Can you say no refunds in Australia? What the law says

"No refunds." Two words, and a lot of Australian shop windows, market stalls and checkout pages still carry them. They feel safe. They discourage time-wasters, they seem to save you from awkward conversations, and every template you copied them from probably had them too.

Saying no refunds in Australia is allowed only if you mean something far narrower than the sign says. The ACCC states that "no refund" signs and terms do not override consumer rights, and that relying on them for faulty goods is illegal. For an online store that also takes card payments, the sign does something worse than failing legally: it hands a customer with a genuine fault the easiest possible reason to call their bank.

This guide explains what you can and cannot say, how to rewrite common lines so they stay useful and lawful, what a "no refunds" line does to you in a dispute, and how to protect your store from change-of-mind abuse without breaking the rules.

This guide is for you if:

Your store, checkout or emails say "no refunds", "all sales final" or "store credit only", and you want to know if that is a problem.
You want to limit change-of-mind returns without stepping over the line.
A customer has quoted your "no refunds" wording back to you, or a bank dispute has made you wonder about it.

Last updated: 9 October 2026. Written by the ChargeFix team. Reviewed against sources on 9 October 2026.

The 30-second answer (TL;DR)

You cannot use a no refund sign to refuse a remedy for faulty goods. The ACCC says these signs and terms do not override consumer rights.
A failed consumer guarantee means you must offer a repair, replacement or refund, and you cannot send the customer to the manufacturer.
You can limit change-of-mind returns, because change of mind is not covered by the guarantees. If you offer a change-of-mind policy, you must honour it.
Replace "no refunds" with specific, accurate wording: what you will do for faults, and what you offer for change of mind.
A blanket no refund sign damages your position in a dispute. It reads as a refusal to meet legal duties, which is a poor look for a reviewer.
Keep dated copies of any wording you use, and show where the customer saw it.
We did not verify penalties or case law, so ask a lawyer if you have a specific problem.

Quick note: "No refunds" is two different promises dressed as one. "We don't do change-of-mind refunds" is a commercial choice you can make. "We don't refund faulty goods" is a claim that fails the law. The fix is to say the first and never the second.

What you can and cannot say

Wording	Allowed?	Why
"No refunds"	Not as a blanket	The ACCC says it does not override consumer rights
"All sales final"	Not as a blanket	Same
"No refunds for change of mind"	Yes, with care	Change of mind is not covered by the guarantees
"Exchange or store credit only" for faulty goods	No	The customer may be entitled to a refund
"Contact the manufacturer"	No	The ACCC says you cannot send the customer to the manufacturer
"Refunds minus a restocking fee" for faulty goods	No	No deduction for use on a major problem
"Faulty goods will be repaired, replaced or refunded as required by law"	Yes	Accurate

Can you say no refunds in Australia? What the ACCC says

Not in the sense most signs intend, so no refunds in Australia is a risky promise. The ACCC's page on repair, replace, refund and cancel says that "no refund" signs and terms do not override consumer rights, and that relying on them for faulty goods is illegal. That is a direct statement about the practice, from the regulator.

Why do so many businesses still say no refunds in Australia?

Habit, and a half-truth. The half-truth is that you are not required to refund a customer who has simply changed their mind. That is correct. The ACCC says change of mind is not covered by the consumer guarantees. The mistake is stretching that sentence into "no refunds in Australia, ever". The law separates the two cases, and a sign that blurs them gets the blurred part wrong.

What are the consumer guarantees in plain terms?

The page describes what happens when a guarantee fails, which is the rule that matters for your policy.

A failed consumer guarantee means you must offer a repair, replacement or refund. You cannot send the customer to the manufacturer.
For a major problem, the customer chooses a refund or replacement. A major problem includes goods that are unsafe, significantly different from the description or sample, have a serious fault (or several smaller faults that would have stopped a buyer purchasing), or cannot be used for their purpose and cannot be fixed quickly. The customer gets a refund to the original payment method, with no deduction for use, or may keep the item and receive compensation.
For a minor problem, you must repair free. You do not have to offer a refund or replacement, though you may. If you do not fix it in a reasonable time, the customer can have it fixed elsewhere and claim the cost, take a refund or replacement, or keep the item with compensation.

We cover the line between major and minor in detail in our post on major vs minor failure.

What can you limit instead of using a no refund sign?

