Key points
- The Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010) provides statutory guarantees for goods.
- Manufacturers and suppliers can be liable for product defects even without proof of negligence.
- Misleading conduct, false representations, and unconscionable conduct under the ACL also ground class claims.
- Consumer class actions often settle before trial — group members receive their share of a negotiated sum.
- Supermarket pricing, food labelling, and product safety recalls have all generated class action investigations.
What is product liability under Australian law?
Part 3-5 of the ACL imposes strict liability on manufacturers for losses caused by defective goods. A product is defective if its safety is not what the public is generally entitled to expect. Crucially, the consumer does not need to prove the manufacturer was careless — only that the product was defective and that defect caused loss.
Misleading conduct as a class action ground
Section 18 of the ACL prohibits misleading or deceptive conduct in trade or commerce. If a company made false claims about a product — its ingredients, health effects, country of origin, or regular price — all consumers who purchased relying on those representations may have claims. False pricing and loyalty scheme misrepresentations have been the subject of recent major investigations.
Common types of consumer class actions
- Defective vehicles or vehicle components (e.g. airbag failures)
- Misleading fuel economy or emissions claims
- Food safety and undisclosed allergen cases
- Supermarket pricing discrepancies and loyalty scheme misrepresentations
- Pharmaceutical products with undisclosed side effects
- Building products that fail to meet Australian standards
This article is general information only and does not constitute legal advice. ClassActions.com.au is an independent information service and is not a law firm. If you believe you may have a legal claim, consult a qualified Australian legal practitioner.