NSW Transactions Covered by Australian Consumer Law?

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Aviram Vijh

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24 October 2018
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I am trying to understand what sort of transactions are covered under the Australian Consumer Law? If I buy or sell my personal laptop to an individual, is that covered under Australian Consumer Law? For example, I buy a laptop from someone (not a shop but an individual) and find the laptop to not performing to my expectations, can I seek redressal under ACL?
 

Rob Legat - SBPL

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16 February 2017
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Maybe. There are a range of tests to determine if someone is carrying on a business. It will mean a consideration of their relevant circumstances. Generally it’s pretty clear. If they’re selling as a one off, odds are they’re not operating as a business. If they have an ABN, advertise items for sale and have a ‘stock’ available, they’re likely to be a business.

You also need to consider who you’re dealing with. The Australian Consumer Law (as part of the Competition and Consumer Act) affects companies. The Fair Trading Act affects individuals (e.g. sole traders, partnerships...)
 

Tim W

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Let's talk about what we're really talking about.
Did you buy a dud computer, or does somebody claim
that you sold a dud one to them?

Let's also be clear about one very basic thing.
You may have heard of a thing called "buyer beware".
That concept does not operate to justify a seller (even a private one)
pulling a trick on a buyer.
 

Aviram Vijh

Active Member
24 October 2018
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Actually a bit of both, because in this case I sold my used laptop to someone. It was working perfectly fine when we sold it and the buyer had a chance to fully inspect it. I didn't sell it for a profit or anything, just to buy a newer one. In fact, I even accepted payment through PayPal for the buyers convenience as I had nothing to hide.

Now the buyer says the battery is not performing well and has raised a dispute with PayPal! I didn't even know that this could be done or I would have just taken cash because PayPal is treating me like some eBay seller! I have no idea what to do. I am actually happy to get my laptop back and give a full refund but only in the condition I sold it in, which isn't the case at the moment.

I don't really care that much about the cost of a battery, but am genuine surprised that I can be held to ransom for no wrongdoing and if this IS the case, then as a buyer, I too could to start doing this for used products if the laws favour buyers blindly (after all I am a buyer 99% of the time).

Appreciate your help.
 

Tim W

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Using PayPal for a one-off, non-retail transaction,
does not make you a business, in the same way that
owning a set of spanners does not make you a mechanic.
So it's less likely that you'll have an Australian Consumer Law problem.

Gotta say though, it's a seriously oddball move on your part
for a transaction of this type. Yes, of course it's a scam.
The default action by PayPal is to first freeze, and then
(absent any acceptable "defence" by the seller), ultimately refund, the money.
Ripe for scamming.

I think you've done your money here.

There's some general info about PayPal disputes here.
 
Last edited:

Aviram Vijh

Active Member
24 October 2018
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Thanks Tim. Luckily I had withdrawn that money from my PayPal account to my bank account so my PayPal account is now in negative. Today PayPal has said that the buyer will return the laptop in its original condition and that I should issue a refund. The buyer on the other hand asked for the battery to be fixed or some sort of partial refund (not that I agree to that) and does not in all likelihood want to return the laptop.

I am not going to pay PayPal anything unless I get the laptop back as I handed it over, which was without any battery related complaints/warning messages that the buyer now claims to be seeing.