Repairers obligations when repairing goods
One of the amendments brought in by the Competition and Consumer Act 2010 (Cth) is that from 1 July 2011, all repairers and others who accept consumer goods for repair must provide Repair Notices to consumers prior to accepting the goods for repair where the goods being repaired:
- are capable of storing user-generated data; or
- are to be replaced by refurbished goods or will contain refurbished components once repaired.
What is User-Generated Data?
User Generated Data is information that arises from data input into the device by the consumer and retained on the device. Examples include any data stored on goods such as computer hard drives, telephone numbers on mobile phones, songs stored on an iPods; games stored on a console; pictures stored on a camera and files stored on a USB.
What are Refurbished Goods?
Refurbished goods are defined by the ACCC as goods that are "likely to be considered as a used good or part that has been reconditioned or restored to an acceptable working order".
Obligations
If the consumer goods fall within either one or both of these requirements, the repairer and any party accepting the goods for repair must issue a written repair notice to consumers before accepting the goods for repair. This also applies to those parties who accept the goods for repair, even if it does not undertake the repairs itself and another person does those repairs for it or on its behalf.
These obligations apply even if the goods were purchased prior to 1 July 2011 and whether or not the goods were purchased online or as second-hand goods.
Notice Requirements
A notice relating to the repair of good that are capable of retaining data-generated data must state that the repair of goods may result in the loss of data.
Where refurbished goods may be used to repair the consumer goods, the repair notice must use the following specific wording required by the regulations:
"Goods presented for repair may be replaced by refurbished goods of the same type rather than being repaired. Refurbished parts may be used to repair the goods".
How is the notice to be given?
The ACCC guidelines state that the repair notice must be:
- given in hard copy to the customer where the customer provides the goods for repair in person;
- sent by email
- sent by mail; or
- sent by facsimile.
The ACCC guidelines state that where notice is provided by mail the repairer should wait a "reasonable period of time" before commencing the repair of the goods to ensure that the consumer has received the notice.
What should businesses do?
If you do not have processes in place to issue Repair Notices when required in accordance with the regulations, you must as a matter of urgency implement processes to comply with these new provisions, which have been operating since July 2011.
Penalties
Failure to comply with these obligations may result in penalties of up to $50,000 for corporations or $10,000 for individuals.
If you have questions about the new rules or if you need assistance in developing processes for your business to ensure that appropriate notices are issued to consumers, the team at Coleman Greig can assist you.
We can also provide you with detailed advice on how these amendments affect your business and deliver training sessions for your relevant staff.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
