When can you use your rights to repair, replace refund?

Posted: Sunday, April 29, 2012 by Tyler Durden in Labels:

http://www.accc.gov.au/content/index.phtml/itemId/1023610


When can you use your rights to repair, replace refund?

Since 1 January 2011, you have the right to ask for a repair, replacement or refund if goods and services you buy are not right.

Goods

You have these rights if goods you buy are:
  • faulty
  • unsafe
  • look unacceptable, and
  • do not do what they are supposed to do.
In each case this is according to what someone would normally expect for the type and cost of the particular goods.
You also have these rights if goods do not:
  • fit the purpose
  • match the description provided
  • match the sample or demonstration model provided
  • have the extra qualities or performance that the seller promised before the sale.

Services

You can ask for a repair, replacement or refund if services you buy:
  • are not delivered with adequate care and skill
  • do not fit the purpose or give the results that you and the business had agreed to
  • are not delivered within a reasonable time where there is no agreed date.
These rights which are set out in law are called "consumer guarantees". Other laws apply for products and services you bought before 1 January 2011.

Table of contents

Where do your rights apply?

You can use these rights for most products and services that you:
  • buy in shops or from service providers – including second-hand goods
  • hire or lease (see ‘Hiring and leasing goods’ for more information)
  • buy from Australian online businesses and auction sites, where the auctioneer does not act as agent for the seller.

Mandatory safety standards and online products

It is illegal for overseas online businesses to sell products that fail to meet Australian mandatory safety standards. For details on products covered see the Product Safety Australia website. You should not buy any products that appear to fail safety standards and immediately report the business to the ACCC.

Products and services from overseas online businesses

For other problems with products bought from overseas online businesses, you may not be covered by the consumer guarantees and may have difficulties tracking businesses down to get a repair, replacement or refund.

Will you automatically get a repair, replacement or refund?

No. You will need to contact the business, show proof of purchase, such as a receipt, bank statement, warranty card or lay-by statement and work out whether there is a major problem with the product or service.
If the problem is not major, the business can choose whether to offer to repair, replace or refund the product or fix the problem with the service.
If the business chooses to repair the product or fix the problem with the service, it must do so within a reasonable time. If not, you will have the right to choose a replacement or refund for a product and compensation (for the drop in value below the price paid) or refund for a service.
For a major problem with a product, you have the right to choose whether a business will give you a replacement or refund.
For a major problem with a service, you can choose compensation for the drop in value below the price paid, or a refund.

What is a major problem?

  • An issue that would have stopped a reasonable person from buying the product or service if they’d known about it.
  • A product that:
    • is unsafe
    • is significantly different from the sample or description
    • doesn’t do what the business said it would, or what you asked for and can’t be easily fixed.
  • A service that:
    • is substantially unfit for its common purpose and can’t be easily fixed within a reasonable time
    • does not meet the specific purpose you asked for and cannot be easily rectified within a reasonable time
    • creates an unsafe situation.

Compensation for losses caused by problems

If you suffer costs or losses because a supplier has failed to ensure goods or services meet a consumer guarantee, you may be able to claim compensation.
This could include compensation to pay for damage caused by a product, and inspection and transportation costs related to fixing the damage.
For example, if your washing machine breaks down due to a fault and causes water damage to the carpet, you have the right to ask for a repair, replacement or refund for the washing machine and compensation for the carpet.
For further information see our Claiming compensation for consequential loss page.

Goods and services that are linked or bundled

Businesses often sell related goods and services together as a package. Sometimes a problem develops with one part of the package — the product or service.
If you return goods due to a major problem, you have the right to cancel any services that they were provided with.
If you cancel a contract for unsatisfactory services, you must return any goods connected with the service—even if there is no problem with the goods.
If you have paid any money for the goods, the business must give you a refund.
It is your responsibility to return the goods, unless this would involve a significant cost. In such cases the business is responsible for collecting the goods.

Do other warranties restrict your rights?

No. You can use your rights even if the product or service has:
  • a voluntary warranty
  • an extended warranty you’ve paid for
  • any warranty that has expired.
These additional warranties do not override or limit consumer guarantees. Businesses must provide guarantees and cannot avoid or ignore them by sending you to the manufacturer to get them to fix the problem under a voluntary warranty.

Is there a time limit on when you can use your rights?

There are no specific rules about exactly how long a product or service should last. Even after a voluntary or manufacturer’s warranty expires you may still be entitled to a repair, replacement or refund. This will depend on what you purchased and the nature of the problem.

Rejecting goods

When judging how long after you purchase a product you could expect to reject it and seek a replacement or refund depends on:
  • the type of product
  • how a consumer is likely to use it
  • the length of time for which it is reasonable for it to be used
  • the amount of use it could reasonably be expected to tolerate before the failure becomes noticeable.

What happens if you change your mind?

There is no law stating that businesses have to give you a refund because you’ve changed your mind, although, some businesses offer this as an extra service.

For more details see


You automatically receive certain guarantees when you buy, hire or lease goods. If something goes wrong – one of the consumer guarantees is not met - the law gives you rights to insist the seller fixes things.

You automatically receive certain guarantees when you buy or contract for services. If something goes wrong – one of the consumer guarantees is not met - the law gives you rights to insist the service provider fixes things.

A warranty is a voluntary promise offered by the person or business who sold the goods or provided the service. You have consumer guarantees regardless of any warranty you purchase or are given.

Consumer guarantees apply to goods and services bought on or after 1 January 2011. For goods or services bought before this time, you have rights under the laws that existed at the time you made the purchase.

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