Shop Won’t Refund a Faulty Product? How to Get Your Money Back (Australia 2026)

Last updated 27 October 2026 · Reviewed by the Claim Done team · Not legal advice

Can you get your money back from a shop?

When a business sells you a product, the Australian Consumer Law (ACL) gives you guarantees that come with the product automatically. The main one is acceptable quality (s 54): the product must be fit for what products like it are normally used for, acceptable in look and finish, free from defects, safe and durable, judged by what a reasonable person would expect given the price and what you were told. It must also match its description (s 56), match any sample or demo model (s 57), and be fit for any purpose you told the seller about before you bought it (s 55).

Whether you get a refund depends on how serious the problem is:

• Major failure. You choose: a refund or a replacement of the same type (ss 259(3), 263(4)). Or you can keep the product and claim compensation for its drop in value. A failure is major if you wouldn’t have bought the product had you known about it, if it’s unsafe, if it’s significantly different from its description, or if it can’t do what it’s for and can’t easily be fixed in a reasonable time (s 260). Several minor faults together can add up to a major failure.
• Minor failure. The shop must fix it free within a reasonable time, and it can choose to repair, replace or refund (s 261). If it won’t, or takes too long, you can get it fixed elsewhere and claim the cost, or reject it and get a refund or replacement (s 259(2)).

Either way, you can also claim compensation for other loss the fault caused that was reasonably foreseeable (s 259(4)). The ACCC’s example: a faulty washing machine leaks and ruins the carpet, so the business pays to replace the carpet.

What the shop can’t do

• Rely on a “no refunds” sign. The ACCC says a business can’t take away your rights with a “no refunds” sign, by saying refunds aren’t available after a set number of days, or with “no refunds or exchanges on sale items”. It’s illegal to rely on those policies for a faulty product.
• Send you to the manufacturer. The ACCC says the business can’t refuse to help by telling you to contact the manufacturer. The only exception is where spare parts or repair facilities aren’t available a reasonable time after purchase. The law makes the manufacturer reimburse the shop when the fault is the manufacturer’s (s 274), so “it’s the manufacturer’s problem” is the shop’s problem to sort out, not yours.
• Insist on store credit. When you reject a product for a major failure and choose a refund, the shop can’t meet that by giving you a credit note or letting you pick something else (s 263(5)). The ACCC says refunds should be the full amount, with nothing deducted for the use you’ve had, and paid the same way you paid, unless you agree otherwise.
• Demand the original packaging. Your rights apply whether or not the goods are in their original packaging (s 259(7)).
• Tell you the warranty is all you get. Warranties are extra promises. The ACCC says your consumer guarantee rights can last longer than a warranty, and a business must not mislead you into thinking your rights are limited to the warranty period.
• Contract out. Any term that tries to exclude or limit the guarantees is void (s 64).

When you are not entitled to a refund

Honesty saves time here. The ACCC says you have no right to a refund, repair or replacement if you simply changed your mind, found the product cheaper elsewhere, decided you didn’t like it, or misused it, or if the problem was pointed out to you before you bought it. If the shop has its own change-of-mind policy, though, it must honour it. Most guarantees also don’t apply to a one-off private sale or a traditional auction. If you got the item as a gift, you have the same rights as the buyer.

The most common problems with shops

1. It broke soon after you bought it. A kettle that stops in a month, a phone that won’t charge. Claim: a refund or replacement if it’s a major failure, otherwise a free repair.
2. It broke just after the warranty ended. A fridge that fails at 13 months on a 12-month warranty. Claim: the acceptable quality guarantee usually still applies after the warranty expires. What counts is how long a reasonable person would expect a product at that price to last.
3. “Take it up with the manufacturer.” Claim: insist the shop deals with it. That’s what the ACCC says, and the manufacturer has to reimburse the shop.
4. “No refunds on sale items” or “no refunds after 30 days”. Claim: your rights for a faulty product aren’t cut down by store policy. Quote the ACCC’s position in your letter.
5. Repeat repairs. The same washing machine back in for the third time. Claim: several failures together can be a major failure (s 260(2)), which entitles you to choose a refund or replacement.
6. Not what was advertised. The TV isn’t the model in the ad, the “solid timber” table is veneer. Claim: the description guarantee (s 56), and a refund or replacement if the difference is significant.
7. Told it would do something it can’t. You asked if the speaker would work outdoors and were told yes. Claim: the fitness for disclosed purpose guarantee (s 55).
8. Pressured into an extended warranty. Claim: if you were told you’d lose your rights without it, or paid for rights you already had, that’s potentially misleading. The ACCC says businesses must not pressure you to buy one.
9. The fault damaged something else. A charger that burned a bench, a freezer failure that spoiled food. Claim: the product remedy plus compensation for the foreseeable loss.
10. A large item you can’t carry back. A fridge, a TV, an installed dishwasher. Claim: the shop must collect it, or pay the shipping, at its cost within a reasonable time (s 263(3); ACCC).

