Attempting to Limit Liability under the ACL

Recently, a client at Priority Business Lawyers retained us to review their online documents to determine whether they might be in breach of the Australian Consumer Laws (ACL) specifically with regard to a potential misrepresentation.

Upon our advice, the client endeavoured to bring their online terms and conditions, privacy policy, and refund policy in to line in order to ensure there was no possibility whatsoever of a potential misrepresentation.

The advice itself appears timely given the Australian Competition and Consumer Commissions (ACCC) willingness to issue penalties for breaches of the ACL where businesses have misled, whether intentionally or not, their customers.

Today the Federal Court ordered Apple Inc (Apple US) to pay roughly $9 million in penalties for making false or misleading representations to customers with faulty iPhones and iPads about their rights under the ACL.

The ACCC took action against Apple US and Apple Pty Ltd (Apple Australia) following an investigation of complaints relating to ‘error 53’. This error disabled some iPhones and iPads after owners downloaded an update to Apple’s ‘iOS’ operating system.

Apple US admitted it had represented to at least 275 Australian customers affected by error 53 that they were no longer eligible for a remedy if their device had been repaired by a third party. These representations were made from February 2015 to February 2016 on Apple US’ website, by Apple Australia’s staff in-store and on its customer service phone calls.

Unbeknownst to Apple Australia’s US counterparts, under the ACL If a product is faulty, customers are legally entitled to a repair or a replacement. Furthermore, if customers would prefer a replacement, they are entitled to a new device as opposed to refurbished, if one is available.

If you are concerned about your terms and conditions, privacy policy, refund policy or any other trading documents please contact Priority Business Lawyers in order to conduct a full review that ensures your documents comply with the ACL

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Authored by

Raea Khan

Director Lawyer

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Raea Khan Circle
Director Lawyer
Raea Khan

Raea is Managing Director and Principal Lawyer for PBl Law Group. Raea assists clients with major projects, property developments, construction and strata law.

He has worked in Western Australia and Queensland assisting with expansion projects in the energy and resource sector and now predominately advises clients in Strata and Community Association matters.

He is a member of the Australian College of Strata Lawyers where majority of his work is advising developers and owners corporations with dispute related minor and major defects, strata governance and common property litigation. He is proficient at leading negotiations and meetings.

Raea has a particular interest in the commercial aspect of any dispute and always tries to weigh up the risk, reward and benefit of legal proceedings at each different stage.

Raea enjoys all forms of competitive sport, including Crossfit and actively participates in Triathlons, representing Australia as an age group athlete. He was a member of Red Head Surf Lifesaving club.

  • Strata Law
  • Construction & Major Projects
  • Commercial and Business Law
  • Planning & Environment Law