Is It Legal Where?

Reference · Jurisdiction

When Australian shoppers can choose a refund for faulty goods

A major product fault generally gives the buyer a choice of a refund or replacement. A minor fault generally gives the business the opportunity to fix it free of charge.

Sources checked

Is It Legal Where? Editorial Team

The fault determines the remedyAustralian Competition and Consumer Commission guidance on product remedies
  1. 01
    Identify the issue

    A change of mind and a fault under a consumer guarantee follow different rules. Source 1

  2. 02
    Major fault

    The consumer chooses a refund or replacement, or keeps the product and seeks compensation for lost value. Source 1

  3. 03
    Minor fault

    The business must remedy it free of charge, usually by repair. Source 1

  4. 04
    Repair unresolved

    If the business cannot or will not fix it in reasonable time, the consumer may have further options. Source 1

Start with the consumer guarantee, then identify the seriousness of the problem.

Source 1

What makes a product fault major

The ACCC includes an unsafe product, one very different from its description or sample, and problems serious enough to put off a buyer who knew about them. A product can also have a major problem when it cannot perform its normal purpose, or a purpose disclosed to the seller before purchase, and cannot easily be fixed in a reasonable time. Source 1

The consumer picks the major-fault remedy

Where a product has a major problem, the seller must offer a refund or replacement of the same type. The refund covers the full purchase price and is usually paid in the original form. The consumer may also keep the goods and seek compensation for the reduction in value. Source 1

How a minor repair can turn into another remedy

The seller must provide a free fix for a minor issue. If it cannot or will not do so in reasonable time, the ACCC lists other options, including a refund or replacement, getting it fixed elsewhere and recovering reasonable costs, or keeping it and claiming the fall in value. Reasonable time depends on the product and the nature of the work. Source 1

Check the circumstances of the purchase

Changing your mind is generally outside the guarantee remedies, although a seller must follow a change-of-mind policy it offers. A fault disclosed before purchase or caused by misuse also changes the position. For a covered fault, a store policy cannot remove the consumer’s rights, and the retailer cannot simply redirect a customer to the manufacturer. Source 1

Sources

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