Warranties, returns and your consumer rights in Australia
Don’t get stuck with a lemon – know your rights as a consumer.
When life gives you lemons, know your consumer rights.
Found a fantastic offer on a much-needed product? We understand that thrill all too well. However, that feel-good glow can be instantly ruined, leaving a sour taste in your mouth, if the product turns out to be faulty or it doesn’t match its description. Or maybe you started a new phone plan only to find that the service is absolutely abysmal. If or when this happens, remember that you have rights.
Here in Australia, shoppers are protected by the Australian Consumer Law which outlines the responsibilities of businesses when it comes to selling products or services. If you have been sent a dodgy product, or a service isn’t fulfilling its duty, there’s things you can do to make sure you’re not left out of pocket.
These rights don’t just apply to technology or telecommunications services either – any product you buy or service you pay for falls under your consumer rights.
What are consumer rights?
Consumers have rights here in Australia, and when you make a purchase through a business, it has a responsibility to uphold those rights. This means that businesses cannot put up signs that say things like ‘no refunds’ or remove their responsibility for a product or service, as these infringe on Australia’s consumer laws.
When you purchase a product, if it doesn’t match its description, fulfil its purpose or has faults, you are protected by consumer rights regardless of whether you bought this product instore, online or from an overseas seller. Similarly, services you pay for are also covered by similar laws, including services such as your broadband and phone plans.
Individuals and businesses are protected under the consumer rights guarantee for purchases up to $100,000 (GST inclusive), and can expect this protection for a reasonable time period after payment is made. There are some exclusions, such as hiring or leasing products, and the Australian Competition and Consumer Commission (ACCC) has a complete outline of what is and isn’t covered under consumer rights.
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You do need to remember that if you are making a claim based on your rights, you need to do it in a timely fashion. The reasonable time clause can be a little tricky to identify in some circumstances, but it applies to situations where a product becomes faulty within its expected lifetime or use, or when a service has not fulfilled its duty within a reasonable timeframe.
For example, if you’ve purchased a new phone, you can reasonably expect it to continue working without fault for the next two years. If within those two years that handset suddenly stops working, the seller you bought it from has a responsibility to offer you a resolution. It doesn’t matter if it’s the next day of purchase or a year and a half later – if it falls within a reasonable expected time frame, you’re covered by the consumer rights guarantee.
Consumer rights vs warranties
While consumer rights are protected under the Australian Consumer Law and are automatically applied when you purchase a product or pay for a service, warranties are voluntarily offered by the manufacturer or retailer.
There are three types of warranties here in Australia – express warranties, manufacturer warranties and extended warranties. Express warranties cover the product's quality and purpose, so if you purchase something that doesn’t meet an advertised claim, you can get your money back. This could be as simple as a shelf not holding the advertised amount of weight, or if the display of a monitor is not sharp as the packaging claims.
A manufacturer’s warranty typically covers repairs, parts and faults within a product. If you need to replace a component or your product suddenly stops working within an allocated period of time, you can make a claim on the manufacturer’s warranty. An extended warranty is an additional period of time you can add to a manufacturer’s warranty, although this typically costs extra.
In Australia, a manufacturer’s warranty can be for a year from the date of purchase, up to three years. You’ll need to check with the retailer or brand you are making your purchase from for what the exact duration of the warranty is on your product.
Be prepared
When you’re chasing a warranty, make sure to keep a paper trail, such as emails or letters, and keep any receipts, invoices or documents related to the product or service. This will make it easier if you need to reach out to a third party for help to find a resolution, as you will have documented the steps you’ve taken leading up to this point as well as already explained the issue that needs to be resolved. In-store receipts have a tendency to fade over time, so be sure to snap a picture of the receipt and save it (possibly even back it up) online or on your phone for when you might need it.
Additionally, when making a purchase, make sure to check the specifications on the listing. This can be especially true when buying from an overseas seller, as they might list a product as having a particular feature it actually doesn’t. For example, a console might appear to play CDs when in fact it takes cartridges – if the seller hasn’t made this clear, you could be eligible for a refund.
The three Rs – refunds, replacements and repairs
If you’re faced with a faulty or unsatisfactory product, there can be different solutions based on the situation and circumstance. A business might offer you a refund, repair or replacement, or your choice between the three.
Regardless of whether you purchase a product online or instore, the retailer you purchase from is responsible for providing a resolution to the issue at hand. If it’s a repair, they are responsible for contacting the manufacturer and cannot delegate this responsibility away. However, a consumer can choose to directly contact the manufacturer in this circumstance.
Say you purchase a laptop made by a well-known brand from a third-party seller. If your laptop’s keyboard suddenly stops responding a day after use, you can choose to either contact the seller or the manufacturer directly. If you go back to the seller, they are responsible for providing a solution, and if it’s by way of repair, they are responsible for communicating with the manufacturer in this instance. The business who sold you the laptop cannot make you go to the manufacturer instead of offering a resolution.
Which solution(s) you’re offered will depend on the situation with the product, and the ACCC has a handy problem-solving tool you can use beforehand to find out what solutions you’re eligible for. Claims for services can also be assessed using this tool, so you can find out if you’re entitled to a refund if a service hasn’t fulfilled its need.
Where to find help
Sometimes knowing your rights isn’t enough to get a reasonable solution from businesses – thankfully there are a lot of third parties out there that can step in and help when you hit a roadblock.
The ACCC is the main port of call when you need to find resources to help chase up a business who's not upholding your consumer rights, but there are also a few specific government websites for different states and territories as well, such as NSW Fair Trading or Consumer Affairs Victoria.
Additionally, for internet or phone service disputes you can contact the Telecommunications Industry Ombudsman (TIO), who’ll step in and act as a mediator to find a resolution with your service provider.
If you’ve bought from a third-party seller on an online marketplace such as Amazon or eBay, you can also contact the host site if the actual seller is refusing to find a resolution as well. Most of these online marketplaces have consumer protection policies in place which will be listed on the site or can be procured by speaking to a customer service representative.
Protect yourself online
Payment protection isn’t only for scams – if you’re having trouble contacting an overseas seller for a faulty product or a business is not fulfilling its duty to you under the Australian Consumer Law, there are a few steps you can take at checkout so you’re not left out of pocket while a resolution is being found.
If you paid by credit card, you can dispute the payment with your financial institution. PayPal also offers buyer protection, so if you’ve received a faulty product and the seller is refusing to uphold your consumer rights, you can claim your money back… so long as you file the dispute within 180 days of purchase, up to the value of $20,000.