Tough fines for businesses that deny your right to a refund
Right now, it's illegal for businesses to unfairly refuse a refund, repair and replacement for a faulty product for a reasonable period of time after purchase, or to refuse a refund or replacement for a service that doesn’t deliver. These are called your consumer guarantee rights. But did you know that businesses can't be penalised if they break this law?
Your consumer guarantee rights require products to be of reasonable quality, last for a reasonable period of time, fit any description provided to you and have spare parts and repair facilities available for a reasonable time. Services, such as flights, are required to be provided with due skill and care, be fit for purpose and be provided within a reasonable amount of time.
People should be able to shop with peace of mind knowing that they’re protected if something goes wrong with a product or service. But because businesses can't be penalised for breaking this law, they can get away with denying consumers their rights – leaving people to pay out-of-pocket for repairs or replacements or continue to use faulty goods, while others have no option but to dispose of their faulty goods earlier than they should have to.
Introducing penalties for breaking this law will create a disincentive for businesses that flaunt consumer laws and unfairly deny people a refund, repair or replacement. This change will support businesses that are already doing the right thing and deter others from doing the wrong thing to consumers.