Under the Sale of Goods Act 1978 retailers of consumer goods are not legally obligated to provide their customers a refund or replacement item unless it can be shown that the consumer good was faulty or defective at the time the consumer good was purchased.

Most providers of consumer goods voluntarily adopt a formal return policy which likely affords their customers additional rights not reflected in the Sale of Goods Act 1978. However, in the absence of a formal return policy, your ability to return consumer goods and services will be restricted to circumstances where you have a purchased a faulty or defective good.

Given the limitations of the Sale of Goods Act 1978, a provider of a consumer good that does not have a formal return policy poses a risk for its customers. The absence of a return policy can be very disadvantageous and harmful for consumers that simply wish to return a purchased item because they would like to switch the item for a similar one (i.e. exchange a blue shirt for a red shirt) or have experienced buyer’s remorse and would like a full refund (i.e. regret the purchase is its entirety).

Prior to completing the purchase of a consumer good Consumer Affairs advises consumers to consider the following steps:

• Request the commercial enterprise for a copy of their return policy;

• Request the commercial enterprise confirm time limits on returns; and

• Request the commercial enterprise to confirm what needs to be provided as part of the return of a faulty or defective consumer good (i.e. a copy of the invoice, original packaged undamaged).

• If you find yourself negotiating the purchase of a consumer good with a retailer who does not have a formal return and refund policy, Consumer Affairs advises that you do not complete the purchase unless you are absolutely sure you are satisfied with the consumer good.

If you have purchased a faulty consumer good from a retailer that does not have a formal return and refund policy, Consumer Affairs advises that you:

Immediately inform the retailer of the faulty or defective consumer good;

Provide the retailer with evidence indicating that the consumer good was faulty and/or defective at the time it was purchased; and

Provide the retailer with evidence that you did not directly contribute towards the fault or defect.

It is at this stage Consumer Affairs notes the importance of communicating the fault or defect as soon as possible. If you fail to inform the retailer of the faulty or defective consumer good immediately upon discovery, the passage of time may compromise your ability to request a refund or replacement.

If too much time passe between discovery of the fault and communication of the fault to the retailer, the retailer may be able to argue that since the purchase of the consumer good you have mishandled or misused the consumer good in such a way that has resulted in the consumer good no longer being operational. (i.e. your contributory actions resulted in the fault).

By providing adequate evidence of the consumer good’s fault or defectiveness within a reasonable period of time the Sale of Goods Act 1978 entitles you to a full refund, store credit or replacement. It is up to you to decide if you want a repair, a replacement or if you prefer to have your money returned to you or a store credit.