11 February 2025
An ACCC ‘sweep’ of a number of Australian retail websites has uncovered potentially misleading statements in business’ terms and conditions regarding the existence and application of the consumer guarantees provided by the Australian Consumer Law (ACL).
The ACCC’s media release states the sweep identified several potentially misleading statements, including statements:
- imposing time-limits for returning a faulty product;
- imposing blanket ‘no refund’ conditions on sales or specialised items;
- referring to manufacturer warranties as the only avenue for consumers to claim remedies for faulty goods, and;
- placing restrictions on consumers’ right to a remedy, including stating that delivery fees paid for faulty items were non-refundable and charging restocking fees if customers returned faulty items.
The ACCC has stated it has sent warning letters to several businesses as a result of statements made in their terms and conditions that raised concerns. The ACCC has encouraged all businesses to review their return policies and terms and conditions to ensure they comply with the law.
The ACCC has also confirmed that improving industry compliance with consumer guarantees is one of its compliance and enforcement priorities for 2024-2025. The ACCC has indicated it is “particularly focused” on:
- consumer guarantees relating to consumer electronics; and
- targeting misconduct by retailers in connection with delivery timeframes.
The full ACCC media release can be read here: ACCC sweep uncovers concerning online shopping return policies and terms and conditions | ACCC
What businesses need to know
The ACCC’s online sweep is a reminder to businesses to review their website terms and conditions to ensure they comply with their obligations under the ACL regarding the mandatory consumer guarantees.
The ACL mandatory consumer guarantees (such as that goods are of an acceptable quality and that services are rendered with due care and skill) are automatic and cannot be excluded or limited by agreement.
Businesses should be aware that if they sell goods or services to consumers in Australia and their terms and conditions do not clearly advise customers that the ACL consumer guarantees exist and may apply, there is a risk that the business may be misleading consumers about their legal rights and be the target of sanctions by the corporate watchdog.
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Disclaimer: The information published in this article is of a general nature and should not be construed as legal advice. Whilst we aim to provide timely, relevant and accurate information, the law may change and circumstances may differ. You should not therefore act in reliance on it without first obtaining specific legal advice.
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