Refunds and your rights

You are entitled to a refund if you buy faulty or defective goods.

Alternatively, you can choose to swap the faulty product for one that's working, or have it repaired. It's your decision. So don’t be bullied into waiting for a repair if you just want your money back.

And don't let the store brush you off by saying you've got to deal with the manufacturer. The trader who sold you the goods must sort out the problem for you.

Cash refunds

Refunds are in cash if you paid cash. If you paid by credit card or EFTPOS, your account is credited.

If the item you bought was labelled 'seconds' or reduced in price because of defects you knew about, you can't use those flaws to get your money back.

'No refunds' signs

Don’t be put off by 'No refunds' signs if there’s a problem with something you’ve bought. These signs are illegal and can’t take away your right to a refund.

Make sure you take faulty goods and the proof of purchase back to the store as soon as possible. If you can’t transport them, contact the retailer to make arrangements.

If you have to return faulty goods to the place where you bought them, the seller must pay any freight costs.

Doesn't match the description?

You’re also entitled to a refund when goods:

• aren’t fit for the purpose for which they are sold
• don’t match their description or the sample you based your purchase decision on

In each case, you must have your receipt to claim a refund.

Buying privately

When you’re buying goods at auction or privately, like at a garage sale, you don’t have this protection. So buyer beware!

Where to go for help

 Do you think you're entitled to a refund but the trader is refusing to give you one? You should contact your local Consumer Affairs / Fair Trading organisation for advice.

Goods must meet a basic level of quality and keep working for a reasonable period, bearing in mind the price and the way they were described. This is known as a statutory warranty.

If a product fails (stops working or breaks) within that statutory warranty period, and you weren't responsible, you must be compensated. The type of redress will probably depend on how long you've had it.

If a top-of-the-line CD player malfunctions while it's relatively new, you'd be entitled to ask for a refund or replacement. If it develops a fault after 12 months, it's more reasonable to expect a repair.

Extended warranties

Goods often come with written warranties, known as express warranties, and traders are obliged to honour these.

But your right to redress is not necessarily limited to the period of the express warranty.

If you've bought a TV that should last a reasonable time, say 10 years, and something goes wrong the day after the 12-month manufacturer's warranty runs out, you've still got rights under the statutory warranty.

So before you fork out for repairs, see the retailer or seek advice from your local Fair Trading authority if goods break down sooner than they reasonably ought to.

If you're ever asked to buy an extended warranty, think about it because it may not be worth it, given the protection you get under the statutory warranty. For more information, see our report on Extended warranties.

If you hire a tradesperson or engage a professional, their services must be of a certain standard and quality and they have to do the job you ask them to do.

If they don't, you're entitled to get the job re-done or payment for the work to be done again.

You may even be able to claim compensation for extra costs associated with the poor job, such as loss and damage.

Due care

Signs such as 'All care but no responsibility' and 'No responsibility for loss or damage' are misleading because traders must compensate consumers if their services aren't carried out with due care and skill.

There are cases where the consumer is at fault. Say you weren't clear in your instructions to the tradesperson or professional or you insisted the job was done in a particular way — against their recommendations. You wouldn't be entitled to compensation.