Whether it’s struggling to get a refund on a faulty product, being misled about the terms of a phone contract, or paying hidden fees on a service, many immigrants find themselves in tricky situations simply because they don’t know their consumer rights.
At Remitly, we understand that navigating a new country’s financial and legal systems—whether it’s understanding consumer rights, SWIFT codes and ACH transfers—can be confusing and overwhelming. That’s why we’re breaking down the key protections under the Australian Consumer Law, helping you understand your rights and what to do if they’re violated.
What is the Australian Consumer Law and what does it do?
The ACL is a national law in Australia that’s designed to protect consumers when they buy goods and services.
It sets clear rules for businesses that are intended to ensure they treat customers fairly and advertise honestly. On the other side of the till, it gives customers the right to request refunds, repairs, or replacements when things go wrong.
The ACL was introduced in 2011 and was aimed at creating a consistent set of consumer protections across all states and territories. Before this, different regions had their own consumer laws, making it more difficult for people to understand their rights.
The Australian Competition and Consumer Commission (ACCC) is responsible for enforcing the ACL and holding businesses accountable. It investigates complaints, provides consumer guidance, and can take action against companies that fail to comply.
Imagine you’ve just moved to Australia and bought a laptop from a well-known electronics store. After a few weeks, it stops working through no fault of your own.
Under the ACL, depending on what’s wrong and how the problem arose, you have the right to return to the store and request a repair, replacement, or refund. As the defect wasn’t caused by you, the store is obliged to help resolve the issue.
If the store refuses to provide a repair, replacement, or refund, you can report them to the ACCC.
What are my rights under the Australian Consumer Law?
Knowing your rights under the ACL can save you time, money, and frustration, ensuring you get what you paid for—fair and square. This can help you to avoid unfair treatment, spot misleading claims, take action when something isn’t right, and prevent your cost of living in Australia from skyrocketing unnecessarily.
Whether you’re buying a phone, signing up for a service, or wiring money overseas, knowing the basics of the ACL can help you make informed decisions and protect your hard-earned money.
Consumer guarantees under the ACL
Consumer rights (also known as guarantees) under the ACL ensure that goods and services meet basic quality and performance standards.
When you purchase goods or products, they must:
- be of acceptable quality—they should be safe, durable, and free from defects.
- match their description—they should look or behave as you were told they would.
- be fit for their intended purpose—they should do what they are supposed to do.
While services must also be fit for purpose (i.e. achieve what was promised when you purchased them), there are some differences between services and products.
A service should be provided with due care and skill. This requires that the person or company delivering the service must be competent and perform the job to a reasonable standard. Plus, work must be completed within a reasonable time.
Section 42 of the act comes into play here, too. This provision states that you can’t be made to pay for any services that you did not request. It also notes that you are not liable to compensate a supplier for any loss or damage that they might have incurred by providing these unsolicited services.
The basic rights covered by consumer guarantees can’t be taken away by anything a business says or does. If a product or service doesn’t meet these guarantees, you may be entitled to a repair, replacement, refund, or other compensation.
Limiting business’s liability
To ensure that you can’t just submit a claim and take advantage of the system, section 3 of the law defines a consumer and explains who is covered. According to this provision, you’re protected if you buy goods and services from an Australian business:
- for personal, domestic, or household use
- that cost less than $100,000 (whether purchased by a business or individual)
This section defines who qualifies as a consumer to ensure that businesses remain responsible for the quality of what they sell.
Some businesses may try to avoid responsibility by using fine print, like posting a “No refunds” sign in their shop. However, under the ACL, such statements are unenforceable if you meet the requirements for being a consumer and the business doesn’t meet the consumer guarantees.
Special considerations under the Australian Consumer Law
While the ACL is intended to protect all consumers in all situations, it does also contain some more specific protections. These additional safeguards ensure that all consumers receive fair treatment.
Rights for consumers with disabilities
The ACL protects consumers with disabilities when they buy goods like food, televisions, clothing, and items that help them manage their disabilities. It also protects consumers with disabilities when buying services like internet plans, as well as cooking services and other services that help manage their disabilities.
Consumer product safety
Products sold in Australia must meet strict safety standards. If a product is found to be dangerous, businesses must offer refunds, replacements, or repairs. In serious cases, they may also be required to issue recalls.
Travel and booking rights
When a flight, hotel, or other travel booking is cancelled due to circumstances beyond your control, you may be entitled to a refund, reschedule, or credit. Airlines and travel companies must provide clear refund policies and cannot mislead consumers about their rights.
What to do when your consumer rights are violated in Australia
The ACL provides clear remedies if a business fails to honour your rights. Whether you’ve received a faulty product, misleading service, or unfair treatment, there are steps you can take to seek a resolution. The process typically starts with the business and escalates if necessary.
