Consumer guarantee complaints rise in electronics, whitegoods sectors
A surge in consumer complaints about retailers failing to comply with consumer laws has led to a warning from the Australian Competition and Consumer Commission (ACCC).
The regulator says it received 38,000 complaints last year, highlighting issues of compliance with consumer guarantees in the electronics and whitegoods sectors.
Nearly 70 percent of all complaints relate to those categories – up nearly 20 percent from last year.
Under Australian consumer law, goods and services come with an automatic ‘consumer guarantee’, which includes requirements that products meet acceptable quality standards, match description, and are fit for purpose. The ACCC said that in practice the implementation of these rights is limited.
In the past year, the regulator received more than 3000 reports of retailers refusing to provide remedies, directing consumers to manufacturers, or implementing policies that falsify consumer guarantees.
ACCC vice-chair Catriona Lowe said businesses could not rely on internal policies to deny legal rights. “Despite these basic consumer rights, reports we have received suggest that some businesses are not respecting consumers’ rights to a refund, repair or replacement,” she said.
Legal Risk and Enforcement Focus
The ACCC supports proposed reforms to strengthen enforcement, including penalties for businesses that fail to provide remedies and for manufacturers that do not reimburse suppliers where there is a fault due to production.
Lowe said statements such as ‘no refunds’ or ‘no returns on sale items’ could violate the law if they mislead consumers, as consumer guarantees apply to both big and small mistakes.
“No matter what businesses do or say, they can’t take away your consumer guarantee rights,” he said.
Reports include denial of repair after the warranty period, denial of replacement at the time of delivery, and charges for repair on recently purchased items.
Consumer guarantees apply independently of the manufacturer’s or supplier’s warranty and may extend beyond the standard warranty period. The ACCC said this raised questions about the value of extended warranties offered by some businesses.
The ACCC said businesses should explain any additional benefits provided by extended warranties and review returns and after-sales policies to ensure compliance, while noting that consumers can escalate unresolved issues to the relevant state or territory consumer protection agencies or the ACCC.
Improving compliance in the consumer electronics sector remains an enforcement priority for the ACCC and will continue into 2026/27.
