Fair Trading Minister Virginia Judge today reminded Christmas shoppers to do their homework and know the myths from the facts when it comes to refunds.

Ms Judge said some consumers believe they are automatically entitled to a refund if they change their mind about a product after buying it.

“Legally, refunds are only available if the goods are faulty or defective, different to the sample shown or described in advertising, or not fit for the purpose intended,” she said.

“Many retailers offer refund conditions above and beyond their legal requirements as a gesture of goodwill, however they are by no means obligated to do so.

“These policies help maintain customer loyalty, however some smaller retailers can’t afford to be quite as generous.”

Ms Judge said consumers should always check with the trader about the specific conditions of their refund policy before purchasing an item.

“After the Christmas wrapping is off, people may be left with clothing that doesn’t fit, or a gift that is faulty,” she said.

“People can avoid costly mistakes by thinking about what they want a product to do.

“Research the product’s features and shop around to compare quality and price.

“If you’ve found the same item for a cheaper price at a different store or you no longer want the goods after purchasing them, that doesn’t guarantee a refund.”

Ms Judge said it was illegal for a trader to display signs such as no ‘refunds’ or ‘no refund after seven days’ or ‘exchange, repair or store credit only’.

“Consumers can also sometimes get it wrong, however the fact remains that well-informed consumers have a far better chance of a positive outcome,” she said.

“The most important lesson to remember is ‘always keep your receipts’.

“Without a receipt it is difficult to prove when or from whom the item was purchased and this limits your chance of receiving a refund,” Ms Judge said.

More information on shopping and refunds including the fact sheet Consumer Rights: myths and facts can be downloaded from this website.

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