ACCC transitional policy on warranties

We noted the new Australian Consumer Law consumer warranty provisions that started on 1 January 2012 here.

The ACCC has now published its policy on transitional arrangements where due to the long lead times associated with many consumer products, and the nature of the packaging of those products, there will be some goods in the supply chain that, as at 1 January 2012, do not contain warranty documents that are compliant with the warranty against defects requirements of the ACL.

The ACCC says that until September 2012, when considering the appropriate enforcement response to any contravention of the warranty against defects requirements that apply to stock in the supply chain manufactured and packaged prior to 1 November 2011, the ACL Regulators (ACCC and ASIC) will have regard to:

  • whether there are serious practical difficulties in updating warranty documents—e.g. the warranty is in a tamper-proof package; and
  • whether the supplier has taken all reasonable steps to otherwise convey the mandatory text and information required by the ACL to consumers—e.g. by placing a compliant sticker on the outside packaging, or by erecting prominent, clear, point-of-sale signs including the mandatory text and information at all cash registers in a prominent position.

The ACCC gives an example of an appropriate sign to be displayed.

In these circumstances the ACCC says the ACL Regulators are unlikely to take enforcement action.

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