Australian Consumer Law refunds: what an online store must offer

The consumer guarantees in plain English

• Acceptable quality: safe, durable and free from defects, with an acceptable look and finish, and able to do what similar products are used for. There's no set rule for how long something should last; it depends on the product, its price and how long similar products last.
• Fit for purpose: if a customer told you what they needed it for, or you advertised that use, it must do that job.
• Matches the description: any description must be accurate, written or spoken, including the colours and details on your product page. Towels shown as pink must arrive pink.
• Extra promises count: if you promise something extra, like 'stays sharp for 10 years', you must keep that promise.
• Gifts are covered: someone who received your product as a gift has the same rights as the buyer.
• Online sales are covered: the guarantees apply to what you sell online, and overseas businesses selling to Australians must follow them too.

Major or minor problem?

Refund rules online stores trip over

• Refund the full amount. You can't take anything off for the use the customer has had.
• If you can't or won't fix a minor problem in a reasonable time, the customer can get it fixed elsewhere and claim the reasonable cost, ask for a refund or replacement, or keep it with compensation.
• Refund the way they paid, unless you both agree otherwise. You can't force store credit on someone owed a refund.
• Don't send them to the manufacturer. The business that sold the product is responsible for fixing the problem.
• Original packaging isn't required, but you can ask for proof of purchase, like the order confirmation.
• You're allowed to assess the product before you decide on a remedy, so ask for photos or for it to be sent back.
• Return postage: customers send back items that are easy to post. If you confirm the problem, refund their reasonable return costs. For large or heavy items, you pay to ship or collect them.
• Not covered: change of mind, damage caused by misuse, and problems the customer was told about before buying.

Change of mind, sale items and 'no refunds'

• Change of mind isn't covered by the law. You can choose whether to offer it, but if your policy says you do, you must follow it.
• It's illegal to say 'no refunds', 'no refunds or exchanges on sale items', or that refunds aren't available after a certain number of days. Those statements take away rights customers have for faulty items.
• You can say you don't offer refunds for change of mind, as long as the wording doesn't suggest faulty items are excluded too.
• Sale items have the same rights when they're faulty. If you tell customers about a flaw before they buy, like a marked second, they can't claim for that flaw.
• Need the wording? See our refund policy template, written for Australian and New Zealand stores.

If you offer a warranty

• A warranty is an extra promise on top of the consumer guarantees. It doesn't replace or shorten them, so you can't refuse a fix just because the warranty has expired.
• A warranty against defects must include the exact mandatory text set out on the ACCC's Warranties page, which starts: 'Our goods come with guarantees that cannot be excluded under the Australian Consumer Law.'
• That text must come with the product itself. Pointing customers to your website isn't enough.
• The ACCC enforces this. In September 2026 it said online retailer Neptune Blanket had paid $59,400 in penalties after three infringement notices, which covered allegedly misleading statements to customers about their rights and not including the mandatory wording in its warranty against defects.

New Zealand: the Consumer Guarantees Act

• Products sold to consumers must be of acceptable quality, fit for purpose and match their description, much like Australia.
• Minor fault that can be fixed: you choose a free repair, an identical replacement or a full refund, and the customer must accept your choice. If you refuse or take too long, they can ask for a refund or replacement, or get it fixed elsewhere and claim the cost.
• Serious fault (a reasonable customer wouldn't have bought it, it's significantly different from the description, it can't easily be made fit for purpose, or it's unsafe): the customer chooses a full refund, a replacement of similar type and value, or to keep it with compensation. Even if you could repair it, they can choose their money back.
• Refunds must be in cash or back to their card. You can't offer store credit or an exchange note instead.
• You don't have to give a remedy if the customer changes their mind, caused the damage, didn't follow your care advice (like washing instructions), or went elsewhere for repairs first.
• You can't contract out of the Act when selling to consumers, so don't tell customers it doesn't apply.

How to answer refund questions in DMs, comments and email

1. If the question is in a public comment, reply that you'll sort it out and ask them to DM or email you their order number. Never discuss order details in public.
2. Ask for the order number and a photo of the problem, so you can check the order and assess the fault.
3. Decide whether it's a major or minor problem (or a serious or minor fault in NZ), and tell the customer what happens next and by when.
4. Offer the remedy the law requires. Never reply 'no refunds' or 'please contact the manufacturer'.
5. Refund to the original payment method. Offer store credit only as something the customer can choose, and never as the refund for a fault in NZ.
6. Note what you agreed on the order so whoever answers next sees it. For upset customers, see how to handle customer complaints.

Refund requests always reach a person

Refund, return and delivery problems turn up in comments, DMs and email, often on a busy sale day. On Standard, Paperflower sorts them into what needs a person, with the customer's Shopify order beside the message, so you can check what they bought and when before you answer. Refunds and cancellations always need a human, complaints are escalated to you, and private order details never go out in a public comment. See how email support works.

How Paperflower is different

Frequently asked questions