If in a Store and it just says “No Refunds” that is not legal. If it is a sign that says “No Refunds for a change of mind” or a similar phrase for some change in your preference that is a legal option but doesn’t mean you can’t ask for one.
Consumer guarantees for eg refunds, replace or repair do not apply if you:
- got what you asked for but simply changed your mind, found it cheaper somewhere else, decided you did not like the purchase or had no use for it
- misused a product in any way that caused the problem
- knew of or were made aware of the faults before you bought the product
- asked for a service to be done in a certain way against the advice of the business or were unclear about what you wanted
Rights to a repair, replacement, refund, cancellation or compensation do not apply to items:
- worth more than $40 000 purely for business use, such as machinery or farming equipment
- you plan to on-sell or change so that you can re-supply as a business
- bought as a one-off from a private seller, for example at a garage sale or fete (but you do have rights to full title, undisturbed possession and no unknown debts or extra charges)
- 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).
Refunds are covered under the ACL and that has been discussed many times on this site. You can ask for a repair, replacement, or refund (this is your choice not the business’s) if the problem with the product is major.
A product or good has a major problem when:
- it has a problem that would have stopped someone from buying it if they’d known about it (Takata Airbags perhaps as an example)
- it is significantly different from the sample or description (eg you ordered a brown seat and instead got a green one)
- it is substantially unfit for its common purpose and can’t easily be fixed within a reasonable time (eg a tilt chair that doesn’t tilt)
- it doesn’t do what you asked for and can’t easily be fixed within a reasonable time; or
- it is unsafe (eg a circular saw where the blade flies off in operation)
A service has a major problem when:
- it has a problem that would have stopped someone from buying it if they’d known about it
- it is 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 cannot easily be fixed within a reasonable time
- it creates an unsafe situation.
In the case of a service you can instead of a refund ask for compensation for the drop in value from what was paid.
You can also ask for a refund if the problem is minor if the business fails to give you a free repair within a reasonable time or cannot fix your problem.
