The internet is full of bargains and, as the ACCC found, dodgy return policies.

The competition watchdog has put more than 2,000 retail websites under the microscope, and found many are using return policies and terms and conditions that could mislead consumers and breach the Australian Consumer Law (ACL).

“Our sweep has found numerous examples of practices that could potentially mislead or deceive consumers regarding their rights to exchange, refund or return a product,” ACCC Deputy Chair Catriona Lowe said this week.

These rights, known as consumer guarantees, are not optional extras businesses can sidestep with fine print. They are legal entitlements that cannot be overridden by a retailer’s policies, no matter what the terms and conditions claim.

The sweep flagged several dodgy practices, including businesses imposing strict time limits for returning faulty goods, declaring that sale items cannot be refunded under any circumstances, and suggesting that only manufacturer warranties cover faulty products. 

Some retailers even charged restocking fees for returned faulty items or refused to refund delivery costs - clear breaches of consumer rights.

Lowe pointed out that many problematic statements created confusion, such as, “Items that have been opened and used cannot be exchanged or refunded” and “Made-to-order products cannot be returned.” 

One policy stated; “In the unlikely event that your item arrives damaged or faulty, please notify the store within 30 days of delivery to receive a replacement”, as if consumer rights come with an expiry date.

In response to the findings, the ACCC sent warning letters to several businesses. 

The regulator says most of them cleaned up their act, either revising or removing misleading statements. 

While Lowe acknowledged this progress, she stressed that the sweep revealed a broader issue with how businesses communicate consumer rights. 

“We were pleased to find that many websites had accurate information about consumer guarantees, but the number of concerning practices is still too high.”

Koala Living copped $56,340 in penalties last year for misleading claims about refund timeframes, while Mazda Australia was hit with an $11.5 million fine for deceptive conduct around consumer guarantees.

Lowe has urged all businesses to double-check their return policies to ensure they are not just legally compliant but also transparent for consumers. 

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