Refunds, returns and faulty goods in Australia: your ACL rights explained

Consumer guarantees under the ACL

Under the Australian Consumer Law (ACL), every product and service sold in Australia must meet a set of Consumer Guarantees. When a product fails to meet these guarantees, you are entitled to a repair, replacement or refund — regardless of the store’s individual refund policy.

Consumer guarantees apply automatically — they cannot be waived by contract or policy.

When does a product fail the consumer guarantee?

A product fails if it:

• Is not safe.
• Does not match the description, labelling, sample or advertisement.
• Is not fit for purpose — either the ordinary use of that type of product, or a particular purpose you told the seller about before purchasing.
• Is not of acceptable quality — has a defect, does not last a reasonable time, or lacks expected features.
• Does not have clear title (e.g., subject to undisclosed finance or liens).

Minor vs major failures

Minor failure: the seller may choose to repair, replace or refund — you cannot insist on a refund if they offer a timely repair.

Major failure: you have the right to choose a full refund or replacement immediately, without giving the seller an opportunity to repair first. A failure is major if:

• The product is unsafe.
• It differs significantly from the description.
• It cannot be fixed within a reasonable time.
• You would not have bought it had you known about the problem.

”No Refund” signs — illegal for faulty goods

A “No Refunds” or “No Exchange” policy displayed in a store is illegal under the ACL when applied to faulty or misdescribed goods. Retailers cannot override your consumer guarantee rights with a sign or policy.

However, stores are not legally required to offer refunds for change of mind — that is a matter of their individual store policy.

Your rights for online purchases

ACL rights apply to all online purchases from Australian sellers — marketplaces, Australian websites and Australian businesses selling via international platforms. When buying from overseas sellers (e.g., directly from a Chinese website with no Australian presence), enforcing ACL can be more difficult.

When buying online in Australia:

• You are entitled to a refund if the item does not arrive, does not match the description, or is faulty.
• The seller pays return postage for faulty items — you should not bear this cost.
• If you paid by credit card and the seller refuses to cooperate, you may be able to raise a chargeback with your bank.

How to claim a refund

1. Contact the seller in writing (email or message) — describe the fault, cite your ACL rights and state what remedy you want.
2. Keep evidence: receipt, photos of the fault, all communications.
3. If the seller refuses: contact your state consumer protection agency:
   • NSW: Fair Trading NSW
   • VIC: Consumer Affairs Victoria
   • QLD: Office of Fair Trading
4. Lodge a complaint with the ACCC (accc.gov.au) for serious breaches.
5. Apply to the state tribunal (NCAT/VCAT/QCAT) for a binding determination.

Manufacturer warranties and ACL

A manufacturer warranty is an addition to your ACL rights — it does not replace them. Your ACL rights have no fixed time limit: a high-value, long-lasting product (TV, washing machine, fridge) must remain of acceptable quality for a reasonable period, even after the manufacturer warranty expires. If a $2,000 appliance fails 18 months after purchase (with a 12-month warranty), you may still have an ACL claim.