Sale item refund rights in Australia: sale and custom

It is the end of a big sale weekend. Orders are up, margins are thin, and you have put "Sale items cannot be returned" on the product pages to protect what is left. Or you run a small studio that makes things to order, and "custom orders are final" has been your rule since day one. It sounds reasonable. It is what many shops say. And it is exactly the kind of line the ACCC has gone looking for.

Sale item refund rights in Australia are the same as for full price goods when it comes to faults: a discounted price does not remove the consumer guarantees. The ACCC reviewed return policies and terms across more than 2,000 retail websites and flagged blanket "no refund" conditions on sale or specialised items as potentially misleading. Custom and made-to-order goods get a similar warning, and they raise a practical question that sale items do not: what do you do when you cannot resell the product? This guide separates what you can restrict from what you cannot, shows the wording the ACCC flagged, and gives you replacements that protect your margin without creating a dispute.

This guide is for you if:

You run sales, clearance or final markdowns and want to know what you can say about returns.
You make custom, personalised or made-to-order products and want a policy that protects you without breaking the law.
A customer has disputed a sale or custom order and you are not sure where you stand.

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

The 30-second answer (TL;DR)

The consumer guarantees apply to sale items, clearance items and made-to-order goods. A lower price does not switch them off.
The ACCC's February 2025 sweep of more than 2,000 retail websites flagged blanket "no refund" conditions on sale or specialised items as potentially misleading.
The ACCC gave example wording it was concerned about: "Sale items cannot be returned, exchanged or refunded" and "Made to order products cannot be returned".
You can generally restrict change of mind returns on sale and custom goods, if you say so clearly before purchase. You cannot restrict remedies for faults, unsafe goods or goods significantly different from their description.
If you offer a return or change of mind policy, the ACCC says you must honour it.
Dispute risk is highest when the policy line is broader than the law. A customer with a real fault and a "no refunds" sign is the classic chargeback.
The fix is a two part policy: faults are always covered, change of mind is limited for sale and custom items.

Quick note: A sale changes the price, not the product. If a discounted kettle leaks, the customer has the same rights as someone who paid full price. If a custom mug arrives with the wrong name on it, the fact that you made it to order does not make that their problem.

Sale and custom items at a glance

Situation	Can you refuse?	Why
Sale item, faulty	No	Consumer guarantees apply
Sale item, change of mind	Generally yes, if stated clearly	Change of mind is not covered by the guarantees
Custom item, faulty	No	Guarantees apply
Custom item, wrong name or spec versus the order	No	Significantly different from what was ordered
Custom item, customer dislikes the design they approved	Generally yes, if stated clearly	Change of mind
"Final sale" sign	Only for change of mind	It cannot override consumer rights
Sale item described as "as is"	Not for faults	Terms do not override consumer rights

What does the ACCC say about sale item refund rights and custom orders?

The ACCC's media release of 4 February 2025 (release 5/25) reports a sweep of return policies and terms and conditions on more than 2,000 Australian retail websites. Among the practices it flagged as potentially misleading were time limits for returning faulty products, blanket "no refund" conditions on sale or specialised items, and presenting manufacturer warranties as the only remedy for faulty goods.

It listed example statements it was concerned about, including:

"Items that have been opened and used cannot be exchanged or refunded"
"Made to order products cannot be returned"
"Sale items cannot be returned, exchanged or refunded"

The ACCC's position, as reported, is that consumer guarantees cannot be removed by a business's statements or warranties. It sent warning letters to several businesses, and says most changed or removed the concerning statements. The sweep itself announced no penalties. Separately, the ACCC has taken action elsewhere: it reports Koala & Tree Pty Ltd paid A$56,340 under three infringement notices in November 2024, including for claiming a 72-hour limit on remedies for faulty products. That was a different practice, but it shows the ACCC will act on statements about remedies.

A law firm's summary of the sweep adds that contractual terms purporting to exclude, modify or limit a consumer guarantee are void, with limited exceptions for repair or replacement. We cite that as a secondary source, and we did not verify the statutory wording ourselves.

What the ACCC did not say

Two things matter for what we can and cannot claim. The release does not use the exact phrases "final sale" or "personalised" in the parts we read, and it does not prescribe wording for a lawful sale policy. So when this guide says what you can restrict, it relies on the ACCC's repair, replace, refund, cancel page, which says change of mind is not covered by the guarantees, and on the principle that your own policy must be honoured.

What do the consumer guarantees still cover on a sale item?

