Shop Says “No Refunds”? That Sign Is Illegal. Here’s How to Get Your Money Back

The blender died after two weeks. The boots split at the sole on the fourth wear. The phone case that was “compatible” doesn’t fit. You went back, receipt in hand, and the person behind the counter pointed at a laminated sign: “NO REFUNDS. NO EXCHANGES ON SALE ITEMS. STORE CREDIT ONLY.” Then they said “it’s store policy” like that was the end of it.

It isn’t the end of it. That sign is against the law, and the business can be fined for displaying it. Here’s how to turn the conversation around.

Your rights

• The sign is a breach in itself (s 29(1)(m) ACL). It’s unlawful to make a false or misleading representation about a consumer’s rights, including the existence or effect of a consumer guarantee. A blanket “no refunds” sign tells customers they have no right to a refund when they do. The ACCC has fined and prosecuted retailers for exactly this. Penalties for corporations can run into the millions.
• Consumer guarantees can’t be excluded (s 64 ACL). Goods must be of acceptable quality (s 54), fit for purpose (s 55), and match their description (s 56). No sign, receipt, policy or signature changes that.
• Sale items are covered. “No refunds on sale items” is just as illegal. A discount doesn’t remove the guarantees. The only exception is where a specific defect was pointed out to you before purchase (a “seconds” item sold with a known flaw); the guarantee doesn’t cover that flaw, but covers everything else.
• Your remedy depends on the failure (ss 259, 260). Major failure (you wouldn’t have bought it knowing; unsafe; can’t be fixed in a reasonable time): you choose refund or replacement. Minor failure: the business may repair within a reasonable time, and if it doesn’t, you can get a refund or replacement.
• The retailer, not the manufacturer. “Contact the manufacturer” is not a lawful response. Your rights are against the seller (s 259).
• What the sign can lawfully say: “No refunds for change of mind.” That’s true. The ACL doesn’t require refunds because you changed your mind, found it cheaper elsewhere, or bought the wrong size, unless the store’s own policy allows it.

What to do right now

1. Photograph the sign. With the store visible. It’s evidence of a s 29 breach and it’s leverage.
2. Ask again, differently. “I’m not asking for a change-of-mind refund. The product is faulty. Under the Australian Consumer Law I’m entitled to a [refund / replacement]. Your sign is misleading and I’ll be reporting it to fair trading if this isn’t resolved.” Say it calmly. Ask for the manager.
3. Don’t accept store credit for a major failure. You’re entitled to money. For a minor failure, you can accept a repair but the store must do it in a reasonable time.
4. Put it in writing. Email the store or head office the same day with the receipt, photos of the fault, a photo of the sign, and a 7-day deadline.
5. Send a Letter of Demand. A formal letter citing ss 54, 259, 260 and, pointedly, s 29(1)(m) about the sign, with a 14-day deadline before a fair trading and ACCC report and a tribunal claim.
6. Report the sign regardless. Even after you’re refunded. Fair trading bodies act on these.

What counts as “faulty” (and what doesn’t)

• Covered: stops working, breaks under normal use earlier than a reasonable consumer would expect for the price, doesn’t do what it was advertised or described to do, doesn’t match the sample, is unsafe, is missing parts.
• Not covered: you changed your mind, you misused it, you damaged it, a defect you were told about before buying, and normal wear after a reasonable life.
• Durability is about price and type. A $30 kettle that fails after 14 months may have had a reasonable life. A $300 one hasn’t. Tribunals apply common sense.

What usually happens once the ACL is cited properly and in writing: head office overrides the store. Most large retailers train staff on this but franchisees and small shops still put up the signs. The written demand is what gets the right person involved.

“You need the original packaging.” No. You need proof of purchase, which can be a receipt, a bank statement, a loyalty account record or the box with a serial number. Packaging is irrelevant to a faulty-goods claim.

“It’s past 30 days / past the warranty.” The store’s return window and the manufacturer’s warranty are additional to the ACL, not a limit on it. The question is whether a reasonable consumer would expect the product to have lasted longer given its price and type. For most appliances, electronics, furniture and footwear, that’s well beyond a year.

“We’ll need to send it away for assessment first.” Reasonable for a minor fault. Not a way to delay a major-failure refund indefinitely. Ask for a written timeframe, and if they want to charge an “assessment fee”, that’s only chargeable if the product turns out not to be faulty.

Who to complain to

Your state fair trading body (NSW Fair Trading, Consumer Affairs Victoria, Queensland OFT, Consumer Protection WA, CBS SA) for both the refund and the sign. The ACCC for the sign (they run sweeps on exactly this). Your state’s civil tribunal (in WA, SA and Tasmania, the Magistrates Court) for the money if the retailer holds out.

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