Product and service standards, warranties and refunds

You have rights when you buy products and services in Queensland. Products and services must meet standards called consumer guarantees. If your product or service does not, the business you bought it from, or even the manufacturer who made it, has to give you your money back or make it up to you.

Standards for products and services

Consumer guarantees for products

If you buy a product, it must:

• be of decent quality
• be fit for its purpose
• match any descriptions that you saw or heard (e.g. in a catalogue or in a TV advertisement)
• match any sample or demonstration model you were shown
• live up to any extra promises that were made to you (e.g. by a salesperson)
• have spare parts available (from the manufacturer or importer) for a reasonable amount of time after you buy
• be free from hidden charges and stay that way.

The business must:

• guarantee clear title over and have the right to sell you the product (unless they let you know before you buy from them)
• not try to take back or repossess your product except in certain circumstances.

Consumer guarantees for services

If you buy a service, it must be:

• given to you with care and skill
• fit for its purpose
• completed in a reasonable amount of time (when no time is set).
  

Products and services that are covered by standards

Consumer guarantees apply to:

• products and services that cost up to $40,000
• products and services that cost more than $40,000 that are used for personal, domestic or household purposes
• vehicles and trailers.

Consumer guarantees do not apply to:

• products or services you bought before 1 January 2011
• products you bought in a one-off sale from a private seller (e.g. garage sales and school fetes)
• products you bought at an auction
• products or services that cost more than $40,000 that are normally for business use
• products that you buy to on-sell or resupply
• products that you want to use, as part of a business, to make or repair something else
• services that move or store products for a business, trade, or job
• any service that is an insurance contract.

Your options when products or services are faulty or do not meet expectations

If there is a problem with a product or service you buy, the compensation you can ask for depends on if the problem is major or minor.

Major problems

Types of major problems

A major problem is when:

• You would not have bought the product or service if you had known about the problem (e.g. you would not buy a washing machine if you knew the motor would burn out in 3 months).
• The product you bought is very different from the description or sample (e.g. you order a red bike from a catalogue, you get a green one).
• The product or service is not fit for its normal purpose and it cannot easily be fixed (e.g. you bought a ski jacket that has been made with non-waterproof material, or paid for a carpet cleaning service changes the colour of some of your carpet).
• The product is not safe (e.g. an electric blanket with faulty wires) or the supplier has created an unsafe situation (e.g. an electrician incorrectly wires your wall sockets).
• The service is not giving you the specific result you told the business you were after.
• The service is not doing exactly what you told the business you wanted their service for (e.g. you tell a pay TV company that you want to sign up to watch the football finals and they sign you up to a contract but the finals are over before the company comes to install the service).

What you can do

If there is a major problem with a product, you can:

• give the product back and get a refund
• give the product back and get an identical replacement or one of similar value if available
• keep the product and get compensation for the drop in value caused by the problem.

If there is a major problem with a service, you can:

• cancel the contract with the business and get a refund
• keep the contract and get compensation for the difference between the service you paid for the service you got.

You choose what option you want, not the seller or service provider.

Minor problems

Types of minor problems

A minor problem is anything that is not major.

What you can do

If there is a minor problem with a product, the business can:

• give you a refund
• replace the product
• fix the title to the product
• repair the product.

If there is a minor problem with a service, the business can fix the problem:

• free-of-charge
• within a reasonable time. 

The time you have to reject the goods or service is however long it would reasonably be expected to last.

Types of warranties

The types of warranties are:

• consumer guarantee rights
• express warranties
• manufacturers’ warranties or warranties against defects
• extended warranties.

Express warranties

An express warranty is an extra promise that a seller or service producer makes you (by telling you or in writing). For example, if a salesperson tells you that a bed will last you 10 years, they are making you an extra promise. If the bed only lasts you 6, the product has failed the warranty and you can get compensation.

Manufacturers’ warranties and warranties against defects

Sellers and manufacturers may give you a warranty that says what they will do to fix any problem you come across with your product. For example, if you buy a chair it might come with a written warranty that says the manufacturer will replace it if it breaks within 2 years. This is called a ‘warranty against defects’ or a ‘manufacturer’s warranty’. These warranties must be in writing.

Extended warranties

When you buy a product, you may be able to buy an ‘extended warranty’. This adds extra time to your warranty so that the seller or manufacturer is responsible for your product for longer.

Be careful that you are not already able to get to what the extended warranty is offering, through your consumer guarantee rights. Your consumer guarantee of quality protects you for a length of time that it is normal to expect the product to last. For example, if your $2000 TV breaks after 18 months and you did not purchase an extended warranty, you are still able to ask the business to fix your TV for free, or give you your money back, because it’s normal to expect a TV costing $2000 to last longer. You should only buy an extended warranty if you believe it gives you more than available under the consumer guarantee rights.

Refunds

Refund methods

In most cases, you will get a refund from the business in the same way that you paid them (e.g. if you paid by credit card they will reverse the transaction on your credit card). Some businesses will offer you another product or service or store credit instead. If you are legally entitled to a refund, you can insist on a refund and they must give you one. If you paid in cash and they cannot give you cash back, they must give you the money by cheque, money order or electronic transaction.

Extra fees

If a business gives you a refund or exchange out of goodwill (when you are not legally entitled to it), they may charge you extra fees (e.g. a restocking fee). To be able to do this, they need to explain it on a sign in the shop or on their receipts.

Change of ownership

The new owner is not required to give you a refund if the business changes hands. This is because the new owner was not responsible for the sale. Occasionally the new owner will take on responsibility for the repair of previously sold faulty products. You do have the right to pursue the manufacturer if the new retailer will not, and does not have to, help.

Refund signs

‘No refunds’ signs are illegal. Sometimes you are legally entitled to refund, repair, replacement or repeat. Businesses cannot refuse you these rights.
Businesses can have signs up about their refund policy but they must be correct. Businesses cannot say:

• no refund on sale items
• no refunds after seven days
• exchange, repair or credit only
• no returns on swimwear.

If you see a sign like this, talk to the business about it. If you are not happy with their response, report the sign to the Office of Fair Trading.

Auctions and private purchases

Buying at an auction

Consumer guarantees do not cover products you buy at auctions (where there is an auctioneer who acts as an agent for the person selling). You need to check the product out closely before you buy. eBay sales are not considered to be an auction; anything you buy on eBay is covered by the consumer guarantees.

Buying privately

If you buy a product from a private person, the consumer guarantees do not apply. For example, if you buy through a newspaper classified advertisement or at a garage sale.

If you have lost money buying privately, it is best to contact as solicitor for legal advice.