The ACCC's repair, replace, refund, cancel page (dated 21 July 2026) says a failed consumer guarantee entitles the customer to a repair, replacement or refund, and you cannot send the customer to the manufacturer. A major problem lets the customer choose a refund or replacement. A minor problem means a free repair.

None of this depends on the price. A sale item that is unsafe, significantly different from its description, seriously faulty, or unusable and not quickly fixable is a major problem. See our guide on major vs minor failure.

The ACCC page also says "no refund" signs and terms do not override consumer rights, and relying on them for faulty goods is illegal. That sentence is the heart of this topic.

Does "as is" or "seconds" change anything?

Sellers often describe discounted goods as seconds, ex-display or as is. Describing a known imperfection honestly can matter, because the guarantees are measured against what a reasonable buyer was told. If your page says "seconds: small cosmetic marks on the back", a mark on the back is probably not a major problem. But we could not verify how far a disclosure reduces your obligations, and "as is" on its own does not remove the guarantees for a fault you did not disclose. Be specific: say what is wrong, and show it in a photo.

Why do sale item refund rights cause so many disputes?

Sale periods are when stores are busiest and least careful. Descriptions are copied across, policies are tightened in a hurry, and support is stretched. Customers, meanwhile, are buying at lower prices and often at higher volume, so a larger share of orders arrive with someone who has never bought from you before.

Sale item refund rights become a dispute trigger in three ways. First, a customer reads "no returns" and assumes it covers faults, then files with their bank when a fault appears. Second, a customer buys a discounted item that is not quite what they expected, and finds there is no easy route back. Third, a stretched support team gives inconsistent answers, refusing one faulty sale item and accepting another.

The remedy for all three is the same: a short, clear policy that separates faults from change of mind, applied the same way every time. Sale item refund rights are not complicated once the two categories are kept apart.

A sale season checklist

Before you launch a sale, check:

Every "no returns" or "final sale" line says "for change of mind" and is followed by a fault sentence.
Discounted items with known defects are labelled with the defect and a photo.
Support has a one page guide on faults versus change of mind.
Your policy page is dated, and you have saved a copy.
Dispatch estimates are realistic, because sales create delays.
Someone is assigned to watch the dispute list during and after the sale, since the deadline is usually 7 to 21 days after filing.

What do sale item refund rights mean for your margins?

It is tempting to treat returns as a cost to be eliminated. The better approach is to compare the cost of a policy with the cost of its failure modes. These numbers are illustrative.

Approach	Policy wording	Typical result	Risk
Blanket ban	Sale items cannot be returned	Fewer change of mind returns	Fault disputes, regulatory attention
Narrow limit	No change of mind returns on sale items; faults covered	Few returns, few disputes	Low
Generous	14 day change of mind returns on sale items	More returns	Higher cost per sale, but few disputes

For most stores the narrow limit is the sweet spot. It protects margin on the item customers most often regret, and it removes the one thing the ACCC objected to. The generous option can make sense if your sale stock is not heavily discounted and returns are resaleable.

What can you lawfully restrict?

The line runs between change of mind and everything else.

Change of mind is not covered by the guarantees. The ACCC says so directly, and also says any change of mind policy you offer must be honoured. That means you can generally decide that sale items are not returnable for change of mind, provided you say so clearly before purchase and your wording does not spill over into faults. Our guide on change of mind refunds covers how to word it.

Faults, unsafe goods and misdescription are covered. You cannot restrict these by policy, price tag or sign.

A good rule: every limiting sentence on your site should either say "for change of mind" or sit directly beside a sentence confirming that faults are handled under the law.

A practical test helps when you are unsure whether a line is safe. Read it aloud as if you were the customer with a broken item. If the sentence appears to tell that customer they have no remedy, it is too wide, however you meant it. Then read it as a customer who has simply changed their mind. If it tells them clearly what they can and cannot do, it is doing its job. Sale item refund rights come down to this: say less about faults, say more about change of mind, and never let one sentence do both jobs. Share the test with whoever edits your policy pages, including any freelancer or app that writes product copy for you, because wording often drifts when many people touch it.

