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A consultation paper has been launched, encouraging submissions on ways to strengthen protections for consumers and Australian small businesses.
The Morrison government's new consultation paper, released this week, 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.
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The consultation paper is available via the Treasury website. Submissions close on 11 February 2022.
"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. For example, the consumer guarantees require products to be of acceptable quality, fit for purpose and match their description," a statement from Assistant Treasurer Michael Sukkar said.
"Consumers often face difficulties in obtaining a refund, repair, or replacement because there is currently no penalty for suppliers who refuse to provide a remedy.
"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."
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