Repairs, replacements and refunds (2024)

Under Australian Consumer Law, most products and services bought in Australia (from 1 January 2011) come with an 'automatic consumer guarantee' that the product or service you purchased will work and do what it says it will.

If a product or service does not meet the consumer guarantees, you are entitled to a repair, replacement or refund, you may cancel the service and, in some cases, claim reimbursem*nt for damages and loss.

When am I entitled to a repair, replacement or refund?

When the product or service you purchased does not meet one or more of the consumer guarantees.

Products must:

  • be of acceptable quality
  • match descriptions made by the salesperson, on packaging and labels, and in promotions or advertising
  • match any demonstration model or sample you asked for
  • be fit for the purpose the business told you it would be fit for
  • come with full title and ownership
  • not carry any hidden debts or extra charges
  • meet any extra promises made about performance, condition and quality, such as lifetime guarantees, and money back offers
  • have spare parts and repair facilities available for a reasonable time after purchase unless you were told otherwise.

Services must:

  • be provided with acceptable care and skill or technical knowledge
  • be fit for purpose or give the results that you and the supplier agreed to
  • be delivered within a reasonable time when there is no agreed end date.

Did you know? Gifts you receive are included under Australian Consumer Law, so the goods and services you receive are still protected under the automatic consumer guarantees.

When am I not entitled to a repair, replacement or refund?

Rights to a repair, replacement, refund, cancellation or compensation do not apply to items:

  • purely for business use worth more than $100,000 (such as machinery or farming equipment)
  • bought at auction where the auctioneer acted as an agent for the owner (but you do have rights to full title, undisturbed possession and no unknown debts or extra charges).

A business can refuse to give you a free repair, replacement or refund if:

  • you simply changed your mind
  • you misused the product or service in a way that contributed to the problem
  • you asked for a service to be done in a certain way against the advice of the business, or were unclear about what you wanted
  • a problem with a service was completely outside of the business’ control.

Repairs

If you have a minor problem with a product or service, the business can choose to give you a free repair instead of a replacement or refund. You must accept this free repair if the business offers it to you.

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 pass on the costs to the business
  • ask for a replacement
  • ask for a refund
  • recover compensation for the drop in value below the price paid.

"Manufacturers are responsible for ensuring that spare parts and repair facilities for products are available for a reasonable time after purchase (unless you were told otherwise). How long is ‘reasonable’ will depend on the type of product."

Repair notices

Under Australian Consumer Law, businesses who repair goods must provide consumers with repair notices when:

  • the goods being repaired can retain user-generated data (for example mobile phones, computers, portable music players and other similar electronic goods)
  • it is the repairer’s practice to supply refurbished goods rather than repair defective goods, or to use refurbished parts in the repair of defective goods (refurbished or reconditioned goods are second-hand, they have generally 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.

Replacements and refunds

When you have a major problem with a product, you have the right to ask for a replacement or refund.

For a major problem with services, you can cancel the contract and get a refund or compensation for the drop in value of the services provided compared to the price paid.

Replaced products must be similar to the original product.

Refunds should be the same amount you paid and given to you in the same form as your original payment.

When processing a replacement or refund, the business can take into account how much time has passed since you bought the product, and consider the following factors:

  • the type of product
  • how a consumer is likely to use the product
  • the length of time for which it is reasonable for the product to be used
  • the amount of use it could reasonably be expected to tolerate before the failure becomes noticeable.

What is a major problem?

A product has a major problem when:

  • it is substantially unfit for its common purpose and can’t easily be fixed within a reasonable time
  • it would stop someone from buying it if they’d known about it
  • it’s unsafe
  • it’s significantly different from the sample or description
  • it doesn’t do what the business said it would, or what you asked for and can’t easily be fixed.

A service has a major problem when:

  • it does not meet the specific result you asked for and can’t be easily fixed within a reasonable time
  • it would stop someone from acquiring the service it if they’d known about it
  • it’s substantially unfit for its common purpose and can’t easily be fixed within a reasonable time
  • it does not meet the specific purpose you asked for and can’t easily be fixed within a reasonable time
  • it creates an unsafe situation.

Reimbursem*nt for damage and loss

You can ask for reimbursem*nt for damages and losses you suffer if the supplier could have reasonably anticipated the problem. This is in addition to a repair, replacement or refund.

What is covered?

Reimbursem*nt should put you in the position you would have been in if the products or services had done what they are supposed to under consumer guarantees. This is usually a financial cost, but can also include lost time or productivity.

What is not covered?

Businesses don’t have to pay for damages or losses that:

  • are not caused by their conduct, or their products
  • relate to something independent of their business, after the goods left their control.

How to make a claim for reimbursem*nt

To make a claim for reimbursem*nt for damages and loss:

  1. Work out the amount of money you would need to return you to the financial position you were in before the problem occurred.
  2. Contact the business (verbally or in writing) to explain the problem and present your claim for reimbursem*nt. You may also want to ask for a refund or replacement.
  3. Show proof of purchase with a receipt or bank statement.

