Who Holds the Warranty Responsibility?
Understanding supplier obligations, product mark-ups and designer risk
This question has come through the KBDi Technical Support Service a number of times recently:
If I purchase products through a wholesale or trade-only supplier, invoice the client directly, and add a margin or commission, who is legally responsible for the warranty?
It’s an important question — particularly as many designers offer procurement, sourcing and specification services as part of their broader design packages.
While every business model is different and KBDi cannot provide legal advice, the Australian Competition and Consumer Commission (ACCC) offers clear guidance on consumer guarantees and supplier responsibilities under the Australian Consumer Law (ACL).
The key principle: the ‘supplier’ is responsible
Under Australian Consumer Law, the business that sells the product to the client is generally considered the supplier and is responsible for meeting consumer guarantee obligations.
In practical terms, this means:
- If the client purchases directly from the retailer or supplier, that business is typically responsible for warranty claims and remedies.
- If the designer invoices the client directly for the product — even if the product is sourced through a trade-only supplier — the designer may be considered the supplier under the ACL.
According to the ACCC:
“Businesses must not tell consumers to go to the manufacturer for a remedy.”
— ACCC Consumer Guarantees Guidance
Consumer guarantees exist automatically under Australian Consumer Law and apply regardless of any manufacturer’s warranty.
What does this mean for designers?
Many designers source products through trade accounts and invoice clients directly, often adding a margin or procurement fee. While this can create an additional income stream, it may also place the designer within the legal supply chain.
In simple terms:
If you invoice the client directly:
You may also be responsible for:
- managing warranty claims
- arranging remedies for faulty products
- coordinating repair, replacement or refund processes.
If the client purchases directly from the supplier:
The supplier generally retains the warranty responsibility, while the designer remains in an advisory or specification role.
Does this mean designers can’t make money on procurement?
Not necessarily.
Many design professionals are now shifting toward fee-based procurement and sourcing models that better reflect the value of their expertise while reducing legal exposure.
Alternative approaches may include:
- sourcing or procurement fees
- specification consultancy fees
- referral or trade arrangements where the client contracts directly with the supplier.
The important thing to understand is that margin and responsibility often go hand in hand. If you act as the supplier, you may also take on supplier obligations under Australian Consumer Law.
A reminder about KBDi Technical Support
Questions like this are exactly why the KBDi Technical Support Service exists.
Whether you’re navigating compliance requirements, interpreting standards, managing documentation obligations or clarifying business risk, our Technical Support team is here to help point you toward reliable information and industry resources.
Importantly, members are encouraged to submit technical enquiries via the Technical Support link in the Member Portal. Using the portal ensures your enquiry is properly logged, tracked and directed to the appropriate team member for a response.
If you’ve got a technical or compliance-related question, don’t sit on it — reach out early and make the most of your membership benefits.
See all our Designer Resources here