Legal remedies and options
The Australian Consumer Law (ACL) provides a structured process for seeking a resolution if a business violates your consumer rights. Here’s what you can do:
- Contact the business: Start by reaching out to the business, explaining the issue, and requesting a solution. Be sure to be clear about what you want, whether it’s a repair, replacement, refund, or cancellation.
- Lodge a formal complaint: If the business refuses to help, submit a written complaint outlining the problem, your rights under the ACL, and the resolution you expect. Providing evidence (such as receipts, emails, or photos) can strengthen your case.
- Approach the ACCC: If the business still refuses to assist you after you contact them or lodge a formal complaint, you can reach out to the ACCC to get guidance on the next steps and institute a mediation process.
- Take the matter to a tribunal court: When all else fails, you may need to escalate your complaint to a consumer affairs tribunal. There are territory-specific tribunals in some of Australia’s major cities. Alternatively, you may need to go to court to resolve the issue.
Understanding compensation for damages and loss
When a business violates your consumer rights, knowing what remedies you’re entitled to can help you make a stronger case for compensation. If you understand what you can legally request, you’re more likely to achieve a fair outcome.
The ACL entitles you to:
- Repair, replacement, or refund: If a product is faulty, unsafe, or doesn’t perform as expected, you can request one of these remedies based on the severity of the issue.
- Compensation for loss or damage caused by the product or service: If a faulty product or poor service causes financial loss or damage, the business may have to reimburse you.
- Compensation for additional costs: If you incur extra expenses due to the business’s failure (e.g. paying for urgent repairs), you may be able to claim these costs.
- Contract cancellations without penalty: If a service doesn’t meet its promised standard, you may be able to cancel the contract and get a refund.
These compensation provisions help to ensure that businesses take responsibility for the impact of their actions and enable you to recover your losses.
Resources and support for consumers
Dealing with legal issues can feel overwhelming, especially if you’ve just moved to Australia and are unfamiliar with the system. Recognising this, Australian lawmakers have created a range of educational resources and guides to help consumers understand their rights, navigate disputes, and access the support they need.
Government and non-profit resources
If you need help resolving a consumer issue, there are several government agencies and non-profit organisations that offer guidance and support:
- ACCC: The Australian Consumer and Competition Commission Enforces consumer law, investigates unfair business practices, and provides dispute resolution advice.
- State and territory fair trading offices: These bodies handle complaints and offer mediation services at a more local level.
- Consumer Action Law Centre: A non-profit that provides free legal advice and advocacy for consumer rights.
- Australian Financial Complaints Authority: Resolves disputes related to financial products and services, including banking and insurance.
- CHOICE: An independent consumer advocacy group that reviews products and fights for stronger consumer protections.
These resources ensure you have the right support when dealing with consumer-related issues.
Educational materials and guides
If you want to learn more about your consumer rights and how to handle disputes, there are several free resources available:
- ACCC consumer rights & guarantees guide: A detailed guide explaining your rights under the Australian Consumer Law.
- Know your consumer rights: A series of step-by-step guides from CHOICE on how to handle a variety of situations, from pyramid schemes to faulty products.
- State fair trading websites: Each state and territory provides consumer education materials tailored to local laws and services.
These materials can help you better understand your rights and navigate consumer issues with confidence.
Conclusion
Understanding your rights under the Australian Consumer Law can make a huge difference when dealing with businesses in Australia. Whether you’re buying goods, signing up for services, or handling unexpected disputes, these protections ensure you don’t lose money due to misleading practices or faulty products.
If something goes wrong, you don’t have to accept poor treatment. There are clear steps you can take to resolve issues and seek compensation to protect yourself from unfair business practices.
FAQs
What is section 3 of the Australian Consumer Law?
Section 3 of the ACL defines a consumer. It specifies that a person is a consumer if they acquire goods or services priced under $100,000, or if the goods or services are typically for personal, domestic, or household use, regardless of price.
What are my rights under the Australian Consumer Law?
Under the ACL, consumers have guarantees ensuring that goods are of acceptable quality, fit for purpose, and match descriptions. Services must be provided with due care and skill. If these guarantees aren’t met, you are entitled to remedies like repairs, replacements, or refunds.
What is section 42 of the Australian Consumer Law?
Section 42 of the ACL addresses unsolicited services. It stipulates that if a supplier provides services without the consumer’s request, the consumer is not liable to make any payment for those services.
What is section 57 of the Australian Consumer Law?
Section 57 of the ACL pertains to goods sold by reference to a sample. It mandates that such goods must match the sample in quality and that consumers should have a reasonable opportunity to compare the goods with the sample before completing the purchase.