On 11 October 2018 the Fair Trading Legislation Amendment (Consumer Guarantee Directions) Act 2018 (the Act) commenced. The Act amends the Fair Trading Act 1987 (NSW) to offer a fair, quick and cheap resolution option for small-value disputes as an alternative to the courts and tribunals. Under the Act, the Commissioner for NSW Fair Trading (Commissioner) is provided with new powers to issue a consumer guarantee direction in disputes between consumers and businesses about alleged breaches of the consumer guarantees under the Australian Consumer Law (ACL).
The Commissioner may make a consumer guarantee direction to direct businesses to repair or replace defective consumer goods or refund the purchase price. A consumer guarantee direction may only be given in relation to goods which:
- are sold by a supplier to a consumer ordinarily resident in NSW
- a consumer guarantee under ss 54-57 of the ACL applies
- are subject to an unresolved dispute concerning the application of such guarantee to the sale of the good
- were purchased within 6 months prior to the complaint (except for in special circumstances determined by the Secretary)
- have a purchase price between $25 - $3000 (exclusive of GST)
- are not excluded by the Act.
A notable exclusion under the Act is any goods subject to a warranty under the Home Building Act 1989 (NSW) (HBA). The reason being that disputes under the HBA are more complex and are best dealt with by other existing specialist dispute resolution schemes.
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.