The Australian Consumer Law (ACL) Regulators have implemented a transition period ending September 2012 to allow retailers, wholesalers and manufacturers to comply with the new warranties against defects labelling laws that commence on 1 January 2012.

The transition period reprieve will apply to goods manufactured and packaged prior to 1 November 2011.

Under the new laws all products with warranties against defects must have details shown on the product packaging in a format as compliant with Section 90 of the Regulations Act.

ACL have announced that during the transition period businesses must take all reasonable steps to convey the mandatory text and information to consumers.

Retailers can satisfy the requirement to take “all reasonable steps” by either placing a compliant sticker on the outside packaging or by placing prominent point of sale signs and information at cash registers which include the example text below:  

Dear customer

Many of our products come with a guarantee or warranty from the manufacturer.  In addition, they come with guarantees that cannot be excluded under the Australian Consumer Law.  You are entitled to a replacement or refund for a major failure and compensation for any other reasonably foreseeable loss or damage. 

You are entitled to have the goods repaired or replaced if the goods fail to be of acceptable quality and the failure does not amount to a major failure. Full details of your consumer rights may be found at www.consumerlaw.gov.au

Retailers that display this information will unlikely face enforcement action by ACL Regulators.

Further information can be found at Bicycle Industries Australia Ltd - Industry Update - July 2011 Newsletter or ACCC: Warranties against defects