GuaranteesOnRecord

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What are my rights when I pay for a service?

31 quoted answers, each with its source

The short answer

The Australian Consumer Law gives consumers statutory guarantees for services, including that the work must be at least as good as a competent provider with average skills and experience and that services supplied for a disclosed purpose must be reasonably fit for that purpose; LegalVision describes these as warranties, but the ACCC states that warranties are voluntary and additional to consumer guarantees. For a failure that can be remedied and is not major, the consumer may require the supplier to fix it within a reasonable time; Consumer Affairs Victoria states this, while LegalVision states that the supplier chooses the remedy for a minor service fault. For a major or irremediable failure, the consumer may terminate the contract and recover compensation for any reduction in value below the price paid or payable; Consumer Affairs Victoria says cancelling a services contract gives a right to a refund, and Sprintlaw says the customer can cancel and get a refund for the unused portion and may claim compensation for loss or damage. A major failure includes a service creating an unsafe situation and, for contracts entered on or after the commencement of the 2020 amending Act, services that a reasonable consumer would not have acquired fully aware of the failures; services guarantees do not apply to insurance contracts, services bought before 1 January 2011 are not covered by the current Australian Consumer Law, and for purchases before 1 July 2021 the consumer-definition threshold amount is $40,000.

Every part of this comes from the quotes below. How we write these.

What the rules actually say12

Quoted straight from the ACCC, the Australian Consumer Law or a state consumer regulator.

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The ACCC states that, in relation to services guarantees, a service provider's work must be at least as good as what a competent service provider with average skills and experience would provide.

first-party
1 quote from 1 source
Their work must be at least as good as what a competent service provider with average skills and experience would provide.
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Australian Consumer Law section 61(1) provides a guarantee that services acquired for a particular purpose made known to the supplier will be reasonably fit for that purpose.

first-party
2 quotes from 1 source
61 Guarantees as to fitness for a particular purpose etc.
there is a guarantee that the services, and any product resulting from the services, will be reasonably fit for that purpose.
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Australian Consumer Law section 63 excludes the services guarantees from applying to a contract of insurance.

first-party
3 quotes from 1 source
63 Services to which this Subdivision does not apply
This Subdivision does not apply to services that are, or are to be, supplied under:
(b) a contract of insurance.
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Australian Consumer Law section 267(2) does not give the supplier the right to require a remedy for a services failure.

first-party
3 quotes from 1 source
267 Action against suppliers of services
If the failure to comply with the guarantee can be remedied and is not a major failure:
(a) the consumer may require the supplier to remedy the failure within a reasonable time; or
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Australian Consumer Law section 267(3) lets a consumer terminate the services contract where the failure cannot be remedied or is a major failure.

first-party
4 quotes from 1 source
267 Action against suppliers of services
If the failure to comply with the guarantee cannot be remedied or is a major failure, the consumer may:
(a) terminate the contract for the supply of the services; or
(b) by action against the supplier, recover compensation for any reduction in the value of the services below the price paid or payable by the consumer for the services.
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Australian Consumer Law section 268(1)(e) makes a services failure a major failure where the supply of the services creates an unsafe situation.

first-party
2 quotes from 1 source
268 When a failure to comply with a guarantee is a major failure
(e) the supply of the services creates an unsafe situation.
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Australian Consumer Law section 63(2) was inserted as a response to the High Court's decision in Wallis v Downard-Pickford (North Queensland) Pty Ltd.

medium confidencefirst-party
2 quotes from 1 source
63 Services to which this Subdivision does not apply
Note: This subsection was inserted as a response to the decision of the High Court of Australia in Wallis v Downard ‑ Pickford (North Queensland) Pty Ltd [1994] HCA 17.
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Consumer Affairs Victoria states that for services not done with due care and skill a problem must be major or unable to be fixed before the consumer can ask the business for a refund.

first-party
1 quote from 1 source
A problem must be major or unable to be fixed before the consumer can ask the business for a refund.
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Consumer Affairs Victoria states that cancelling a contract for services gives the consumer the right to a refund.

first-party
1 quote from 1 source
Cancelling a contract for services gives the consumer the right to a refund.
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  • Consumer Affairs Victoria states that what is a reasonable time for supplying a service depends on the nature of the services.
  • Consumer Affairs Victoria gives building a house against lopping a tree as its comparison.
first-party
1 quote from 1 source
What is 'reasonable' will depend on the nature of the services. For example, the time needed to build a house will be longer than the time required to lop a tree.

