Case study - faulty mobile phone

Sharon bought her daughter Alison a new mobile phone for Christmas which turned out to be faulty. Both were very disappointed as Alison really needed a new phone.

Sharon went back to the store and asked for a refund, but the store refused. They said they could only replace it once they checked its fault. However, Sharon kept insisting on the refund as she bought something that didn’t work. The shop continued to say it was not their policy to refund money.

After dealing with the shop for three weeks and not getting the results Sharon rang NSW Fair Trading to check whether it was her right to ask for a refund. A Fair Trading officer told her that she was entitled to a refund if she didn’t want a replacement and suggested she fill out some paperwork to make a complaint. Fair Trading also told her they had received a few other complaints about faults with the same phone.

In about ten days Sharon was advised by Fair Trading that they had organised a refund for her. Sharon got her money back and was able to purchase another phone.

“ I didn’t know that Fair Trading would actually help you to negotiate with the company…they were extremely helpful and sensitive to my issue; they were forthcoming with information and procedure to get the best outcome which was getting our money back so we could purchase another phone. I would recommend Fair Trading to all my family and friends.”

A sign in a store that says ‘No refunds or exchanges’ is illegal as it misrepresents your rights if the product is, for example, faulty. Other examples of illegal signs are ‘No refunds after seven days’ or ‘We will exchange, repair or give credit notes but we do not refund’. However, a sign which says: ‘No refund for incorrect choice’ or ‘No refund if you change your mind’, is legal.

 Watch Sharon's story in Shopping case studies (Dial-up 1.3mb) 

 Watch Sharon's story in Shopping case studies (Broadband 11.7mb) 

Download Shopping case studies in English or other languages

Top of page