Can online businesses refuse replacements for damaged goods in Australia?
No, online businesses cannot refuse a replacement for goods that arrive damaged in Australia. Under the Australian Consumer Law, damaged goods fail the consumer guarantee of acceptable quality. If the problem is major, you have the right to choose between a full refund or a replacement.
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How it works in practice
Under the Australian Consumer Law (ACL), when you buy a product online from a business operating in or selling to Australia, it comes with automatic consumer guarantees. One of these guarantees is that the product must be of acceptable quality, meaning it must be safe, lasting, have no faults, and do all the things it is normally supposed to do.
Your Right to a Remedy
If an item arrives damaged, it clearly fails this consumer guarantee. The law classifies product failures as either minor or major. A damaged item that cannot be easily or quickly fixed is usually considered a major failure.
Choosing Your Preferred Outcome
When a product has a major failure, the consumer gets to choose the remedy. You have the strict legal right to demand a replacement of the identical type, or a full refund. An online store cannot legally force you to accept a store credit or insist on repairing a significantly damaged item against your wishes.
Shipping and Return Costs
Furthermore, if the goods need to be returned to the online seller, the business is legally responsible for paying the return shipping costs. They cannot make you pay to return an item that was damaged in transit, ensuring you are not left out of pocket.
Important exceptions
There are specific situations where an online business can legally refuse to replace a damaged item under Australian law.
If you caused the damage yourself after the item was delivered—such as dropping it or using it improperly—the business is not liable for a replacement.
Additionally, consumer guarantees generally do not apply if you purchased the goods from a private seller, like a one-off individual transaction on Facebook Marketplace or Gumtree.
Finally, if the specific damage or fault was explicitly pointed out to you before the purchase (for instance, buying a discounted factory second), you cannot claim a replacement for that known issue.
What you should do now
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Take clear photographs or videos of the damaged item and its original packaging immediately after opening it.
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Contact the online business in writing to notify them of the damage and explicitly state whether you want a replacement or a refund.
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Request a pre-paid shipping label from the seller so you do not have to pay the return postage costs yourself.
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Package the item securely for its return journey, ensuring you include all original parts, manuals, and accessories.
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Escalate the issue to your local state or territory fair trading agency or consumer protection body if the business refuses your legal request.
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