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Is a "no refunds" sign legal?

27 quoted answers, each with its source

The short answer

Consumers cannot agree to give up their rights to the consumer guarantees, and a "no refunds" sign is unlawful if it implies that no refund is possible in any circumstance, including where goods or services are faulty. A sign saying "No refunds will be given if you have simply changed your mind" is acceptable, and businesses may display a sign at the point of sale, including online, alerting consumers to their rights under the consumer guarantees, though displaying one is not compulsory. Penalty figures in the cited sources conflict: as of 13 October 2023 Consumer Affairs Victoria states a maximum penalty of $500,000 for a person while the ACCC guide states $220,000 for an individual, and as of 1 July 2026 the Australian Consumer Law compilation states a fine of not more than $2,500,000 for a person other than a body corporate. A business giving a consumer a repair notice cannot satisfy that requirement by showing the consumer a sign or directing them to information on a website.

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

What the rules actually say12

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

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The ACCC states that a business giving a consumer a repair notice cannot satisfy the requirement by…

  • showing the consumer a sign.
  • directing the consumer to information on a website.
first-party
1 quote from 1 source
It isn’t enough to show the consumer a sign or direct them to information on a website.
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The ACCC states that it is illegal for businesses to rely on store policies which deny consumers' rights to a refund or replacement for faulty products.

first-party
1 quote from 1 source
It’s illegal for businesses to rely on store policies or terms and conditions which deny these rights. For example, policies which say ‘no refunds’ or ‘no refunds or exchanges on sale items’.
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Section 64 of the Australian Consumer Law makes a term of a contract void to the extent that it purports to exclude, restrict or modify the application of the consumer guarantee provisions or the exercise of a right conferred by them.

first-party
4 quotes from 1 source
64 Guarantees not to be excluded etc. by contract
A term of a contract (including a term that is not set out in the contract but is incorporated in the contract by another term of the contract) is void to the extent that the term purports to exclude, restrict or modify, or has the effect of excluding, restricting or modifying:
the application of all or any of the provisions of this Division; or
the exercise of a right conferred by such a provision; or
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Consumer Affairs Victoria states that a no refunds sign…

  • is unlawful.
  • implies it is not possible to get a refund under any circumstance.
first-party
1 quote from 1 source
Signs that state 'no refunds' are unlawful, because they imply it is not possible to get a refund under any circumstance
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Consumer Affairs Victoria states that signs reading 'No refunds will be given if you have simply changed your mind' are acceptable.

first-party
1 quote from 1 source
Signs that state 'No refunds will be given if you have simply changed your mind' are acceptable.
#

Consumer Affairs Victoria states that consumers cannot agree to give up their rights to any consumer guarantees.

first-party
1 quote from 1 source
Consumers cannot agree to give up their rights to any consumer guarantees.
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Consumer Affairs Victoria states that a store may display a sign at the point of sale alerting consumers to their rights under the consumer guarantees, even if the store's business is online.

first-party
1 quote from 1 source
Stores can display a sign, at the point of sale, alerting consumers to their rights under the consumer guarantees – even if the store’s business is online.
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Consumer Affairs Victoria states that…

  • displaying a sign about consumer guarantees is not compulsory.
  • the Commonwealth Minister responsible for administering the Australian Consumer Law can make displaying a sign about consumer guarantees mandatory and specify the sign's content, size, form and position.
first-party
1 quote from 1 source
It is not compulsory to display a sign but the Commonwealth Minister responsible for administering the Australian Consumer Law can make it mandatory and can specify the content, size, form and position of the sign.
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The ACCC's consumer guarantees guide states that suppliers, including online suppliers, can display a sign at the point of sale alerting consumers to their rights under the consumer guarantees.

first-party
1 quote from 1 source
Suppliers, including online suppliers, can display a sign at the point of sale, alerting consumers to their rights under the consumer guarantees.

Measured finding1

Something someone actually measured, with the method attached.

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Consumer Affairs Victoria states that the maximum penalty for a person is $500,000.

medium confidencefirst-party
1 quote from 1 source
The maximum penalty for a person is $500,000.

