What can I do if I'm sold faulty goods?

In Plain English

If you've bought something that turns out to be faulty, here's a breakdown of your rights and what you can do about it, based on Australian law:

  • Goods Not Matching Description: If what you bought doesn't match the description given (e.g., online or in a catalog), the company that made the goods might have to pay you compensation for any loss or damage you suffer because of the mismatch.
  • Unmerchantable Quality: If the goods you bought aren't of acceptable quality (meaning they're not fit for the purpose they're normally used for), the manufacturer might be responsible for compensating you for any loss or damage.
  • Goods Not Matching Sample: If you bought goods based on a sample, but the actual goods don't match the sample in quality, or have a hidden defect that makes them unsellable, the manufacturer might have to compensate you.
  • Repairs and Parts: If your goods need repairs or a part, and they aren't reasonably available, the manufacturer might be responsible for compensating you if they acted unreasonably in not making those facilities available.
  • Safety Defects: If you've suffered loss or damage because of a safety defect in goods, you may be able to take action against the manufacturer to recover the amount of the loss or damage suffered (Competition and Consumer Act 2010).
  • Manufacturer's Guarantees: You may be able to claim damages from the manufacturer if goods do not comply with the guarantee under section 56 of the Competition and Consumer Act 2010 where goods are sold by description, or guarantees under section 58 or 59(1) of the Competition and Consumer Act 2010.
  • Time Limits: There are time limits to make a claim, so act promptly. For defective goods actions, you have 3 years from when you became aware (or should have become aware) of the loss/damage, the safety defect, and the manufacturer's identity, but no more than 10 years from when the manufacturer supplied the goods (Competition and Consumer Act 2010).

Detailed Explanation

Here's a more detailed explanation of your rights and potential actions, based on the legislation:

  • Goods Not Corresponding with Description:
    • If a corporation supplies goods to another person who resupplies them to a consumer by description, and the goods do not correspond with that description, the corporation is liable to compensate the consumer for loss or damage (Trade Practices Amendment Act 1978 s74c(1)).
    • This applies only if the description was applied by or on behalf of the corporation, or with its consent (Trade Practices Amendment Act 1978 s74c(3)).
    • It's not a defense that the bulk of goods corresponds with a sample if the goods don't also correspond with the description (Trade Practices Amendment Act 1978 s74c(4)).
  • Goods of Unmerchantable Quality:
    • If a corporation supplies goods to another person who resupplies them to a consumer, and the goods are not of merchantable quality, the corporation is liable to compensate the consumer for loss or damage (Trade Practices Amendment Act 1978 s74d(1)).
    • "Merchantable quality" means the goods are as fit for their common purpose as is reasonable to expect, considering the description, price, and other circumstances (Trade Practices Amendment Act 1978 s74d(3)).
    • This doesn't apply if the lack of merchantable quality is due to actions of someone other than the corporation, or a cause outside human control, after the goods left the corporation's control (Trade Practices Amendment Act 1978 s74d(2)(a)). It also doesn't apply to defects specifically pointed out to the consumer or that the consumer should have noticed on examination (Trade Practices Amendment Act 1978 s74d(2)(b-c)).
  • Non-Correspondence with Samples:
    • If goods are supplied to a consumer by reference to a sample, and the bulk doesn't match the sample in quality or has a hidden defect making them unmerchantable, the corporation is liable to compensate the consumer (Trade Practices Amendment Act 1978 s74e(1)).
    • This doesn't apply if the sample wasn't supplied by the corporation, the supply by sample wasn't approved by the corporation, or the issue is due to someone else's actions or circumstances beyond the corporation's control after the goods left their control (Trade Practices Amendment Act 1978 s74e(2)).
  • Failure to Provide Facilities for Repairs or Parts:
    • If repair facilities or parts aren't reasonably available to the consumer, and the corporation acted unreasonably in failing to ensure their availability, the corporation is liable to compensate the consumer (Trade Practices Amendment Act 1978 s74f(1)).
  • Actions Against Manufacturers for Non-Compliance with Guarantees:
  • Defective Goods Actions:
  • Time Limit for Actions:
    • An action under the Trade Practices Amendment Act 1978 must be commenced within 3 years after the day on which the cause of action accrued (Trade Practices Amendment Act 1978 s74j(1)).
    • For defective goods actions, a person may commence an action at any time within 3 years after the time the person became aware, or ought reasonably to have become aware, of the loss or damage, the safety defect of the goods and the identity of the manufacturer (Competition and Consumer Act 2010 s143(1)). A defective goods action must be commenced within 10 years of the supply by the manufacturer of the goods to which the action relates (Competition and Consumer Act 2010 s143(2)).