Plenty, as long as you are specific.

Change of mind

You do not have to offer refunds when a customer simply changes their mind. If you do, the terms are yours to set: the number of days, the condition of the item, who pays for return postage, and whether you give a refund or store credit. The only fixed rule is that you must honour what you offer.

Conditions on the return process

You can ask for proof of purchase, according to the ACCC. You can require that a customer contact you first, use your return process and provide the reason for the return. You cannot insist on original packaging for a faulty item.

Costs where no fault is found

The ACCC says that if no fault is found, you may charge collection and inspection costs with a reasonable estimate given in advance. Say so in your policy, so a customer returning an item that works is not surprised.

What is outside your control

You cannot limit the customer's rights by contract or sign for faulty goods. A line that says otherwise is not just risky, it is a statement the regulator calls illegal to rely on.

How should you rewrite no refunds in Australia wording?

Here are the lines we see most often on Australian stores, with a fix for each. Adapt the wording to your products.

Common line	Problem	A better version
"No refunds."	Overrides consumer rights	"We don't offer refunds for change of mind. If your item is faulty, damaged or not as described, you may be entitled to a repair, replacement or refund under the Australian Consumer Law."
"All sales final."	Same	"Because of the nature of our products we can't accept change-of-mind returns. This doesn't affect your rights if something is wrong with your order."
"Store credit only."	May breach the right to a refund for a major problem	"For change-of-mind returns we offer store credit. For faulty or misdescribed items you can choose a refund or replacement."
"Refund less 20% restocking fee."	Deduction on faulty goods	"A restocking fee of [x]% applies to change-of-mind returns only. It never applies to faulty items."
"Customer pays return postage."	Return costs for a fault are yours	"For change of mind, you pay return postage. For a confirmed fault we reimburse reasonable return costs."
"Must be in original packaging."	Not required for a faulty item	"For change of mind, items must be unused and in original packaging. For a fault, packaging doesn't matter."
"Contact the manufacturer."	You cannot send the customer away	"Contact us first and we'll arrange the repair, replacement or refund."

The pattern is the same each time. Keep the restriction for change of mind and add a sentence that says the law's remedies still apply.

A sentence worth adding to every policy

This policy doesn't limit your rights under the Australian Consumer Law. If your item is faulty, unsafe or significantly different from how we described it, you may be entitled to a repair, replacement or refund.

It is short, accurate, and it shows a reviewer that you know the rules.

What does a no refund sign do to you in a dispute?

It damages your position in three ways.

It invites the dispute. A customer with a genuine fault who reads "no refunds" has no reason to expect fair treatment. Their bank looks like the only option, and Shopify's chargeback process puts the cost of that decision on you.

It weakens your evidence. Shopify suggests refund and return policies, plus proof the customer was informed, as evidence for credit not processed disputes. A policy that denies legal rights is weak evidence. A reviewer who reads "no refunds" beside a claim about a faulty item may side with the customer on principle.

It can make a fight pointless. If the customer's claim is about a major problem, the ACCC's guidance says they were entitled to a remedy. Our guide to accepting or fighting a Shopify dispute explains why a case built on a "no refunds" sign is usually one to settle.

Illustration: the same A$150 fault, two policies

A customer's A$150 item stops working after two weeks. A dispute is filed. The fee is A$25. These are made-up figures.

	Store A	Store B
Policy wording	"Faulty items repaired, replaced or refunded as the law requires. No change-of-mind refunds."	"No refunds."
First reply to the customer	Offers a remedy within a day	Quotes the sign
Customer's next step	Accepts a replacement	Calls the bank
Cost	A$150 replacement, say A$80 in cost of goods	A$150 + A$25 fee + 45 minutes (A$30 at A$40 an hour) = A$205, plus the product
Chargeback rate	Unchanged	One more dispute

Store A spends A$80 and keeps a customer. Store B spends A$205 and has a dispute on its record. The two stores sold the same item. The only real difference was one line of text.

How do you handle change-of-mind abuse without a no refund sign?

If your worry is customers who wear an item and return it, or who abuse a generous window, there are lawful tools.

Set a clear window and condition. "Unused, unworn, with tags, within 14 days."
Charge for return postage on change of mind, if you say so in advance.
Offer store credit instead of a refund for change of mind, if you say so clearly.
Inspect returns promptly and record the condition with photos.
Exclude specific items from change of mind for good reasons, such as items made to order, and say so on the product page. Our post on sale items and custom orders covers this.
Keep a record of repeat returners and of what you told them.

