ACCC probes 2000 retail websites
Consumer watchdog clamps down on misleading practices.
The Australian Consumer and Competition has conducted a sweep of more than two thousand Australian retail websites and has found some businesses using terms and conditions that may contravene the Australian Consumer Law (ACL).
As part of this sweep, business’ return policies and website terms and conditions were reviewed, some of which raised concerns as being potentially misleading for consumers.
“Our sweep has found numerous examples of practices that could potentially mislead or deceive consumers regarding their rights to exchange, refund or return a product,” ACCC Deputy Chair Catriona Lowe said.
“Under the Australian Consumer Law consumers have basic rights when buying products and services, known as consumer guarantees. These rights are separate from any warranties offered by a business and cannot be taken away by anything a business says or does.”
The sweep identified several potentially misleading statements in the terms and conditions of a number of the websites reviewed, including:
- 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.
Problematic statements found during the sweep included:
- “Items that have been opened and used cannot be exchanged or refunded”;
- “Made to order products cannot be returned”;
- “Sale items cannot be returned, exchanged or refunded” and;
- “In the unlikely event that your item arrives damaged or faulty, please notify the store within 30 days of delivery to receive a replacement”.
As a result of the sweep’s findings, the ACCC sent warning letters to several businesses whose returns policies or terms and conditions raised concerns under the ACL.
Date Published:
4 February 2025