The ACCC has reviewed the returns policies and T&Cs of over 2,000 Australian retail websites and has raised concerns over misleading or deceptive terms regarding customers’ rights to exchange, return, or obtain a refund.
This is the ACCC’s fourth website sweep in about a year targeting online advertising practices.
What’s the issue?
Under the consumer guarantees in the Australian Consumer Law (ACL), Australian consumers have certain rights – including rights to return, exchange or refund goods in certain circumstances – that are independent of any manufacturer’s warranty and cannot be excluded, limited or overridden by terms or conditions. Terms or policies which suggest that a consumer does not have these rights, or that they are more limited, may be misleading or deceptive in breach of the ACL.
What did the ACCC find?
The sweep identified several potentially misleading statements in the T&Cs of various websites, including:
- Imposing time-limits for returning a faulty product
- Imposing blanket ‘no refund’ conditions on sales or specialised items
- Referring to manufacturer warranties as the only avenue for consumers to claim remedies for faulty goods, and
- Placing restrictions on consumers’ right to a remedy, including stating that delivery fees paid for faulty items were non-refundable and charging restocking fees if customers returned faulty items.
Problematic statements included:
- “Items that have been opened and used cannot be exchanged or refunded”
- “Made to order products cannot be returned”
- “Sale items cannot be returned, exchanged or refunded”, and
- “In the unlikely event that your item arrives damaged or faulty, please notify the store within 30 days of delivery to receive a replacement”.
The ACCC sent warning letters to businesses, which led many to revise their policies. The ACCC media release provides further detail.
What do I need to do?
We recommend reviewing your current online and instore terms and conditions, returns/refund/exchange policies and signage (e.g. at POS and customer service desks) to ensure they are not misleading about a customer’s rights under the consumer guarantees. If you need help, please contact our team.