None of these removes the legal remedies for faulty goods. They narrow the commercial offer, which is what you are allowed to do.

Illustration: a policy that limits without overreaching

Assume 300 orders a month at A$100 and a 10% change-of-mind return rate under a free returns policy.

Item	Free returns	Customer-paid returns, 14 days, unused
Return rate	10% = 30	Say 6% = 18
Return postage borne by you, at A$10	A$300	A$0
Refund value, at A$100	A$3,000	A$1,800

The second policy cuts the cost without a single "no refunds". The numbers are made up, and your own conversion and return rates will move. The point is that clear conditions do the work that a blunt sign cannot.

Where does "no refunds" hide on your store?

The phrase rarely lives in one place. It appears in the checkout note someone added two years ago, in an old blog post, in the product description for a sale item, and in the automated email you copied from a template. Audit by location, not by memory.

Location	What to look for	Fix
Refund and returns policy page	Blanket "no refunds" or "all sales final"	Rewrite using the faults and change of mind split
Checkout notes and banners	Short "no refunds on sale items" lines	Replace with wording that keeps legal remedies intact
Product descriptions	"Final sale", "non-returnable"	State what is limited and add the consumer law sentence
FAQ page	Answers that say "we don't refund"	Rewrite with the same split
Order confirmation and shipping emails	Footer text copied from a template	Update the template
Customer service macros	Canned replies refusing refunds	Replace with scripts that ask what is wrong first
Social media bios and pinned posts	Short "no refunds" statements	Remove or link to the policy
Old blog posts and landing pages	Legacy wording	Update or retire the page

A no refund sign on a physical shopfront, a market stall or a pop-up counts too, and the ACCC's statement covers "signs and terms". If you sell at markets as well as online, check both.

Illustration: the cost of leaving a no refund sign on one page

Imagine a store that ships 500 orders a month at A$110. One in 200 orders has a genuine fault, so 2.5 a month. Assume the wording turns half of those into bank disputes rather than quiet replacements. These are made-up figures.

Item	Per month
Faulty orders	2.5
Turned into disputes by the sign	about 1.25
Cost per dispute (A$110 + A$25 fee + A$30 time)	A$165
Monthly cost of the sign	about A$206
Yearly cost	about A$2,475, plus the effect on your chargeback rate

A rewritten page takes an hour. Even if your numbers are a tenth of these, the sign costs more than the fix.

Worked scenarios: five customers and the right reply

All details are assumed.

Scenario 1: the faulty kettle

A customer bought a A$90 kettle that stopped heating after a week and writes: "Your site says no refunds. I want my money back."

Right reply: do not quote the sign. Ask for a photo of the fault, and offer a remedy. If it is a major problem, the customer chooses a refund or replacement. If minor, repair. Reimburse reasonable return costs for a confirmed fault.

Hi [name], I'm sorry the kettle has stopped working. Our site wording doesn't reflect your rights under the Australian Consumer Law, and we're correcting it. Could you send a photo or short video of the problem? We'll then arrange a [refund / replacement] and cover the return postage.

Scenario 2: the wrong size, no fault

A customer ordered a A$120 jacket in a size that does not fit and wants a refund after 30 days. Your policy offers 14 days for change of mind.

Right reply: the item is not faulty, so this is change of mind. Your policy decides. A polite refusal that offers store credit as goodwill is lawful and usually keeps the customer.

Hi [name], thanks for getting in touch. Our change-of-mind window is 14 days, so we can't offer a refund now, but we'd like to help: we can offer store credit for the jacket value. If there is anything wrong with the jacket itself, let us know and we'll look at it under the Australian Consumer Law.

Scenario 3: the clearance item

A customer buys a A$40 clearance item that your product page says "no refunds on clearance". It arrives with a broken zip.

Right reply: a broken zip is a fault, and the sale price does not change that. We cover this in our post on sale items and custom orders. Offer a remedy.

Scenario 4: the item that works but isn't wanted

A customer returns a A$200 item for change of mind. Your policy offers a refund on receipt, and the returned item is in poor condition.

