Australian compliance ยท Glossary

What is Australian Consumer Law (ACL)?

The Australian Consumer Law is the national law that gives consumers automatic guarantees on goods and services, bans unfair practices and sets product safety rules. It applies to all businesses selling in Australia, including overseas ones.

The Australian Consumer Law (ACL) applies to all businesses selling goods or services in Australia, including overseas businesses. It gives buyers automatic consumer guarantees, such as goods being of acceptable quality, and prohibits misleading conduct and unfair practices. This is general information, not legal advice; confirm with the ACCC or a lawyer.

What guarantees do buyers get?

Guarantees apply to goods and services costing under A$100,000 and to certain higher-cost personal-use items and vehicles, and can outlast a manufacturer's warranty. Goods must be of acceptable quality: fit for purpose, acceptable in appearance and finish, free from defects, safe and durable.

A contract term is void to the extent it excludes, restricts or modifies the guarantees, so a "no refunds" policy cannot override them.

What remedies can a buyer demand?

For a major failure, the buyer can choose a refund or replacement for goods. A major failure includes a problem a reasonable consumer would not have bought the goods knowing about, a significant departure from the description, or goods that are unsafe. Several minor failures together can amount to a major failure.

For a fixable, non-major failure, the consumer can require you to remedy it in a reasonable time; if you do not, they can have it fixed elsewhere and recover the reasonable cost, or reject the goods. You can remedy by repairing, replacing with an identical type, or refunding. Customers cannot be sent to the manufacturer instead. Amazon's own return policies sit on top of this; see ACL and Amazon returns.

What else does the ACL cover?

  • A receipt is needed for goods or services costing over A$75.
  • "Previous higher price" comparisons are risky unless that price was actually charged for a reasonable period.
  • Prices must include GST and compulsory charges; see GST.
  • Sellers cannot sell banned or recalled products.
  • Mandatory safety and information standards cover things like button batteries and toys for children up to 36 months; see product safety on Amazon Australia.

Electrical goods also need the RCM, covered in RCM.

What are the penalties?

For unfair practices, unconscionable conduct, unfair terms and breaches of safety standards or bans, the maximum for a body corporate is the greatest of A$100,000,000, three times the benefit or 30% of adjusted turnover, and A$2,500,000 for an individual. That figure is from the 28 March 2026 compilation; older material quotes A$50,000,000. A non-compliant warranty against defects document carries up to A$50,000 for a body corporate.

Failing to report a death or serious injury within 2 days carries up to A$16,500 for a body corporate.

Next step

Blooprint can run your Amazon listings so claims match the product, while a lawyer advises on the law itself.

Frequently asked questions

Does the ACL apply to Amazon sellers?

Yes. It applies to all businesses selling goods or services in Australia, including overseas businesses, and it applies to goods whether the activity is a hobby or a business.

Can I use a 'no refunds' policy?

No policy can override the guarantees. A contract term is void to the extent it excludes, restricts or modifies the consumer guarantees.

What is the maximum penalty?

For certain breaches, including unfair practices and breaches of safety standards or bans, a body corporate faces the greatest of A$100,000,000, three times the benefit or 30% of adjusted turnover, per the compilation of 28 March 2026. Older material says A$50,000,000.

Do I have to report injuries?

A supplier who becomes aware of a death, serious injury or illness that may have been caused by their goods must give the Minister written notice within 2 days, with exceptions.

Related terms

Sources

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