GuaranteesOnRecord

All subjects

Cancelling a service

18 established claims - 11 refused by the grounding gate

Documented position10

What the body that runs or defines the thing says in its own documentation.

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The ACCC states that where a business makes a material change to a service, consumers are likely to be entitled to the remedies for major problems with a service.

other
1 quote from 1 source
If the change is a material change to the service the business agreed to provide, then consumers are likely to be entitled to the remedies for major problems with a service.
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The Australian Consumer Law section 269(3) entitles a consumer who terminates a services contract to recover a refund of money paid only to the extent that the consumer has not already consumed the services at the time the termination takes effect.

other
3 quotes from 1 source
(3) The consumer is entitled to recover, by action against the supplier of the services, a refund of:
(a) any money paid by the consumer for the services; and
to the extent that the consumer has not already consumed the services at the time the termination takes effect.
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Consumer Affairs Victoria states that…

  • cancellation of a services contract takes effect when the consumer tells the supplier they intend to cancel.
  • telling the supplier of the intent to cancel can be done verbally, in writing, or by any other reasonable means.
other
1 quote from 1 source
cancellation takes effect when they tell the supplier they intend to cancel the contract. This can be verbally, in writing or, if this is not possible, by any other reasonable means.
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Consumer Affairs Victoria states that when a consumer is entitled to cancel a services contract that includes products, the consumer is…

  • also rejecting the products.
  • entitled to a refund of any money paid for the products.
other
1 quote from 1 source
When a consumer is entitled to cancel a contract for services that includes products, they are also rejecting the products. This means they are entitled to a refund of any money or other type of payment they made for the products.
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Consumer Affairs Victoria states that it has worked with health and fitness centres to remove or modify contract terms that penalised consumers for terminating memberships.

other
2 quotes from 1 source
We have worked with health and fitness centres to remove or modify unfair consumer contract terms, including terms that:
penalised consumers for terminating memberships
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Consumer Affairs Victoria states that it has worked with health and fitness centres to remove or modify contract terms.

other
2 quotes from 1 source
We have worked with health and fitness centres to remove or modify unfair consumer contract terms, including terms that:
resulted in the automatic renewal of memberships without the opportunity to cancel at the conclusion of a minimum term
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Products and services bought before 1 January 2011 are not covered by the current Australian Consumer Law.

other
1 quote from 1 source
Products and services bought before 1 January 2011 aren't covered by the current Australian Consumer Law. They may be covered by older laws.

Practical effect1

What is observed to happen in practice, as distinct from what is documented.

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Consumer Affairs Victoria states that the contract terms it worked to remove or modify resulted in the automatic renewal of memberships without the opportunity to cancel at the conclusion of a minimum term.

other
2 quotes from 1 source
We have worked with health and fitness centres to remove or modify unfair consumer contract terms, including terms that:
resulted in the automatic renewal of memberships without the opportunity to cancel at the conclusion of a minimum term

Disputed between sources1

Sources that do not agree, presented without picking a winner.

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Regarding cancelling a service, CHOICE states that the Australian Consumer Law does not cover complaints about telecommunications.

medium confidenceother
4 quotes from 2 sources
The ACL doesn’t cover complaints about: Insurance Utilities Telecommunications Financial services.
(1) This Subdivision does not apply to services that are, or are to be, supplied under:
(a) a contract for or in relation to the transportation or storage of goods for the purposes of a business, trade, profession or occupation carried on or engaged in by the person for whom the goods are transported or stored; or
(b) a contract of insurance.

Repeated, with no primary source in reach6

Widely repeated in the field. Within the documents this sweep read, it traces only to other repetitions - which is a fact about our reading as well as about the idea, until each one has been searched for on its own.

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CHOICE states that a consumer…

  • needs to have a major problem to cancel a service.
  • cannot cancel a service where the problem is minor or can be reasonably fixed.
other
1 quote from 1 source
If you have a minor service problem, or it can be reasonably fixed, you can’t cancel the service. You need to have a major problem to cancel the service.
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CHOICE states that a consumer cannot cancel a service if…

  • they have changed their mind.
  • the problem is outside the supplier's control.
  • they want the service provided in a way that goes against the supplier's advice.
  • they did not clearly communicate what they wanted.
other
2 quotes from 1 source
You also can’t cancel a service if:
You’ve changed your mind Your problem is outside the supplier’s control You want the service provided in a way that goes against the supplier’s advice You didn’t clearly communicate what you wanted from the supplier

Refused11

Claims the research produced that the grounding gate would not accept, with its reason. They are here because a site that only shows what passed gives you no way to judge whether the gate does anything.

Show what was refused

Regarding cancelling a service, the Australian Consumer Law section 63 lists contracts for the transportation or storage of business goods and contracts of insurance as services to which the services guarantees do not apply.

