Online Retailer Refused Your Refund? Send a Letter of Demand

You ordered something online. It arrived faulty, looked nothing like the photos, never arrived at all, or stopped working within days. You contacted the retailer for a refund. They said no, or pointed you at a “no refunds” policy, or said you have to ship it back at your own cost.

None of those positions hold up against the Australian Consumer Law (ACL) — Schedule 2 of the Competition and Consumer Act 2010. Every product sold by a business in Australia (or to an Australian consumer by an overseas seller doing regular trade here) carries non-excludable consumer guarantees.

Your guarantees as the buyer

• Acceptable quality — safe, durable, free from defects, looks acceptable, does what it should
• Matches description — the product matches the photos, listing, and any sample shown
• Fit for purpose — does what the seller said it would do, or what you reasonably expected
• Title and undisturbed possession — the seller has the right to sell it and you can use it without anyone else claiming it

“No refunds” policies cannot override these. They’re unenforceable if the product breaches a guarantee.

Major vs minor failure

If the failure is major — you wouldn’t have bought it had you known, it’s significantly different from what was described, it’s unsafe, or it can’t be fixed in a reasonable time — you choose the remedy: refund, replacement, or compensation.

If the failure is minor — a small defect that can be repaired — the seller can choose: repair, replace, or refund. But they have to pick one. They can’t refuse all three.

Return shipping — usually their cost

If the product is faulty, the seller is responsible for the return shipping cost in most cases. Telling you to “send it back at your own cost” before they’ll process the refund is not lawful.

The Letter of Demand

The letter:

• Identifies the product, order number, date, and price
• Specifies which consumer guarantee was breached and how
• States the remedy you’re claiming and why you have the right to choose it
• Sets a deadline (typically 14 days) for refund or replacement
• Names the next escalation — your state’s tribunal, ACCC, or Fair Trading

Flat fee

The wizard takes about ten minutes. The letter is drafted, formatted, and sent to the retailer.

If the retailer doesn’t respond, the next step is a Final Demand ($49) or a complaint to your state’s consumer affairs body. For larger claims, your state tribunal is the venue.