Store’s ‘no refunds’ policy baffles shopper after item return denied
By
Seia Ibanez
- Replies 8
Navigating refund policies and understanding consumer rights can be one of the more tedious aspects of shopping and one often overlooked by the savviest of shoppers.
But when denied a refund for a purchase in 'perfect condition', it can turn an ordinary shopping encounter into a memorable saga.
This was the case for a Perth shopper whose struggle is an important reminder about Australia's consumer rights.
The incident in question revolved around a $55 portable phone charger from an electronics store at Joondalup Shopping Centre.
But upon arriving at their home, she discovered her husband already had one.
The charger was allegedly intact, and she returned the item after four days with the receipt.
However, the store refused to refund her purchase, citing a 'no refunds' policy.
‘They have a policy of no refunds even though it's brand new, unopened, and I spoke to the exact same salesperson,’ she said.
‘They have a little printed-out sign saying that they choose not to do refunds [which] was news to me because I just assumed that it was the law for all Australian businesses to do refunds.’
She continued that she had never been refused a refund for something that was in ‘perfect condition’, and this incident ‘blew her mind’.
Users online responded with similar stories.
One woman recounted her experience, saying, ‘My husband bought me a dress from some place called Flower when I was pregnant, [but] it was so heavy I asked if I could take it back. Half an hour, we were back, and they said no, but you could return it if you had bought it online. I was so angry.’
‘This happened to me at JB, apparently, they have a policy of no refunds/exchanges for headsets and like...Girl, it didn't fit what?’ another shared.
Others said that change-of-mind refunds were ‘never’ a law.
‘I have no idea why everyone thinks this is a law? This has never been the case, choose your purchases more carefully,’ one commented.
According to the Australian Competition and Consumer Commission (ACCC), businesses are not obligated to offer refunds or exchanges if ‘they got what they asked for but simply changed their mind, found the product cheaper somewhere else, or decided they didn't like the purchase or had no use for it’.
In the case of the Perth shopper, the store offered her a store credit instead of a refund. While this may seem like a fair compromise, the ACCC states that businesses are not required to offer this either.
You can watch the shopper’s video below:
Credit: @alexaprinno / TikTok
However, if a business has a 'change of mind' policy, they must adhere to it.
For instance, Woolworths had a policy allowing refunds for change of mind until 2020, when it revised its policy and no longer had to grant these refunds.
Despite the confusion and frustration, it's crucial to remember that businesses cannot override a consumer's right to a refund or replacement for faulty products or services or misrepresent these rights.
The ACCC stated that policies stating 'no refunds' or 'no refunds or exchanges on sale items' are unlawful.
In 2022, consumer advocacy group CHOICE sent mystery shoppers to stores across Australia.
Their findings revealed that seven out of ten stores misrepresented consumer rights, either by not clearly stating the customer's right to a refund or replacement without purchasing a warranty or by confusing the customer about their rights.
Currently, electronics retailer JB Hi-Fi is facing a class action lawsuit alleging that its extended warranties were of little to no value, as customers already had the same rights for free under Australian Consumer Law.
Have you ever been denied a refund for a product in perfect condition? Share your experiences with us in the comments below.
But when denied a refund for a purchase in 'perfect condition', it can turn an ordinary shopping encounter into a memorable saga.
This was the case for a Perth shopper whose struggle is an important reminder about Australia's consumer rights.
The incident in question revolved around a $55 portable phone charger from an electronics store at Joondalup Shopping Centre.
But upon arriving at their home, she discovered her husband already had one.
The charger was allegedly intact, and she returned the item after four days with the receipt.
However, the store refused to refund her purchase, citing a 'no refunds' policy.
‘They have a policy of no refunds even though it's brand new, unopened, and I spoke to the exact same salesperson,’ she said.
‘They have a little printed-out sign saying that they choose not to do refunds [which] was news to me because I just assumed that it was the law for all Australian businesses to do refunds.’
She continued that she had never been refused a refund for something that was in ‘perfect condition’, and this incident ‘blew her mind’.
Users online responded with similar stories.
One woman recounted her experience, saying, ‘My husband bought me a dress from some place called Flower when I was pregnant, [but] it was so heavy I asked if I could take it back. Half an hour, we were back, and they said no, but you could return it if you had bought it online. I was so angry.’
‘This happened to me at JB, apparently, they have a policy of no refunds/exchanges for headsets and like...Girl, it didn't fit what?’ another shared.
Others said that change-of-mind refunds were ‘never’ a law.
‘I have no idea why everyone thinks this is a law? This has never been the case, choose your purchases more carefully,’ one commented.
According to the Australian Competition and Consumer Commission (ACCC), businesses are not obligated to offer refunds or exchanges if ‘they got what they asked for but simply changed their mind, found the product cheaper somewhere else, or decided they didn't like the purchase or had no use for it’.
In the case of the Perth shopper, the store offered her a store credit instead of a refund. While this may seem like a fair compromise, the ACCC states that businesses are not required to offer this either.
You can watch the shopper’s video below:
Credit: @alexaprinno / TikTok
However, if a business has a 'change of mind' policy, they must adhere to it.
For instance, Woolworths had a policy allowing refunds for change of mind until 2020, when it revised its policy and no longer had to grant these refunds.
Despite the confusion and frustration, it's crucial to remember that businesses cannot override a consumer's right to a refund or replacement for faulty products or services or misrepresent these rights.
The ACCC stated that policies stating 'no refunds' or 'no refunds or exchanges on sale items' are unlawful.
In 2022, consumer advocacy group CHOICE sent mystery shoppers to stores across Australia.
Their findings revealed that seven out of ten stores misrepresented consumer rights, either by not clearly stating the customer's right to a refund or replacement without purchasing a warranty or by confusing the customer about their rights.
Currently, electronics retailer JB Hi-Fi is facing a class action lawsuit alleging that its extended warranties were of little to no value, as customers already had the same rights for free under Australian Consumer Law.
Key Takeaways
- A shopper was denied a refund at an electronic shop despite the product being in 'perfect condition'.
- There is a common misconception concerning refund laws, where consumers believe a change of mind should always warrant a refund.
- The Australian Competition and Consumer Commission clarifies that refunds are not required for change of mind, but if a store has a 'change of mind' policy, they are obliged to follow it.
- Misrepresenting consumer rights, such as by stating 'no refunds', is unlawful, and businesses cannot override the right to a refund or replacement for faulty products or services.