Guarantees

19 Guarantees

Advertisements must not contain the words ‘guarantee’, ‘guaranteed’, ‘warranty’ or ‘warranted’, or words with similar meaning, unless the licensee is satisfied that the terms of the guarantee are available for inspection if required and are outlined in the advertisement or are made available to the purchaser in writing at the point of sale or with the products.

Under the Consumer Transactions (Restrictions on Statements) Order 1976, it is illegal for any guarantee to diminish the statutory or common law rights of the purchaser. Goods supplied to consumers in the course of business which bear a statement concerning the consumer’s rights or the obligations accepted by the supplier must be accompanied by a clear and conspicuous statement that the consumer’s statutory rights are not affected. (This Order also prohibits the advertisement of certain statements which purport to exclude or restrict consumers’ rights under the Unfair Contract Terms Act 1977.) A guarantee must include details of the remedial action open to the purchaser.

Use of the word ‘guarantee’ etc. is valid in advertisements when a material remedial action is offered to the purchaser in addition to legal requirements or accepted trade practice.

The colloquial use of the word ‘guarantee’ may be acceptable in contexts where its meaning cannot be construed as being part of an advertiser’s offer.