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

You've already asked. The business said no. Maybe they pointed at a "no refunds" sign, told you the warranty had expired, or just stopped replying to your emails. Whatever the reason, a flat refusal is not the end of the road — it's the beginning of a process that, if you follow it correctly, puts significant legal pressure on the business to reconsider.

The Australian Consumer Law (ACL) doesn't just give you the right to ask for a refund. It gives you a structured escalation path when a business refuses one you're legally entitled to. This article walks you through every step after the first "no".

Quick answer

When a business refuses a refund you're legally entitled to under the ACL, your next steps are: send a formal written demand letter citing the relevant ACL sections, escalate to your state's Fair Trading body if the business still refuses, and then file a claim at your state consumer tribunal if conciliation doesn't resolve it. Most disputes settle at the demand-letter or Fair Trading stage — you rarely need to go all the way to a hearing.

What the law actually says

The consumer guarantees in the Australian Consumer Law are not optional extras. They apply automatically to every purchase from a business in Australia, and a business cannot contract out of them — that's the effect of section 64 of the ACL. A "no refunds" sign, an "all sales final" clause, or a statement that "the warranty has expired" cannot remove your statutory rights.

When goods have a major failure — they don't do what they're meant to, they're unsafe, they're significantly different from how they were described, or they have a defect a reasonable buyer would have walked away from — section 259 of the ACL gives you the right to choose your own remedy: a refund, a replacement, or compensation for the reduction in value. That choice belongs to you, not the seller.

For services, section 267 of the ACL provides equivalent remedies when a service has a major failure — for example, a tradesperson who caused more damage than they fixed, or a service that was never capable of achieving the promised result.

When a business refuses a remedy you're legally entitled to, they are in breach of the ACL. That breach can be enforced through Fair Trading conciliation, a consumer tribunal, or — in serious cases — the courts. Businesses that routinely refuse valid refund claims can also face action from the ACCC for systemic conduct, though that's a separate matter from resolving your individual dispute.

The key thing to understand: a refusal is not a legal determination. A staff member saying "no" is not a court ruling. The business's position only stands if you accept it.

When this applies (and when it doesn't)

This escalation process applies when:

• You bought goods or services from a business (not a private seller) 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 have some form of proof of purchase — a receipt, bank statement, email confirmation, or loyalty record.
• 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 ACL doesn't require refunds for buyer's remorse — only for genuine failures. 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. A failure you caused through misuse isn't a consumer guarantee claim.
• The fault was disclosed before purchase. You can't claim on a defect you knowingly accepted.
• The purchase was from a private individual, not a business. The consumer guarantees don't apply 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

If you've only raised the issue verbally or through a casual email, the most important thing you can do right now is put your claim in writing, formally. A proper demand letter changes the dynamic significantly. It shows the business you know your rights, creates a paper trail for any tribunal proceeding, and gives the business a clear deadline to respond.

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 (refund, replacement, or repair).
• A reasonable deadline — 14 days is standard for most disputes.
• A clear statement of what you'll do next if they don't respond (Fair Trading complaint, tribunal claim).

Getting the letter right is the part most people struggle with. fairgo generates a properly structured demand letter in about 90 seconds — 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, try one internal escalation. If you've been dealing with frontline staff, ask to speak with or write to the store manager, the customer relations team, or the head office complaints department. Frontline staff often quote store policy as if it were law — a manager who understands the legal exposure is sometimes more willing to resolve things quickly.

Keep this escalation in writing too. A short email saying "I've spoken with your staff and been refused — I'm now writing to [name/title] to seek resolution before I escalate to Fair Trading" is enough.

Step 3 — Lodge a Fair Trading complaint

Every Australian state and territory has a Fair Trading or Consumer Affairs body that offers free dispute resolution. When you lodge a complaint, they contact the business on your behalf and attempt conciliation — a facilitated negotiation where both sides try to reach an agreement.

This step resolves a significant proportion of disputes. Businesses often respond differently when a government body is involved, even if the underlying facts haven't changed. The full list of state and territory Fair Trading bodies is at /agencies.

Fair Trading conciliation is free, doesn't require a lawyer, and doesn't lock you into any outcome — if conciliation fails, you can still go to a tribunal.

Step 4 — File a tribunal claim

If Fair Trading conciliation doesn't resolve the dispute, your next step is the consumer tribunal in your state or territory. These are:

• NSW — NSW Civil and Administrative Tribunal (NCAT)
• Victoria — Victorian Civil and Administrative Tribunal (VCAT)
• Queensland — Queensland Civil and Administrative Tribunal (QCAT)
• Western Australia — State Administrative Tribunal (SAT)
• South Australia — South Australian Civil and Administrative Tribunal (SACAT)
• Tasmania — Magistrates Court (Minor Civil Claims)
• ACT — ACT Civil and Administrative Tribunal (ACAT)
• Northern Territory — Northern Territory Civil and Administrative Tribunal (NTCAT)

Filing fees are modest — typically $50–$100 for consumer claims. You don't need a lawyer. The process is designed for ordinary people, and the tribunal has heard every variation of "but our policy says no refunds" and "the warranty had expired" many times over. For a detailed guide to choosing and using the right tribunal, see our state-by-state tribunal guide.

What if the business refuses

If the business ignores your demand letter entirely, there are a few things worth knowing.

Ignoring a formal written demand is itself useful evidence. At a tribunal, a business that couldn't be bothered to respond to a reasonable written request looks worse than one that engaged and disagreed. Keep every email, every letter, every record of a phone call.

If the business responds but offers something less than what you're entitled to — say, a repair when you're entitled to choose a refund for a major failure — you don't have to accept it. Under section 260 of the ACL, the right to choose the remedy for a major failure belongs to the consumer. Politely decline in writing, restate your preferred remedy, and note that you'll be escalating if they don't agree.

For disputes involving financial products or insurance, the Australian Financial Complaints Authority (AFCA) at afca.org.au is the right escalation path — not Fair Trading and not a consumer tribunal. AFCA is free and its decisions are binding on the financial firm.

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. Your individual claim is still best pursued through Fair Trading and the tribunal.

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 most businesses fold once they realise you're serious.

Not putting it in writing. A phone call leaves no record. An email or letter creates a paper trail that's invaluable if the dispute goes to a tribunal. Even if you've already spoken to someone, follow up with a written summary of what was said and what was refused.

Waiting too long. There's no single limitation period for ACL claims — it depends on the circumstances — but delay can work against you. The longer you wait, the harder it is to prove the defect existed at the time of purchase. Act promptly once you've identified a problem.

Throwing out the faulty goods. Without the item, the business can argue the defect never existed or was caused by misuse. Keep the goods until the dispute is fully resolved.

Confusing the remedy you want with the remedy you're entitled to. If the failure is major, you can choose a refund. If it's minor, the business gets to choose between repair, replacement, or refund — as long as they act within a reasonable time. Understanding the difference between major and minor failures, and which remedy applies, helps you ask for the right thing and avoid a dispute about the wrong one.

Going straight to the ACCC for an individual dispute. The ACCC investigates patterns of conduct across many consumers. For your specific dispute, Fair Trading and the tribunal are the right forums. The ACCC complaint process won't get your money back.

Giving up after Fair Trading. If conciliation doesn't work, the tribunal is still available. Fair Trading conciliation is not the last step — it's the second-to-last step before a formal hearing.

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?

This article is general information about Australian Consumer Law, not legal advice. The ACL is complex and your situation may have details that change the analysis. For advice on your specific case, see your state's Fair Trading body — full list at /agencies.