Consumer Law

Manufacturer's Warranty vs Consumer Guarantee

Also known as: warranty versus guarantee

In plain English

A warranty is an optional promise from the maker; consumer guarantees are automatic legal rights that can't be taken away.

What it means

A manufacturer's warranty is a voluntary commitment with its own terms and time limits. Consumer guarantees under the Australian Consumer Law are automatic statutory rights that apply regardless of any warranty and cannot be excluded. The key difference is that a warranty can expire or impose conditions, but consumer guarantees continue for whatever period is reasonable given the price, quality and nature of the goods. A consumer may rely on whichever gives the better outcome.

How it's used

After the one-year warranty lapsed, the buyer still used her consumer guarantee rights when the expensive TV failed at 18 months.

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