ACAT Consumer and Defective Goods Dispute — Responding to a Claim in the ACT

If a buyer has filed an ACAT civil dispute application against you over a product or service they say was faulty, the claim almost certainly invokes the Australian Consumer Law (ACL) consumer guarantees. These are federal protections that apply in every state and territory, including the ACT, and they override most "no refund" signs or contract exclusions for goods and services supplied in trade or commerce.

Understanding what the ACL actually requires — and what it does not — is the first step in deciding whether to dispute, admit, or settle.

What the Consumer Guarantees Cover

The ACL guarantees that goods sold in trade or commerce are of acceptable quality, fit for any disclosed purpose, match their description, and match any sample or demonstration model. Services must be provided with due care and skill, be fit for any stated purpose, and be delivered within a reasonable time.

The critical qualifier is "in trade or commerce." Private one-off sales between individuals (selling your old lawnmower, for instance) generally fall outside the ACL consumer guarantees. If the applicant's claim is based on a private sale, the consumer guarantees may not apply — though common law obligations around misrepresentation still can.

For businesses being sued, the ACL guarantees cannot be excluded by contract for goods or services under $100,000 (or over $100,000 if they are of a kind ordinarily acquired for personal, domestic, or household use). A standard terms-and-conditions clause disclaiming liability does not override them.

Responding to the Claim

Unless ACAT tells you otherwise, you usually have 21 days to lodge Approved Form AF2021-29; check the due date in ACAT's correspondence. In Section B, set out why you dispute the claim. Common grounds in consumer disputes include:

• The goods were of acceptable quality. The defect the buyer describes is cosmetic, was disclosed before purchase, or results from misuse, abnormal conditions, or failure to follow instructions.
• The fault is minor. Under the ACL, a minor failure entitles the consumer to a repair (not a refund) in the first instance. If you offered a repair and the buyer refused, that matters.
• The claim is out of time. The rejection period for goods is not a fixed number of days. Under ACL section 262, it is the period in which it would be reasonable to expect the failure to become apparent, considering the type of goods, likely use, reasonable period of use, and reasonable amount of use before the failure becomes apparent. That is separate from the limitation period for legal proceedings; an ACL damages action under section 236 is subject to a six-year period from when the cause of action accrued.
• It was a private sale. If you sold the item as a private individual, not in trade or commerce, the ACL guarantees do not apply. The burden shifts to the buyer to establish a different basis for the claim (misrepresentation, contract terms).

Evidence That Matters

Consumer disputes at ACAT turn on documentation. Gather:

• The original advertisement, listing, or product description (exactly what was represented)
• Invoices, receipts, and proof of the transaction
• Any warranty or guarantee documents
• Communication records — emails, text messages, social media exchanges — showing what was discussed before and after the sale
• Photos of the goods (at time of sale and in their current condition)
• Independent inspection or repair reports, if available
• Records of any repair offers you made and the buyer's response

Organise these chronologically. ACAT Members appreciate a clear timeline of events over loose stacks of paper.

The ACL Remedies Framework

If the tribunal finds a consumer guarantee was breached, the remedy depends on whether the failure is major or minor.

A major failure includes goods that a reasonable consumer would not have acquired if aware of the failure; goods that significantly depart from their description or sample; goods unfit for a common or disclosed purpose that cannot easily be fixed within a reasonable time; unsafe goods; or multiple failures that together meet the reasonable-consumer test. It entitles the consumer to choose a refund, replacement, or compensation for the drop in value.

A minor failure gives the seller the right to choose the remedy, typically a repair within a reasonable time. If the seller fails to repair, or the repair takes too long, the consumer can then escalate to a refund or replacement.

Understanding where the alleged defect falls on this spectrum shapes your response strategy. A respondent who offered a timely repair that was refused has a materially different position from one who ignored the complaint entirely.

Next Steps

The complete response and hearing process — calculating your deadline, filling in the form, preparing for the Directions Hearing and final hearing — is covered step by step in the ACAT Response Guide.

For free consumer-specific advice, contact ACT Access Canberra (consumer protection division) or the Legal Aid ACT Helpline (1300 654 314).

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