February 4, 2025 – A major review of over 2,000 Australian retail websites by the Australian Competition and Consumer Commission (ACCC) has revealed widespread concerns over misleading return policies and terms and conditions that may violate the Australian Consumer Law (ACL).
The sweep identified numerous instances where businesses imposed unfair restrictions on consumer rights, including time limits for returning faulty products, blanket “no refund” policies, and misleading references to manufacturer warranties as the sole avenue for remedy. Some websites also charged restocking fees or refused to refund delivery costs for defective items.
“Our sweep found multiple examples of potentially misleading statements about consumers’ rights to refunds, exchanges, or returns,” said ACCC Deputy Chair Catriona Lowe. “Under the ACL, consumer guarantees apply regardless of a business’s own policies, and companies cannot deny these rights through their terms and conditions.”
As a result, the ACCC issued warning letters to several businesses, leading to many revising their policies to align with legal requirements. However, the regulator has pledged continued monitoring and enforcement action where necessary.
The ACCC has been advocating for stricter penalties for businesses that fail to comply with consumer guarantee obligations, with proposed reforms expected to impose financial consequences for companies that unlawfully deny refunds or replacements.