Refused: The quotes state that the subdivision does not apply to those contracts but do not identify the provision as Australian Consumer Law section 63.

Unsupported: section 63

What it rested on
The ACL doesn’t cover complaints about: Insurance Utilities Telecommunications Financial services.
(1) This Subdivision does not apply to services that are, or are to be, supplied under:
(a) a contract for or in relation to the transportation or storage of goods for the purposes of a business, trade, profession or occupation carried on or engaged in by the person for whom the goods are transported or stored; or
(b) a contract of insurance.

The ACCC states that a consumer cancelling a service for a major problem may not get a full refund.

Refused: The quote says a refund may not be full but does not mention cancellation for a major problem.

Unsupported: cancelling a service for a major problem

What it rested on
This may not be a full refund, as the consumer needs to pay a reasonable amount for any work done so far and as expected, or

The ACCC states that a consumer cancelling a service for a major problem needs to pay a reasonable amount for any work done so far and as expected.

Refused: The quote supports the reasonable payment for work done, but does not state that this applies specifically to a consumer cancelling a service for a major problem.

Unsupported: cancelling a service for a major problem

What it rested on
This may not be a full refund, as the consumer needs to pay a reasonable amount for any work done so far and as expected, or

The ACCC states that where a business makes a material change to a service it agreed to provide, it should cancel the contracts of customers who do not consent to continue with the changed service.

Refused: The quote supports cancelling contracts for customers who do not consent to the changed service, but does not specify that the change must be material or to a service the business agreed to provide.

Unsupported: where a business makes a material change to a service it agreed to provide

What it rested on
cancel the contracts of, and refund any pre-payments made by, those customers who do not consent to continue with the changed service.

The ACCC states that where a business makes a material change to a service it agreed to provide, it should refund any pre-payments made by customers who do not consent to continue with the changed service.

Refused: The quote supports refunding non-consenting customers for a changed service, but does not state the change was material.

Unsupported: material change to a service it agreed to provide

What it rested on
cancel the contracts of, and refund any pre-payments made by, those customers who do not consent to continue with the changed service.

The Australian Consumer Law section 267(3)(a) provides that where a failure to comply with a services guarantee cannot be remedied or is a major failure, the consumer may terminate the contract for the supply of the services.

Refused: The quotes state the substantive rule but do not identify it as Australian Consumer Law section 267(3)(a).

Unsupported: section 267(3)(a)

What it rested on
(3) If the failure to comply with the guarantee cannot be remedied or is a major failure, the consumer may:
(a) terminate the contract for the supply of the services; or

The Australian Consumer Law section 267(2)(b) provides that where the consumer has required the supplier to remedy a services failure and the supplier refuses or fails to comply within a reasonable time, the consumer may terminate the contract for the supply of the services.

Refused: The quotes state the termination remedy but do not identify it as Australian Consumer Law section 267(2)(b).

Unsupported: section 267(2)(b)

What it rested on
(b) if such a requirement is made of the supplier but the supplier refuses or fails to comply with the requirement, or fails to comply with the requirement within a reasonable time-the consumer may:
(ii) terminate the contract for the supply of the services.

The Australian Consumer Law section 269(2) provides that termination of a services contract takes effect at the time the termination is made known to the supplier, whether by words or by conduct indicating the consumer's intention to terminate.

Refused: The quote states the termination timing rule verbatim but does not identify it as Australian Consumer Law section 269(2).

Unsupported: section 269(2)

What it rested on
(a) at the time the termination is made known to the supplier of the services (whether by words or by conduct indicating the consumer’s intention to terminate the contract); or

The Australian Consumer Law section 270 provides that where a consumer terminates a services contract, goods connected with the services are taken to have been rejected at the time the termination takes effect.

Refused: The cited quote states the timing of deemed rejection but does not identify section 270 or a services contract.

Unsupported: The Australian Consumer Law section 270 provides that where a consumer terminates a services contract, goods connected with the services

What it rested on
(c) the consumer is taken to have rejected the goods at the time the termination of the contract takes effect; and

Consumer Affairs Victoria states that where there is a major problem with a service, the consumer can cancel the contract and pay a reasonable amount for the work done.

Refused: The cited quote states the cancellation/reasonable-payment remedy but does not mention the major-problem condition.

Unsupported: where there is a major problem with a service

What it rested on
cancel the contract and pay a reasonable amount for the work done, or seek a partial refund of money already paid, or

Consumer Affairs Victoria states that where there is a major problem with a service, the consumer can seek a partial refund of money already paid.

Refused: The quote states the partial refund option but does not mention a major problem with a service.

Unsupported: where there is a major problem with a service

What it rested on
cancel the contract and pay a reasonable amount for the work done, or seek a partial refund of money already paid, or