Consumer Law

Consequential Loss

Also known as: indirect loss, consequential damage

In plain English

Extra losses caused by a faulty product or service, beyond the cost of the item itself.

What it means

Consequential loss is additional, reasonably foreseeable damage that flows from a failure to meet a consumer guarantee. Under the Australian Consumer Law, a consumer may recover compensation for such loss in addition to repair, replacement or refund of the goods or service. Examples include damage to other property or lost income caused by the failure. The loss must have been reasonably foreseeable; remote or unusual losses generally cannot be claimed.

How it's used

When a faulty washing machine flooded the laundry, the owner claimed consequential loss for the damaged flooring.

Dealing with consequential loss in real life?

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