Returns: refunds, repairs and replacements

Last updated: 25 November 2024

Products sold in Australia must meet a set of basic rights called consumer guarantees.

Under the Australian Consumer Law (ACL), products must:

  • be of acceptable quality
  • match descriptions
  • match any demonstration model or sample
  • be fit for the purpose
  • come with full ownership
  • not carry any extra charges
  • meet any extra promises, such as lifetime guarantees, and money back offers
  • have spare parts and repair facilities available for a reasonable time.

For information about consumer guarantees for product, see our consumer rights for products page.

Refund, replacement or repair 

Consumers are entitled to a solution called a ‘remedy’ if a product or service they bought does not meet one or more of the consumer guarantees.

Depending on whether the problem is major or minor, the buyer may be offered one of the following remedies:

  • a refund
  • repairs
  • a replacement
  • compensation.

The product does not have to be in its original packaging, but a business is entitled to ask for some form of proof of purchase, such as a receipt.

Major problems 

A major problem means the product:

  • is unsafe
  • is significantly different from a sample, description, or demonstration model.
  • would not have been bought if the consumer had known about the problem.
  • does not do what it is supposed to do and can’t be fixed quickly or easily.
  • cannot do what the consumer told the salesperson they needed it to do

Remedies for major failure 

The consumer can choose a refund or replacement when there is a major failure.

Replacements must be the same type of product.

Refunds should be:

  • the full amount the consumer paid
  • in the method as the consumer paid for the product e.g. by debit or credit card, loyalty points or voucher.

The business must not:

  • offer a credit note instead of a refund
  • refuse a refund, or reduce the amount, because the goods were not returned in original packaging or wrapping.

Store credit or vouchers may be used as a refund only with agreement from both the consumer and business.

Consumer wants to keep the product 

A consumer may choose to keep the product and be compensated for the drop in value caused by the problem. For example, this can happen when a consumer buys a pet and an issue is found at a vet check-up. See more information on the pets page.

Minor problems 

If you have a minor problem with a product or service, the business:

  • must give you a free repair, or
  • can choose to offer a replacement or refund.

You must accept this free repair if the business offers it to you.

When the business can’t or won’t fix the problem

If the business fails to give you a free repair within a reasonable time or cannot fix your problem, you can:

  • get it done elsewhere and the consumer can pass on reasonable costs to the business
  • ask for a replacement
  • ask for a refund
  • recover compensation for the drop in value below the price paid.

Repair notices

Under the ACL, a consumer must be given a repair notice when:

  • a repair will be made to a product that can store user data
  • a repair may use refurbished parts, or
  • it is the repairer’s practice to supply refurbished goods rather than repair defective goods.

Refurbished or reconditioned goods are second-hand. They have been inspected and had minor repairs or part replacement to return them to full working order.

The consumer must receive the repair notice in writing before the goods are accepted by the business for repair.

More information about the rules and responsibilities are available from ACCC’s repair notice page.

Services connected to returned goods (linked service contracts) 

Consumers often buy goods linked to certain services. They may be able to get a refund if they don’t meet the consumer guarantees. For more information on cancelling services, visit our Cancelling a service page.

Gifts 

Gift recipients have the same rights as a consumer who has bought goods or services directly. More information about rights with gift cards see Gift vouchers and cards

When a consumer is not entitled to a refund, repair, or replacement 

A consumer would not be entitled to a refund, repair, or replacement if the product meets all the consumer guarantees.

This means a consumer would not get a refund, repair, or replacement if they:

  • changed their mind
  • ordered the wrong product
  • found the product cheaper elsewhere
  • were aware of the problem before buying the product.
  • damaged the product by misusing it.
  • used the product for a long time and the problem is caused by usual wear and tear.

Responsibility for returning products

Consumers are responsible for returning products if it can be easily returned or posted.

Businesses are responsible if the cost for returning the product is significant. For example, paying for the shipping costs or collecting faulty products if it is large, heavy, or hard to remove, such as:

  • widescreen televisions
  • beds
  • installed appliances, like stoves or dishwashers
  • extension ladders stuck in an extended position.

This must be done within a reasonable time.

Return costs 

Product has a problem

The business must reimburse the consumer for any reasonable return costs they have already paid. Consumers should keep receipts for postage or transport costs so they can be repaid by the business.

Product does not have a problem 

The business can make the consumer pay the collection and inspection costs. The business must give the consumer a reasonable estimate of these costs before collecting the product from the consumer.

Business rights and responsibilities 

A business can’t take away a consumer's right to a refund or replacement for products or services that don’t meet the consumer guarantees. It’s illegal for businesses to try to cancel these rights in store policies or terms and conditions. For example, policies which say ‘no refunds’ or ‘no refunds or exchanges on sale items.’

A business has the right to assess the product or service before they provide a remedy.

Businesses must

  • not tell consumers to take the problem to the manufacturer or importer.
  • Let the consumer choose between a refund and replacement when a product has a major problem.
  • fix a minor problem with a product or service by at least giving a free repair.
  • follow with any of their own in-store returns policies e.g. 30-day refunds.

The manufacturer must repay the business when the problem is the manufacturer’s fault. Repayment is for the costs of providing the consumer with a solution. More information is available in the responsibility for fixing a problem with a good page.

What is ‘reasonable’ 

Reasonable is used to explain time, costs, and quality expectations. It means what a general person would think is fair. For example:

  • Reasonable quality: an expensive toaster will last longer than a cheap one.
  • Reasonable time to repair: it is likely to take longer for a repairer to visit a home to fix a dishwasher than taking a shirt back to a store for repair.
  • Reasonable repair costs: it is reasonable to expect a business to cover the parts and labour of a repair but not to upgrade them.
 

Repair, replace, refund problem solver

If you're not sure whether the consumer guarantees apply to a specific purchase, try the ACCC’s ‘Repair, Replace, Refund’ problem solver.