Business refused your refund? Here's what to do next

You've already asked, and the business said no. Maybe it pointed at a "no refunds" sign, said the warranty had expired, or stopped replying. A refusal is not the end of the road. The Australian Consumer Law (ACL) gives you remedies, and consumer bodies, tribunals and courts give you ways to pursue them. This article walks you through the steps after the first "no".

Quick answer

When a business refuses a remedy you believe the ACL gives you, put your complaint and the remedy you want in writing, preserve your evidence, and give the business a reasonable opportunity to respond.

If that does not resolve it, what comes next depends on your state or territory and the kind of dispute. A state consumer protection body may provide information, assess the complaint or offer non-binding assistance — but it will not take on every matter and generally cannot order a refund. A binding outcome needs a court, tribunal or specialist external dispute-resolution scheme with jurisdiction, and which one that is depends on where the parties are, what the dispute concerns, the amount claimed and the legislation relied on. Confirm jurisdiction, eligibility, fees and time limits before lodging. Disputes are often resolved earlier, though nothing guarantees it.

What the law actually says

The consumer guarantees in the Australian Consumer Law are not optional extras. They apply automatically where you acquired the goods or services as a consumer under section 3 of the ACL: the amount paid or payable was $100,000 or less, or they are of a kind ordinarily acquired for personal, domestic or household use (either is enough). Goods bought for re-supply, or to use up or transform in trade or commerce in production, manufacture or repairs, are excluded, so check how section 3 applies to you. Under section 64 of the ACL, a contract term is void to the extent it purports to exclude, restrict or modify the guarantees or remedies, though for goods or services not of a kind ordinarily acquired for personal, domestic or household use, section 64A may let a contract limit the remedy to repair, replacement, resupply or their cost, except for title-related guarantees, unless you show that isn't fair or reasonable. A "no refunds" sign, an "all sales final" clause, or a statement that "the warranty has expired" cannot remove your statutory rights. A warranty is an additional promise, which may come from the seller, the manufacturer or another provider — it sits on top of the consumer guarantees and does not replace or reduce them.

A goods failure is major under section 260 where a reasonable consumer fully acquainted with the nature and extent of the failure would not have acquired the goods; they depart in one or more significant respects from their description, or from a sample or demonstration model; they are substantially unfit for a purpose goods of the same kind are commonly supplied for and cannot easily and within a reasonable time be remedied to make them fit; they are unfit for a purpose you disclosed and cannot easily and within a reasonable time be remedied; or they are unsafe. Two or more failures are together major if a reasonable consumer fully acquainted with them, taken as a whole, would not have acquired the goods.

Where the failure is major or can't be remedied, section 259(3) of the ACL gives you a choice between two alternatives: reject the goods — and once you have rejected, elect either a refund or a replacement of the same type and similar value, if reasonably available — or keep them and claim compensation for the reduction in their value. That choice belongs to you, not the seller.

Rejecting has a time limit, and it is not the one people expect. Under section 262 the rejection period runs from the time the goods were supplied to you, and lasts as long as it would be reasonable to expect a failure of that kind to become apparent — judged by the type of goods, the use they are likely to be put to, how long it is reasonable to use them, and how much use they would get before the fault showed. Owning them a while does not by itself end the right. Notify the business promptly once you identify the failure and, if rejecting, say so clearly in writing. Section 262 also removes the right where you have lost, destroyed or disposed of the goods, they were damaged after delivery for reasons unrelated to their state or condition at supply, or they have been attached to or incorporated in other property and can't be detached or isolated without damaging them.

If you do reject, tell the business in writing, state the ground, and make the goods available. You are ordinarily responsible for returning them — but under section 263, where returning them would involve significant cost because of the nature of the failure or the size, height or method of attachment of the goods, the supplier must collect them at its own expense.

Separately from whichever path you take, section 259(4) lets you recover damages for other loss that was a reasonably foreseeable result of the failure, for non-major failures too, if you can evidence the loss, took reasonable steps to limit it, and don't claim the same loss twice.

Services work differently. The principal guarantees are sections 60 to 62, and the supplier-remedy framework is mainly sections 267 to 270. For a non-major failure that can be remedied, the supplier generally gets a reasonable opportunity to fix it; if they refuse or take too long you may arrange rectification elsewhere and recover the reasonable cost, or cancel where the statutory conditions are met. For a major failure (tested under section 268, not section 260) or one that can't be remedied, you may cancel and recover a refund for the part of the services not yet consumed (section 269), or keep the contract and claim compensation for the reduction in value. Other reasonably foreseeable loss may also be recoverable. Cancelling a services contract and rejecting goods are different mechanisms — do not assume one works like the other.

