Australian Consumer Law and Amazon Returns: Guarantees, Change of Mind, Major and Minor Failures

Under the Australian Consumer Law (ACL), a buyer on Amazon.com.au has automatic consumer guarantees that goods will be of acceptable quality, among other things, and a no-refunds policy cannot override them. The ACCC says businesses generally do not have to give a refund or replacement just because a buyer changes their mind, but if you have a change-of-mind policy you must follow it. The ACL applies to all businesses selling goods in Australia, including overseas ones. This is general information, not legal advice; confirm with the ACCC or a lawyer.

What are consumer guarantees?

Consumer guarantees are rights that apply by law when a consumer buys goods. For goods, they include acceptable quality: fit for purpose, acceptable in appearance and finish, free from defects, safe and durable. Business.gov.au says the guarantees apply to goods and services costing under A$100,000, plus certain higher-cost personal-use items and vehicles, and can outlast a manufacturer's warranty.

A contract term is void to the extent it excludes, restricts or modifies the guarantees, so a policy that says "no refunds" cannot remove them. A seller cannot send the buyer to the manufacturer instead.

The ACL applies whether you are a hobby seller or a business, and whether the item was fulfilled by you or by Amazon.

What is the difference between a guarantee return and a change-of-mind return?

The ACCC's pages say businesses do not have to give refunds and replacements for change of mind, and a business that offers a change-of-mind policy must honour it. The ACL text itself deals with guarantees, remedies and fairness; the change-of-mind point comes from the ACCC. Confirm with the ACCC or a lawyer before building a policy on it.

What is a major failure, and what is a minor one?

A failure with goods is major if it meets one of the tests in the ACL:

• a reasonable consumer would not have bought the goods if they had known about the problem
• the goods depart significantly from their description or sample
• the goods are substantially unfit for their purpose and cannot easily be fixed
• the goods are unfit for a purpose the buyer disclosed
• the goods are unsafe

Several minor failures taken together can amount to a major failure. Business.gov.au summarises the remedies: for a major problem the customer can choose a refund or a replacement for goods, and for a minor problem the problem must be fixed for free.

For a failure that can be fixed and is not major, the buyer can require you to fix it within a reasonable time. If you do not, the buyer can have it fixed elsewhere and recover the reasonable cost, or reject the goods. A supplier may remedy by repairing, replacing with an identical type, or refunding the money paid.

Examples for a typical Amazon seller: a kettle that stops heating in week two and cannot be repaired is likely a major failure, so the buyer can choose a refund or replacement. A loose plastic handle that you can replace quickly is likely minor, so you can choose to repair it. An item that arrives in a different colour from the listing may be a significant departure from its description.

How does Amazon's returns policy interact with the law?

Amazon's returns policy, as quoted by CHOICE, says that where a customer buys from a seller that ships its own inventory, any returns follow the returns policy set by that seller. The ACCC says whether the platform or the seller must provide a remedy varies with the circumstances of the transaction, and that marketplaces can and should do more to protect consumers.

What Amazon does not publish publicly: its seller-facing returns settings and any minimum return window for third-party sellers on Amazon.com.au. Those sit inside Seller Central. Third-party sites mention a 30-day window for marketplace items; Amazon has not confirmed it publicly. Read your own Seller Central returns settings, and make sure they do not promise less than the law gives.

In practice: your Amazon returns policy may offer more than the law, and it must not offer less for faulty goods. The Amazon A-to-z Guarantee is a separate Amazon process for buyers; see Amazon A-to-z claims in Australia.

Who pays for returns, and what about Amazon's fees?

Fulfilment matters. If you ship the item yourself, you handle the return and the remedy. If Amazon fulfils it, Amazon's FBA fee covers customer service and returns, and unsellable returned stock is assessed for who caused the damage, which decides reimbursement. A returns processing fee applies in categories where Amazon offers free shipping, and the amount is not published on that page. See Amazon Australia returns fees for what is known. For merchant fulfilment, Easy Ship refunds for returns must be issued within 2 business days of receiving the item.

An Amazon refund does not mean the law has been satisfied for you in every case; the guarantee applies between you and the buyer. If a defect is caused by the manufacturer, you may have a claim against your supplier, so keep supplier terms.

What if a returned item is unsafe?

Unsafe goods are a major failure, and separate rules cover reporting, recalls and bans. A supplier who becomes aware of a death or serious injury that may have been caused by consumer goods must notify the Commonwealth Minister in writing within 2 days. The product-safety side is covered in product safety for Amazon sellers in Australia.

Practical checklist for your returns policy

1. Write one policy that says clearly what you offer for change of mind, and what applies to faulty goods.
2. Never state that faulty goods cannot be returned.
3. Offer remedies promptly, and reply to Amazon messages within Amazon's expected time.
4. Keep photos, order numbers and replies for each case.
5. Review repeated faults, since many minor failures can add up to a major failure.
6. Check the Australia hub and the consumer law glossary entry when a new case arises.

Penalties can be large. The compiled ACL text of 28 March 2026 sets the maximum for certain breaches for a body corporate at the greatest of A$100,000,000, three times the benefit, or 30% of adjusted turnover; older sources say A$50,000,000, so ask a lawyer for the current figure.

FAQ

Do I have to accept change-of-mind returns on Amazon? Not by law. The ACCC says businesses generally do not have to give refunds for change of mind, though you must follow any change-of-mind policy you offer. Amazon's own rules for your account are in Seller Central.

What is a major failure? It includes goods a reasonable buyer would not have bought knowing the problem, a significant departure from the description, substantial unfitness that is not easily fixed, or unsafe goods. The buyer then chooses a refund or replacement.

Can I refuse a refund after 30 days? Not simply because 30 days passed. For faulty goods, the guarantee applies for a reasonable time that depends on the product, and can outlast a manufacturer's warranty. A change-of-mind window is your own policy.

Can I put "no refunds" in my listing? You can limit change-of-mind returns, but a term that excludes the consumer guarantees is void to that extent.

Who handles returns when Amazon fulfils my order? Amazon handles the return process and its FBA fee covers returns, but unsellable stock reimbursement depends on who caused the damage. The legal duty to remedy faults stays with the supplier of the goods.

Does the ACL apply to me if I am an overseas seller? Yes. The law applies to all businesses selling goods in Australia, including overseas businesses, so a seller based elsewhere cannot rely on its home rules for Australian buyers.

Next step

Review your returns settings and listing text against the table above, and get a lawyer's view if you sell higher-risk goods. For help with Amazon returns settings and customer messages, Blooprint's Amazon account management can assist; legal advice stays with a lawyer or the ACCC.