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Something I bought is faulty. What am I owed?

38 quoted answers, each with its source

The short answer

For faulty goods under the Australian Consumer Law, a minor failure must be repaired or fixed for free and the business does not have to offer a replacement or refund, while a major failure entitles the consumer to a replacement or refund, even if the consumer first agreed to a repair. Return in original packaging is not required, businesses must not tell consumers to go to the manufacturer, and a business that confirms a fault must reimburse reasonable return costs; if it finds no fault it may charge collection and inspection costs only after giving a reasonable estimate. The monetary threshold is $100,000 for goods purchased from 1 July 2021 and $40,000 for goods purchased before that date. Faulty, unsafe or poor-quality products were reported by 20% of consumers in 2023, down from 30% in 2016, and the claims do not specify the situations in which the consumer gets to choose the remedy.

Every part of this comes from the quotes below. How we write these.

What the rules actually say23

Quoted straight from the ACCC, the Australian Consumer Law or a state consumer regulator.

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The ACCC states that repair notice obligations apply whether or not the products are second-hand goods.

first-party
1 quote from 1 source
These obligations apply whether or not the products are second-hand goods.
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The ACCC states that repair notice rules apply to faulty goods over $100,000 that are normally bought for personal or household use.

first-party
2 quotes from 1 source
Repair notice rules apply to all products that are:
over $100,000 that are normally bought for personal or household use.
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The ACCC states that in some situations, for faulty goods, the consumer gets to choose the remedy they prefer.

first-party
1 quote from 1 source
In some situations, the consumer gets to choose the remedy they prefer.
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For faulty goods, the ACCC states that a business has the right to assess the product or service before they provide a remedy.

first-party
1 quote from 1 source
A business has the right to assess the product or service before they provide a remedy.
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The ACCC states that when a product or service has a minor problem, the business must fix the problem or repair the product for free.

first-party
1 quote from 1 source
When a product or service has a minor problem, the business must fix the problem or repair the product for free.
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Regarding repair, the ACCC states that a business…

  • does not have to offer a replacement or refund for a minor problem.
  • can choose to offer a replacement or refund for a minor problem.
first-party
1 quote from 1 source
The business does not have to offer a replacement or refund for a minor problem, although it can choose to do this.
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The ACCC states that for faulty goods, businesses must not tell consumers to go to the manufacturer for a remedy.

first-party
1 quote from 1 source
Businesses must not tell consumers to go to the manufacturer for a remedy.
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The ACCC states that a product does not have to be in its original packaging.

first-party
1 quote from 1 source
The product does not have to be in its original packaging
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The ACCC states that businesses are responsible for paying the shipping costs or collecting faulty products that are large, heavy or hard to remove.

first-party
1 quote from 1 source
Businesses are responsible for paying for the shipping costs or collecting faulty products that are large, heavy or hard to remove, such as:
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The ACCC states that for faulty goods, if a business confirms the product has a problem, the business must reimburse the consumer for any reasonable return costs the consumer has already paid.

first-party
1 quote from 1 source
If the business confirms that the product does have a problem, it must reimburse the consumer for any reasonable return costs they have already paid.
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The ACCC's documented position on faulty goods states that if a business finds the product does not have a problem, the business…

  • can make the consumer pay the collection and inspection costs.
  • must first give the consumer a reasonable estimate of the collection and inspection costs.
first-party
1 quote from 1 source
If the business finds that the product does not have a problem, it can make the consumer pay the collection and inspection costs. To do this, the business must give the consumer a reasonable estimate of these costs before collecting the product.
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The guarantee for goods supplied in trade or commerce to a consumer…

  • is that the goods are of acceptable quality.
  • applies where the supply does not occur by way of sale by auction.
first-party
3 quotes from 1 source
a person supplies, in trade or commerce, goods to a consumer
the supply does not occur by way of sale by auction
there is a guarantee that the goods are of acceptable quality
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Consumer Affairs Victoria states that consumers have the same legal rights to a refund, repair or replacement whether or not the goods are returned in the original packaging or wrapping.

first-party
1 quote from 1 source
Consumers have the same legal rights to a refund, repair or replacement whether or not the goods are returned in the original packaging or wrapping.
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Consumer Affairs Victoria states that a consumer who requested or agreed to the repair of a product with a major failure…

  • does not lose their right to a refund or replacement.
  • may still reject and return the product at any time.
medium confidencefirst-party
2 quotes from 1 source
Sometimes, a consumer may request or agree to the repair of a product with a major failure - for example, because they did not know they were entitled to a refund or replacement.
If so, the consumer does not lose their right to a refund or replacement. The problem with the product is still ‘major’, so they may still reject and return the product at any time.
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Consumer Affairs Victoria states that when a consumer tells the supplier they are returning the product, it becomes the supplier's property.