Warranties, extended warranties and the law

Three different things often get mixed up at the counter:

• Consumer guarantees are the law. They’re automatic, free, can’t be signed away, and continue for a reasonable time that depends on the product.
• A manufacturer’s warranty (the law calls it a warranty against defects, s 102) is an extra promise. If it’s in writing, it must give the business’s name, address, email and phone number, how to claim and how long it lasts. It must also include mandatory wording, which begins: “Our goods come with guarantees that cannot be excluded under the Australian Consumer Law.” If the warranty card in your box says that, it’s telling you the shop’s obligations don’t end when the warranty does.
• An extended warranty is usually sold separately for extra money. The ACCC says it “may or may not give a consumer any extra rights” beyond your automatic rights, that it’s optional, and that businesses must not pressure you to buy one or mislead you into paying for rights you already have. The ACL makes it unlawful to falsely say you must pay for a right equivalent to a consumer guarantee (s 29(1)(n)).

The ACCC gives a useful example. If a warranty requires a yearly service and you skip it, you lose the warranty, but you still have your consumer guarantee rights.

Two points that help in a letter. First, misleading you about your rights, for example “no refunds, it’s out of warranty”, breaches s 29(1)(m). That’s a civil penalty provision with very large maximum penalties for companies. Second, at the date of this page the law doesn’t yet impose a penalty for simply refusing a remedy (reforms were announced in 2026 but not passed). So your leverage is the tribunal, not a fine. That’s why a formal demand that shows you know the next step tends to work better than an argument at the counter.

Repairs of phones, laptops and other electronics

If the shop sends an electronic product away for repair, it must give you a written repair notice first if your stored data could be lost, or if refurbished parts or a refurbished replacement may be used. Back up your data before you hand it over. The ACCC also says a business may assess a product before deciding the remedy, so a short inspection period is normal. Weeks of silence is not.

What you can claim from a shop

• A full refund of the price for a major failure, with nothing taken off for use, paid back the way you paid.
• A replacement of the same type, if you prefer.
• A free repair for a minor failure, or the reasonable cost of a repair elsewhere if the shop won’t do it in a reasonable time.
• Compensation for the drop in value if you choose to keep a faulty product.
• Consequential loss that was reasonably foreseeable: damage to other property, spoiled food, return postage or transport. The ACCC says the business must repay reasonable return costs once it confirms the fault.

Example (round numbers, for illustration only): you buy a $1,500 fridge. At 14 months it stops cooling and $200 of food spoils. The 12-month warranty has expired and the shop says “nothing we can do, call the manufacturer”. A reasonable person would likely expect a fridge at that price to last much longer than 14 months, and a fridge that doesn’t keep food cold can’t do what it’s for. That points to a major failure. You can claim a refund of $1,500 (or a replacement) plus $200 for the spoiled food, and the shop must arrange collection of the dead fridge at its cost.

Evidence to gather

1. Proof of purchase: a receipt, tax invoice, card statement, lay-by agreement, order number or serial number. The ACCC says you just need to reasonably show you bought it, and a photo or copy is fine.
2. The ad, product page, label or box describing the product, and anything the salesperson told you (write it down with the date while you remember).
3. The warranty card and any extended warranty documents.
4. Photos or video of the fault, with dates. For an intermittent fault, a video of it happening is worth more than any description.
5. Repair records, service job numbers and how long the product was away each time.
6. Emails and texts with the shop, and notes of calls and visits (date, store, who you spoke to, what they said).
7. A photo of any “no refunds” sign or policy, or a written note of the words used.
8. A repairer’s report on the cause of the fault, if the shop blames misuse.
9. Receipts for consequential loss: spoiled food, damaged items, delivery or return costs.
10. The shop’s legal name and ABN (on the receipt, or from the ABN Lookup).

