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My store policy says “no refunds”. A customer is demanding one for a faulty product. Do I have to give a refund?

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Yes — your “no refunds” policy cannot override the customer's statutory rights.

Under the Australian Consumer Law (ACL), consumers have a right to a remedy when goods have a major failure — meaning goods that are substantially unfit for their normal purpose, unsafe, or significantly different from their description. This right exists regardless of any store policy or signage.

For a major failure, the consumer chooses their remedy: refund, replacement, or repair. You cannot require them to deal with the manufacturer first.

Sources

§Competition and Consumer Act 2010 (Cth) Sch 2, ss 54, 259–260
§ACCC, Consumer Guarantees: A Guide for Businesses and Legal Practitioners (2022), pp 18–22
⚠️ General legal information only — not legal advice. For your specific situation, consult a qualified Australian solicitor.

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Consumer Guarantees

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Misleading Conduct

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  • Can I use 'was/now' pricing in promotions?
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Unfair Contract Terms

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  • Does the UCT regime apply to my business?
  • What should I remove from my standard contracts?

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RegPlain is designed by someone who has spent years teaching and researching Australian commercial law. Every answer is grounded in primary sources — legislation, ACCC guidance, and case law — not summaries of summaries.

Based in Melbourne, AustraliaAustralian law onlyUpdated with every legislative change