Significant increase in consumer definition under the Australian Consumer Law
05 July 2021
05 July 2021
unless the goods are acquired for the purpose of re-supply, or for the purpose of using them up or transforming them in trade or commerce in the course of a process of production or manufacture or in the course of repairing or treating other goods or fixtures on land.
The definition of "consumer" under the Australian Securities and Investments Commission Act 2001 (ASIC Act) will also be amended, meaning a person will acquire financial services as a "consumer" where the price of the services does not exceed AU$100,000.
The consumer guarantees and protections under the Australian Consumer Law and the ASIC Act will now apply to transactions of AU$100,000 or less, and include statutory guarantees that cannot be excluded. The increased threshold will apply to both business-to-consumer and business-to-business transactions.
If you would like more information on these changes or would like to have a detailed conversation about what this means for your business, please reach out to your Ashurst contact and we would be pleased to assist you.
Authors: Alyssa Phillips, Partner; Melissa Fraser, Partner; Amanda Tesvic, Senior Associate; Rowan Kendall, Senior Associate; Judy Zhao, Lawyer; and Tom Allen, Lawyer.