Consumer Guarantees

All Australian traders, whether online or running a bricks and mortar operation, must comply with Australian trading laws. This includes laws on consumer guarantees.

Since 1 January 2011, businesses must provide consumers with guarantees for most consumer goods and services they sell.

Goods

Consumers have the right to ask for a repair, replacement or refund if the goods sold are:

  • faulty
  • unsafe
  • look unacceptable, and
  • do not do what they are supposed to do.

In each case this is according to what someone would normally expect for the type and cost of the particular goods

Consumers also have this right if the goods sold do not:

  • fit the purpose discussed with the shop owner
  • match the description provided
  • match the sample or demonstration model provided
  • have the extra qualities or performance that were promised before the sale.

Services

Consumers have the right to ask for a repair, replacement or refund if the services you sold:

  • were not delivered completely or with adequate care and skill
  • did not fit the purpose or give the results that had been agreed to
  • were not delivered within a reasonable time.

These rights arise from the consumer guarantees under the Australian Consumer Law that provide consumers with a right to seek remedies where there are problems with goods or services. Other laws apply for products and services you bought before 1 January 2011.

What types of businesses must offer consumer guarantees?

Consumer guarantees apply automatically to most products and services supplied by businesses in retail, service, online and hire situations.

No refunds

It is illegal for businesses to tell customers or show signs stating that they do not under any circumstances give refunds.

Must businesses automatically give a repair, replacement or refund?

No. This will depend on the consumer showing proof of purchase and whether or not there is a major problem with the product or service.

Proof of purchase can include a receipt, bank statement, a completed warranty card or a lay-by statement.