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PA LAW • BUSINESS LEGAL VIDEO GUIDE
No Refunds Policy Australia: 5 Essential Checks
Presented by Manal Amro, Principal Solicitor, PA Law Pty Ltd. Published .
Watch: is your no refunds policy lawful?
Watch this PA Law video on YouTube. Use the checklist below to review the wording your customers see and the process your staff follow.
No refunds policy: change of mind or a product problem?
Start with the reason for the return. A customer who no longer wants a purchase raises a different issue from someone reporting a fault. The ACCC explains that a business’s own terms cannot displace the automatic consumer guarantees. Read the ACCC’s consumer guarantees guidance.
| Situation | General position |
|---|---|
| Customer changes their mind | No automatic consumer-guarantee refund for this alone. Honour any voluntary return promise. |
| Major product problem | The consumer generally chooses a refund or replacement. |
| Minor product problem | The business can usually repair it first. Further remedies arise if it is not fixed within a reasonable time. |
This table concerns products. Services have different remedy rules, and deposits, cancellations and particular industries may need separate advice. Check the ACCC’s repair, replacement, refund and cancellation guidance.
5 essential no refunds policy checks for your business
1. Collect the wording customers actually see
Read your checkout page, receipts, quotations, invoices, booking confirmations and shop signs together. Check automated emails and staff response templates too. Keep screenshots and dated copies so you know which version a customer saw when buying.
Look for inconsistent promises. A generous website return policy and a restrictive receipt can leave both customers and staff unsure what applies.
2. Separate voluntary returns from legal rights
Do not treat a preference change and a complaint about quality as the same request. Make any voluntary change-of-mind conditions clear and explain that they operate alongside consumer guarantees. The ACCC’s small-business checklist addresses this distinction.
3. Ask what went wrong before deciding
Create a short intake checklist: what was bought, when, what the customer reports and what remedy they want. Ask for useful evidence such as proof of purchase, photographs and the relevant correspondence. Avoid an automatic rejection based solely on a “no refunds” label.
4. Give staff a clear escalation process
Nominate who can assess a complaint and authorise a response. Record what was agreed, who will follow up and by when. Staff should know when to seek help rather than improvise an answer about legal rights.
Test the process with two practice scenarios: a customer who wants a different colour and a customer reporting a safety fault. The first questions your team asks should identify the issue.
5. Review the policy before a dispute grows
Bring the full terms and sales process to your adviser, not just one sentence from a receipt. Explain whether you sell online, in person, products, services or a mixture. Mention any current complaint or response deadline. A useful review considers how the wording works in practice.
A practical example: two returns at the same shop
Imagine a homewares shop receives two requests. One shopper wants to swap a lamp because it no longer suits the room. Another says a lamp sparks when switched on. The same printed no refunds policy does not resolve both situations.
For the first request, the shop checks its voluntary returns promise. For the second, it investigates the reported defect and the applicable consumer rights. This fictional example shows why staff need to ask what happened before quoting the policy.
Video script: no refunds policy Australia
The following is the script prepared for this PA Law video.
Your website says “No refunds.” Your receipts say it too.
But those two words could get your business into trouble.
Under Australian Consumer Law, a blanket “no refunds” policy cannot take away a customer’s legal rights.
That doesn’t mean you must refund everyone.
If a customer simply changes their mind, a refund generally isn’t required—unless your policy promises one.
But if a product is faulty, the customer may be entitled to a repair, replacement or refund. The remedy depends on the problem, including whether it’s major or minor.
Before you refuse a refund, check why the customer is asking.
At PA Law, we can review your business terms and refund policies before a dispute arises.
Save this video—and check what your website says today.
No refunds policy: frequently asked questions
Is a no refunds policy legal in Australia?
A blanket policy that denies rights under Australian Consumer Law is unlawful. A business may generally decline a change-of-mind return, but must honour any change-of-mind policy it offers.
Does every faulty product qualify for an immediate refund?
No. The remedy depends on the failure. A major product problem generally gives the consumer a choice of refund or replacement. A minor problem can usually be repaired first; further rights arise if it is not fixed within a reasonable time.
Can sale items be excluded from consumer guarantees?
No. Discounting a product does not remove consumer guarantees. A defect specifically disclosed before purchase may affect a claim about that defect, but does not remove rights concerning other undisclosed problems.
Can I require original packaging for a faulty-product return?
Original packaging is not required to exercise consumer guarantee rights. A business can ask for proof of purchase. Conditions for voluntary change-of-mind returns should be considered separately.
Can PA Law review my refund policy?
Yes. Contact PA Law with your current terms, the products or services you sell and any complaint correspondence. We can discuss the review required, the scope of work and costs.
Prepare for a refund-policy review
Send your current policy, website link, standard terms and examples of receipts or booking confirmations. If a dispute has started, include the purchase details, the customer’s request and the replies already sent. Identify any urgent dates and the outcome you want to achieve.
Related PA Law business guides
For a broader review of faulty goods, services, warranties, deposits and cancellation terms, read Refund Policy Australia: 9 Essential Business Checks.
- Can a text message create a binding contract?
- What should your delivery terms say?
- Who pays when delivered goods spoil?
- Browse all PA Law legal video guides
Official sources and further reading
Sources checked on 20 October 2026. This guide concerns Australian Consumer Law and practical policy preparation.
- ACCC: repair, replace, refund, cancel.
- ACCC: consumer rights and guarantees.
- ACCC: small business rights and responsibilities.
General information only, not legal advice. This video and guide do not assess your business, contract or individual complaint. Obtain advice tailored to your circumstances before acting.