GuaranteesOnRecord

All subjects

Consequential loss

29 established claims - 11 refused by the grounding gate

Documented position21

What the body that runs or defines the thing says in its own documentation.

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Section 64A of the Australian Consumer Law permits a term limiting liability for failure to comply with a guarantee, without that term being void under section 64, for goods other than goods of a kind ordinarily acquired for personal, domestic or household use or consumption.

other
1 quote from 1 source
A term of a contract for the supply by a person of goods other than goods of a kind ordinarily acquired for personal, domestic or household use or consumption is not void under section 64 merely because the term limits the person’s liability for failure to comply with a guarantee
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Section 64A(3) of the Australian Consumer Law disapplies that limitation allowance where the buyer establishes that it is not fair or reasonable for the supplier to rely on the term.

other
1 quote from 1 source
This section does not apply in relation to a term of a contract if the person to whom the goods or services were supplied establishes that it is not fair or reasonable for the person who supplied the goods or services to rely on that term of the contract.
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The ACCC states that it is…

  • misleading for a business to say that it is not responsible for the foreseeable losses a consumer suffers from using the business's product or service.
  • against the law for a business to say that it is not responsible for the foreseeable losses a consumer suffers from using the business's product or service.
other
1 quote from 1 source
It is misleading and against the law for a business to say that it is not responsible for the foreseeable losses a consumer suffers from using the business’s product or service.
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The ACCC states that businesses must not claim that a consumer has no right to compensation for damage or loss caused by a problem with a product or service.

other
1 quote from 1 source
Businesses must not claim that a consumer has no right to this compensation.
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The ACCC states that a consumer's right to compensation for other loss or damage is in addition to getting a repair, replacement or refund.

other
1 quote from 1 source
If the problem causes the consumer to suffer other loss or damage, they also have a right to compensation. This is in addition to getting a repair, replacement, or refund.
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The ACCC states that a business does not have to pay for damage or loss that relates to something independent of the business, after a product left its control.

other
2 quotes from 1 source
A business does not have to pay for damage or loss that:
relates to something independent of the business, after a product left its control.
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Consumer Affairs Victoria states that businesses cannot write a term into a sales contract saying the business will not be responsible for any extra loss suffered by the consumer because something went wrong with the products or services.

other
1 quote from 1 source
Businesses cannot write a term into a sales contract that says the business will not be responsible for any extra loss suffered by the consumer because something went wrong with the products or services.
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Consumer Affairs Victoria states that loss or damage claimed after a defect must…

  • have been reasonably foreseeable
  • not have been caused by something outside human control, such as a natural disaster
other
1 quote from 1 source
The loss or damage must have been reasonably foreseeable and not caused by something outside human control, such as a natural disaster.
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Consumer Affairs Victoria states that compensation should put the consumer in the position they would have been in if the goods or services had met the consumer guarantees.

other
1 quote from 1 source
Compensation should put the consumer in the position they would have been in if the goods or services had met the consumer guarantees.
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Consumer Affairs Victoria states that manufacturers are liable to compensate consumers for loss or damage resulting from safety defects in their products that cause death or injury, or damage to personal property.

other
1 quote from 1 source
Manufacturers are also liable to compensate consumers for loss or damage resulting from safety defects in their products that cause death or injury, or damage to personal property.
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Consumer Affairs Victoria states that a consumer can…

  • apply to the business directly for damages or compensation.
  • take the claim to formal dispute resolution services if the business refuses.
  • take legal action if the business refuses.
other
1 quote from 1 source
A consumer can apply to the business directly for damages or compensation. If the business refuses to pay or to reach an agreement to settle a dispute, the consumer can take their claim to formal dispute resolution services or take legal action.
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The ACCC's consumer guarantees guide…

  • defines consequential loss as the cost to a consumer of a problem with goods or services.
  • states that consequential loss is usually financial but capable of including other costs such as lost time or productivity.
other
1 quote from 1 source
Consequential loss is the cost to a consumer of a problem with goods or services. It is usually financial but can include other costs, such as lost time or productivity.
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The ACCC's consumer guarantees guide describes 'consequential losses' as the reasonably foreseeable costs to the consumer in time and money because something went wrong with their goods or services.