Measured finding4

Something someone actually measured, with the method attached.

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The Productivity Commission found that consumer guarantees…

  • are reasonably comprehensive.
  • generally work well.
  • should be improved.
  • should be improved by expanding options for enforcement to help individual consumers resolve their claims.
other
2 quotes from 1 source
These guarantees are reasonably comprehensive and generally work well, but they should be improved by:
expanding options for ensuring compliance with, and enforcement of, the guarantees to assist individual consumers to resolve their claims and for the Australian Competition and Consumer Commission to address systemic breaches of consumer guarantees

Changed on2

A dated change. This is where advice quietly stops being true.

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The Treasury Laws Amendment (2020 Measures No. 6) Act 2020 added a subsection to Australian Consumer Law section 268.

first-party
4 quotes from 1 source
38 At the end of section 268 of Schedule 2
(2) A failure to comply with a guarantee referred to in section 267(1)(b) that applies to a supply of services is also a major failure if:
(b) the services would not have been acquired by a reasonable consumer fully acquainted with the nature and extent of those failures, taken as a whole.
The amendments made by Part 1 of Schedule 4 to the Treasury Laws Amendment (2020 Measures No. 6) Act 2020 apply in relation to a services supplied under a contract entered into on or after the day that that Part commences.
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Products and services bought before 1 January 2011 are not covered by the current Australian Consumer Law.

first-party
1 quote from 1 source
Products and services bought before 1 January 2011 aren't covered by the current Australian Consumer Law.

Disputed between sources4

Sources that do not agree, presented without picking a winner.

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  • LegalVision describes consumer guarantees as warranties.
  • The ACCC describes warranties as voluntary promises that are additional to consumer guarantees.
first-partyvendor
3 quotes from 2 sources
Consumer guarantees are warranties that all consumers can rely on when making a purchase.
Warranties are voluntary and are additional to consumer guarantees
Warranties can't replace, change or take away a consumer's basic rights.
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  • Regarding services guarantees, LegalVision says the service supplier chooses the remedy for a minor service fault.
  • Regarding services guarantees, Consumer Affairs Victoria says the consumer can require the business to fix the problem within a reasonable time.
first-partyvendor
2 quotes from 2 sources
If a fault is considered a 'minor' fault, the service supplier can choose to either:
The consumer can require the business to fix the problem within a reasonable time.

Often said, but we could not find it in the rules9

Lots of people say this. We went looking for an official source that backs it up and could not find one, so treat it as something people repeat rather than something settled.

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LegalVision asserts that consumer guarantees are warranties that all consumers can rely on when making a purchase.

vendor
1 quote from 1 source
Consumer guarantees are warranties that all consumers can rely on when making a purchase.
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LegalVision asserts that, for services guarantees, where a service fault is minor, the service supplier is the party that chooses which remedy to provide.

vendor
1 quote from 1 source
If a fault is considered a 'minor' fault, the service supplier can choose to either:
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In services guarantees, LegalVision asserts that a supplier…

  • need not provide any refund because a purchaser changed their mind about the service.
  • must honour a company policy if it has one for instances where a purchaser changed their mind about the service.
vendor
1 quote from 1 source
Further, a supplier need not provide any refund because a purchaser changed their mind about the service. However, if they have a company policy in such instances, they must honour it.
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LegalVision asserts that under the Australian Consumer Law services include ballet lessons, an accountant's services, dry cleaning and installing or repairing consumer goods.

vendor
1 quote from 1 source
For example: ballet lessons, accountant's services, dry cleaning and installing or repairing consumer goods are all services under the ACL.
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Sprintlaw asserts, regarding services guarantees, that the customer…

  • can cancel and get a refund for the unused portion of a services contract.
  • may claim compensation for loss or damage.
other
1 quote from 1 source
with services, the customer can cancel and get a refund for the unused portion (and may claim compensation for loss or damage).
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Sprintlaw asserts about services guarantees that…

  • it is unlawful to display or enforce a blanket 'No Refunds' policy.
  • nothing can limit or exclude Australian Consumer Law rights for faulty goods or services.
other
1 quote from 1 source
It's unlawful to display or enforce a blanket "No Refunds" policy. You can set reasonable conditions for change-of-mind returns, but nothing can limit or exclude ACL rights for faulty goods or services.