Issue Date:  -  Friday, 21 December 2001

Your right to a refund

In the post-Christmas rush to return unwanted gifts to the store, consumers need to be aware that they are not always entitled to a refund.

Consumer Protection Commissioner Patrick Walker said each Christmas there is a flood of people arriving at stores to return unwanted gifts only to find the store is under no obligation to provide a refund.

"We have all had to return goods at some stage but there is a common misconception that we are entitled to a refund," Mr Walker said.

"Consumers have no legal right to return goods just because they are unsuitable, the wrong size or a duplicate gift."

"However most retailers, especially the big ones, have generous refund policies or will provide a credit note."

"The important point to remember is they are not obliged to compensate you."

There are three circumstances where the consumer does have a legal right to compensation:

1. Faulty goods;
2. Goods are not fit for the purpose for which they were bought; or
3. Goods turn out to be different to those described when sold to you.

"In these cases, there is a breach of contract, and the consumer should approach the retailer for compensation," Mr Walker said.

"It is the responsibility of the retailer to rectify the situation, not the wholesaler or manufacturer."

Compensation usually takes the form of a refund, repair or replacement, depending on what is determined "fair and reasonable".

If no agreement can be reached, the consumer can approach the Small Claims Tribunal to seek a binding decision.

Consumers returning goods should:

Take proof of purchase (e.g. receipts or till dockets)
Try to keep the packaging intact, although if it is damaged or destroyed this does not extinguish your rights to compensation under the Fair Trading Act.
Negotiate calmly with the retailer as this usually produces the best results.