SMEs urged to get on top of New Year changes to warranty and OHS laws

Small- and medium-sized enterprises are being urged to take heed of new laws covering consumer guarantees and warranties and workplace health and safety that have taken effect in the New Year.

The Australian Competition and Consumer Commission says under standardised consumer guarantees that take effect in 2012, “small businesses should be aware of the rights a consumer has for a refund, repair or replacement of faulty products or product that don’t do what they advertise”.

“If it doesn’t do what it says on the box, or what the salesperson told you it would do, the law allows you to have it repaired, replaced or refunded,” it says.

Under Australian Consumer Law, goods and services must:

• Be of acceptable quality.
• Be fit for purpose.
• Match the description.
• Match any sample or demonstration model.
• Meet any extra promises made by the supplier.

The changes also mean that companies can offer warranties in addition to what’s already covered by ACL, but can’t abridge those rights.

Also kicking in this year are regulations amending the unsolicited consumer agreement provisions to provide a 10-day cooling off period for goods prices under $500.

“This will allow businesses to immediately supply goods that consumers have consented to buy but does not allow the business to supply services or accept payment for goods within the cooling off period,” the ACCC says.

But the ACCC says there could be a nine-month grace period for new regulations covering warranties against defects, after businesses advised that products in the supply chain might not meet the new laws.

The ACCC says under the laws, businesses providing documents evidencing warranties against defects with their good and services “must present it in a certain way and must include specific information to ensure that consumers understand the warranty and know how to make a claim”.

“Importantly, the document must also include information about consumers’ rights under the Australian Consumer Law.”

Infringement notices for defects and repairs are $6,600 for companies and $1,320 for individuals. Court action attracts maximum fines of $50,000 for companies and $10,000 for individuals.

The ACCC says for stock in the supply chain manufactured and packaged prior to 1 November 2011, it will take into account until September 2012:

• Whether there are serious practical difficulties in updating warranty documents.
• Whether the supplier has taken all reasonable steps to otherwise convey the mandatory text and information required by the ACL to consumers.

Meanwhile, companies operating in New South Wales, Queensland, Australian Capital Territory and Northern Territory need to comply with harmonised occupational health and safety laws.

These mean that:

• Companies will have broader obligations to consult with people performing work, including contractors.
• Officers of a corporation will be required to exercise due diligence to ensure the organisation complies with OH&S responsibilities.
• Prosecutors will need to prove the employer did not take all reasonably practicable measures to prevent the risk to health and safety from taking place.

Under the changes, there’s a 12-month grace period for businesses which will need to significantly change their practices.

Victoria, Western Australia, Tasmania and South Australia have not introduced the relevant legislation, giving businesses operating in these states breathing room for harmonisation.

Also kicking in this year are changes to childcare, which will increase staff to child ratios to one to four. The changes are designed to improve the quality of care, but some providers say the price increases required to pay for extra staff will push many parents out of official care.