ACL — Australian Consumer Law and Your Refund Policy

10 min · video · Beginner

Every product page on every AU ecommerce store must comply with Australian Consumer Law (ACL). Most do not. The ACCC actively enforces ACL on dropshipping stores — fake "limited time" countdowns, vague "lifetime warranty" claims, and missing returns disclosures all draw enforcement. Today: the four ACL guarantees, the AU refund policy that complies, and the claims that get the ACCC asking questions.

The four consumer guarantees

ACL gives Australian consumers four non-negotiable guarantees on every product:

Acceptable quality. Goods must be fit for purpose, free from defects, safe, durable. A glove that tears after one use breaches this guarantee.
Fitness for purpose. If a customer asks if your product does X and you say yes, it must do X. Dropshippers who exaggerate features (e.g., "100% waterproof" when it is splash-proof) breach this.
Match description. Product must match what you described in the listing. Photos must represent the actual product. Major mismatches breach this guarantee.
Match sample/demonstration. If you show the product in a video, the delivered item must match.

Critically, these guarantees are automatic and cannot be excluded by your refund policy. A "no refunds, no exceptions" policy is illegal in Australia. The ACL trumps your store policy every time.

The AU-compliant refund policy

A refund policy that complies with ACL covers four scenarios:

Major problem (you must offer refund or replacement). Product is unsafe, significantly different from description, would not have been bought if defect was known, or significantly fails to do what it should.
Minor problem (you can choose: repair, replace, or refund). Smaller defects you can resolve.
Change of mind (no obligation, but most stores offer 14-30 days for goodwill). Customer can return and get refund minus shipping; you can require unopened/unused.
Faulty after extended use. Goods must be durable for a "reasonable time" — for a A$30 plastic kitchen tool, 12 months. For a A