E-commerce

Consumer guarantee complaints soar in electronics, whitegoods sectors

A surge in consumer complaints about retailers failing to comply with consumer laws has prompted a warning from the Australian Competition and Consumer Commission (ACCC).

The regulator says it received 38,000 complaints in the past year, highlighting compliance issues with consumer guarantees in the electronics and whitegoods sectors. 

Nearly 70 per cent of all complaints related to those categories – up about 20 per cent from the previous year.

Under Australian Consumer Law, goods and services come with automatic ‘consumer guarantees,’ including requirements that products meet acceptable quality standards, match the description, and be fit for purpose. The ACCC said enforcement of these rights in practice remains limited.

In the past year, the regulator received more than 3000 reports of retailers refusing to provide remedies, directing consumers to manufacturers, or applying policies that misstate consumer guarantees.

ACCC deputy chair Catriona Lowe said businesses cannot rely on internal policies to deny legal rights. “Despite having these basic consumer rights, reports to us show some businesses are not honouring 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 a fault is attributable to production.

Lowe said statements such as ‘no refunds’ or ‘no returns on sale items’ may breach the law if they mislead consumers, as consumer guarantees apply to both major and minor faults.

“No matter what the business does or says, they cannot take away your consumer guarantee rights,” she said.

Reports include refusals to repair after the warranty period, denials of replacements at delivery, and charges for repairs on recently purchased items.

Consumer guarantees apply independently of manufacturer or supplier warranties and may extend beyond standard warranty periods. The ACCC said this raises 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 may escalate unresolved issues to 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 to be so in 2026/27.

• Further reading: The ACCC is investigating retailers making ‘concerning’ Black Friday claims.