Refunds |
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When am I entitled to a refund, repair or exchange?
As a consumer, you are legally entitled to a refund, exchange or repair from the place of purchase if goods you purchase:
- have a fault you did not know about when you bought it
- are not the same as the seller or advertisement described
- don’t do the job you were led to believe they would
- don’t match the sample
- don’t last a reasonable amount of time, given the price you paid.
If you receive a service that is not of a standard that a reasonable person would expect, you are entitled to a refund or free repeat service.
If you partially use or benefit from the goods or service before a fault or problem develops, the trader can negotiate with you for a partial refund or other compensation.
When am I not entitled to a refund, repair or exchange?
You are not entitled to a refund from the place of purchase if you:
- can not prove you purchased the item (for example, by using a receipt or bank statement that shows the purchase) from the store
- realise you can't afford the goods
- change your mind about the goods, such as choosing the wrong size or finding the item cheaper elsewhere
- insisted that the trader do the service despite their warning that it may not meet your needs
- took action that voided or damaged the outcomes produced by the service
- have damaged the goods you bought
- knew (or should have known) about a fault when you bought the goods.
Some businesses may offer refunds in some of these circumstances as a sign of goodwill, though the law does not require them to do so.
Refund methods
In most cases, the business will refund in the same way you paid. Do not expect a cash refund if you did not pay cash. Electronic transactions are usually reversed.
Some stores will offer replacement items, exchanges or credit notes instead of refund by cash, cheque or reversing an electronic transaction. If you are legally entitled to a refund, you can insist on a refund if this is your preference. If the store cannot give you a cash refund, they must give you another form of currency, such as a cheque, money order or electronic transaction reversal.
The trader you bought the product from must help you resolve the problem. The trader is obliged to organise an exchange, refund or other deal with the manufacturer on your behalf. The decision of an exchange, refund or repair should be mutually agreed to.
Restocking fee
If a trader is offering a refund or exchange out of goodwill only (when you are not legally entitled to a refund), they may place conditions on the refund or exchange, such as a restocking fee. Such conditions or fees should be fully disclosed on a sign or receipt.
Business changes hands
If the business changes hands, the new owner is not liable to provide a refund if they were not responsible for the sale. In some instances, part of the purchase of a business is that the new owner will take on liability for repair of faulty products.
You do have the right to pursue the manufacturer if the retailer will not help.
Real life stories
Read a real life story about getting a refund for a faulty product.
Read a real life story about whether you can get a refund for an unwanted product.
Last reviewed 18/08/2009 |
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