Many people do not know much about the inner workings of Australia’s car rental industry. Consumers generally look at car rental companies as a sector with its own rules and practices. However, because it is still a business, these companies still follow certain laws and legislations, particularly the Australian Consumer Law (ACL).

1. Consumer Welfare: Making Sense of the Australian
Consumer Law and Car Rentals
Many people do not know much about the inner workings of Australia’s car rental
industry. Consumers generally look at car rental
companies as a sector with its own rules and practices.
However, because it is still a business, these companies
still follow certain laws and legislations, particularly the
Australian Consumer Law (ACL).
Car renters are considered consumers, as they “consume” or use goods in the
form of vehicles, from suppliers—or in this case, a service provider. Only a few
people, however, understand what they are fully entitled to when renting a car.
With that, here’s a quick guide on how to make sense of the ACL as it applies to
car renters.
On Consumer Guarantees
Consumers renting a motor vehicle are entitled to several guarantees from the
suppliers and manufacturers. This includes guarantees:
The vehicle is of “acceptable quality”
The motor vehicle is reasonably fit to do a job specified by the
consumer or supplier. Under this, suppliers and manufacturers also
guarantee to provide an accurate description of the vehicle.
The supplier provides a vehicle that matches their sample or
demonstration model
The rental company satisfies any extra promises or express warranties.
This also guarantees the renter has “undisturbed possession” of the
vehicle for the term of the lease or the hire agreement (except in special
circumstances specified in the contract).
Under the ACL, these consumer guarantees cannot be excluded even by
agreement.

2. On Acceptable Quality
Rental motor vehicles should be of “acceptable quality.” This means a
reasonable consumer, who is fully aware of the car’s condition (including any
defects), would find the vehicle:
Fit for whatever purpose the vehicles are used for
Acceptable in appearance
Defect-free
Safe
And durable.
Rental cars are still of “acceptable quality” even if they have defects provided the
consumers have been warned of the defects and they still agree to rent.
On Contract Terms
Car rental contracts must comply with national unfair contract terms law, which
falls under the ACL. This means any agreement under any contract should not:
Cause a significant imbalance in the consumer’s rights and obligations.
Be aimed towards protecting only the business
Cause harm (financial or otherwise) to the renter.
Consumer safety and welfare should always be put in consideration in any
business, even in the car rental industry. More resources about car rentals and
the Australian Consumer Law is available from the list below.
Resources: http://www.ariescarrental.com.au/
http://www.consumerlaw.gov.au/content/Content.aspx?doc=home.htm
http://www.accc.gov.au/consumers/consumer-rights-guarantees