A business is entitled to assess the goods or service and dispute your claim, but its refusal is not a binding determination of your rights. If you disagree, work out which guarantee applies, what remedy follows and what evidence you have, then use the pathway that fits. Businesses that routinely refuse valid claims can also face regulator action, separately from your individual dispute.

If the seller will not move, the manufacturer may be a second route. Your refund or replacement election runs against the seller, and a business cannot discharge it by directing you to the manufacturer. But sections 271 and 272 may separately support a damages claim against a manufacturer for failures of sections 54, 56 (manufacturer-applied descriptions), 58 or 59(1), within 3 years of when you became, or ought reasonably to have become, aware of the failure (section 273) — a different remedy, not a substitute for the one you already have.

When this applies (and when it doesn't)

This escalation process applies when:

• You acquired goods or services from a business acting in trade or commerce (including an overseas business that supplied you directly in Australia).
• A consumer guarantee has genuinely been breached — the goods were faulty, unsafe, didn't match their description, or the service was not performed with due care and skill under section 60 of the ACL.
• You can show the transaction. A card statement, invoice, email confirmation or online account record may do instead of a paper receipt.
• You've already raised the issue with the business and been refused.

This process is less straightforward when:

• The dispute is about a change of mind. The consumer guarantees don't give refunds for buyer's remorse, only for genuine failures (separate cooling-off rights can apply to some door-to-door and telephone sales). If the product works as described and you simply don't want it anymore, you're relying on the store's goodwill policy, not a legal right.
• You caused the damage. Goods aren't of unacceptable quality where you caused the problem (or failed to take reasonable steps to prevent it) and they were damaged by abnormal use.
• The fault was disclosed before purchase. If a defect was specifically drawn to your attention before you agreed to buy, and it's the only problem, the goods are treated as of acceptable quality.
• The purchase was a genuine one-off private sale. The guarantees apply to supplies in trade or commerce, which includes most sole traders, but generally not to private sales.

If you're unsure whether your situation involves a genuine consumer guarantee breach, read our guide to when you can demand a refund under the ACL before proceeding.

What to do today

Step 1 — Send a formal written demand letter

Put your claim in writing, formally. A proper demand letter shows the business you know your rights, creates a paper trail for any court or tribunal proceeding, and sets a clear deadline.

Your letter should include:

• The date of purchase and a description of the goods or service.
• A clear description of the failure and why it breaches the consumer guarantee (acceptable quality under section 54, fitness for purpose under section 55, match of description under section 56, or due care and skill under section 60 — whichever applies).
• The remedy you're seeking, and why it follows. For a refund on goods, explain why the failure is major, why the right to reject is still available, and that you are rejecting them. For a non-major failure, ask for an appropriate remedy within a reasonable time.
• A note that you are keeping the goods safe and available for reasonable inspection (if you reject them, you must return them unless section 263 requires the business to collect them). Avoid authorising substantial third-party repairs unless the situation is urgent or the business has already refused or failed to act.
• A reasonable deadline. About 14 days is often practical, though urgency, complexity, safety and the remedy sought may justify a different period — there is no statutory 14-day rule.
• A clear statement of what you'll do next if they don't respond (a consumer body complaint, or a court or tribunal claim).

If you paid by card, ask your card issuer now whether a chargeback is available; if you used buy now pay later, ask the provider about its dispute process; both follow the card scheme's or provider's own time limits, not the ACL's. If the business disputes the fault's cause, get an independent repairer's or expert's written report.

fairgo generates a properly structured demand letter — start your letter now and the wizard will identify the relevant ACL sections automatically based on what happened.

Step 2 — Escalate within the business

Before going external, escalate once within the business, in writing: to the store manager, customer relations or head office. Frontline staff often quote store policy as if it were law, and a senior reply gives you the business's written final position.

Step 3 — Complain to Fair Trading or your state consumer body

Your state or territory consumer protection body may help, for example by contacting the business or conciliating, if your complaint meets its criteria. Most expect you to have tried to resolve the matter with the business first, and eligibility rules vary by state and dispute type (in the ACT, for example, statutory conciliation applies only where the remedy you seek is worth $5,000 or less). These bodies don't make binding orders in ordinary consumer disputes and can't make the business settle. Contact details are at /agencies.

