Right to refund for faulty goods


    By Sophie Elsworth
    News Limited newspapers
    March 12, 2012

    Customers are often given a credit note for faulty goods
    You are entitled to a refund and do have rights
    If you simply change your mind, it may be harder



CUSTOMERS returning faulty products are often told they cannot receive a refund but can obtain a credit note.

Australian Competition and Consumer Commission's Queensland general manager, Alan Ducret, says this is not the case, and customers are entitled to a refund.

"We are concerned over the years that a lot of retailers say 'oh no, we don't refund but we'll give you a credit'," he says.   

"But if the product's faulty the consumer is entitled to a refund."   

Mr Ducret says depending on whether the problem with the item or service is major or minor, they are within their rights to take it back. "If you buy a product and there is a fault with it, then you do have rights. If it's a major issue they're entitled to a refund, if it's just a very minor thing, that might be different.

"There are several reasons we have taken some traders to court for having a 'no refunds' sign. You can't say that."

Australian Retailers Association executive director Russell Zimmerman says when it comes to getting a refund, replacement or a repair done, it often depends on several factors.

"It really depends on the severity of the fault, the age of the product and retailers need to understand their law," he says.

Mr Zimmerman says if you simply change your mind, you will struggle to get your money back.

"At that point the retailer has the discretion to decide what their policy might be."

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Comments on this story

    Helen of Melbourne Posted at 1:16 PM March 12, 2012

        I have never had an issue returning products that are faulty,. I have been offered money back or exchange. I went in after Christmas because I had been given 2 gifts the same, they were great and happily exchanged for what I wanted. They by law do not have to do that. I also do not go in their with a bad attitude as I have seen some do and I do not go in to a store a few weeks after I have been using an item to say it is faulty when at that time it may come under a warranty and have to go via a repair shop, Depending on the item. I also know people who buy clothes, wear them and then take them back to the store to get their money back. I laugh at them when they are refused. Most stores are genuine but because of so many who do the wrong thing, we all pay a price. So I can understand why stores are clamping down. It maybe wrong in some cases but I can understand.   

    Toni Parr Posted at 1:16 PM March 12, 2012

        A shop tried to pull this one on me. Told me it was "Policy". I told them they can all the policy they like but consumer law say's you have to give me a refund if I request it. And if you like I'll contact the consumer commission. Who do you think would win? They gave me a refund   

    Brian of Sydney Posted at 12:43 PM March 12, 2012

        They should be teaching consumer rights at school and maybe handing out wallet sized card with a summary of consumer rights. Show the retailers that you are "consumer savvy" and they soon back off. 




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