A Practical Guide to Australian Consumer Law

Vivian Nguyen • March 20, 2025

Running a business in Australia means playing by the rules, and a crucial set of rules comes from the Australian Consumer Law (ACL).  Understanding your obligations under the ACL is not just about avoiding penalties; it is about building trust with your customers and creating a sustainable business. 


We will break down the key aspects of the ACL in plain English, relevant to your business, empowering you to operate with confidence and compliance.


What is the ACL?

The Australian Consumer Law is a single, national set of rules that protects consumers and ensures fair trading practices. It applies to almost all goods and services offered in Australia, regardless of whether the seller is a large national corporation or a small local business.  It is a rulebook for a fair marketplace. Compliance with the ACL is not optional; it is a legal requirement.


Who is a Consumer?

If you acquire goods or services:


  • Priced at or less than $100,000: This is a significant increase from the previous threshold of $40,000, meaning more transactions are now covered by the ACL.
  • Of a kind ordinarily acquired for personal, domestic, or household use or consumption: This applies regardless of the price. If the goods or services are typically used for personal or household purposes, you are a consumer even if you are a business buying them.


The definition of "
consumer" is broader than you might think, and it can include businesses in certain situations.


Key Obligations for Businesses Under the ACL

The ACL places several key obligations on businesses, including:



  • Upholding Consumer Guarantees: These are automatic rights that consumers have when they purchase goods or services. Your business must ensure that products are of acceptable quality, fit for purpose, and match their description. Services must be provided with due care and skill.  Understanding your obligations regarding repairs, replacements, and refunds is crucial.
  • Avoiding Misleading or Deceptive Conduct: Your marketing, advertising, and all interactions with customers must be truthful and accurate.  Avoid making false claims about your products or services, and be transparent about pricing and terms.
  • Using Fair Contract Terms: Standard form contracts (like those for subscriptions or service agreements) cannot include unfair terms. An unfair term is one that significantly favours your business and is detrimental to the consumer. Review your contracts regularly to ensure compliance.
  • Adhering to Product Safety Standards: If you sell physical products, you must ensure they meet all relevant safety standards.  This is a critical aspect of protecting consumers and avoiding legal repercussions.
  • Providing Accurate Information: Be transparent with your customers about pricing, terms and conditions, warranties, and any other relevant information.  Clear communication builds trust and reduces the risk of disputes.


A woman is trying on a pair of red high heels in a shoe store.


Understanding Consumer Guarantees in Detail

Consumer guarantees are a cornerstone of the ACL.  Here is a closer look at what they mean for your business:


  • Acceptable Quality: Products must be fit for purpose, free from defects, and safe.  Consider what a reasonable consumer would expect given the product's price and description.
  • Fit for Purpose:  If the consumer tells you they intend to use the product for a specific purpose, you must ensure it's suitable for that purpose.
  • Matching the Description: Products must match any descriptions you provide, whether in advertising, on packaging, or verbally.
  • Services: Services must be provided with due care and skill.


Consequences of Non-Compliance

Failing to comply with the ACL can have serious consequences for your business, including but not limited to:


  • Fines and penalties:  Significant financial penalties can be imposed for breaches of the ACL.
  • Legal action: Consumers can take legal action against your business for breaches of their consumer rights.
  • Reputational damage: Negative publicity and word-of-mouth can severely impact your business's reputation and lead to lost sales.


Tips for Businesses



  • Train your staff:  Ensure all employees who interact with customers understand their obligations under the ACL.
  • Review your contracts:  Regularly review your standard form contracts to ensure they are fair and comply with the law.
  • Be honest and transparent:  Build trust with your customers by providing accurate information and dealing with complaints fairly.
  • Stay informed: The ACL is subject to occasional updates.  Stay informed about any changes to the law by visiting the ACCC website (accc.gov.au).


How can we help? 

We can assist to train your staff, review your contracts, keep you informed and assist jou in navigating any issues if they arise. Our first consultation is free and no obligation. 


Do not wait until a problem arises.  Take proactive steps to ensure your business complies with the Australian Consumer Law. 


Visit the ACCC website (accc.gov.au) for comprehensive resources and guidelines.  Download their free guides for businesses and subscribe to their updates. Invest in training for your staff and seek legal advice when needed. 


Building a culture of compliance is not just good business practice; it is essential for long-term success in the marketplace.  Take control of your compliance today!


