Assistant Treasurer, the Hon Michael Sukkar today released consultation on Improving the effectiveness of the consumer guarantee and supplier indemnification provisions under the Australian Consumer Law (ACL).

The consultation paper includes options for civil prohibitions and penalties for suppliers that fail to provide a consumer guarantees remedy, and manufacturers that fail to indemnify suppliers or undertake retribution against suppliers who seek indemnification.

The consumer guarantees are automatic statutory warranties that ensure consumers can seek a refund, repair, or replacement when there is a problem with something they buy. Consumers can face difficulties in obtaining a remedy because there is currently no penalty for suppliers who refuse. Small business suppliers can face similar challenges when seeking reimbursement from a manufacturer after refunding or replacing a product with a manufacturing fault.

The options being consulted on would provide stronger incentives for businesses to comply with their obligations under the Australian Consumer Law and make it easier for consumers to obtain a remedy.

The National Retail Association encourages all interested parties to contact [email protected] if you have any questions or feedback.

Consultation closes COB Friday 11 February 2022.


Get involved

The National Retail Association Technical Standards Committee brings together product quality and compliance specialists from key retailers to proactively engage on issues of product safety and technical standards in an ever-changing regulatory environment. Members who are interested in being involved, please contact David Stout at [email protected].