What is Section 54 of the Australian consumer law?

Section 54 of the Australian Consumer Law (ACL) is a provision that outlines one of the fundamental consumer guarantees regarding the quality and fitness for purpose of goods. This section ensures that consumers have the right to expect that the goods they purchase are of acceptable quality and meet certain standards. Specifically, Section 54 of the ACL states:

Section 54 – Guarantee as to acceptable quality

(1) Subject to this section, if:

(a) a person supplies, in trade or commerce, goods to a consumer; and

(b) the supply does not occur by way of sale by auction; and

(c) the consumer is not, or is not one of the persons who is, a person who, or a kind of person who, is excluded by section 64A from the operation of this section; there is a guarantee that the goods are of acceptable quality.

In essence, Section 54 establishes that when a business supplies goods to a consumer in the course of trade or commerce (excluding sales by auction) and the consumer is not excluded by Section 64A (which lists some exceptions), there is an automatic guarantee that the goods are of “acceptable quality.”

The term “acceptable quality” is defined in the ACL and includes several characteristics that goods should possess:

  • Goods should be safe and free from defects.
  • Goods should be fit for the intended purpose, as described by the consumer or as can be reasonably expected based on the type of goods and their price.
  • Goods should match the description or sample provided.
  • Goods should be durable and last for a reasonable time, taking into account their nature and intended use.
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If the goods do not meet these standards of acceptable quality, consumers have the right to seek a remedy, which may include a refund, repair, or replacement, depending on the nature of the issue and their preference.

Section 54 of the ACL is one of the key provisions that protect consumers when it comes to the quality and fitness for purpose of goods they purchase, ensuring that they receive products that meet reasonable expectations in terms of quality and performance.