Do you have a term in your returns policy that offers a remedy for faulty goods at your election?
It is well-known that under the Australian Consumer Law (ACL) consumers are entitled to remedies such as a repair, replacement or refund of goods or services where there has been a breach of the consumer guarantees, such as a faulty good.
While many retailers include these rights in their returns policies, I have reviewed a large number that suggest that the remedy offered (repair, replacement or refund) is at the discretion of the retailer. Under the ACL, this is not the case.
If a problem with a good is only considered minor, then the retailer can elect to give you a repair instead of a replacement or refund. However, if it is a major problem, the consumer may elect which remedy they would like.
Always ensure that you have a qualified lawyer review your policies, including your refund policies. Many retailers have been penalised for either purposely or accidentally excluding consumer rights under the ACL or giving the misleading impression that these rights are limited.
If you need advice in drafting or reviewing your returns policies, please don’t hesitate to contact me at or call me at 1300 033 934 for a no-obligation quote.