Got a faulty product? Your rights and how to get a refund

If you have a faulty product, there’s hope — you can get a refund. Here’s everything you need to know and what to do if you need to take your complaint further.

We buy goods and services every day without a second thought — but chances are you wouldn’t know what your rights are as a consumer.

So here is everything you need to know about consumer protection, what to do if you have a faulty product, and the laws that govern your rights.

WHAT IS CONSUMER PROTECTION?

Like its name suggests, consumer protection is the practice of safeguarding the wellbeing and interests of consumers against unfair practices in the marketplace.

It ensures that consumers make well-informed decisions about their choices through education and representation.

Consumer protection measures are often established by law.

The ACCC (Australian Competition & Consumer Commission) is Australia’s national competition, consumer, fair trading and product safety regulator.

Consumer protection is the practice of safeguarding the wellbeing and interests of consumers against unfair practices in the marketplace. Picture: iStock

WHAT IS AUSTRALIAN CONSUMER LAW (ACL)?

The ACL is a national law to protect consumers.

It is administered by the ACCC and state and territory consumer protection agencies, and enforced by all Australian courts and tribunals, including the courts and tribunals of the States and Territories.

ACL includes:

- a national unfair contract terms law covering standard form consumer and small business contracts;

- a national law guaranteeing consumer rights when buying goods and services;

- a national product safety law and enforcement system;

- a national law for unsolicited consumer agreements covering door-to-door sales and telephone sales;

- simple national rules for lay-by agreements; and

- penalties, enforcement powers and consumer redress options.

WHAT TO DO IF YOU HAVE A FAULTY PRODUCT?

According to the ACCC, you have the right to a repair, replacement or full refund if your goods are faulty, unsafe, do not work, or are very different from the description or sample.

You have the right to the problem being fixed, a cancellation and partial or full refund, or compensation, if the services you received are not right.

When a business sells a product or service that doesn’t meet basic rights, known as consumer guarantees, it must offer the consumer a solution.

Businesses must not tell consumers to take the problem to the manufacturer or importer.

You have the right to a repair, replacement or full refund if your goods are faulty, unsafe, do not work, or are very different from the description or sample. Picture: Supplied

WHEN ARE YOU ENTITLED TO A REFUND?

When a business sells a product with a major problem, or a product that later develops a major problem, it must give the consumer the choice of a refund, or replacement of the same type of product.

The ACCC states a refund should be the full amount the consumer paid for the product. The business must not deduct an amount from a refund to take into account the use a consumer has had of the product.

Refunds should be provided in the same form as the original payment, unless the business and consumer agree otherwise.

PRODUCTS COVERED BY THE ACL

According to choice.com.au, consumer guarantees apply to all purchases for personal and household use and cover:

- New and second-hand items

- Sale items

- Online purchases

- Gifts with proof of purchase, like a receipt or bank statement.

PROBLEMS THE ACL DOESN’T COVER

The ACCC states consumer guarantees won’t apply if you:

- Bought the product before 1 January 2011

- Bought the product privately like at a garage sale

- Are reselling or modifying the product as part of a business you’re running

- Changed your mind or saw the product cheaper somewhere else

- Bought the product at auction where the auctioneer is acting as an agent for the seller.

Sale items are covered by the ACL. Picture: NCA NewsWire / Max Mason-Hubers

WHAT IF THE RETAILER WON’T FIX MY PROBLEM?

According to NSW Fair Trading, if the retailer 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

- Ask for a refund

- Recover compensation for the drop in value below the price paid.

WHERE TO GO FOR HELP

The ACCC states the first step is to contact the business itself to resolve the issue.

If the business doesn’t fix your problem, there are other agencies that can help.

Depending on your issue, sometimes another regulator or ombudsman scheme may be more appropriate than the ACCC.

A list of the appropriate agency to contact for each state and territory is provided on the ACCC website.

The ACCC does:

- Provide information to help consumers and businesses deal with complaints

- Gather information about consumer and fair trading problems

- Focus on issues that can result in widespread harm.

The ACCC does not:

- Resolve individual complaints

- Provide legal advice on your rights and obligations under the law

- Make formal decisions on whether a person or business has breached the law as only the courts can do this.

For more information, go to accc.gov.au.

Originally published as Got a faulty product? Your rights and how to get a refund