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  • Writer's pictureAmanda Bird

A Fair Sale: The Product Liability Law in Australia

Australia is quite strict when it comes to the standards and policies of its business practices. Case in point, when a customer buys something, they have the right to seek legal action if the product they have purchased turns out to be damaged or faulty. This is in accordance with the Australian Consumer Law (ACL).

The ACL is a law being enforced to protect the rights of domestic and international consumers.

It covers all goods and services that are being sold or advertised in Australia or Australian territories.

Any breaches of Australian Consumer Law carry the penalty of committing a criminal offence and can result in a prison sentence of up to 2 years.

How To Seek Compensation

If you feel like a business has deceived you or you think you have been scammed, you can seek a refund or ask for compensation as long as the item or service you were sold turned out to be defective or faulty.

You can also file a complaint if the business fails to repair or replace the item or service you had bought.

What Is A Product Defect

According to the ACL, there are certain conditions that are required to be present for a product to be considered defective.

The product sold or marketed must be safe for normal or reasonable use.

The product must also be of acceptable quality even if it is new or it is for the purpose of repair or replacement.

In addition, the product must also be free from any misleading or deceptive conduct and must have sensible instructions on the proper use and care.

The seller must also not be liable for any loss, damage, or injury caused by the product's use.

To seek compensation, you must first understand what product defects are.

Here are some examples:

The product is not functioning as it is advertised to, or it is rated or classified.

  • The product is not fit for normal use.

  • The product is not fit for its intended use.

  • The product is not free from defects or flaws.

  • The product is not free from deceptive or misleading conduct.

  • The product does not have reasonable instructions on how to use and care for it.

Compensations under the ACL

If your purchased items or used product turned out to be defective or faulty, you have the right to ask for compensation.

But this does not automatically mean that you will get the compensation you want from the business you bought from.

To make sure that you are entitled to the compensation you need for your item or service, you should first complain to the business selling the product if you feel you were scammed or feel that the product you bought was faulty or damaged.

You can then seek legal advice and consult a lawyer if the business fails to compensate or make amends with you.

Besides the monetary compensation, there are businesses that have been ordered to make good the defect or damage they have caused by paying a fine to the government.

These fines are also included in the compensation you can seek from the government office.

There is also an option for a court order that requires the business to give a written public apology for the damage or wrong committed.


If you have been the victim of a defective or faulty product, you have the right to seek compensation as long as you have proof that the seller or manufacturer has deceived you.

In addition, you can seek assistance from the government or a lawyer if you feel that you are in the right and are just being pushed around by the business you bought the product from.

Don't forget that there is no such thing as a free lunch in this world, and the businesses are expected to make their customers satisfied or risk the consequences.

If you are looking for an institution that deals with public and products liability insurance, look no further than our lineup of expertise here at New Wave Insurance. We are here to help you find the right insurance for your assets, businesses, and vehicles. Call us today and let us discuss your current consumer concerns.

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