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Can they make me take store credit instead of a refund?

19 quoted answers, each with its source

The short answer

For a major problem, a consumer can choose a refund, and the seller must not refuse that option or insist on a credit note, exchange card or replacement. Signs such as 'exchange or credit note only for return of sale items' are unlawful, 'we will only exchange, repair or give credit notes' is generally against the law, and false or misleading information about consumer guarantees or remedies carries a maximum civil penalty of $1.1 million for a body corporate and $220,000 for an individual. A business with a change-of-mind policy offering a refund, replacement or credit note must comply with that policy, and refunds should be in the same form as the original payment unless the business and consumer agree otherwise. The claims settle those points but do not state whether a seller can insist on store credit for a minor problem; they state only that the seller can offer a refund for a minor problem.

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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Refunds should be provided in the same form as the original payment unless the business and consumer agree otherwise.

first-party
1 quote from 1 source
Refunds should be provided in the same form as the original payment, unless the business and consumer agree otherwise.
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Consumer Affairs Victoria lists the sign 'We will only exchange, repair or give credit notes' among signs it states are generally against the law.

first-party
2 quotes from 1 source
Generally, these signs are against the law:
'We will only exchange, repair or give credit notes'
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Store credit is documented to have the position that where the problem is major, the…

  • consumer has the option to choose a refund.
  • seller must not refuse or insist that the consumer accept a credit note, exchange card or replacement.
first-party
1 quote from 1 source
The seller can offer you a refund for a minor problem. If the problem is major you have the option to choose a refund, and the seller must not refuse or insist that you accept a credit note, exchange card or replacement.
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The ACCC states that a sign reading 'exchange or credit note only for return of sale items' is unlawful.

first-party
2 quotes from 1 source
For this reason, the following examples of signs are unlawful:
'exchange or credit note only for return of sale items'
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The ACCC's guide for businesses and legal practitioners states that a sign reading 'Exchange or credit note only for return of sale items' is unlawful.

first-party
2 quotes from 1 source
For the same reason, the following signs are also unlawful:
'Exchange or credit note only for return of sale items'.
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The ACCC states that a supplier…

  • may have a store policy offering a refund, replacement or credit note when a consumer changes their mind.
  • must abide by the store policy offering a refund, replacement or credit note when a consumer changes their mind.
first-party
1 quote from 1 source
A supplier does not have to give a refund when a consumer simply changes their mind about the goods. But a supplier can have a store policy to offer a refund, replacement or credit note when this happens. If so, they must abide by this policy.
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Store credit's documented position, as stated by CHOICE, is that a seller cannot make a consumer accept…

  • a credit note when the consumer wants a refund.
  • an exchange when the consumer wants a refund.
  • a replacement when the consumer wants a refund.
medium confidence
1 quote from 1 source
If you want a refund, the seller can't make you accept a credit note, exchange or replacement.

Practical effect3

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

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  • Before offering store credit, Kogan customer staff first try to get customers to return goods to the manufacturer.
  • If the first attempt by Kogan customer staff to get customers to return goods to the manufacturer does not work, Kogan customer staff usually next offer store credit.
  • After an offer for store credit, Kogan customer staff next offer a larger store credit.
medium confidence
2 quotes from 1 source
According to Neil (not his real name), who worked for Kogan as a repair technician until late last year, it's standard procedure to force customers to jump through hoops if they have a problem with a purchase.
"First the contact customer staff will try to get customers to return goods to the manufacturer. If that doesn't work, an offer for a voucher will usually come next, then for a larger voucher.

Disputed between sources1

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

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For store credit, the ACCC's guide for businesses and legal practitioners states that the maximum civil penalty for providing false or misleading information about the existence, exclusion or effect of the consumer guarantees is $1.1 million for a body corporate.

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 civil pecuniary and criminal penalties for a body corporate are the greater of: $10 million, or three times the value of the benefit obtained from the offence, or act or omission, by the body corporate and any related bodies corporate if the benefit obtained can be determined by the court

Often said, but we could not find it in the rules3

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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BIG W's 90 day change of mind policy provides a refund or exchange if the product is in original and saleable condition and packaging with all accessories included.

other
2 quotes from 1 source
BIG W will happily give you a refund or exchange within 90 days of purchase, provided you have proof of purchase and the product:
is still in its original and saleable condition and packaging, with all accessories included; and
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JB Hi-Fi states that cover under its Extra Care plan ends upon first replacement with a new replacement product or payment, including by the issue of a store credit or JB Hi-Fi gift card.

other
1 quote from 1 source
ending on the date which is 5 years after the date of purchase/delivery or upon first replacement with a new replacement product or payment (including by the issue of a store credit or JB Hi-Fi gift card).