How to get your money back: 5 steps

Step 1: Tell the shop in writing what went wrong and what you want

Go back to the store or contact it online, then put it in writing: what you bought and when, what went wrong, and whether you want a refund, a replacement or a repair. If it’s a major failure, say so and say which remedy you choose. It’s your choice, not theirs. Give a short deadline, such as 5 business days, and keep a copy. If staff tell you to contact the manufacturer, ask them to put that in writing. Our guide on how to write a letter of demand shows what to include, and the get your money back hub covers other kinds of business.

Step 2: No answer, a refusal or a runaround? Send a formal demand

Our Consumer Guarantee Letter sets out the guarantees that apply, why the failure is major or minor, the remedy and amount you want, and a 14-day deadline. It’s the kind of letter a tribunal expects to see before you file, and it shows the shop you know the next step. The general Letter of Demand ($49) is a fallback for disputes that aren’t about a faulty product.

Send a Consumer Guarantee Letter – $49

Step 3: Complain to Fair Trading in the shop’s state

Lodge a complaint with the consumer regulator in the state where the shop is (for a chain, the store you dealt with), attaching your letter. These services are free, but none can order the shop to pay you. You can also report the business to the ACCC, which uses reports to target its enforcement work but doesn’t resolve individual disputes.

• NSW: NSW Fair Trading, 13 32 20, online complaint form.
• VIC: Consumer Affairs Victoria, 1300 55 81 81, general complaint form.
• QLD: Office of Fair Trading, 13 QGOV (13 74 68), consumer complaint.
• ACT: Access Canberra, 13 22 81, get help with a consumer issue (you’ll need proof you wrote to the business).
• NT: NT Consumer Affairs, 1800 019 319 or 08 8999 1999, conciliation request (purchases of $75 or more, after writing to the business).
• WA: Consumer Protection, 1300 30 40 54, complaints.
• SA: Consumer and Business Services, 131 882, contact CBS.
• TAS: Consumer Affairs Tasmania, 1300 654 499, enquiry and complaint form.

Step 4: Still unpaid? Send the final demand

The final demand quotes your first letter, the shop’s response and any Fair Trading reference number, and says you’ll file without further notice. In South Australia, the courts say a final notice should be given and 21 days allowed before you file, or you may not recover your filing costs.

Send the final demand – $49

Step 5: File at the tribunal or court in the shop’s state

Your claim goes to the consumer tribunal or court in the state where the shop is (table below). For most faulty-product claims the core evidence is the receipt, photos, your letters and the shop’s replies. Our Hearing Bundle ($97) organises the evidence if the claim is defended. In WA, SA and Tasmania the claim goes to the Magistrates Court and the same product prepares your court claim.

Prepare your tribunal application – $97

Where your claim goes in each state

The forum is in the state where the shop is, not where you live.

A seller who is an individual living in another state. If the shop is run by an individual (not a company) who lives in a different state from you, NCAT can’t decide the claim because of the High Court’s decision in Burns v Corbett [2018] HCA 15, and it goes to the Local or District Court instead. VCAT says it also can’t hear some cases where a party lives in another state. The rule doesn’t apply where either party is a company, which covers most claims against chain stores.

Time limits: NCAT says to apply within 3 years of when the problem with the goods began; VCAT says generally within six years.

After you win: getting paid

An order is only useful if it’s paid. If the shop doesn’t pay by the date in the order, it can be enforced. In most states the order is registered or filed with the court and enforced as a judgment. The tools include a garnishee order taking money from the business’s bank account, seizure and sale of its property or stock, and an examination where the business must disclose its finances.

Tribunals do not collect the money for you. In NSW, Victoria, Queensland, the ACT and the NT, an unpaid tribunal money order is first registered, recorded or filed with a court. In WA, SA and Tasmania the Magistrates Court decides the claim, so you already have a court judgment. Then you apply for the court’s enforcement tools.

