All All Industry Insights Industry News Media Release Member Only Articles NRA Events NRA Legal NRA Partners NRA Projects NRA Training and Development Policy & Advocacy Policy Updates Technology Tenancy & Leasing Testimonials Thought Leaders Weekly CEO Update WHS Update

Do you know your lay-by obligations?

January 18, 2016

The Queensland Office of Fair Trading recently conducted a state-wide compliance operation which highlighted that several businesses were unaware of their lay-by obligations.  Businesses mistakenly offer customers the opportunity to pay by instalments and do not realise that under law, such an agreement constitutes a lay-by which means there are extra rights for the customer.

An agreement is a lay-by if the customer:

  • does not receive the goods until the full price is paid; and
  • pays in three or more instalments or pays in only two instalments, but the agreement is called a lay-by (a deposit is considered an instalment).

Finance agreements, where the  customer takes the good straight away and makes repayments are not lay-bys.

There are several rules you need to follow when offering lay-bys to customers:

  1. The consumer must be provided with a written copy of the lay-by agreement.
  2. You must ensure the agreement is transparent – it should be in plain English, easy to understand, and not contain purposefully obtuse or hidden clauses.
  3. The agreement must contain a description of the goods you’re selling, their cost, the length of the lay-by period, the amount of the payment and their due dates, and details of refund and cancellation policies.
  4. You may only charge a termination fee equivalent to your reasonable costs. Any left-over money paid by the customer must be refunded.
  5. You can’t cancel a lay-by unless the goods are no longer available for reasons outside your control. This means you can’t cancel a lay-by to try to sell the goods at a higher price.

Click here for more information on lay-by regulations.

NRA Media

  • National Retail Association strengthens support for members on leasing and tenancy
    June 01, 2021

    We are pleased to have strengthened our partnership with Lpc Cresa, a leading advisor to retail tenants across Australia and New Zealand, to assist our…

    Read More
    September 03, 2018

    To download the nomination form, click here

    Read More
  • Closing Loopholes Bill No. 2 passes Parliament 
    February 20, 2024

    Earlier this month, it was confirmed that both Houses of Parliament passed the second tranche of amendments to the Fair Work Act 2009 (Cth) under…

    Read More
  • Jump start your business for 2021 and step ahead of the competition
    November 20, 2020

    2020 has undoubtedly been one of the most challenging years for all of us. It has created unprecedented trends in every industry, and shown retailers…

    Read More
  • NRA members winners in new partnership with Aussie Broadband
    November 16, 2020

    You must be logged in to view this content.

    Read More

What our clients say

Want to chat?
Contact our team today!