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What is a “consumer”?

Who is a “consumer”?  Business owners are being surprised by the latest changes in the law.

Author: Clarissa Sempel

15 March 2022

As a business owner, do you turn to the Australian Consumer Law (“ACL”) to work out what protections your customers may be entitled to? 

If so, it is important that you understand what a consumer is under the ACL. 

Now is a good time for you to revisit what a consumer is under the ACL, since the changes that came into effect on 1 July 2021. 

The changes saw the threshold increase from $40,000.00 to $100,000.00, which means that the definition of “consumer” is broader and more inclusive and if your business did not fall within the definition prior to 1 July 2021, it may well do so now. 

A consumer is a person who purchasers goods or services which are less than $100,000.00, or (if this exceeds $100,000.00), then they are goods/services which are ordinarily acquired for personal, domestic, or household use or consumption. 

With the new definition of consumer, now is the time for you to consider what your liability is to your customers, and whether your insurance covers you for the warranties that you must provide under the ACL. 

Tom Ellicott and Clarissa Sempel of ALG can assist you in reviewing your insurance documents and explaining your obligations as a business owner. 

Please contact us for your initial Consultation on 02 4220 7100, by email lawyers@alg.com.au, or here.