Can online stores refuse refunds in Australia?
No, online stores in Australia cannot place blanket bans on refunds or state "no refunds" under the Australian Consumer Law (ACL). If a product is faulty, unsafe, or does not match its description, you are legally entitled to a repair, replacement, or refund.
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How it works in practice
Statutory Consumer Guarantees
Under the Australian Consumer Law (ACL), when you buy products or services online from an Australian business, or a foreign business that is actively targeting Australian consumers, you automatically receive powerful statutory consumer guarantees. These essential legal protections are attached to your purchase by default, and they exist entirely independent of the online store's own return policies, user agreements, or standard terms and conditions.
Unlawful Blanket Bans on Refunds
It is strictly illegal for any online store operating in Australia to claim that they do not offer refunds under any circumstances. Signs, website banners, or checkout terms stating "no refunds on sale items," "no refunds or exchanges," or "all sales are final" are completely unlawful. These statements purposefully mislead consumers about their inherent rights and are heavily penalized by regulatory authorities.
Conditions for a Mandatory Refund
You are legally entitled to demand a full refund if a purchased product has what the law defines as a "major problem." A major problem means the physical item is dangerously unsafe, significantly different from the digital sample or written description provided on the website, or possesses a fundamental, unfixable defect that would have reasonably stopped you from buying it had you known beforehand. In these specific cases of a major failure, the choice of receiving a repair, a complete replacement, or a full financial refund belongs entirely to you, and the online store cannot legally force you to accept a store credit instead.
Important exceptions
There are specific situations where an online store is legally allowed to refuse a refund. Stores do not have to give you a refund if you simply change your mind, buy the wrong size, or find the item cheaper elsewhere, unless their own specific store policy promises to do so.
Additionally, if the problem with the product is minor, the online store has the right to choose whether to repair the item, replace it, or refund your money. Finally, consumer guarantees may not apply to items bought from private sellers (like a one-off sale on an auction site) or goods purchased explicitly for commercial resale.
What you should do now
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Take clear photos or videos of the faulty or incorrect product immediately after receiving it from the online store.
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Contact the online store in writing to explain the problem and clearly state that you are requesting a refund under the Australian Consumer Law.
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Stop using the product to prevent any further damage that could void your legal consumer guarantees.
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Keep all evidence of your purchase, including digital receipts, email order confirmations, and bank statements.
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File a formal complaint with your state consumer protection agency or the ACCC if the store refuses to comply with the law.
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