There is something to be said for purchasing a product and having that product work properly and as expected when you first take it out of the box, put it together, or plug it into the wall power socket. The question is… what happens when it doesn’t, or you find that the product fails weeks, months, or in some cases years, after you purchased it? This is the point at which people ask themselves whether they should have purchased that extended warranty, and what to do in the event that they didn’t.
The Basics
When a business sells a product, they inevitably provide consumers with a warranty. This warranty provides you with peace of mind when it comes to problems, defects, faults, or the breakdown of goods you purchase, and often is your avenue to resolution. However, not all warranties are the same, and the most relevant of these for the purposes of this article are statutory warranties and extended warranties.
Statutory Warranty:
As an Australian consumer, you have rights under what is known as the ‘consumer protection laws’ (“the laws”). These laws are founded in the Competition and Consumer Act 2010 (Cth) and are applicable to Queensland, which means that you, as a Queensland consumer, can expect a standard from products you purchase. This is known as a statutory warranty, and is assured to consumers by way of guarantees.
A guarantee provides you with automatic rights when you purchase a “brand new” product from a business, and applies to products purchased after 1 January 2011. Guarantees capture:
- Products purchased for personal or household use, up to any amount;
- Products purchased for any other use or purpose, which cost less than $40,000.00; or
- A vehicle or vehicle trailer.
To assist you in identifying whether your product will attract a guarantee should you experience fault or defect in the product, here are some common examples of the type of guarantees that a business must abide by when selling a product to you as a consumer:
- The product must be of acceptable quality;
- The product must be reasonably fit for the purpose intended, and must be available for your full use and enjoyment subject to the product’s limitations;
- The product must have had an accurate description, which applies to sample or demonstration models that you viewed prior to purchasing the product; and
- The product is free from hidden debts and/or charges, and the business is able to pass legal title to you as the new owner.
Extended Warranties:
An extended warranty is a warranty purchased in addition to any statutory warranty, and is at the complete discretion of the business offering the warranty and the consumer electing to purchase it. The business is not obligated to provide you with an extended warranty option, but does hold itself accountable to the terms and conditions of any extended warranty purchased by a consumer at the time of purchasing a good. Accordingly, it is important that you review the terms and condition clauses carefully before agreeing to purchase any extended warranty.
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What does this mean for me?
As a consumer, you want to make sure the product you purchased is going to last you a reasonable amount of time. This, in essence, is the fundamental difference between a statutory warranty and an extended warranty. When you purchase a product, a statutory warranty is dependent on the reasonable life expectancy of the product through normal use.
By way of example, if I purchase a product that satisfies the criteria to receive a statutory warranty (e.g. a $2,500.00 chest freezer for home use), then it can be expected that it would last longer than 18 months. Should at the time of purchase I decide not to take out a 2 year warranty over the product and the product failed or became defective after 14 months, then this failure would offend the guarantees and I would be entitled to seek a remedy under statutory warranty.
What happens if something goes wrong?
The consumer guarantees provide you with options in the event something goes wrong with a purchased product – this is known as a remedy. Remedies come in the form of a repair, replacement, or refund. The type of remedy available depends on the circumstances of the fault, defect, or failure in the product, particularly whether the fault, defect, or failure is considered to be major or minor.
If you find yourself in a situation where you have a faulty or defective product that you purchased from a Queensland business, it is recommended that you first and foremost contact the business in an attempt to resolve the issue. You can do this by either a telephone call, in person, or by providing a written request outlining the circumstances of your complaint and what you would like as an outcome. Collate and attach copies any necessary documentation, such as receipts, warranties, or invoices, to ensure you have as much supporting information as possible to assist the business with identifying your concerns and providing you with options.
If at any stage you feel that you may have a consumer complaint for a faulty or defective product and need advice or assistance about where to go next, contact us so our lawyers can provide you with practical and independent advice particular to your circumstances to ensure you know your position and rights under the consumer protection legislation.
*The contents of this article are relevant to the jurisdiction of Queensland only, and in addition does not replace independent legal advice.