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Facebook marketplace – buyer beware!

Gene Schirripa

16 Jun 2020

Topics

  • Business services
  • Consumer Law
Singer sewing machine

When purchasing items on Facebook marketplace or other similar forums, buyers must always beware! This is because the consumer guarantees created by Schedule 2 of the Competition and Consumer Act 2010 (Cth) are not applicable (‘Australian Consumer Law’).

Why don’t they apply?

The Australian Consumer Law does not apply to private transactions. Rather, it governs transactions occurring between suppliers carrying on a business. Accordingly, the consumer guarantees do not apply. Buyers will not have a basis to make claims against sellers for misleading conduct or failure to comply with  consumer guarantees.

No right of recourse

In the absence of consumer guarantees, purchasers have no right of recourse to courts, tribunals or even Fair Trading (Access Canberra). This means buyers must be carry out their due diligence before making a purchase on Facebook marketplace or similar online forum.

This due diligence includes:

  • making all relevant inquiries of the seller
  • performing your own quality/function tests
  • reviewing relevant manuals/records.

Failure to carry out due diligence means increased risk of being caught out!

How can we help?

If you have a consumer lawrelated inquiry, do not hesitate to contact our Business Services team on 02 6285 8000 or by email.