b)** parts for the goods would not be available or would not be available after a specified period. > > >[!example]- 59 Guarantee as to express warranties > > >**(1)** If: > > > > > > >**(a)** a person supplies, in trade or commerce, goods to a consumer; and > > > > > > >**(b)** the supply does not occur by way of sale by auction; > > > > > >there is a guarantee that the manufacturer of the goods will comply with any express warranty given or made by the manufacturer in relation to the goods. > > > > >**(2)** If: > > > > > > >**(a)** a person supplies, in trade or commerce, goods to a consumer; and > > > > > > >**(b)** the supply does not occur by way of sale by auction; > > > > > >there is a guarantee that the supplier will comply with any express warranty given or made by the supplier in relation to the goods. > >**Subdivision B - Guarantees relating to the supply of services** > > >[!example]- 60 Guarantee as to due care and skill > >If a person supplies, in trade or commerce, services to a consumer, there is a guarantee that the services will be rendered with due care and skill. > > >[!example]- 61 Guarantees as to fitness for a particular purpose etc. > > >**(1)** If: > > > > > > > **(a)** a person (the supplier) supplies, in trade or commerce, services to a consumer; and > > > > > > >**(b)** the consumer, expressly or by implication, makes known to the supplier any particular purpose for which the services are being acquired by the consumer; > > > > > >there is a guarantee that the services, and any product resulting from the services, will be reasonably fit for that purpose. > > > > >**(2)** If: > > > > > > > **(a)** a person (the supplier) supplies, in trade or commerce, services to a consumer; and > > > > > > > **(b)** the consumer makes known, expressly or by implication, to: > > > > > > > > >**(i)** the supplier; or > > > > > > > > >**(ii)** a person by whom any prior negotiations or arrangements in relation to the acquisition of the services were conducted or made; > > > > > > > >the result that the consumer wishes the services to achieve; > > > > > > there is a guarantee that the services, and any product resulting from the services, will be of such a nature, and quality, state or condition, that they might reasonably be expected to achieve that result. > > > > >**(3)** This section does not apply if the circumstances show that the consumer did not rely on, or that it was unreasonable for the consumer to rely on, the skill or judgment of the supplier. > > > > >**(4)** This section does not apply to a supply of services of a professional nature by a qualified architect or engineer. > > >[!example]- 62 Guarantee as to reasonable time for supply > >If: > > >**(a)** a person (the supplier) supplies, in trade or commerce, services to a consumer; and > > > > >**(b)** the time within which the services are to be supplied: > > > > (i) is not fixed by the contract for the supply of the services; or > > > > > > > (ii) is not to be determined in a manner agreed to by the consumer and supplier; > > > > there is a guarantee that the services will be supplied within a reasonable time. > > > **Subdivision C - Guarantees not to be excluded etc. by contract** > > >[!example]- 64 Guarantees not to be excluded etc. by contract > > >**(1)** A term of a contract (including a term that is not set out in the contract but is incorporated in the contract by another term of the contract) is void to the extent that the term purports to exclude, restrict or modify, or has the effect of excluding, restricting or modifying: > > > > > > >**(a)** the application of all or any of the provisions of this Division; or > > > > > > >**(b)** the exercise of a right conferred by such a provision; or > > > > > > >**(c)** any liability of a person for a failure to comply with a guarantee that applies under this Division to a supply of goods or services. > > > > >**(2)** A term of a contract is not taken, for the purposes of this section, to exclude, restrict or modify the application of a provision of this Division unless the term does so expressly or is inconsistent with the provision. > > >[!example]- 64A Limitation of liability for failures to comply with guarantees > > >**(1)** A term of a contract for the supply by a person of goods other than goods of a kind ordinarily acquired for personal, domestic or household use or consumption is not void under section 64 merely because the term limits the person’s liability for failure to comply with a guarantee (other than a guarantee under section 51, 52 or 53) to one or more of the following: > > > > > > >**(a)** the replacement of the goods or the supply of equivalent goods; > > > > > > >**(b)** the repair of the goods; > > > > > > >**(c)** the payment of the cost of replacing the goods or of acquiring equivalent goods; > > > > > > >**(d)** the payment of the cost of having the goods repaired. > > > > >**(2)** A term of a contract for the supply by a person of services other than services of a kind ordinarily acquired for personal, domestic or household use or consumption is not void under section 64 merely because the term limits the person’s liability for failure to comply with a guarantee to: > > > > > > >**(a)** the supplying of the services again; or > > > > > > >**(b)** the payment of the cost of having the services supplied again. > > > > >**(3)** This section does not apply in relation to a term of a contract if the person to whom the goods or services were supplied establishes that it is not fair or reasonable for the person who supplied the goods or services to rely on that term of the contract. > > > > >**(4)** In determining for the purposes of subsection (3) whether or not reliance on a term of a contract is fair or reasonable, a court is to have regard to all the circumstances of the case, and in particular to the following matters: > > > > > > >**(a)** the strength of the bargaining positions of the person who supplied the goods or services and the person to whom the goods or services were supplied (the buyer) relative to each other, taking into account, among other things, the availability of equivalent goods or services and suitable alternative sources of supply; > > > > > > >**(b)** whether the buyer received an inducement to agree to the term or, in agreeing to the term, had an opportunity of acquiring the goods or services or equivalent goods or services from any source of supply under a contract that did not include that term; > > > > > > >**(c)** whether the buyer knew or ought reasonably to have known of the existence and extent of the term (having regard, among other things, to any custom of the trade and any previous course of dealing between the parties); > > > > > > >**(d)** in the case of the supply of goods, whether the goods were manufactured, processed or adapted to the special order of the buyer.