Consumer and trader disputes involve disputes, arising out of a contract between a consumer and a trader (which may be a person or a company) or between two traders, for the supply of goods and/or services up to and including $25,000.
(This amount is prescribed in Schedule 3 of the Queensland Civil and Administrative Tribunal Act 2009).
Below you can learn about when you can and cannot make a consumer and trader dispute application, how QCAT will decide a consumer and trader disputes and steps you need to consider if you are named as the respondent.
What do you need to know about Consumer and Trader Disputes?
Who is a consumer?
A consumer is a person who purchases good and services for their own use.
Goods include food, clothes, appliances and furniture.
Services include car maintenance, meals served in restaurants, or haircuts provided by a hairdresser.
Who is a trader?
A trader is a person who runs a trade or commerce business supplying goods or services to consumers.
A person supplying good and services outside of trade or commerce is not considered to be a trader.
For example, lawyers, doctors, dentists, valuers, podiatrists and town planning consultants are not considered traders.
What is a contract?
A contract is an agreement reached between two or more people. It can be made either in writing or verbally. When you offer to buy something from a trader and they accept your offer you have formed a legally binding contract.
If you are unsure about any of the above descriptions, you should seek independent legal advice about how to proceed.
When can a consumer and trader dispute application be made?
A consumer and trader dispute application can be made when it involves disputes against another person, trader or company arising out of a contract for the supply of goods and services, valued up to and including $25,000 (excluding interest).
The dispute may be about:
- an agreement (contract) you had with a trader about the supply of goods or services that you believe has been broken; or
- an agreement (contract), you as a trader, had with another trader about supply of goods or services that you believe has been broken
When can a consumer and trader dispute application not be made?
A consumer and trader dispute application cannot be made if the amount exceeds QCAT’s monetary limit:
QCAT cannot decide disputes involving claims worth more than $25,000 (excluding interest).
If the amount sought is more than $25,000, the applicant may choose to reduce the claim to $25,000 to enable it to be to lodged with QCAT.
Disputes involving amounts worth more than $25,000 are heard by other courts. Claims for amounts:
- up to $150,000 can be commenced in the Magistrates Court
- between $150,000 and $750,000 can be commenced in the District Court
- for any amount over $750,000 can be commenced in the Supreme Court
The applicant should seek independent legal advice about how to proceed if QCAT is not the appropriate jurisdiction.
A consumer and trader dispute application also cannot be made if:
- your claim is not for a fixed amount
- you want to claim a minor debt e.g. money borrowed and not repaid (consider minor debt disputes)
- you have a debt resulting from overhanging branches (consider overhanging branch disputes); or
- you have a dispute about a bond held by the Residential Tenancies Authority (RTA) (consider residential tenancy disputes)
Is there a time limit for filing a consumer and trader dispute?
The Limitation of Actions Act 1974 (Qld) imposes limitation periods in Queensland to commence a civil proceeding of within 6 years of the incident happening.
Please ensure you confirm your dispute falls within the relevant time limit before making an application to QCAT.
What if a dispute involved building work?
If your dispute involves building work, you should consider contacting the Queensland Building and Construction Commission (QBCC). The QBCC provides information and advice to ensure the maintenance of proper building standards and remedies for defective building work.
You may also wish to consider seeking legal advice to determine if your matter should be lodged as a consumer and trader dispute or alternatively as a building dispute.
Lodging an application in the incorrect jurisdiction may result in your case being dismissed.
What if a dispute involves a new or used warranted motor vehicle?
If your dispute relates to the purchase of a new or used motor vehicle from a licensed motor dealer, QCAT can consider this.
QCAT can hear motor vehicle disputes up to $100,000 against a motor dealer for the following:
- failure to repair a defect relating to a used warranted vehicle under the Motor Dealers and Chattel Auctioneers Act 2014 (MDCAA); or
- failure to comply with a consumer guarantee relating to a new or used vehicle under the Fair Trading Act 1989 – (Consumer Law Provisions) (FTA).
QCAT cannot hear disputes regarding private sales of motor vehicles between two parties. The purchase must be from a licensed motor dealer.
You can learn more about making a motor vehicle dispute application and the process here.
Lodging an application in the incorrect jurisdiction may result in your case being dismissed.
What is the consumer and trader dispute process?
Before you begin the consumer and trader dispute process, it is important that the applicant and respondent understand their obligations and how a case is progressed by QCAT. This includes understanding how QCAT considers a dispute and orders QCAT can make in a consumer and trader dispute case.
How will your dispute be resolved at QCAT?
QCAT considers consumer and trader dispute applications in two ways:
- if your claim amount is less than $1,500, your matter will be listed for a hearing, without the need for mediation
- if your claim amount is greater than $1,500, your matter will be listed for a mediation, and if not resolved, listed for a hearing
Mediation is a timely dispute resolution service in which a mediator assists parties to discuss their differences and find a solution that suits all parties to the dispute.
The mediator acts as an independent third party and guides the participants through a structured mediation process. The mediator is not there to make a decision about who is right or wrong, but rather, assists both parties in reaching an agreement.
If the parties do reach an agreement, the mediator may record the terms of the agreement in writing and each party will then sign the mediation agreement and receive a copy.
The parties may request that the agreement be made an order of QCAT.
If no agreement is reached at mediation, the matter will be set down for hearing on a different day.
What orders can I ask QCAT to make in my case?
In consumer and trader disputes you can ask QCAT to make orders relating to the following:
- a payment of money to you
- a refund of money to you
- relief from payment of money
- return of goods
- rectification of work
- costs of transporting a motor vehicle to the respondent if relevant to the claim
- payment of filing fees
- a combination of any two or more orders where the total value of the orders is not more than $25,000
When you start the application process below you will be asked to complete this section in the application form.
If you are the respondent in a consumer and trader dispute
If you have received an application for a consumer and trader dispute and you are named as the respondent, it is important to understand the process you need to follow. You must:
- read the above information and follow the link below to understand the QCAT process and how the case will be progressed to a final hearing; and
- file your written submissions and any supporting documents in response to the application or, file a counter application if required
How long may QCAT take to finalise your consumer and trader dispute?
The time for QCAT to finalise a case may vary depending on QCAT’s workload and the number of steps to be completed by parties as required by QCAT to resolve the dispute. The current average time to consider a minor civil dispute and finalise your case can be found on our expected timeframes page.
***Disclaimer – The above information was taken from the Queensland Civil and Administrative Tribunal website as accurate in October 2024. If any changes are made by the court from that date they may not be reflected in this post