other
1 quote from 1 source
‘Consequential losses’ are the reasonably foreseeable costs to the consumer in time and money because something went wrong with their goods or services.
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The ACCC's consumer guarantees guide states that suppliers or manufacturers cannot write a term into their sales contract saying they will not be responsible for extra loss suffered.

other
1 quote from 1 source
Suppliers or manufacturers cannot write a term into their sales contract that says that they will not be responsible for extra loss suffered. This misleads the consumer about their legal right to compensation for consequential loss under the ACL. This misleading conduct is a breach of the ACL.
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The ACCC's consumer guarantees…

  • guide documents a position on consequential loss.
  • guide's position on consequential loss is that if suppliers or manufacturers attempt to put terms in their contracts to avoid responsibility, those terms may be considered unfair contract terms.
other
1 quote from 1 source
If suppliers or manufacturers attempt to put terms in their contracts to avoid responsibility, they may also be misleading the consumer about their legal right to compensation for consequential loss. Any such terms may be considered unfair contract terms.

Repeated, with no primary source in reach8

Widely repeated in the field. Within the documents this sweep read, it traces only to other repetitions - which is a fact about our reading as well as about the idea, until each one has been searched for on its own.

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Bunnings states that customers are entitled to compensation for other reasonably foreseeable loss or damage.

other
1 quote from 1 source
You're entitled to a replacement or refund for a major failure, and to compensation for other reasonably foreseeable loss or damage.
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Sprintlaw states that consequential loss exclusions are used by businesses to cap open-ended exposure that could be wildly disproportionate to the contract value.

other
1 quote from 1 source
Businesses use them to cap “open-ended” exposure that could be wildly disproportionate to the contract value.
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Sprintlaw states that categories like lost profits…

  • are not automatically consequential in every case.
  • may sometimes be treated as a direct loss.
other
1 quote from 1 source
categories like “lost profits” aren’t automatically consequential in every case - sometimes lost profits may be treated as a direct loss, depending on the nature of the contract and what the profit relates to
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  • Consequential loss is the subject of a statement by Sprintlaw.
  • Sprintlaw's statement about consequential loss says that a business dealing with consumers cannot contract out of certain obligations under the Australian Consumer Law.
other
1 quote from 1 source
Also remember that if you’re dealing with consumers, you can’t contract out of certain obligations under the Australian Consumer Law (ACL).
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Sprintlaw states that a broad 'no consequential loss' clause might leave a customer buying goods or services without a meaningful remedy for the real-world damage they suffer when the supplier fails.

other
1 quote from 1 source
if you’re the customer buying goods or services, a broad “no consequential loss” clause might leave you without a meaningful remedy for the real-world damage you suffer when the supplier fails.
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Kmart states that customers are entitled to a replacement or refund for a major failure and compensation for any other reasonably foreseeable loss or damage.

other
1 quote from 1 source
You are entitled to a replacement or refund for a major failure and compensation for any other reasonably foreseeable loss or damage.

Refused11

Claims the research produced that the grounding gate would not accept, with its reason. They are here because a site that only shows what passed gives you no way to judge whether the gate does anything.

Show what was refused

Section 259(4) of the Australian Consumer Law allows a consumer to recover damages from the supplier for loss or damage suffered because of a failure to comply with a guarantee, where it was reasonably foreseeable that the consumer would suffer such loss or damage.

Refused: The quote states the same damages entitlement but does not identify it as Section 259(4) of the Australian Consumer Law.

Unsupported: Section 259(4) of the Australian Consumer Law

What it rested on
The consumer may, by action against the supplier, recover damages for any loss or damage suffered by the consumer because of the failure to comply with the guarantee if it was reasonably foreseeable that the consumer would suffer such loss or damage as a result of such a failure.

Section 259(5) of the Australian Consumer Law disapplies the damages right where the failure to comply with the guarantee occurred only because of a cause independent of human control that occurred after the goods left the control of the supplier.

