As consumers continue to shop both online and in physical stores, it's crucial to be aware of your rights under Australian Consumer Law (ACL).
A common question among consumers is whether you can get a refund for a product that doesn't meet your expectations or is faulty.
This article breaks down your rights, the steps to take, and tips to ensure you are protected in 2024.
Understanding Your Rights Under ACL
The ACL provides robust protections for consumers, ensuring that businesses cannot evade their responsibilities when it comes to the quality and suitability of their products and services. Here's what you need to know:
When Are You Entitled to a Refund?
Under the ACL, you are entitled to a refund if the product you purchased:
Is faulty or has a serious defect: If the product is significantly different from what was described or expected, it is considered to have a major fault. For example, a smartphone that fails to turn on after charging would have a major fault.
Does not do what it is supposed to do: This applies where the product does not fulfill the purpose for which it was bought, such as a printer that consistently jams and cannot print documents.
Is unsafe: If the product poses a safety risk, like an electric kettle that sparks when turned on, it is considered faulty.
Is not as described: If the product does not match its description, such as a silk dress that is manufactured from cotton, you can claim a refund.
Does not fit the intended purpose: If you specifically communicated your need for a product to function as represented to the seller, and it fails to meet that need (i.e, buying a waterproof jacket that turns out to be water-resistant), you are entitled to a refund.
Does not last a reasonable length of time: A product must function or last for a reasonable length of time. For example, if you purchase shoes that fall apart within the first few days of wear, these are considered to be faulty.
These rights are provided for under sections 54-59 of the ACL, which is contained within Schedule 2 of the Competition and Consumer Act 2010 (Cth).
Situations Where a Refund May Not Be Available
There are situations where you might not be entitled to a refund:
Change of mind: If you simply change your mind about a purchase, businesses are not legally required to provide a refund unless refunds are provided for as part of their return policies.
Damage due to misuse: If the product was damaged due to misuse or failure to follow the care instructions, you may not be entitled to a refund.
Minor faults: If the issue with the product is minor, the seller can opt to repair the product instead of offering a refund.
What Are Your Options?
If you are entitled to a remedy under the ACL, you can request:
A refund: A full return of the purchase price.
A replacement: A new product of the same type.
A repair: Fixing the product to bring it up to the expected standard.
The choice of remedy often depends on the nature of the fault. For major faults, you can choose between a refund, replacement, or repair. For minor faults, the seller can choose to repair the product first.
Steps to Take If You Need a Refund
If you believe you are entitled to a refund, follow these steps:
Step 1: Gather Evidence
Before approaching the seller, gather all necessary evidence, including receipts, bank statements, photographs of the fault, and any correspondence with the seller. This documentation will support your claim.
Step 2: Contact the Seller
Start by contacting the business directly, either in person, by phone, or via email. Clearly state the problem, your rights under the ACL, and the remedy you are seeking (refund, replacement, or repair).
Step 3: Lodge a Complaint if Necessary
If the seller refuses to acknowledge your rights, you can lodge a complaint with your State or Territory’s consumer protection agency, such as NSW Fair Trading or Consumer Affairs Victoria.
Step 4: Consider Escalation
If the issue remains unresolved, consider escalating the matter to the Australian Competition and Consumer Commission (ACCC) or taking legal action through the appropriate small claims tribunal. The ACCC is responsible for enforcing the ACL and can provide guidance on how to proceed.
Tips for Ensuring Your Rights Are Protected
Tip 1: Know the Return Policy
While the ACL provides certain protections, businesses may offer return policies that extend beyond the minimum statutory requirements. Always check the store’s return policy before making a purchase, especially for items on sale or clearance.
Tip 2: Act Quickly
If you notice a fault, act quickly. The sooner you address the issue, the better your chances of securing a favourable outcome.
Tip 3: Be Informed
Stay informed about your rights under the ACL. The ACCC’s website is an excellent resource for up-to-date information and guidance. Visit the ACCC’s Consumer Rights & Guarantees page for more details.
Tip 4: Keep Records
Always keep your receipts and any correspondences with the seller. These records are crucial if you need to escalate your claim.
Common Myths About Refunds
Myth 1: You Need the Original Packaging
There is a common misconception that a refund can only be granted if you return the item in its original packaging. This is not true. While original packaging can be helpful, it is not required under the ACL.
Myth 2: You Must Accept a Store Credit
Businesses cannot force you to accept a store credit instead of a refund when you are entitled to one. You have the right to request a full refund in the original form of payment.
Myth 3: Sale Items Are Exempt from Refunds
Even if a product is purchased on sale or discounted, you still have the same statutory rights under the ACL. Faulty goods must be refunded or replaced, regardless of whether they were bought on sale, unless the defect was expressly identified by the seller as the reason for the sale or discount.
Conclusion
Understanding your rights under the Australian Consumer Law is essential to ensuring that you are protected when making purchases. Whether dealing with a faulty product or an item that doesn’t meet its description, knowing when you are entitled to a refund, replacement, or repair empowers you to act confidently and assertively. By following the steps outlined above and staying informed, you can navigate the refund process smoothly and protect your consumer rights.
Remember, while businesses have obligations under the law, it is up to you to be proactive in asserting your rights. If ever in doubt, don’t hesitate to seek advice or escalate the matter to the appropriate authorities.
ABOUT THE AUTHOR
Julie Mehrdawi is a passionate and dedicated member of our team, excelling in Commercial Litigation, Corporate Law and Regulatory Advice, Employment Law and Defamation Law. Julie’s commitment to staying at the forefront of legal advancements in our clients' industries ensures she is able to successfully identify and mitigate legal risks, safeguarding our clients interests.
Julie’s takes great pride in her approachable nature, which allows her to collaborate closely with clients and provide tailored, expert legal advice and representation that allows her clients to succeed.
Julie is able to leverage her diverse background and think outside the box to deliver comprehensive, pragmatic, and holistic solutions for her clients in every area of law.
