Guarantees and product safety – second-hand dealer and pawnbroker obligations

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Guarantees on second-hand goods

Even if you do not provide a written warranty when you sell goods, ‘consumer guarantees’ apply.

When you supply goods in trade or commerce to a consumer, you guarantee that:

  • you have the right to sell the goods (clear title)
  • the consumer has the right to undisturbed possession of the goods; that is, no-one can take them or prevent the consumer from using them unless they have a legal right to do so
  • the goods are free from any undisclosed security, charge or encumbrance.

You also guarantee:

  • the goods are of acceptable quality
  • the goods are fit for any disclosed purpose
  • if supplied by description, that the goods match the description given to the consumer
  • if supplied based on a sample or demonstration model, that the goods correspond with the quality, state or condition of the sample or demonstration model and are free from any defects not apparent in the sample or model.

For more information, view our Guarantees that apply automatically page.

Product safety and second-hand goods

As a business owner, you are responsible for ensuring the products you sell comply with Australian product safety laws.

For information about banned products, product recalls and other product safety matters, regularly check our Product safety section, visit the Product Safety Australia website and follow the ACCC Product Safety Facebook page and @ACCCProdSafety on Twitter.

It is illegal to supply products, second-hand or new, that do not comply with mandatory product safety standards or information standards, or that are prohibited by a ban order. There are penalties for failing to comply. For more information, view our Penalties for businesses - product safety page.

Electrical safety and second-hand goods

If you sell or supply second-hand electrical equipment, you must attach a label stating that the equipment is second-hand.

If the equipment has been tested, your business or charity must also attach a label stating that it:

  • is second-hand
  • has been inspected and tested, and
  • complies with Australian/New Zealand Standard (AS/NZS) 3760.

If the equipment has not been tested, you must include a clear statement on the label that it is second hand, and the words:

DANGER – DO NOT USE OR CONNECT TO SUPPLY – THIS ELECTRICAL EQUIPMENT MAY BE FAULTY AND SHOULD BE INSPECTED AND TESTED BY A COMPETENT PERSON IN ACCORDANCE WITH AS/NZS 3760.

For more information, visit the Selling safe electrical appliances page on the Energy Safe Victoria website.

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