Know your rights under extended warranties – Consumer Law Reform

July 2, 2014

in Corporate & Business

Corporate & BusinessFollowing on from our series of news blogs on the changes to consumer law, you also need to be aware of the changes that have been made to the law concerning extended warranties.

An extended warranty is an agreement between a consumer and a “warrantor” arising out of the purchase of goods or services that are typically entered into around the time of purchase.  These warranties are purchased at an additional cost by the consumer and therefore provide further protection than those given away with the goods or services.

The Fair Trading Act 1986 now requires a warrantor to provide certain information to consumers about extended warranties at the time the warranties are sold.  That information includes;

  • Information of the consumer’s rights and remedies under the Consumer Guarantees Act and their rights to cancel under the Fair Trading Act;
  • A comparison of the rights and remedies under the Consumer Guarantees Act as well as information on the additional protections that the extended warranty provides; and
  • The warrantors name, address, telephone number and email address.

Failure to provide this information can constitute a breach of the Fair Trading Act and can result in the consumer cancelling the extended warranty. Under the new law the consumer can cancel either within the “cooling off” period being five working days from when the consumer receives a copy of the agreement, or at any time if the warrantor has not meet all of its disclosure obligations.   The breach however needs to be more than minor and the consumer has to be disadvantaged by the breach.

It is therefore crucial you understand your obligations when selling extended warranties. We are specialists in business, commercial and consumer law and can assist you through this process.

If you require any advice or further information on the matters dealt with in this publication please contact the lawyer at Farry and Co who normally advises you, or alternatively contact:


Kirsten Maclean

(03) 477 8870 or (09) 379 0055


The information contained in this publication is intended as a guide only.  It does not constitute legal advice and should not be relied upon as such.  Professional advice should be sought before applying any of the information to particular circumstances.  While every reasonable care has been taken in the preparation of this publication, Farry and Co. does not accept liability for any errors it may contain. 

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