My electric vehicle's battery degraded much faster than advertised. Is this a major failure?

What the Law Says

Under the Australian Consumer Law (ACL), consumers are protected by statutory guarantees that apply automatically to goods, including electric vehicles. Battery degradation that significantly affects performance, safety, or value may breach these guarantees — particularly the guarantee of acceptable quality.

The ACL says goods must be of 'acceptable quality', meaning they should be safe, durable, free from defects, and fit for purpose — considering factors like price, description, and expected lifespan. For an EV battery, durability includes reasonable performance over time.

A 'major failure' occurs when a fault would have stopped a reasonable consumer from buying the product had they known about it, or when the product is unsafe, significantly different from the description, or unfit for purpose. Rapid, unexpected battery degradation that cuts range by 30% or more within a short time (e.g., under 2 years) may meet this test.

If a major failure is found, you’re entitled to choose a full refund or replacement — not just repair — even after the manufacturer’s warranty has expired, as long as the statutory guarantee period applies (generally up to 3 years depending on circumstances).

Statutory Text

A failure to comply with a guarantee … is a major failure if … the goods would not have been acquired by a reasonable consumer fully aware of the nature and extent of the failure.

— Australian Consumer Law, s. 260 — Meaning of major failure

Statutory Text

Goods are of acceptable quality if they are safe, durable and free from defects … and acceptable in appearance and finish … having regard to … the price … and all other relevant circumstances.

— Australian Consumer Law, s. 54 — Guarantee as to acceptable quality

What to Do

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