Practical effect1

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

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In July 2013 the Federal Court ordered Hewlett-Packard to pay a $3 million civil pecuniary penalty for making false or misleading representations to consumers and retailers regarding consumer guarantee rights.

first-party
1 quote from 1 source
In July 2013, the Federal Court ordered that Hewlett-Packard, a manufacturer and retailer of computer hardware, pay a $3 million civil pecuniary penalty for making false or misleading representations to consumers and retailers regarding consumer guarantee rights.

Disputed between sources7

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

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  • The Australian Consumer Law as compiled to 1 July 2026 sets the maximum fine for a person other than a body corporate convicted of a false or misleading representation offence at $2,500,000.
  • Consumer Affairs Victoria's page on 'No refund' signs states the maximum penalty for a person is $500,000.
first-party
2 quotes from 2 sources
An offence against subsection (1) committed by a person other than a body corporate is punishable on conviction by a fine of not more than $2,500,000.
The maximum penalty for a person is $500,000.
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the ACCC's consumer guarantees guide states the maximum civil penalty for an individual providing false or misleading information about the consumer guarantees is $220,000.

first-party
2 quotes from 2 sources
An offence against subsection (1) committed by a person other than a body corporate is punishable on conviction by a fine of not more than $2,500,000.
The maximum civil penalty for providing false or misleading information about the existence, exclusion or effect of the consumer guarantees or remedies is $1.1 million for a body corporate and $220,000 for an individual.
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Regarding no refunds signs…

  • the ACCC's consumer guarantees guide gives the maximum penalty for an individual who provides false or misleading information about the consumer guarantees as $220,000.
  • Consumer Affairs Victoria's page on 'No refund' signs gives the maximum penalty for a person as $500,000.
first-party
2 quotes from 2 sources
The maximum civil penalty for providing false or misleading information about the existence, exclusion or effect of the consumer guarantees or remedies is $1.1 million for a body corporate and $220,000 for an individual.
The maximum penalty for a person is $500,000.
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  • The ACCC's consumer guarantees guide explains 'no refunds' signs as unlawful because they imply no refund is possible even when there is a major problem with the goods.
  • Consumer Affairs Victoria's 'No refund' signs page explains 'no refunds' signs as unlawful even when there is a problem with the goods or service such as a defect or lack of due care and skill.
medium confidencefirst-party
2 quotes from 2 sources
Signs that state ‘no refunds’ are unlawful, because they imply it is not possible to get a refund under any circumstance—even when there is a major problem with the goods.
Signs that state 'no refunds' are unlawful, because they imply it is not possible to get a refund under any circumstance - even when there is a problem with the goods or service, like a defect or lack of due care and skill.

Often said, but we could not find it in the rules6

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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LegalVision states that signs on business premises reading 'No refunds on sale items' are…

  • illegal.
  • prohibited under the ACL.
medium confidencevendor
3 quotes from 1 source
All business owners must be aware that signs on their premises reading:
‘No refunds on sale items’; or
are illegal and prohibited under the ACL.
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Sprintlaw states that policies presented as 'No Refunds', 'Final Sale' or 'No Returns On Sale Items' are fine provided the business does not mislead customers about their legal rights if goods are faulty, unsafe or misdescribed.

other
1 quote from 1 source
as “No Refunds,” “Final Sale,” or “No Returns On Sale Items.” That’s fine-provided you don’t mislead customers about their legal rights if goods are faulty, unsafe, misdescribed, or services don’t meet the guarantees required by the ACL.
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Sprintlaw states that broad 'No Refunds' signs or statements are unlawful if they suggest customers have no rights for faulty goods or services.

other
1 quote from 1 source
Broad “No Refunds” signs or statements are unlawful if they suggest customers have no rights for faulty goods or services.
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  • Sprintlaw advises businesses never to state 'No refunds under any circumstances'.
  • Sprintlaw's advice is based on the possibility that the wording 'No refunds under any circumstances' can mislead customers into thinking they have no rights if something is defective or not as described.
other
1 quote from 1 source
Never state “No refunds under any circumstances.” That wording can mislead customers into thinking they have no rights if something is defective or not as described.