If the supplier refuses to discuss reimbursem*nt or you cannot negotiate an agreement with them, you can seek formal dispute resolution or take legal action. See below for more information.

Have a problem?

  1. Contact the business in the first instance and explain the problem. We have tips and sample letters to help you take the first step.
  2. If you’re unable to resolve the matter with the business, you can contact us for advice on 13 32 20, or make a complaint online.

Uncollected goods

Uncollected goods are items that were left with a business for repair or other treatment (with or without payment). When goods haven’t been collected for a period of time, the business is to follow specific disposal and notification procedures outlined in theUncollected Goods Act 1995.

Seeuncollected goods for more information.

Be a savvy consumer

Proof of transaction

Under Australian Consumer Law, businesses must provide consumers with proof of transaction (also known as proof of purchase) for goods or services valued at $75 or more. Businesses are also required to provide a receipt for any transaction under $75 within seven days if the consumer asks for one. Learn more on our Receipts page.

Further information

Prev Guarantees, contracts & warranties

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Repairs, replacements and refunds (2024)

FAQs

Can you ask for refund instead of replacement? ›

If you purchase a product that develops a major problem later on, you have the option to choose between a refund or a replacement. The refund should be the full amount you paid, and this still applies even if you used the good.

What is a replacement or refund? ›

Replacement means the product you purchased will be Resent again in good condition assuming it was sent in broken or defective condition in the first place. Refund is you ask for or is given back the amount (money)you spent on it to buy it initially.

What is the right to repair or replacement? ›

Section 23: Right to repair or replacement

A replacement would usually need to be identical, that is of the same make and model and if the goods were bought new then the replacement would need to be new.

Do you have to accept a replacement for faulty goods? ›

If the item is faulty or defective, you have the right to reject or return the items and obtain a refund, or replacement. However, you should exercise your right to reject the item within 30 days to secure a refund. That said, in some cases 30 days will not be a reasonable time in which to return it.

What to do if a company won't give you a refund? ›

Get Outside Help
  1. Contact your state attorney general or state consumer protection office. ...
  2. Contact a national consumer organization. ...
  3. Contact your local Better Business Bureau The Better Business Bureau is made up of organizations supported by local businesses. ...
  4. File a report with the FTC.

Can I ask for a replacement instead of a repair? ›

If there is an issue with the product, you can either: Ask for the product to be repaired or replaced. End the contract and get a refund. Ask for a price reduction.

How do I request a replacement refund? ›

How do I get a new one? If you lost your refund check, you should initiate a refund trace: Use Where's My Refund, call us at 800-829-1954 and use the automated system, or speak with an agent by calling 800-829-1040 (see telephone assistance for hours of operation).

How to ask for compensation for damaged goods? ›

To resolve the problem I request that you [state the remedy that you request: to replace the product with an acceptable product that is the same or of equal value, repair the item at no cost to you or refund the full purchase price of the product].

What is the rule for repair or replace? ›

The decision is normally made using cost factors, with one rule of thumb used by industry being the “50 percent rule” with the basic tenet being if a repair exceeds 50 percent of the total cost of replacing the item, then go with the replacement.

Is repair and replacement the same thing? ›

A repair is fixing something that's already there so that it works. A replacement means getting rid of the old thing and getting a whole new thing. Generally, repairs cost less than replacements, but the tax advantages or operating efficiency of a replacement might look really good to the landlord.

What is the federal right to repair? ›

Right to repair is a legal right for owners of devices and equipment to freely modify and repair products such as automobiles, electronics, and farm equipment. Right to repair may also refer to the social movement of citizens putting pressure on their governments to enact laws protecting a right to repair.

Do I have to accept a credit note instead of a refund? ›

In general, you do not have to accept a credit note if your complaint is covered by consumer law (except in very limited cases for package holidays – see below). Instead, you can insist on a repair, a replacement or a refund. If you accept a credit note you may not be able to ask for a refund afterwards.

How do I insist on a refund? ›

Find the receipt and explain to the merchant why you are unhappy with their goods or services. If necessary, work your way up the chain of command, starting with a clerk and then asking to speak to a supervisor. Even if the store won't issue a refund, you have options.

What to do if a retailer refuses a refund? ›

What can you do if a company won't give you a refund? If you're due a refund and the retailer just won't pay up, or goes bust before they can pay you, then depending on how you paid, you may be able to ask your bank or credit card company for a refund.

Are you allowed to ask for a refund? ›

You don't have an automatic right to get your money back if you just change your mind about something you've bought and there's nothing wrong with it. It's the same no matter how expensive the item was - it's really down to the seller whether they offer you anything.

Does replacement mean refund? ›

Returns involve sending back a product to the retailer or manufacturer, usually due to dissatisfaction or defects, to receive a refund or credit. Replacements, on the other hand, entail exchanging a faulty or unsatisfactory product for a new or identical item.

Can I refuse a replacement? ›

Repairs and replacements

The customer can still reject the item after it's been repaired or replaced. A customer has accepted an item if they've: told you they've accepted it (having had enough opportunity to inspect the item before confirming they've received it) altered the item.

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