Right reply: refer to the policy conditions, record the condition with photos, and apply the terms consistently. If no fault is found, you may charge collection and inspection costs, with a reasonable estimate given in advance, according to the ACCC. Say so in advance in your policy.

Scenario 5: the chargeback after a refusal

A customer with a genuinely faulty A$150 item is refused under a no refund sign and disputes the payment. The fee is A$25.

Right reply: if it is still an inquiry, refund in full to end it. If it is an open chargeback, you cannot refund it. Consider accepting, because the ACCC's guidance supports the customer, and fix the wording. Our guide to chargeback vs inquiry shows the difference.

What should staff say when a customer asks for a refund?

Whoever answers your inbox needs a script that starts with a question, not a rule. A good first reply works for faults and change of mind alike.

Hi [name], thanks for getting in touch about order [number]. Could you tell me what's happened? If something is wrong with the item, such as a fault, damage or it isn't as described, please send a photo and we'll sort out a repair, replacement or refund. If you've changed your mind, I'll check what our returns policy allows and come straight back to you.

This works because it avoids the word "no" until the facts are known. It also becomes evidence that you responded promptly and fairly. Shopify's prevention guidance says to make contact details easy to find and reply quickly, and a customer who gets a thoughtful reply within a day rarely needs a bank.

Three rules for staff

Ask before you refuse. Find out whether it is a fault or a change of mind.
Never quote a "no refunds" line to a customer with a fault. Quote the policy section that applies.
Escalate anything unsafe. The ACCC includes unsafe goods in its list of major problems.

What if a customer quotes your old no refunds in Australia wording?

Do not defend it. Fix the wording, keep a record of the change, and respond to the customer's actual problem.

Ask what is wrong with the item. If it is faulty, unsafe or not as described, the law applies.
Offer the remedy. A major problem means the customer chooses a refund or replacement. A minor problem means you repair.
Reimburse reasonable return costs if a fault is confirmed.
Update the policy the same day.
Save the dated old and new versions.

Hi [name], thanks for letting us know about the problem with your order. You're right that our old wording didn't reflect your rights under the Australian Consumer Law, and we've updated it. For a faulty item you can choose a [refund / replacement]. Please send a photo and we'll arrange it straight away.

Why does no refunds in Australia matter more online?

A shop counter sign is read by whoever walks in. An online policy is read by a customer, a card issuer reviewer, Shopify's systems and possibly a regulator. The same words travel further and last longer.

Online wording is evidence. Shopify suggests refund and return policies, plus proof the customer was informed, in credit not processed disputes. A reviewer reads your page beside the customer's story, so a line that overreaches does damage in exactly the place you need help.

Online customers have a lever. Every card payment gives the customer a bank to call. Consumer Affairs Victoria notes that chargebacks are not available for cash, transfers, cheques, direct debit or BPAY, but they are available for the cards your Shopify store takes. A seller who says no refunds in Australia to a card customer with a fault is relying on the customer not using that lever.

Online mistakes repeat at scale. One sign in a shop affects one visitor at a time. One line in a checkout template affects every order. If the wording is wrong, it is wrong a thousand times.

What good online wording looks like

Good wording is specific, accurate and short enough to read at checkout.

Change-of-mind returns: [offer or "not accepted"]. Faulty, unsafe or misdescribed items: you may be entitled to a repair, replacement or refund under the Australian Consumer Law. See our full returns policy.

That one line can sit at checkout, on product pages for limited items, and in the order confirmation. It tells the customer the truth, it protects you from overpromising, and it gives you a dated, screenshot-ready record of what was shown.

How do you apply the rule to limited-return products?

Some products really are poor candidates for change-of-mind returns, such as items made to a customer's specification. You can say so, honestly.

Say it where the customer decides, on the product page and at checkout.
Say why, in one phrase: "made to your measurements".
Add the legal sentence: faults are still covered.
Keep a dated screenshot of the product page.

We cover custom items and sale items in detail in a separate post, because the question of how far you can limit change of mind there needs its own sources. For now, the rule that no refunds in Australia cannot override a fault applies to those products too, based on the ACCC page we reviewed.

What does the law say about penalties?

We did not find a source on penalties in the pages we reviewed, and we are not lawyers, so we will not state amounts. The ACCC's page says relying on "no refund" signs for faulty goods is illegal. If you are worried about past wording, take legal advice rather than guessing.

What's different for Australian merchants?