first-party
1 quote from 1 source
When the consumer tells the supplier they are returning the product, it becomes the supplier’s property.
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Consumer Affairs Victoria states that a consumer who has lost the right to reject a product may still keep it and recover compensation for any drop in the product's value.

first-party
1 quote from 1 source
Even if the consumer has lost the right to reject the product, they may still keep it and ask for, or by action against the trader recover, compensation for any drop in the product’s value.
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Consumer Affairs Victoria states that a consumer cannot reject products that have been attached to other property and cannot be removed without damage.

first-party
2 quotes from 1 source
A consumer cannot reject products if:
the products have been attached to other property and cannot be removed without damage
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Consumer Affairs Victoria states that a consumer buying second-hand goods cannot claim a refund for problems that were indicated in photos or the item description on the website.

first-party
2 quotes from 1 source
However, they cannot claim a refund for problems that:
were indicated in photos or the item description on the website.
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For faulty goods purchased before 1 July 2021, the consumer guarantee monetary threshold is $40,000.

first-party
2 quotes from 1 source
products or services that cost up to $100,000*, or any other amount set by the Australian Consumer Law in future; or
* For products or services purchased before 1 July 2021 the amount is $40,000

Measured finding4

Something someone actually measured, with the method attached.

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The Australian Consumer Survey 2023 reports that faulty, unsafe or poor-quality products were among the most common problems consumers experienced, at 20%.

first-party
1 quote from 1 source
The most common problems relate to incorrect or misleading information being provided (27%), poor customer service (25%), and faulty, unsafe or poor-quality products (20%).
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The Australian Consumer Survey 2023 reports that the proportion of consumers reporting a faulty, unsafe or poor-quality product was…

  • 30% in 2016.
  • 20% in 2023.
first-party
1 quote from 1 source
a decline is evident for faulty, unsafe or poor-quality products (down 10 percentage points from 30% in 2016 to 20% in 2023)
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The Australian Consumer Survey 2023 reports that awareness of dispute resolution services declined 9 percentage points from 44% in 2016 to 35% in 2023.

first-party
1 quote from 1 source
Awareness of dispute resolution services has declined markedly since 2016 (down 9 percentage points, from 44% to 35%).

Practical effect2

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

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The Australian Consumer Survey 2023 reports that 61% of consumers have experienced at least one problem when purchasing a product or service over the past two years.

first-party
1 quote from 1 source
61% of consumers have experienced at least one problem when purchasing a product or service over the past two years
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The Australian Consumer Survey 2023 reports that 22% of consumers experienced an unsafe product in the past two years.

first-party
1 quote from 1 source
22% of consumers experienced an unsafe product in the past two years.

Changed on2

A dated change. This is where advice quietly stops being true.

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The Australian Consumer Survey 2023 reports that the proportion of consumers reporting a faulty, unsafe or poor-quality product fell 10 percentage points between 2016 and 2023.

first-party
1 quote from 1 source
a decline is evident for faulty, unsafe or poor-quality products (down 10 percentage points from 30% in 2016 to 20% in 2023)
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For faulty goods purchased from 1 July 2021, the consumer guarantee monetary threshold is $100,000.

first-party
2 quotes from 1 source
products or services that cost up to $100,000*, or any other amount set by the Australian Consumer Law in future; or
* For products or services purchased before 1 July 2021 the amount is $40,000

Often said, but we could not find it in the rules7

Lots of people say this. We went looking for an official source that backs it up and could not find one, so treat it as something people repeat rather than something settled.

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  • Bunnings states that its goods come with guarantees that cannot be excluded under the Australian Consumer Law.
  • Bunnings states that customers are entitled to a replacement or refund for a major failure of its goods.
other
1 quote from 1 source
Our goods come with guarantees that cannot be excluded under the Australian Consumer Law. You're entitled to a replacement or refund for a major failure, and to compensation for other reasonably foreseeable loss or damage.
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Kmart states that where a failure is minor it reserves its right to offer to repair only.

other
1 quote from 1 source
If the failure is minor, we reserve our right to offer to repair only.
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Regarding replacement, Kmart states that it reserves the right to assess the condition and age of returned goods before providing a repair, exchange or refund.

other
1 quote from 1 source
Kmart reserves the right to assess the condition and age of returned goods prior to providing a repair, exchange or refund.
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Kmart states that it reserves the right not to offer an exchange, exchange voucher or refund for faulty goods where the product fault is a result of misuse or neglect.

other
1 quote from 1 source
Kmart reserves the right not to offer an exchange, exchange voucher or refund where the product fault is a result of misuse or neglect.
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Faulty goods that are Kmart branded products meeting consumer guarantee return requirements are…

  • accepted for return by Kmart without proof of purchase.
  • provided an exchange voucher by Kmart when returned without proof of purchase.
other
1 quote from 1 source
Kmart will accept returns of Kmart branded products (Anko, OXX, etc) that meet consumer guarantee return requirements without proof of purchase. In such cases, an exchange voucher will be provided.