Can I get a refund, replacement or other compensation?

On this page:

  • When am I entitled to a remedy?
  • Can I choose the remedy I want?
  • For minor problems with goods
  • For major problems with goods
  • Who is responsible for fixing the problem?
  • Compensation for losses caused by problems

If a product fails to meet a consumer guarantee, you may be entitled to a replacement, repair, refund or other remedy.

You may not be entitled to a remedy if you:

  • simply change your mind or decide you do not like your purchase
  • damage or use goods in an unreasonable or unintended manner
  • discover you can buy the goods more cheaply elsewhere (unless the seller guarantees that the goods cannot be purchased more cheaply elsewhere)
  • had a defect drawn to your attention before buying (such as goods labelled as seconds with their faults clearly marked)
  • did not rely upon, or unreasonably relied upon, the seller’s skill or judgment when choosing a product.

Can I choose the remedy I want?

The law makes an important distinction between minor failures to comply with the consumer guarantees and major failures.

Your remedy options depend on whether the problem with your good is:

  • a major failure, or
  • a minor failure.

For minor problems with goods

Minor failures to comply with a consumer guarantee can normally be fixed or resolved in a reasonable amount of time.

In this case, the seller can choose to offer you a refund, replacement or repair. This must be provided free of charge and within a reasonable time depending on the circumstances.

If the seller refuses to fix the problem or takes too long, you may be able to get it fixed by someone else and recover the costs from the seller.

You cannot immediately reject the goods and demand a refund - you must give the supplier a chance to fix the problem.

For major problems with goods

If there is a major failure with the goods, you can:

  • reject the goods and get a refund
  • reject the goods and get an identical replacement, or one of similar value if reasonably available, or
  • keep the goods and get compensation for the drop in value caused by the problem.

You get to choose, not the supplier or manufacturer.

Major failures to comply with a consumer guarantee cannot be fixed or are too difficult to fix.

There is a major problem with a product when:

  • you would not have purchased the product if you had known about the problem. For example, you would not have bought the washing machine if you had known the motor would fail after three months.
  • the product is significantly different from the description, sample or demonstration model you were shown. For example, you ordered a red bicycle from a catalogue but the bicycle delivered was green.
  • the product is substantially unfit for its normal purpose and cannot easily be made fit within a reasonable time. For example, the raincoat you bought is not waterproof because it is made from the wrong material.
  • the product is substantially unfit for a purpose that you told the supplier about, and cannot easily be made fit within a reasonable time. For example, you told the seller you needed a car to tow a boat, but the car they sold you is not powerful enough to tow your boat because its engine is too small.
  • the product is unsafe. For example, the electric blanket has faulty wiring.

Who is responsible for fixing the problem with my goods?

In most cases, the supplier – the person or business who sold, leased or hired the goods to you – will be responsible for fixing the problem. This is because most consumer guarantees are made by the supplier.

In some cases, the guarantees are given by the manufacturer. You can seek a repair or a replacement directly from a manufacturer or importer where there is a failure of the consumer guarantees for:

  • acceptable quality
  • matching description
  • repairs and spare parts
  • express warranties.

If the manufacturer or importer cannot repair or replace the product in a reasonable time you may also be able to claim damages for a reduction in the product’s value, or for losses that could be reasonably attributed to its failure.

Only the seller can give you a refund. This means you cannot ask the manufacturer for a refund unless you purchased the goods directly from them.

Compensation for losses caused by problems

When you incur costs or suffer losses due to failure of goods or services to meet a consumer guarantee, you may be able to claim compensation from the seller, manufacturer or service provider.

You can only claim compensation where the loss can be reasonably attributed to the failure of the supplier to meet the guarantee. This could include paying for damage caused by a product, and the inspection and transportation costs you incurred when fixing the damage. 

The seller will not have to pay for problems unrelated to their conduct or to the goods they supplied, or for losses caused by something completely independent of their business after the goods left their control.

For more information, see our page Claiming compensation for consequential loss


Claiming compensation for consequential loss
Consequential loss is the cost to you caused by a problem with goods or services. You may have a right to claim compensation from a supplier or service provider for losses that resulted from a failure to meet a consumer guarantee.

Related topics on the ACCC website

Are my goods covered by consumer guarantees?