You are in the right jurisdiction for this rule. The consumer guarantees apply to goods sold in Australia, and the ACCC page is the plain-language reference.

Overseas templates mislead. Many policy templates come from stores in other countries, where "all sales final" has a different legal effect. Do not paste them in.

Customers have other routes. Consumer Affairs Victoria says customers can go to AFCA if their bank rejects a chargeback request, and CHOICE reports that a retailer can end up refunding through a chargeback even if it first refused. A refusal that the law does not support can cost you twice.

Long cardholder windows. NAB gives cardholders up to 120 days for Visa and Mastercard disputes, varying by reason, and 210 days for eftpos. A customer who is turned away by a "no refunds" line can still go to their bank months later.

Dates and money. Use A$ and full dates when you log policy changes, such as "updated 9 October 2026".

A checklist to clear no refunds in Australia wording from your store

Search your whole site for "no refund", "all sales final", "final sale" and "store credit only"
Check product pages, the FAQ, checkout notes, emails and old blog posts
Replace blanket lines with wording that separates faults from change of mind
Add the Australian Consumer Law sentence to your policy
Remove restocking fees, packaging demands and manufacturer referrals for faulty goods
State clearly what you offer for change of mind
Save dated copies of the old and new wording
Train anyone who answers customer emails
Review again in three months

What we could not verify

Penalties or case law for relying on "no refund" wording. The ACCC page says relying on it for faulty goods is illegal and gives no figures in the part we read.
Special rules for particular product types, such as food, health products or digital goods.
State and territory differences.
How a card issuer weighs a policy wording in a dispute.
Whether a particular sale type, such as clearance or custom goods, can be excluded from change of mind beyond what the ACCC page states. See our post on sale items and custom orders.

Where a decision depends on one of these, ask a lawyer or the ACCC and keep the reply.

Frequently asked questions

Can I say "no refunds" on my Australian Shopify store?

Not as a blanket statement. The ACCC says "no refund" signs and terms do not override consumer rights, and relying on them for faulty goods is illegal. You can say you do not offer change-of-mind refunds, as long as you also make clear the law's remedies for faults still apply.

Is "all sales final" legal in Australia?

Not for faulty goods. It has the same problem as "no refunds", because consumer guarantees cannot be removed by a sign. You may be able to limit change-of-mind returns, and you should say so in plain words, with a sentence confirming your legal obligations remain.

Do I have to refund if a customer changes their mind?

No. The ACCC says change of mind is not covered by the consumer guarantees. If you choose to offer a change-of-mind policy, you must honour it, so set a window and conditions you can afford and apply them consistently.

Can I offer store credit instead of a refund?

For change of mind, yes, if you say so clearly. For a major problem, the ACCC says the customer chooses a refund or replacement, and the refund goes to the original payment method, so store credit alone does not meet that. Keep the two cases separate in your policy.

Can I charge a restocking fee?

You can for change-of-mind returns if you state it in advance. You cannot deduct for use on a major problem, according to the ACCC. If no fault is found, you may charge collection and inspection costs with a reasonable estimate given in advance.

What should I put instead of "no refunds"?

Say what you offer for change of mind, and add that the Australian Consumer Law gives rights for faulty, unsafe or misdescribed goods. For example: "We don't offer change-of-mind refunds. If your item is faulty or not as described, you may be entitled to a repair, replacement or refund."

Does a "no refunds" sign help me win a chargeback?

Unlikely. Shopify suggests refund and return policies and proof the customer was informed as evidence, but a policy that denies legal rights is weak evidence and may count against you. A clear policy that follows consumer law is far more useful.

What if a customer disputes after I refused a refund under my sign?

If the claim is about a fault, take it seriously. An inquiry can be ended with a full refund, but an open chargeback cannot be refunded, so you respond or accept. Our accept or fight guide explains how to weigh the case.

Do the rules apply to sale items?

The consumer guarantees apply to goods whether or not they are on sale, based on the ACCC page we reviewed. We have a separate post on sale items and custom orders, and we could not verify any exceptions beyond what that post covers.

Start free trial with ChargeFix

ChargeFix helps Australian Shopify merchants turn their order, delivery, message and policy records into a ready response. You review and file it, or let Auto mode handle them. If you are replacing "no refunds" wording and want your policy to work as evidence, you can try it on a free trial first.

Start free trial