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Lemon Laws In Australia Under Review By ACCC

Tougher laws to protect the rights of new vehicle buyers in Australia, dubbed ‘lemon laws’, could be on the way. Lemon laws already exist in some overseas markets, such as the US (since 1975), and some industry figures have been pushing for


Tougher laws to protect the rights of new vehicle buyers in Australia, dubbed ‘lemon laws’, could be on the way.

Lemon laws already exist in some overseas markets, such as the US (since 1975), and some industry figures have been pushing for similar laws to be introduced in Australia.

Currently, the Australian Consumer Law (ACL) governs sales in the new car industry, but Federal Minister for Consumer Affairs Bruce Billson has revealed that the Australian Competition and Consumer Commission (ACCC) had been ordered to review the implementation and effectiveness of current laws.

The term “major failure” is detailed in the consumer law, and is designed to protect buyers who wouldn’t have purchased goods or services had they known the extent of future problems.

A problematic power window switch may not keep customers from a new model, as it could be easily rectified, whereas a model prone to ‘major’ engine failure would likely be avoided by most buyers.

Federal Government

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