What Are Your Rights And Obligations For Goods Under Australian Consumer Law?

Selling goods in Australia comes with clear legal responsibilities - and useful protections - under the Australian Consumer Law (ACL). Whether you’re running an online store, managing a retail outlet, or selling at markets and pop-ups, knowing the rules helps you serve customers confidently, avoid costly mistakes, and grow your brand the right way.

In this guide, we’ll walk through what “goods” means under the ACL, the core consumer guarantees you must honour, day-to-day obligations when you sell, the contracts and policies that protect your business, and how to handle problems if something goes wrong. We’ll also cover where you can limit (and where you can’t limit) your liability so you’re not overexposed to risk.

If you’re just getting started - or scaling up - keep reading to set up your goods sales on solid legal footing from day one.

What Does “Goods” Cover Under The ACL?

Under the ACL, “goods” generally means tangible products you supply to consumers - clothing, electronics, furniture, tools, vehicles, food and beverages, and even animals. Importantly, “goods” also includes computer software and many types of downloadable digital content supplied for use in Australia.

Digital products can sit in a grey area. As a simple rule of thumb:

• Downloadable items like software, e‑books, and audio files are typically treated as goods.
• Access to a platform or subscription (for example, a streaming service or cloud storage) is usually a service, which has its own consumer guarantees.

If you’re bundling goods and services (for example, selling a device plus ongoing maintenance), both sets of guarantees may apply. When in doubt, get tailored advice before you launch - it’s easier to build compliant processes than to fix them later.

What Consumer Guarantees For Goods Must You Honour?

Consumer guarantees are automatic rights that attach to every sale of goods to a consumer in Australia. You can’t contract out of them. If goods don’t meet these standards, you must provide a remedy.

The core guarantees for goods

• Acceptable quality: Goods must be safe, durable, free from defects, look acceptable, and do what they’re meant to do.
• Fit for purpose: If a customer tells you they need a product for a particular use, it must be suitable for that use.
• Match description or sample: Goods must match what was described online, in-store, or in any sample or demo.
• Title and undisturbed possession: You must have the right to sell the goods and pass clear ownership free of undisclosed security interests.
• Repairs and spare parts: Repair facilities and spare parts must be available for a reasonable time after purchase (unless you clearly tell the customer otherwise before sale).

If a failure is major (for example, the goods are unsafe, substantially unfit for purpose, or can’t be fixed within a reasonable time), customers can choose a refund or replacement. If it’s a minor problem, you can opt to repair, replace, or refund within a reasonable time.

For a deeper overview of consumer guarantees and remedies, it’s worth reading this plain-English explainer on an Australian Consumer Law warranty and how it interacts with your obligations.

What Are Your Day-To-Day Obligations When Selling Goods?

Many ACL duties are practical, everyday obligations. Getting these right will reduce complaints, speed up returns handling, and build trust with customers.

Be truthful and avoid misleading conduct

All advertising and sales practices must be accurate and not misleading or deceptive. This covers your website, social posts, packaging, shelf tickets, comparison charts, and verbal representations in-store or over the phone.

Common missteps include overstating performance, implying certification you don’t have, or using fine print to contradict bold claims. Section 18 of the ACL prohibits misleading or deceptive conduct, and section 29 bans false or misleading representations about goods. If you need a refresher on where the line is, revisit the essentials of section 18 and how the elements of misleading or deceptive conduct are applied.

Be clear on price and fees at checkout

Customers should see the total price payable, including mandatory fees and taxes, before committing to buy. Avoid drip pricing, hidden charges, or “junk fees” revealed late in checkout. Price claims like “was $X, now $Y” must be accurate and substantiated.

Provide the right remedies - and say so

You must provide remedies when goods don’t meet the consumer guarantees. “No refunds” signs or policies are likely misleading if they imply consumers can’t get a refund for faulty goods.

If you offer a voluntary warranty (often called a warranty against defects), it must sit alongside the statutory guarantees, not replace them. Ensure any warranty wording is compliant and includes the mandatory ACL statement where required. Having a clear, compliant Warranties Against Defects Policy helps your team respond consistently.

Run your online sales compliantly

Ecommerce stores must meet the same ACL obligations as physical retailers - plus a few online-specific expectations, like clear delivery timeframes and transparent shipping costs. Before you go live, make sure your site has tailored Online Shop Terms & Conditions, up-to-date product pages, and practical customer service workflows for repairs, replacements, and refunds.

It’s also wise to include sensible rules for site use, intellectual property, and acceptable behaviour in your Website Terms of Use, and to publish a straightforward Shipping Policy that sets expectations on dispatch, delivery, delays, and lost parcels.

Issue receipts and keep good records

Provide receipts for sales above the relevant threshold and maintain records of sales, warranties, complaints, and remedies provided. Strong recordkeeping makes it easier to triage issues, trace batches for quality concerns, and demonstrate compliance if the ACCC makes enquiries.

What Legal Documents Should A Goods Business Have?

The right contracts and policies make your obligations clear, streamline customer handling, and reduce disputes. Not every business needs every document on this list, but most goods businesses will use several of them from day one.

