Refund and Return Policy
A refund and return policy sets your commercial terms for refunds, exchanges, and returns while complying with Australian Consumer Law statutory guarantees.
What is a Refund and Return Policy?
A refund and return policy is a document that sets out the terms under which customers can return goods or request refunds for services. In Australia, the Australian Consumer Law (ACL) imposes mandatory consumer guarantees that cannot be excluded by policy — customers have automatic rights to a refund or replacement for major failures regardless of your store policy.
Your refund policy operates on top of the ACL: you can be more generous than the law requires (such as offering change-of-mind returns), but you cannot restrict the rights the ACL gives consumers. A policy that purports to limit ACL consumer guarantee rights is misleading and unenforceable.
When do you need a Refund and Return Policy?
- ✓Before selling goods or services to consumers in Australia
- ✓When launching an e-commerce store or physical retail operation
- ✓When selling digital products, subscriptions, or downloadable content
- ✓When updating your policy to reflect changes in your products or business
Key provisions to include
ACL Consumer Guarantees
Disclosure of the mandatory consumer guarantees that apply regardless of the policy.
Major vs Minor Failures
Different remedies for major failures (replacement or refund) versus minor failures (repair).
Change of Mind Returns
Your voluntary (not legally required) terms for change-of-mind returns, if offered.
Return Process
How customers initiate a return, required documentation, and timeframes.
Digital Products
Whether refunds apply to downloadable or digital goods (ACL applies but with nuances).
Refund Timeframes
How quickly refunds are processed after goods are received.
Common mistakes to avoid
Including 'no refunds' policies — these are misleading under Australian Consumer Law and can attract ACCC action
Not disclosing ACL consumer guarantee rights, which creates a misleading impression that consumers have no rights
Applying the same refund policy to digital goods without considering the different ACL treatment
Frequently asked questions
Can I have a 'no refunds' policy in Australia?
No. 'No refunds' policies are prohibited under Australian Consumer Law. The ACL gives consumers mandatory rights to a refund, repair, or replacement for major failures — these rights cannot be excluded by any business policy. You can limit change-of-mind returns, but you cannot exclude ACL consumer guarantee rights.
Do ACL consumer guarantees apply to digital products?
Yes. The ACL applies to the supply of digital products and services, including apps, subscriptions, and downloaded content. Consumers have the right to a refund if a digital product does not meet the consumer guarantees — for example, if it does not work as described or is not fit for its stated purpose.
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