Australian Consumer Law: A Business Owner's Obligations
The Australian Consumer Law applies to every business
The Australian Consumer Law (ACL) is a single, nationwide consumer protection law, enforced by the ACCC (Australian Competition and Consumer Commission) and state agencies. It applies to every business selling goods or services in Australia — regardless of size, industry, or legal form.
Breaching the ACL isn’t just an issue with the ACCC — customers can also complain directly, seek compensation, or take you to court.
Consumer guarantees — mandatory protections
This is the most important part of the ACL for most retail and service businesses. Consumer guarantees are a set of automatic rights a consumer has when they buy — they don’t need to be written into a contract, and they cannot be removed by any term.
The main guarantees include: goods must be of acceptable quality, fit for the purpose described, and match their description or sample. Services must be provided with reasonable skill and care.
The practical consequence: You can’t refuse a refund or repair simply because the customer “no longer wants the product” — but you must refund, replace, or repair when a product has a fault that means it fails a consumer guarantee.
A “no refund” or “all sales final” term is invalid when a product is faulty. You can still refuse a return for “change of mind” — but not for a fault in the product.
Details on consumer guarantees and each type of fault (major vs minor) are at accc.gov.au/consumers/consumer-rights-guarantees.
Refund and returns policy
You have the right to set your own refund policy for change-of-mind cases — you can allow returns or not, as long as you make it clear before the customer buys. What is not allowed:
- Refusing to act when goods are genuinely faulty
- Setting refund conditions in a way that breaches a consumer guarantee
- Advertising a fake returns policy to attract customers and then refusing when it matters
Displaying your refund policy clearly at the point of sale (or on your website) is good practice and helps avoid misunderstandings.
A ban on false and misleading advertising
The ACL strictly prohibits:
- Misleading and deceptive conduct: an action or statement that creates a false impression of your product, service, or business — whether intentional or not. “I didn’t know it was wrong” is not a defence.
- False representations: false claims about quality, origin, ingredients, price, or comparisons with competitors.
- Bait advertising: advertising a product at an attractive price without enough stock, with the intention of switching customers to a more expensive product.
This applies across every channel — advertising, website, social media, price lists, or what staff say to customers.
Pricing and price representation
Prices must be clearly communicated before a customer commits. If you display more than one price for the same item, you must sell it at the lowest advertised price.
You cannot add hidden fees after a customer has agreed to a price. Costs must be shown clearly from the start — including GST if you are registered for GST.
Unfair contract terms
If your business uses a standard form contract with consumers or small businesses, the ACL has rules on “unfair contract terms” — imbalanced terms that can be declared void.
Examples of terms that may be considered unfair: allowing you to change the price without notice, limiting your own liability while imposing heavy obligations on the other side, or a right to terminate the contract at will.
If you use a template contract, have a solicitor review it before you roll it out.
Practical sources
The ACCC (accc.gov.au) has free guidance for business on every aspect of the ACL — from consumer guarantees to advertising, pricing, and contract terms. It is the official source and is updated when the law changes.