If a product or a service you buy, fails to meet a consumer guarantee, you have the right to ask for a repair, replacement or refund under the Australian Consumer Law.
Melbourne-based Molina Asthana, the Principal at Swarup Asthana Lawyers and Business Advisors says, “Businesses must guarantee products and services they sell, hire or lease."
As per Australian Consumer Law, if a business fails to deliver any of these guarantees, there are consumer rights for which allow for repair, replacement or refund or allow to cancel a service or get compensation for damages & loss.
Molina explains, “The law aims to give consumers and sellers a fair go. It is not designed to protect consumers if they are careless or make unreasonable demands. There are several circumstances when consumers are not entitled to a remedy from the seller."
According to the Australian Competition and Consumer Commission (ACCC), sellers do not have to give refunds, credit or exchanges if consumers:
1. Change their minds, decide they do not like the goods or have no use for them (except in cases where other legislation provides for a ‘cooling off’ period – for example, door-to-door sales)
2. Discover they can buy the goods cheaper elsewhere (except where the seller provides a guarantee that the goods cannot be purchased cheaper elsewhere)
3. Examine the goods before buying and ought to have seen any obvious fault
4. Had the defect drawn to their attention before buying (for instance, when goods were labelled as seconds, or faults were clearly marked)
5. Damage the goods by using them in a way they were not meant to be used.
The remedy consumers are entitled to will depend on whether the issue is major or minor.
The consumer can ask a business for their preference for a free repair, replacement or refund, but they are not always entitled to one.
Ms Asthana says, “If the problem with a product or service is minor, the consumer must accept a free repair if the business offers one.
"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 or a refund or recover compensation for the drop in value below the price paid," she adds.
One can ask for a replacement or refund if the problem with the product is major.
Molina Asthana reminds, “It is against the law for businesses to tell you or show signs stating that they do not give refunds under any circumstances, including for gifts and during sales. Your rights under the consumer guarantees do not have a specific expiry date and can apply even after any warranties you’ve got from a business have expired.”