By Vivian Nguyen April 21, 2025
Congratulations! You're taking the exciting leap into entrepreneurship. But before you dive headfirst into your brilliant idea, it's crucial to lay a solid legal foundation. Although it may be an upfront cost you cannot seem to afford, having the right documents in place from the start can save you significant headaches, costs, and potential legal battles down the line.
By Maria Valenzuela April 20, 2025
Business ownership adds a layer of complexity to property division, and it is crucial to take proactive steps to protect your business and ensure a fair outcome.
By Vivian Nguyen April 20, 2025
Let's break down the A to Z of conveyancing in Australia, providing a comprehensive overview of what you need to know.
By Jack Dunn April 14, 2025
Being arrested can be a frightening and confusing experience. However, understanding your rights and knowing how to navigate the process can make a significant difference with your criminal law matter. Where do the Police Powers to Arrest come from? The Police have the power to arrest you under Section 99 of the Law Enforcement (Powers and Responsibilities) Act 2002 (NSW) , commonly referred to as LEPRA. What is the basis for an arrest? In 2013, the above laws were amended to outline when a police officer could arrest you without a warrant. This is based on one or more of the following: (a) the police officer suspects on reasonable grounds that the person is committing or has committed an offence, and (b) the police officer is satisfied that the arrest is reasonably necessary for any one or more of the following reasons-- (i) to stop the person committing or repeating the offence or committing another offence, (ii) to stop the person fleeing from a police officer or from the location of the offence, (iii) to enable inquiries to be made to establish the person's identity if it cannot be readily established or if the police officer suspects on reasonable grounds that identity information provided is false, (iv) to ensure that the person appears before a court in relation to the offence, (v) to obtain property in the possession of the person that is connected with the offence, (vi) to preserve evidence of the offence or prevent the fabrication of evidence, (vii) to prevent the harassment of, or interference with, any person who may give evidence in relation to the offence, (viii) to protect the safety or welfare of any person (including the person arrested), (ix) because of the nature and seriousness of the offence. Police Officers may also arrest you if directed by another Police Officer to do so in accordance with any of the above. You should be taken to an authorised officer who either a Local Court Magistrate or Registrar of any Local Court or Children’s Court as soon as reasonably practicable. Pursuant to section 105 of LEPRA Police officers can discontinue the arrest at any time and without taking the person to the above authorised officer. The purpose of arrest is to bring the individual before the Court to answer the charge or allegation laid by the Police.
By Razeeha Reilly April 14, 2025
The Fair Work Commission (FWC) ruled in favor of an employee who wanted to change his work arrangement to care for his child. The employee, Mr. Aoyama, asked to work from home three days a week, but his employer, FLSA Holdings Pty Ltd, refused. The FWC decided that FLSA did not have good business reasons to say no to Mr. Aoyama's request and ordered the company to allow it. Mr. Aoyama had been working from home two days a week since at least July 2023. In October 2024, he asked to change his arrangement to work from home three days a week to help with childcare. The FWC agreed with Mr. Aoyama, stating that his suggestion would not hurt the company's business. This decision is important because it supports employees' right to ask for flexible work arrangements to care for their children. It also tells employers that they cannot unreasonably refuse such requests. Kent Aoyama v FLSA Holdings Pty Ltd [2025] FWC 524
By Maria Valenzuela April 14, 2025
Divorce in Australia is governed by the Family Law Act 1975 (Cth), and as family lawyers, we guide clients through this process, ensuring they understand the legal requirements and their rights.
By Andrew Pacini April 14, 2025
The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.
By Vivian Nguyen April 7, 2025
As a business owner, you’ve spent years building something you’re proud of. But have you thought about what happens when you’re not around to steer the ship? Whether it’s due to retirement, illness, or something unexpected, estate planning is the key to ensuring your hard work doesn’t fall apart at the seams. It’s not just about writing a will—it’s about securing the future of your business, protecting your interests, and making sure your family doesn’t get hit with unexpected tax surprises.
By Vivian Nguyen April 7, 2025
Dealing with unpaid invoices and outstanding debts can be a significant challenge for businesses and individuals alike. Several effective strategies exist to recover what is owed to you.
By Peter Morris April 6, 2025
Harness racing, a thrilling blend of speed, strategy, and horsemanship, is governed by a comprehensive set of rules that ensure fairness, safety, and the integrity of the sport. While the sight of horses and sulkies flying around the track is captivating, understanding the regulations behind the action adds a deeper layer of appreciation for this unique form of racing.
Show More