A “No Refunds” sign is not a magic waiver. Where the Australian Consumer Law gives you a remedy because a product fails a consumer guarantee, a retailer cannot contract out of it.
“No refunds” does not cancel Australian Consumer Law rights
Australian businesses cannot use a sign, receipt or standard terms to remove the consumer guarantees that apply to goods and services. The ACCC specifically says it is unlawful to rely on policies such as “no refunds” to deny statutory rights.
That does not mean every change-of-mind return requires a refund. If a consumer simply decides they do not want the product, the ACL generally does not require a refund unless the business has chosen to offer a change-of-mind policy.
Major and minor failures are treated differently
When a product has a major failure, the consumer can choose between a refund and a replacement, and can instead keep the goods and seek compensation for the reduction in value in appropriate cases.
With a minor failure, the business generally gets the opportunity to repair the product free of charge. If the business cannot repair within a reasonable time or other statutory conditions are met, further remedies can become available.
A major failure is more than “I don't like it”
Examples of a major failure include goods that are unsafe, substantially different from their description or sample, cannot be used for their normal purpose and cannot be easily fixed within a reasonable time, or have a serious problem that would have stopped a reasonable consumer buying them if known beforehand.
The refund is not automatically store credit
For a major failure with goods, the consumer can choose a refund or replacement. The ACCC says a business cannot insist on a credit note or exchange card when the statutory remedy is a refund.
Refunds should generally be made in the same form as the original payment unless the business and consumer agree otherwise.
What to put in your complaint
- Identify the product and purchase date.
- Describe the failure clearly.
- Explain why you believe it is a major or minor failure.
- State the remedy you are seeking.
- Attach the receipt and evidence of the defect.
- Keep the retailer's response.
What this means practically
- A blanket “No Refunds” policy cannot remove statutory consumer guarantees.
- Change-of-mind returns are different from faulty-product claims.
- For major failures, the consumer generally chooses refund or replacement.
- For minor failures, repair is generally the first remedy.
- Use the ACL basis for the complaint rather than only arguing with the store's policy.
Sources
- ACCC — Repair, replace, refund, cancel: accc.gov.au
- ACCC — Consumer rights and guarantees: accc.gov.au
- ACCC — Warranties and consumer guarantees: accc.gov.au
Related Kibbo Tools
- Refund & Warranty Claim Generator — structure a major/minor failure complaint and remedy request.
- Return & Refund Evidence Pack — preserve the purchase, defect, and retailer-response record.