The implied statutory warranties and conditions regime has now been replaced by a comprehensive new framework of statutory guarantees under the Competition and Consumer Act 2010. These new laws have important implications in the franchise industry. Any franchisors involved in the supply of goods and services to consumers will have to abide by the statutory guarantees when dealing with product defects or consumer complaints about products or services. Franchise businesses who offer warranties to consumers for the goods or services they provide, must consider whether they are compliant with the new consumer guarantees under the Competition and Consumer Act. Significantly, where a business offers an extended warranty, it is necessary to ensure that the extended warranty provides more protection to consumers than the rights they are entitled to under the statutory guarantees [read more].
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