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:
- Protect the consumer when dealing with business suppliers when consumer law does not apply;
- Target complaints that are of less value than $40,000; and
- 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:
- Consumers will know that they can receive a refund for the goods;
- 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:
- Penalties of up to $50,000 for companies or incorporated businesses; or
- Penalties of up to $10,000 for sole trader businesses or individuals.
Watch this brief clip from HG Lawyers about these recent changes: https://www.hopgoodganim.com.au/page/knowledge-centre/video/new-mandatory-wording-for-consumer-contracts
At Burke Lawyers, our team are experienced in contracts and Australian Consumer Law.
Please contact Meghan Warren on 03 9822 8588 or email@example.com should you wish to discuss further.