Refused: The quote states subsection (4) does not apply under that condition, but does not identify it as Section 259(5) or as a damages right.

Unsupported: Section 259(5) of the Australian Consumer Law disapplies the damages right

What it rested on
Subsection (4) does not apply if the failure to comply with the guarantee occurred only because of a cause independent of human control that occurred after the goods left the control of the supplier.

Section 259(6) of the Australian Consumer Law states that the damages right applies in addition to the repair, replacement and rejection remedies.

Refused: The quote only states subsection (4) applies in addition to subsections (2) and (3) without identifying Section 259(6) or describing those subsections as damages and repair/replacement/rejection remedies.

Unsupported: Section 259(6) of the Australian Consumer Law states that the damages right applies in addition to the repair, replacement and rejection remedies

What it rested on
To avoid doubt, subsection (4) applies in addition to subsections (2) and (3).

Regarding consequential loss, the ACCC states that compensation should put the consumer back in the financial position they were in before the problem happened.

Refused: The cited quote states the general compensation principle but does not mention or establish that it concerns consequential loss.

Unsupported: Regarding consequential loss

What it rested on
Compensation should put the consumer back in the financial position they were in before the problem happened.

The ACCC states that for consequential loss, most costs a consumer faces are financial.

Refused: The quote states most costs are financial but does not tie this to consequential loss.

Unsupported: for consequential loss

What it rested on
Most costs are financial, but there can be other costs, such as lost time or productivity, to be covered.

The ACCC states that for consequential loss, there can be other costs such as lost time or productivity to be covered by compensation.

Refused: The quote mentions other costs such as lost time or productivity but does not tie them to consequential loss.

Unsupported: for consequential loss

What it rested on
Most costs are financial, but there can be other costs, such as lost time or productivity, to be covered.

The ACCC's consumer guarantees guide states that writing a term disclaiming responsibility for extra loss into a sales contract misleads the consumer about their legal right to compensation for consequential loss under the ACL.

Refused: The quote supports the statement about misleading consumers regarding consequential loss, but its antecedent does not establish the specific contract-term conduct described in the claim.

Unsupported: writing a term disclaiming responsibility for extra loss into a sales contract

What it rested on
This misleads the consumer about their legal right to compensation for consequential loss under the ACL. This misleading conduct is a breach of the ACL.

The ACCC's consumer guarantees guide states that writing a term disclaiming responsibility for extra loss into a sales contract is a breach of the ACL.

Refused: The quote states misleading conduct about consequential loss is a breach, not that writing a contractual disclaimer term is itself a breach.

Unsupported: writing a term disclaiming responsibility for extra loss into a sales contract is a breach of the ACL

What it rested on
This misleads the consumer about their legal right to compensation for consequential loss under the ACL. This misleading conduct is a breach of the ACL.

Consequential loss is echoed by Kmart's statement that claims for compensation should be addressed with supporting evidence to its customer service team.

Refused: The quote mentions compensation and return expenses but does not mention or entail consequential loss.

Unsupported: Consequential loss is echoed by Kmart's statement

What it rested on
Claims for compensation or reasonable expenses incurred in returning your purchase together with supporting evidence, should be addressed to our Kmart Customer Service team

Consequential loss is echoed by Kmart's statement that claims for reasonable expenses incurred in returning a purchase should be addressed with supporting evidence to its customer service team.

Refused: The quote states Kmart's policy on reasonable return expenses but does not mention or establish that 'consequential loss' is echoed by it.

Unsupported: Consequential loss is echoed by

What it rested on
Claims for compensation or reasonable expenses incurred in returning your purchase together with supporting evidence, should be addressed to our Kmart Customer Service team

The Australian Consumer Survey 2023 reports that when consumers lose money to scams or frauds they most often lose less than $10,000.

Refused: The quote says consumers most often lose less than $10,000 when they lose money generally, but does not mention scams or frauds.

Unsupported: to scams or frauds

What it rested on
When consumers do lose money, they most often lose less than $10,000.