Damages and compensation

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If a consumer suffers loss or damage due to a defect with products or services, they can make a claim to recover damages or compensation. 

This is particularly the case where the defect means the supplier or manufacturer failed to comply with a consumer guarantee. Manufacturers are also liable to compensate consumers for loss or damage resulting from safety defects in their products that cause death or injury, or damage to personal property.

The loss or damage must have been reasonably foreseeable and not caused by something outside human control, such as a natural disaster.

A consumer can apply to the business directly for damages or compensation. If the business refuses to pay or to reach an agreement to settle a dispute, the consumer can take their claim to formal dispute resolution services or take legal action.

For more information, view our Resolve your problem or complaint section.

Putting a value on loss or damage

It can be hard to put a dollar figure on loss or damage.

Compensation should put the consumer in the position they would have been in if the goods or services had met the consumer guarantees.