• Terms of Sale (in-store or online): Sets out your sales process, payment terms, delivery, risk and title passing, returns, and dispute resolution. If you sell online, bespoke Online Shop Terms & Conditions should cover order acceptance, pricing errors, delivery, and remedies.
• Warranties Against Defects Policy: If you offer a voluntary warranty, ensure it’s compliant, uses the required ACL wording, and aligns with your repair/replacement processes. A clear policy helps avoid inconsistent promises.
• Website Terms of Use: For ecommerce and marketing sites, Website Terms of Use set acceptable use rules, IP ownership, and liability caps for site content and availability.
• Privacy Policy (when legally required or expected): A Privacy Policy is legally required for APP entities (for example, most businesses with >$3m annual turnover) and certain specific businesses (such as health service providers and credit providers). Even where not strictly required, many businesses publish a simple, accurate Privacy Policy because customers expect it and platforms and payment providers often require one. Make sure your policy reflects what you actually do with customer data.
• Supply or Distribution Agreement: If you source or sell through third parties, a well-drafted supply or distribution agreement can allocate quality control, delivery risk, product recalls, indemnities, and who manages end-customer remedies.
• Terms of Trade (B2B): If you wholesale or sell to business customers, tailored terms covering credit, delivery risk, retention of title, and set‑off can protect cash flow and reduce disputes.

It’s important that these documents work together - for example, your warranty and returns processes should match what your terms promise your customers. If you’re unsure, we can review your current documents and fill any gaps before they cause headaches.

What Other Laws Should Goods Businesses Consider?

Consumer law is a major piece of the puzzle, but it’s not the only one. Depending on what you sell and how you sell it, you may also need to think about the following.

Product safety standards and labelling

Some goods (for example, toys, electrical goods, cosmetics, or products with button batteries) must meet mandatory safety standards or labelling rules. You must not supply unsafe or banned goods. Build supplier due diligence and product testing into your procurement process and keep technical files on hand.

Advertising and pricing rules

Promotional tactics like “was/now” pricing, limited-time offers, and bundled deals must be truthful and substantiated. Be careful with “comparative” price claims and strike‑through pricing - inaccurate displays can breach the ACL.

Privacy and direct marketing

If you collect customer personal information (names, emails, addresses, purchase histories), you’ll need to comply with the Privacy Act and Spam Act. As noted, some businesses must have a Privacy Policy by law; others adopt one because customers and partners expect transparency and to meet platform requirements. Keep your email and SMS marketing opt‑in based and easy to unsubscribe.

Intellectual property

Protect your brand and product designs early. Registering your brand as a trade mark can stop others from using a confusingly similar name or logo, and it’s a valuable asset as you grow. It’s worth considering an application to register your trade mark before a major launch.

Taxes and GST

You’ll need to comply with tax obligations, which may include GST registration once you pass the turnover threshold, issuing valid tax invoices, and reporting correctly. This is general information only - always seek independent tax advice from your accountant to set things up properly for your situation.

Imports and exports

If you import goods, factor in customs classification, duties, and compliance with Australian safety standards. For exports, check the destination country’s requirements before shipping. Build these timelines and costs into your pricing and delivery commitments.

How Should You Handle Problems With Goods?

Even with solid quality control, issues happen. Having a clear, ACL‑compliant process makes resolution faster and less stressful for both you and your customer.

Step 1: Identify whether the problem is minor or major

Start by assessing the issue against the consumer guarantees. If the defect can be fixed within a reasonable time and doesn’t substantially impact performance or safety, it’s usually a minor failure. For minor failures, you can choose to repair, replace, or refund.

If the problem is major - for example, a significant safety issue, substantial departure from description, or a defect you can’t fix quickly - the customer gets to choose a refund or replacement.

Step 2: Offer the appropriate remedy promptly

For minor failures, repairs should be free and completed within a reasonable timeframe. If the repair can’t be done in a reasonable time, the customer can opt for a refund or replacement. For major failures, honour the customer’s choice between a refund and replacement. If they’ve suffered additional reasonably foreseeable loss due to the failure, they may also be entitled to compensation.

Step 3: Keep records and close the loop

Record the complaint, what you found, and the remedy provided. If you see patterns - same batch or model - escalate quickly, consider withdrawing stock, and communicate with your supplier under your supply agreement. Good records help you claim supplier indemnities and demonstrate your compliance if regulators ask.

Remember: you can’t send customers directly to the manufacturer and refuse to help. Your obligations to the end consumer exist regardless of your upstream arrangements, and your contracts with suppliers should back you up if a defect is their fault.

Can You Limit Or Exclude Your Liability?

You cannot exclude or restrict the statutory consumer guarantees. Any term that attempts to do so won’t be enforceable and may itself be misleading.

However, it’s common to include a fair and reasonable limitation of liability clause for other types of loss (for example, indirect or consequential loss) in your B2B terms or site terms, provided it doesn’t undercut mandatory consumer rights. If you’re drafting a limitation, make sure it’s consistent with the ACL and clearly written. If you’re unsure what’s appropriate, this overview of limitation of liability clauses is a useful starting point, and getting tailored advice is a smart move.

Key Takeaways

• Consumer guarantees for goods are automatic under the ACL - you can’t contract out of them, and you must provide repairs, replacements, or refunds when goods fail to meet those standards.
• Be truthful and transparent in marketing, pricing, and checkout; avoid misleading conduct and ensure total prices and key information are clear before purchase.
• Put practical, ACL‑aligned documents in place: Terms of Sale, a compliant Warranties Against Defects Policy, Website Terms of Use, and (where required or expected) a clear Privacy Policy.
• Build compliance into your operations: product safety checks, accurate labelling, strong supplier terms, good records, and customer‑friendly remedies that your team can action quickly.
• Digital products can be goods (for example, software and e‑books) or services (for example, subscriptions); understand which guarantees apply to your offering.
• Limitations of liability can help manage risk in some contexts, but they must not undermine consumer guarantees - get your wording reviewed before you publish.

If you’d like a consultation on your rights and obligations when selling goods in Australia, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.