From 1 July 2021, the monetary threshold within the definition of “consumer” pursuant to the ACL will be increased. Businesses that sell goods or services up to $100,000 must comply with the consumer guarantees in the ACL from this date. Previously, the monetary threshold was $40,000.
The guarantees do not apply to goods or services purchased for the purposes of re-supply.
The changes mean the consumer guarantees regime and express warranties against defects requirements will encompass a wider variety of businesses and commercial transactions that were previously not subject to the ACL.
It is imperative for businesses which are now within the monetary threshold to comply with their increased obligations which kick in on 1 July 2021. If you are a supplier in this position, you should immediately ascertain the price of your goods or services and whether customers are resupplying those goods or services.
Please contact us for more information on your compliance with the ACL and if you require advice on your increased obligations. We will be able to guide you through the changes and how it will affect your business.
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