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LEGAL NO REFUNDS COULD MEAN YES TO PROBLEMS A recent Federal Court decision is a reminder to suppliers and manufacturers to ensure they don’t mislead consumers about the rights consumers have under the consumer guarantee provisions in the Australian Consumer Law. By Bird & Bird Associates Lynne Lewis and Megan Edwards. In June, an online entertainment service that provided digital products and services to Australian consumers was ordered to pay a $3.5 million fine, as well as publish corrective notices and pay court costs, after the Federal Court declared it contravened sections of the Australian Consumer Law (ACL). Recognising that the company had made admissions of its contraventions, the court declared that the contraventions of these sections had taken place through its terms of service, emails to customers and by communications of support staff to customers. What are the consumer guarantees? The ACL contains consumer guarantees that cannot be excluded by contract. They will apply in relation to the supply of goods and services to consumers in Australia, even if that transaction occurs online. The guarantees for goods relevant to the retail industry include the following: • Guarantee as to acceptable quality – goods are supplied to a consumer will be of acceptable quality, meaning that the goods are: o Fit for all purposes for which goods of that kind are commonly supplied. o Acceptable in appearance and finish. o Free from defects. o Safe. o Durable. • Guarantee as to fitness for any disclosed purpose – goods that are supplied will be reasonably fit for any 72 RETAIL WORLD AUG, 2020