Consumer Guarantees and Supplier Indemnification under Consumer Law

This consultation process has now been completed.
Date
-
Consultation Type
Consultation Paper

Key Documents

The government is seeking feedback on new penalties for businesses that:

  • do not give consumers a remedy when required
  • do not reimburse a supplier when required or
  • retaliate against suppliers who ask to be reimbursed.

Your feedback will inform advice to government on the design of proposed civil prohibitions and penalties.

Consumer guarantees

Consumers have legal rights when they buy goods or services that break or do not work properly. These rights are called ‘consumer guarantees’.

When a good or service does not meet a consumer guarantee, the consumer may be entitled to a remedy such as a:

  • repair
  • replacement
  • refund
  • compensation
  • cancellation of contract.

Supplier indemnification

A manufacturer must refund the supplier for the cost of giving a consumer guarantees remedy, including any compensation. This is called ‘supplier indemnification’.

Related work

This consultation builds upon a 2021 consultation on options to improve:

  • the effectiveness of the consumer guarantees
  • supplier indemnification provisions.

 

Submissions

No submissions are currently available.