Enforce your order – $97

Enforce your order – $97

Questions people ask

Can a shop refuse a refund because of a “no refunds” sign?

No, not for a faulty product. The ACCC says a “no refunds” sign can’t take away your consumer guarantee rights, and it’s illegal for a business to rely on policies like “no refunds” or “no refunds or exchanges on sale items”. A shop can lawfully refuse a refund only where you just changed your mind and it has no change-of-mind policy.

Can a shop tell me to go to the manufacturer?

No. The ACCC says the business that sold you the product can’t refuse to help by telling you to contact the manufacturer. The only exception is when spare parts or repair facilities aren’t available a reasonable time after purchase. The manufacturer has to reimburse the shop for a manufacturing fault, so the shop has no reason to send you away.

Can I get a refund if I changed my mind?

Not as a legal right. The ACCC says you’re not entitled to a refund if you simply changed your mind, found it cheaper elsewhere or decided you didn’t like it. Many shops offer a change-of-mind policy anyway, and if a shop has one, it must follow it. Check the policy before you buy.

The warranty has expired. Am I still covered?

Often yes. The ACCC says consumer guarantee rights can last longer than a warranty, and that the acceptable quality guarantee usually still applies after a warranty against defects expires. The question is how long a reasonable person would expect that product, at that price, to last. Our Consumer Guarantee Letter puts that argument to the shop in writing.

Do I need the receipt to get a refund?

You need proof of purchase, not necessarily the receipt. The ACCC lists a card statement, lay-by agreement, order or reference number, warranty card, or a serial number linked to the sale. You only need to reasonably show you bought it, and photos or copies are acceptable.

Do I have to return it in the original box?

No. The ACL says your remedies apply whether or not the goods are in their original packaging (s 259(7)), and the ACCC repeats this. Keep the product itself and any accessories if you can, because the shop is entitled to inspect it before deciding the remedy.

Can the shop give me store credit instead of a refund?

Not if you’re entitled to a refund and you ask for one. Where you reject goods for a major failure, the shop can’t meet the refund by letting you choose other goods (s 263(5)). The ACCC says refunds are paid the way you paid unless you agree otherwise. You can accept credit if you want it.

Is an extended warranty worth it?

Sometimes, but check what it adds. The ACCC says an extended warranty “may or may not” give you any rights beyond your automatic consumer guarantees, and businesses must not pressure you or mislead you into paying for rights you already have. Ask the seller to explain in writing what it covers that the law doesn’t.

What counts as a major failure?

A failure is major if you wouldn’t have bought the product had you known about it, if it’s unsafe, if it’s significantly different from its description, or if it can’t do its normal job and can’t easily be fixed in a reasonable time (ACL s 260). Repeated minor faults can together be a major failure. For a major failure, you choose refund or replacement.

How long after buying can I return a faulty product?

There’s no fixed number of days. To reject and get a refund, you must act within a reasonable time for that kind of fault to show up (s 262), which depends on the product, its price and its use. Separately, consumer guarantees last for a reasonable time, so a repair or compensation claim can still be made well after purchase.

The shop says I damaged it. What now?

Ask for the shop’s assessment in writing and get your own report if you disagree. The guarantee doesn’t cover damage caused by abnormal use, but the shop should show the cause, not just assert it. A short independent repair report plus our Consumer Guarantee Letter ($49) puts the issue to the shop formally.

Sources

Checked 19 October 2026.

• Competition and Consumer Act 2010, Schedule 2 (Australian Consumer Law), compilation 167: ss 3, 29, 54-59, 64, 100, 102, 259-263, 274
• ACCC: Consumer rights and guarantees
• ACCC: Repair, replace, refund, cancel
• ACCC: Warranties
• ACCC: Receipts, bills and proof of purchase
• ACCC: Claiming compensation
• ACCC: Repair notices
• NCAT: Federal jurisdiction
• NCAT fees, VCAT goods and services fees, QCAT fees, ACAT fees, NTCAT fees, WA Magistrates Court fees, SA Magistrates Court fees, Tasmanian Magistrates Court fees

Claim Done is not a law firm and does not give legal advice. This page is general information. For a complex or high-value matter, speak to a lawyer or a free community legal centre.