New Consumer Contracts Wording Mandated as of 9 June 2019

Are you a business supplying goods and / or services to consumers?

Effective as of Sunday 9 June 2019, new mandatory wording to be included in consumer contracts will come into effect.

These new requirements aim to:

  1. Protect the consumer when dealing with business suppliers when consumer law does not apply;
  2. Target complaints that are of less value than $40,000; and
  3. Target complaints that are over $40,000 but relate to the purchase of goods or services for domestic use or personal consumption.

What this means for consumer contracts with the mandatory wording applied:

  1. Consumers will know that they can receive a refund for the goods;
  2. Consumers will know that they can cancel and request a refund when a service contract is in place.

Failure to include new wording could lead to:

  1. Penalties of up to $50,000 for companies or incorporated businesses; or
  2. Penalties of up to $10,000 for sole trader businesses or individuals.

Watch this brief clip from HG Lawyers about these recent changes:

At Burke Lawyers, our team are experienced in contracts and Australian Consumer Law.

Please contact Meghan Warren on 03 9822 8588 or should you wish to discuss further.

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