We normally think of consumers as individuals buying goods and services from a business for personal use. However, section 3 of the Australian Consumer Law ('ACL') defines consumer more broadly. In addition to the purchase of goods and services for personal, domestic or household use, goods and services purchased for less than $100,000 whether by an individual or business are captured [Competition and Consumer Regulations 2010 (Cth) reg 77A]. The limit was $40,000 for transactions prior to 1 July 2021. The purchase of a vehicle used to transport goods on public roads is considered a consumer transaction.

Goods purchased for re-supply or incorporated into other goods in manufacture are excluded from the consumer protections.

There are some exceptions for services, including insurance contracts and services involving the transportation or storage of goods for the consumer’s business. Section 63(2) clarifies a consumer who uses transportation or storage services for personal purposes may still relying on the consumer guarantees as to services.

Protections under the ACL apply almost exclusively to consumer transactions “in trade or commerce”. This means that the ACL does not apply to private transactions, except for the statutory guarantees of title, undisturbed possession and undisclosed securities [ss 51- 53]. Another exception is for goods bought at auction, where the auction house acts as agent for the seller. A purchase made privately or at auction requires a great deal of care because there is very little recourse against a seller if something goes wrong.