Step 4 — Apply to a court or tribunal with jurisdiction

Australia has no single national consumer tribunal. In NSW, Victoria, Queensland, the ACT and the NT, a tribunal (NCAT, VCAT, QCAT, ACAT or NTCAT) hears many consumer claims within its limits; in Western Australia, South Australia and Tasmania, ordinary consumer claims go to the Magistrates Court. Jurisdiction depends on each forum's enabling legislation, the type of claim and the amount, and some disputes (between residents of different states, for example) may need a court rather than a tribunal, so confirm the forum and its current thresholds on the official site before filing. Our guide to choosing the right tribunal or court has more.

Check current filing fees on the official site, and ask about fee exemptions, waivers or deferrals if cost is a concern; hearing, mediation or service fees may apply on top. You can usually run a claim without a lawyer, though some forums restrict legal representation (QCAT, for example, requires permission). Consider legal advice for a complex, high-value or interstate claim. The decision-maker applies the legislation and the evidence, not the business's internal refund policy.

What if the business refuses

If the business ignores your letter, keep evidence of delivery and of the deadline you gave. That records the steps you took and can matter for pre-filing requirements or costs, though it doesn't prove your claim. Keep every email, letter and call note.

If the business offers less than you're entitled to (say, a repair for a major failure), you don't have to accept it. Where the failure is major (or can't be remedied) and the right to reject hasn't been lost under section 262, you can reject the goods and choose a refund or a replacement of the same type and similar value, if reasonably available, or keep them and claim compensation for the reduction in value. Those choices are yours under sections 259(3) and 263(4), not the seller's. Decline in writing, restate your remedy and say you'll escalate if they don't agree.

For disputes involving financial products or insurance, use the firm's internal complaints process first. If the complaint remains unresolved, the Australian Financial Complaints Authority (AFCA) at afca.org.au is usually the right path rather than a consumer body or tribunal. AFCA is free for consumers, but the firm must be an AFCA member, the complaint must fall within its rules and monetary limits, and a determination binds you and the firm only if you accept it (superannuation complaints have their own rules).

For complaints about misleading conduct — for example, a business that advertised something as having features it didn't have — the ACCC at accc.gov.au accepts reports, though they focus on systemic issues rather than individual disputes. For your own claim, a state consumer body may assist, and a forum with jurisdiction may be needed for a binding outcome.

Common mistakes

These are the errors that most often derail otherwise valid refund claims after a business has said no:

Accepting the first refusal as final. A staff member saying "we don't do refunds" is not a legal ruling. It's a negotiating position. The ACL gives you the right to push back, and a clear written claim citing the right provisions is harder to dismiss than a verbal complaint.

Not putting it in writing. A phone call leaves no record. Follow up any conversation with a written summary of what was said and refused.

Waiting too long. The ACL has no single warranty-style expiry, but the right to reject can end under section 262, and limitation laws and forum rules set deadlines (specialist schemes often have shorter ones), so check them early. Delay also makes it harder to show the goods or services failed the guarantee when supplied, though a latent defect needn't have been visible then.

Throwing out the faulty goods. Without the item, the business can argue the defect never existed or was caused by misuse, and disposing of goods ends the right to reject (section 262). Keep them safe until the dispute is resolved; if you reject them, return them or arrange collection under section 263.

Confusing the remedy you want with the remedy you're entitled to. If the failure is major or can't be remedied, you can reject the goods for a refund or replacement (if the right to reject hasn't been lost under section 262) or keep them and claim compensation. If it's non-major and can be remedied, the business gets the first reasonable opportunity to repair, replace or refund within a reasonable time; if it doesn't, you can have it fixed elsewhere and recover the reasonable cost, or reject the goods (subject to section 262). Services follow the separate sections 267 to 270 framework. Understanding the difference between major and non-major failures, and which remedy applies, helps you ask for the right thing.

Going straight to the ACCC for an individual dispute. The ACCC focuses on patterns of conduct and won't decide your individual claim, so reporting to it is unlikely to get your own money back.

Assuming the consumer body is the last step. If it can't help, check whether a court, tribunal or specialist scheme has jurisdiction. Don't assume a tribunal is available, or that the consumer body must be used first.

Related reading

• Can I demand a refund? When Australian Consumer Law gives you the right
• Replacement vs repair vs refund — which remedy can you choose?
• NCAT, VCAT, QCAT — which tribunal handles your dispute?
• Disputing an electricity or gas bill: your rights and the ombudsman path

This article is general information about Australian Consumer Law, not legal advice. It also touches on complaint and escalation pathways (state and territory consumer bodies, tribunals and courts, the ACCC, AFCA) and limitation laws, whose scope, rules, thresholds and processes sit outside the ACL or can change. Confirm the current position with the relevant body before lodging. For advice on your specific case, see your state or territory consumer body — full list at /agencies.