Can a shop refuse to give a refund in Australia?
Short answer
Only for change of mind, and only if they have no policy offering it. They cannot refuse a remedy where a consumer guarantee has failed. With a major failure you choose between a refund, a replacement or compensation — and 'no refunds' signs are unlawful regardless of what they say.
Verified · 4 cited sources
Consumer guarantees under the Australian Consumer Law are automatic and cannot be excluded by any sign, term or store policy. Goods must be of acceptable quality, match their description, be fit for purpose and come with available repairs and spare parts. Services must be provided with due care and skill.
Where a failure is major, the choice of remedy is yours: a refund, an identical replacement, or keeping the item and being compensated for the drop in value. A failure is major if a reasonable consumer would not have bought the item knowing about it, if it is substantially unfit for its normal purpose and not easily fixed within a reasonable time, if it differs significantly from the description, or if it is unsafe.
Where a failure is minor, the business may choose to repair it — but must do so within a reasonable time. If the repair takes too long or fails, the minor failure escalates into a major one and the choice becomes yours. Several minor failures can together amount to a major one.
Guarantees apply to sale items and, with allowance for age and price, to second-hand goods bought from a business. They are not limited by the length of a manufacturer's warranty, which is an additional voluntary promise rather than a cap on your rights.
You need proof of purchase — a receipt, bank statement, warranty card, lay-by agreement or confirmation email — but not the original packaging. And you can pursue the retailer who sold it to you rather than the manufacturer.
Change of mind is the genuine exception. Consumer guarantees do not cover deciding you no longer want something, buying the wrong size, or finding it cheaper elsewhere. Many retailers offer change-of-mind returns as policy, and if they advertise one they must honour it.
- 'No refunds' signs are unlawful and can attract a penalty
- Major failure: you choose refund, replacement or compensation
- Minor failure: the business may repair, but within a reasonable time
- Guarantees apply to sale items and are not limited by warranty length
- Proof of purchase is required; original packaging is not
Go deeper
People also ask
Sources & provenance
Facts verified
- 1.Consumer rights and guarantees RegulatorAustralian Competition and Consumer CommissionUsed for: Automatic guarantees and that they cannot be excluded
- 2.Repair, replace, refund, cancel RegulatorACCCUsed for: Major and minor failure tests and who chooses the remedy
- 3.Receipts and proof of purchase RegulatorACCCUsed for: What counts as proof of purchase
- 4.Competition and Consumer Act 2010 — Schedule 2 LegislationFederal Register of LegislationUsed for: The Australian Consumer Law consumer guarantee provisions
All rights described come from the ACCC and the Australian Consumer Law as cited. The monetary threshold for guarantee coverage changes over time, and enforcement is carried out by state and territory fair-trading agencies rather than by the ACCC, which handles systemic conduct. This is general information, not legal advice.
Facts on this page are taken from the sources listed above — Australian government departments, regulators, statutory bodies and official statistical releases. Comparisons, judgements and "which option suits whom" conclusions are AI-assisted analysis written over those sources; they are marked in the text and listed as an AI-analysis entry in the sources, not attributed to any authority. Rates, thresholds, fees and processing times change, often at the start of a financial year; figures are current as at the review date shown and should be confirmed with the responsible agency before you rely on them for money or legal decisions.