Manufacturers Liability

The Australian Consumer Law (‘ACL’) provides for certain statutory guarantees in respect to the supply of goods to consumers which extends not only to the immediate supplier, but also the manufacturer of the goods.

Statutory Guarantees

A supplier or manufacturer may fail to comply with a statutory guarantee if, for example:-

1. the goods do not correspondence with a description applied to the goods; or
2. the goods sold are not of an acceptable quality in that it is not:

1. fit for all the purposes for which it is commonly supplied;
2. acceptable in appearance and finish;
3. free from defects;
4. safe; or
5. durable.

Although in a majority of cases it is most effective to simply recover any loss from an immediate suppler, the increasing popularity of online shopping combined with the poor economic market has developed a situation where the ability to recover any loss from the supplier may not always be available, and it may be more appropriate to contact the ‘manufacturer’.

Fortunately under the ACL, a manufacturer is not just any business that produces or assembles the goods but also includes any business or person that:-

1. causes or permits the business name or brand name to be applied to the goods;
2. imports the goods and the actual manufacturer does not have a place of business in Australia;
3. holds themselves out to the public as the manufacturer; or
4. permits another person or business to hold them out to the public as the manufacturer.

The importance of a broad definition for manufacturer means that it provides protection to a consumer in a wide range of situations, including where the business imports the goods from overseas, the supplier can no longer be found, or the business has closed down.

Remedies

If a manufacturer has failed to comply with a statutory guarantee it is obliged to reimburse the consumer for any reduction in value of the goods below the price paid, and any loss incurred as a result of the failure to comply with the guarantee.

Despite these guarantees existing to protect the consumer it is important to be aware that a supplier or manufacturer may not necessarily comply with their legal obligations.

If you are experiencing difficulties being reimbursed or receiving a replacement for a significant item you have purchased, feel free to contact our office to discuss your options.