Can I demand a refund for any faulty product?

Not always. A major failure generally lets you choose a refund or replacement, while a minor failure usually gives the business a reasonable chance to repair or otherwise fix the problem.[S1]

Does the business have to accept a receipt?

You need to show proof of purchase, but an original receipt is not the only evidence. Bank statements, online order records, invoices and other business records may help.[S1]

Can a business tell me to contact the manufacturer?

You can contact the manufacturer, but the retailer or supplier that sold the product generally remains an important point of contact for consumer-guarantee remedies.[S1]

What if the business says the warranty has expired?

Consumer guarantees are separate from voluntary warranties. Whether a product should have lasted a reasonable time depends on the circumstances, so an expired warranty does not automatically end every ACL right.[S1]

What should I do if the product is unsafe?

Stop using it, preserve evidence and contact the supplier promptly. For serious safety concerns, seek appropriate medical or emergency assistance and report the issue to the relevant regulator.

Faulty products and services: repair, replacement, refund or compensation?

Q: Can I claim extra costs caused by the fault?

Potentially. Compensation may be available for reasonably foreseeable loss or damage caused by the failure, provided the amount and connection can be demonstrated.[S1]

If a product is faulty or a service is poorly performed, Australian Consumer Law may entitle you to a repair, replacement, refund, cancellation or compensation.

Australian Consumer Law (ACL) gives consumers automatic rights when goods or services do not meet required standards.[S1] These rights are called consumer guarantees and apply independently of any manufacturer’s warranty or extended warranty.[S1]

The remedy may be a repair, replacement, refund, cancellation of a service contract or compensation, depending on the problem and its seriousness.[S1]

What consumer guarantees cover

For goods, the key guarantees include that products will be of acceptable quality, fit for a purpose made known to the business, match their description or sample and be reasonably durable.[S1]

“Acceptable quality” generally means a reasonable consumer would regard the product as safe, durable, free from defects, acceptable in appearance and finish, and suitable for its ordinary uses.[S1]

For services, the provider must use an acceptable level of care and skill and take reasonable steps to avoid causing loss or damage.[S1] If a service was supplied for a particular purpose or result, it may also need to achieve that purpose or result, depending on what was agreed.[S1]

Consumer guarantees do not mean every product must last forever or every service must produce a preferred outcome. The expected standard depends on factors including the product’s nature, price, age, statements made by the business and the circumstances of the transaction.[S1]

Major failure: when you can choose the remedy

A product has a major failure where, for example, it is substantially unfit for its normal purpose and cannot easily be made fit, is unsafe, does not match its description, or a reasonable consumer would not have bought it had they known about the problem.[S1]

A service may have a major failure where it cannot achieve the purpose you asked for and cannot easily be fixed, or where a reasonable consumer would not have acquired it knowing the problem.[S1]

For a product with a major failure, you can generally choose between a refund and a replacement of the same type.[S1] You may also be entitled to compensation for reasonably foreseeable loss or damage caused by the failure.[S1]

For a service with a major failure, you may be able to cancel the contract and obtain a refund for the unused part, or keep the contract and seek compensation for the reduced value and other reasonably foreseeable loss.[S1]

A business cannot avoid these rights by putting up a “no refunds” sign or telling you that the manufacturer alone is responsible.[S1] The seller is usually the first business to approach about a faulty product, although manufacturers and importers can also have responsibilities in some circumstances.[S1]

Minor failure: usually a chance to fix it

A problem is generally minor when it does not amount to a major failure and can be remedied within a reasonable time.[S1] For a minor product problem, the business can usually choose to repair the product, replace it or offer another appropriate solution.[S1]

If the business does not fix the problem within a reasonable time, or the attempted repair creates a major failure, you may be able to reject the product and choose a refund or replacement.[S1]

For a minor service problem, the provider must generally fix the service free of charge and within a reasonable time.[S1] If it fails to do so, you may arrange for someone else to fix the problem and seek reasonable costs, or pursue another available remedy depending on the circumstances.[S1]

A refund is not automatically required simply because you change your mind, choose the wrong size or no longer want the product. Change-of-mind returns usually depend on the business’s policy, unless the goods or services failed to meet a consumer guarantee.[S1]

Who pays and what businesses can charge

Where a product fails to meet a consumer guarantee, the responsible business must provide the appropriate remedy without charging for the remedy itself.[S1] This can include reasonable costs of returning or transporting a faulty product, particularly where the item is large, bulky or difficult to return.[S1]

A business may charge for a problem that was caused by misuse, abnormal use or damage by the consumer rather than by a failure to meet a consumer guarantee.[S1] It should explain the basis for refusing a remedy rather than simply asserting that the warranty has expired.

A business may also need to give a repair notice before repairing products that store personal data or before using refurbished parts.[S1] Back up important data before handing over a device, but do not assume that deleting data removes the business’s obligations for the faulty product.

Proof of purchase

You should show that you bought the product or service from the business, but an original paper receipt is not the only possible evidence.[S1] Examples can include a bank or credit-card statement, tax invoice, online order record, warranty document, receipt number or other business record.[S1]

Give the business enough information to locate the transaction, such as the approximate purchase date, payment method, product description and store or website used. Keep copies of receipts, photographs, service reports, emails and messages about the problem.

The timing of the complaint matters. Consumer guarantees do not operate as a fixed “one-year” or “two-year” warranty; whether a product lasted a reasonable time depends on the circumstances.[S1] Report the problem as soon as you discover it and stop using an unsafe product.

A practical complaint process

1. Identify the failure

Describe what happened, when it happened, how the product or service was represented, and why it does not meet the expected standard. State whether you believe the failure is major or minor and what remedy you are seeking.

2. Contact the right business

For a product, start with the retailer or supplier that sold it to you.[S1] For a service, contact the service provider. If the problem may involve manufacturing defects, you can also contact the manufacturer or importer where appropriate.[S1]

3. Put the request in writing

A concise email is usually best. Attach proof of purchase and photographs or reports, set a reasonable response deadline and ask the business to confirm its proposed remedy. Avoid surrendering the product without documenting its condition.

4. Preserve evidence

Keep the product, packaging and accessories unless the business asks for them. Record conversations, names, dates and promises. If an expert inspection is needed, ask for a written report and retain the invoice.

If the business refuses or delays

Ask the business to explain its position in writing and refer to the consumer guarantee involved. If the matter remains unresolved, contact NSW Fair Trading for information or dispute assistance. The ACCC provides consumer-law information and may investigate conduct affecting consumers generally, but it usually does not resolve individual compensation disputes.[S1]

Depending on the dispute, you may also consider an industry ombudsman, a relevant external dispute-resolution scheme, or a claim in the NSW Civil and Administrative Tribunal. Before starting proceedings, check the applicable jurisdiction, monetary limit, filing requirements and evidence rules.

Do not accept a store policy that attempts to remove ACL rights. Businesses must not mislead consumers about their rights or imply that a warranty is the only protection available.[S1]

Compensation for consequential loss

You may be entitled to compensation for reasonably foreseeable loss or damage caused by a product or service failure.[S1] Examples might include reasonable expenses caused by a defective product or additional costs flowing directly from poorly performed services.

Compensation is not an automatic payment for inconvenience, disappointment or every expense connected with a complaint. Keep evidence showing the amount claimed, the connection with the failure and why the loss was reasonably foreseeable. You should also take reasonable steps to limit avoidable loss.

This guide provides general information, not legal advice. Complex disputes, substantial losses, personal injury or safety issues may require advice from a qualified Australian lawyer or a community legal service.