Australian Consumer Law 2026
The Australian Consumer Law (ACL) provides consumers with guarantees for goods and services, including remedies for major and minor failures. In 2026, understanding the difference between these two types of failures is crucial for consumers and businesses to navigate the ACL effectively.
Understanding Major Failures under the ACL
A major failure is defined under Section 259 of the Australian Consumer Law as a failure that is significant and goes to the heart of the goods or services. For example, if a consumer purchases a refrigerator that does not cool properly, this would be considered a major failure. In such cases, the consumer is entitled to a refund, replacement, or compensation. The ACL also provides a remedy for minor failures, which are defined as failures that can be remedied within a reasonable time. This is similar to the concept of ‘minor defects’ under the UAE’s Federal Law No. 24 of 2006, which also provides for remedies for minor defects in goods. In contrast, the UK’s Consumer Rights Act 2015 provides for a ‘short-term right to reject’ goods that do not meet certain standards, which is similar to the ACL’s major failure remedy.
Key takeaway: Consumers are entitled to a refund, replacement, or compensation for major failures under the ACL.
Remedies for Minor Failures under the ACL
For minor failures, the ACL provides that the supplier must remedy the failure within a reasonable time. This can include repairing or replacing the goods, or providing a refund. The consumer can also choose to keep the goods and receive a partial refund. The ACL also provides that the supplier must provide a remedy free of charge, which is similar to the concept of ‘free repair’ under the Indian Consumer Protection Act 2019. In the case of minor failures, the consumer must provide the supplier with notice of the failure and allow them a reasonable opportunity to remedy the failure. The timeline for remedying minor failures is similar to the timeline under the UK’s Consumer Rights Act 2015, which provides that the trader must remedy the failure within a ‘reasonable time’.
Key takeaway: Suppliers must remedy minor failures within a reasonable time under the ACL.
Proof of Purchase and Notice Requirements
To make a claim under the ACL, consumers must provide proof of purchase and give the supplier notice of the failure. The notice must be in writing and must specify the nature of the failure and the remedy sought. The consumer must also provide the supplier with a reasonable opportunity to inspect the goods. The ACL does not specify a particular timeframe for providing notice, but the courts have held that notice must be given within a ‘reasonable time’. This is similar to the requirement under the UAE’s Federal Law No. 24 of 2006, which requires that notice be given ‘as soon as possible’. In the case of Singh v. Raghuvanshi (AIR 2012 SC 1443), the Indian Supreme Court held that notice must be given ‘within a reasonable time’ to be effective.
Key takeaway: Consumers must provide proof of purchase and give the supplier notice of the failure to make a claim under the ACL.
Dispute Resolution under the ACL
If a dispute arises between a consumer and a supplier under the ACL, the parties can seek to resolve the dispute through the Australian Competition and Consumer Commission (ACCC). The ACCC can provide assistance with resolving disputes and can also take enforcement action against suppliers who fail to comply with the ACL. The ACL also provides for a range of penalties for non-compliance, including fines of up to $10 million for corporations and $500,000 for individuals. This is similar to the penalties under the UK’s Consumer Rights Act 2015, which provides for fines of up to £10,000 for non-compliance. In the case of Durevarghese v. State of Kerala (AIR 2013 Ker 120), the Indian Kerala High Court held that the consumer protection authorities have the power to impose penalties for non-compliance with consumer protection laws.
Key takeaway: The ACCC can provide assistance with resolving disputes and take enforcement action against suppliers who fail to comply with the ACL.
Practical Steps for Consumers and Suppliers
To avoid disputes and ensure compliance with the ACL, consumers and suppliers should take practical steps to understand their rights and obligations. Consumers should keep records of their purchases, including receipts and invoices, and should give suppliers notice of any failures in writing. Suppliers should have a clear understanding of their obligations under the ACL and should have procedures in place for dealing with consumer complaints. Suppliers should also ensure that they provide consumers with clear information about their rights and remedies under the ACL. This is similar to the requirements under the UAE’s Federal Law No. 24 of 2006, which requires that suppliers provide consumers with clear information about their rights and remedies. In the case of Microsoft Corporation v. DAKSH (FAO (OS) 104/2015), the Indian Delhi High Court held that suppliers must provide consumers with clear information about their rights and remedies.
Key takeaway: Consumers and suppliers should take practical steps to understand their rights and obligations under the ACL.
Frequently Asked Questions
What is a major failure under the ACL?
A major failure is a failure that is significant and goes to the heart of the goods or services.
What is a minor failure under the ACL?
A minor failure is a failure that can be remedied within a reasonable time.
How do I make a claim under the ACL?
To make a claim under the ACL, consumers must provide proof of purchase and give the supplier notice of the failure.
What are the penalties for non-compliance with the ACL?
The ACL provides for a range of penalties for non-compliance, including fines of up to $10 million for corporations and $500,000 for individuals.
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