Australia: Australian Competition and Consumer Commission issued corrective measures following investigation into terms and conditions of electronic commerce websites over potential violation of the Consumer Law

Description

Australian Competition and Consumer Commission issued corrective measures following investigation into terms and conditions of electronic commerce websites over potential violation of the Consumer Law

On 4 February 2025, the Australian Competition and Consumer Commission (ACCC) concluded its investigation into the terms and conditions of electronic commerce websites over potential violation of the Consumer Law. The ACCC reviewed over two thousand Australian retail websites, identifying terms and conditions that potentially contravened the Australian Consumer Law (ACL). The investigation found several instances where businesses used misleading statements regarding consumer rights, including imposing time limits on returns for faulty products and restricting refunds for sale items. It was highlighted that businesses must not make misleading statements about refunds and returns under the ACL. The ACCC also stated that problematic claims include outright bans on refunds for faulty items, restrictions on returning opened, used, sale, or custom-made products, and imposing restocking or delivery fees. It was noted that consumers cannot be denied refunds based on arbitrary time limits or conditions that contradict their rights under the ACL. Following the investigation, warning letters were issued to businesses with non-compliant policies, resulting in many amending their terms to better align with ACL requirements.

Original source

Scope

Policy Area
Consumer protection
Policy Instrument
Fair marketing and advertising practice requirement
Regulated Economic Activity
platform intermediary: e-commerce
Implementation Level
national
Government Branch
executive
Government Body
consumer protection authority

Complete timeline of this policy change

Hide details
2025-02-04
under investigation

On 4 February 2025, the Australian Competition and Consumer Commission (ACCC) concluded its investi…

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