If you have a problem with goods or services you have purchased, you should stop using them immediately and discuss the fault or problem with the seller or service provider. You can also indicate your preferred remedy to the problem, taking into account that the Trade Practices Act is not designed to protect consumers who are careless or unreasonable in their demands.
The appropriate remedy will depend on the particular circumstances and may include:
repair or replacement of the goods
exchange of the goods or re-supply of the services
payment for these things to be done, or
refunds (in some circumstances).
Can I ask for a refund?
Understanding the difference between statutory conditions and statutory warranties can help you determine if you are entitled to a refund. Statutory conditions and warranties are explained in more detail in our page Your statutory rights.
Under the Trade Practices Act, you may seek a refund if a statutory condition is breached. This means that you may be entitled a refund if the goods you purchased:
are or become faulty through no fault of your own
are not fit for a stated purpose or a purpose you made known to sales staff at the time of purchase
do not match the description or sample shown to you
have defects that were not obvious or not shown to you before you purchased.
However, the goods must be returned within a reasonable period and you may be asked for proof of purchase. Be aware that you may only be entitled to a partial refund if the fault develops after you have enjoyed some use of the good. If you prefer an alternative to a refund, you could negotiate with the trader to exchange the goods or have the goods repaired.
With services, however, you do not have a statutory right for a refund, even if the services were not carried out properly or if the materials used are faulty. Many retailers, suppliers and manufacturers will offer to repair, replace or exchange the materials or to perform the services again.
Sometimes a retailer, manufacturer or service provider may voluntarily make extra promises to you. If you were promised a refund and you meet the conditions imposed by the business to seek that refund, then the business must honour its promise. Some retailers offer refunds even for change of mind, but you should not expect this to be a condition of sale. Voluntary promises are explained in more detail in our page Voluntary warranties (including guarantees).
When you should not expect a refund
Generally, sellers do not have to give you a refund, credit or exchanges if you:
simply change your mind, decide you do not like the goods or have no use for them (except, for example, when door-to-door sales legislation provides for a cooling off period)
have discovered you can buy the goods more cheaply elsewhere
examined the goods before buying them and ought to have seen any obvious fault
had any defects drawn to your attention before buying (for example when the goods were labelled as seconds and faults were clearly marked)
damaged the good by unreasonable or unintended use.
The shop has a sign that says 'no refunds'
Traders can reduce the risk of confusion and disagreements by making you aware of any additional policies they have regarding refunds and exchanges before you make your purchase. A clear sign in the shop window or on the counter is a good way for traders to communicate their policy to you.
Traders have to be very careful, however, that any sign they put up is accurate because if they are found to be misleading you about your rights to a refund, it is considered a serious offence under the Trade Practices Act.
Examples of signs which may be illegal include:
'No refunds'
'No refunds after 7 days'
‘No refund on sale items'
'We will exchange or repair or give credit notes but we do not give refunds'
These signs could mislead you to believe that you have no right to a refund under any circumstances, but this is not correct. Traders should make sure they understand their obligations to you before putting up any signs detailing consumer rights to a refund.
What to do if you think your rights have not been met
Tell the trader you are unhappy and make a complaint
If you think your rights have been breached, you should attempt to resolve your concerns with the trader. If you are not sure how to approach the trader, follow the steps on our How to complain page. This page can help you write a letter to a trader and give you guidance about who else you can contact for assistance.
Sometimes a trader might tell you that it is not their responsibility to deal with your faulty product and they could try and refer you directly to the manufacturer. As you have a contract of sale with the trader, the trader has a responsibility to help you. In turn, the trader has a right under the Trade Practices Act to seek compensation from the manufacturer.
Could the office of fair trading in my state help me?
If you cannot negotiate a satisfactory outcome with the trader, and your complaint involves a local business, you can contact the office of fair trading in your state or territory. In some circumstances, the office of fair trading in your state or territory may be able help you to resolve your concerns or provide information about lodging claims in your local small claims tribunal.
What can the ACCC do?
We cannot bring an action against any corporation for a breach of the conditions and warranties implied into consumer transactions by the Trade Practices Act. This means that you, as the consumer, must negotiate with the seller or service provider or, when necessary, pursue legal action on your own behalf. We can provide you with information to help you negotiate.
