OCBA - Manufacturer’s responsibility when supplying goods

Manufacturer’s responsibility when supplying goods

Some goods may not be of acceptable quality due to a manufacturing defect, may not match a description given by the manufacturer or are unfit for a purpose specified to the manufacturer.

A consumer may ask a supplier, not the manufacturer, to deal with the problem.

If so, the manufacturer must reimburse the supplier. The amount can include any compensation paid to the consumer for reasonably foreseeable consequential losses.

How long does a supplier have to ask for reimbursement?

A supplier must make a request to the manufacturer for reimbursement, within three years of the date:

the supplier fixed any problems with the consumer's goods, or
the consumer took legal action against the supplier.

Are there any limits on reimbursement?

Manufacturers cannot ‘contract out' of this obligation to reimburse the supplier.

However, when the goods are not used for personal, domestic or household purposes, and it is fair and reasonable to do so, the manufacturer can limit their liability to the lowest cost out of:

replacing the goods
obtaining equivalent goods, or
repairing the goods.

Suppliers and manufacturers can also make an agreement about what they will each be responsible for, as this does not affect the consumer's rights.

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