Do I have to give refunds for change of mind?

Customers have no legal right to a refund or exchange if they change their mind, find it cheaper elsewhere or decide they don't like what they bought. The ACCC says you can display a sign that says "No refunds for change of mind".

Many businesses offer change of mind returns anyway. If you do, you must honour your policy, and you can set conditions on it, such as a time limit, excluding sale items, or requiring tags attached and original packaging. Those conditions can't be applied to returns of faulty goods.

You also don't have to provide a remedy if the customer caused the problem by misusing the product, or if you told them about the problem before they bought it.

Every product and service you sell to a consumer comes with automatic consumer guarantees. For example, goods must be of acceptable quality, fit for their purpose and match their description, and services must be provided with due care and skill. What you owe depends on how serious the problem is.

Major problem. A product has a major problem if it is unsafe, very different from its description or sample, has a problem serious enough that someone wouldn't have bought it had they known, or can't do its normal job and can't easily be fixed within a reasonable time. The customer chooses a refund or a replacement. A refund is the full price, with no deduction for use, paid in the same form as the original payment unless you both agree otherwise.

Minor problem. You must fix it free of charge, though you can choose to offer a refund or replacement instead. If you can't or won't fix it within a reasonable time, the customer can get it fixed elsewhere at your cost, or ask for a refund or replacement.

For services with a major problem, the customer can cancel and get a refund (less a reasonable amount for work properly done) or keep the service and pay less.

Consumer guarantees can't be taken away by anything you say or display. It's against the law to mislead customers about their rights with statements like:

• "No refunds" or "No refunds or exchanges on sale items"
• "Exchange or credit note only" for sale items
• a time limit for reporting faulty goods, such as "notify us within 30 days"
• restocking fees or non-refundable delivery fees on faulty items
• "contact the manufacturer" for faulty goods

You are responsible for remedies, not the manufacturer. If the fault is the manufacturer's, you can claim reimbursement from them after you've looked after the customer.

The rules are the same for online stores. In a sweep published in February 2025, the ACCC reviewed more than 2,000 Australian retail websites, found numerous returns policies that could mislead customers about their rights, and sent warning letters.

A few online specifics:

• Customers don't need the original packaging to return a faulty item, but you can ask for proof of purchase.
• Customers send back items that are easy to post. If the item is faulty, you must repay their reasonable return costs.
• For faulty items that are large, heavy or hard to remove, you pay to collect them.

A good returns page sets out your change of mind policy (if you have one) separately from a plain statement that consumer guarantees still apply. A Sprintlaw lawyer can review your returns policy and website terms for a fixed fee.