Wording that creates risk

Risky wording	Why it is risky	Safer alternative
Sale items cannot be returned, exchanged or refunded	Reads as covering faults	Sale items are not eligible for change of mind returns. Faulty or misdescribed items are handled under the Australian Consumer Law
Made to order products cannot be returned	Reads as covering faults and errors	We do not accept change of mind returns on made to order items. If your item arrives faulty or does not match your order, we will fix it
Final sale	Ambiguous	Final sale for change of mind. Faults covered
Items that have been opened and used cannot be exchanged or refunded	May exclude items that only reveal faults when used	Unused items only for change of mind returns. Faulty items may be returned used
Claim within 30 days of delivery	Time limit on fault claims	Remove it, or limit only the change of mind window
Warranty claims go to the manufacturer	Sends customer elsewhere	We handle faults directly and recover from our supplier

How do custom and made-to-order orders work?

Custom goods differ from sale goods in one way that matters: you usually cannot resell them. That makes a change of mind return costly, and most sellers reasonably want to refuse it. The law does not stop you from limiting change of mind returns on custom goods, so long as you say so before the customer pays and keep your promise to yourself.

But custom goods still carry the guarantees. Three situations come up repeatedly.

The item has a fault. A custom bag with a broken zip is a faulty bag. The customer has a remedy.

The item does not match the order. A mug with the wrong name, a print in the wrong colour, a size different from the one specified. This is not a change of mind. The item is significantly different from what the customer ordered and agreed. Treat it as a major problem unless the difference is trivial.

The customer approved a proof and now dislikes it. If you showed a proof and the customer confirmed it, and the item matches the proof, this is closer to change of mind. Keep the proof and the approval, because they are your evidence.

Illustration: an A$85 personalised print, three complaints

Complaint	Classification	Remedy	Seller cost (assumed)
Name misspelt compared with approved proof	Mismatch, major	Reprint or refund	A$30 reprint cost plus A$10 postage
Print is blurry on delivery	Fault, likely major	Reprint or refund	A$30 plus A$10
Customer approved the proof, now dislikes it	Change of mind	Decline, if policy says so	A$0, but a possible dispute

The third row is the one to prepare for. A dispute there is winnable if you can show the policy, the proof and the approval. It is a loser if your policy is vague or the customer never saw it.

How do you document a custom order?

Treat each custom order as a small contract. Keep:

The specification the customer submitted, with date.
The proof you sent, and the customer's approval, in writing.
Photos of the finished item before dispatch.
The policy showing "no change of mind returns on custom items", dated, with a record of where it appeared.
Fulfilment and tracking.

If a dispute arrives, these five items are most of your response. Our evidence checklist lists the rest.

What happens in a dispute over a sale or custom item?

On Shopify Payments, the dispute reason usually reflects what the customer says. "Product unacceptable" is common for a fault or mismatch, and "credit not processed" is common when the customer says they asked for a refund and did not get it. Shopify's reasons page suggests, for product unacceptable, fulfilment details, tracking, product descriptions and photos, and proof the customer did not try to return the item or that a replacement was sent. For credit not processed it suggests refund and return policies, proof the customer was informed, emails, an explanation, or proof of an earlier refund.

The mechanics are the same as for any dispute:

The deadline is usually 7 to 21 days after filing, in your store timezone, and 11:59 PM if no time is shown. Shopify auto-submits on the due date.
Files must be PDF, JPEG or PNG, up to 2 MB each and 4 MB in total, one per evidence type, and no links.
The issuer decides up to 75 days after submission.
A full refund ends an inquiry, a partial refund does not, and an open chargeback cannot be refunded.
The dispute fee is A$25, and every dispute counts toward your chargeback rate.

Illustration: the same A$60 sale item, two policies

	Policy A: "Sale items cannot be returned"	Policy B: "No change of mind returns on sale items. Faults covered"
Customer reports a fault	Told no refund	Offered a remedy
Customer files dispute	Likely	Unlikely
If a dispute is filed	Weak evidence, policy contradicts the guarantees	Strong evidence, policy is clear and lawful
Cost if you lose	A$60 plus A$25 fee	A$60 plus A$25 fee
Regulatory exposure	The wording ACCC flagged	Low

The second policy costs you nothing extra and takes one sentence longer to write. We could not verify how an issuer weighs one policy against the other, but a policy that matches the ACCC's position is the safer document to put in front of anyone.

How do made to order and custom orders change your risk?

Made to order goods concentrate risk in the specification. When the product is built for one customer, the dispute is rarely about the product in general. It is about whether the item matches what the customer asked for.

That makes custom orders a documentation exercise. A clear form with fields for name, size, colour and text, a proof the customer approves, and a photo before dispatch will answer most disputes before they start. A free text box and a verbal agreement will not.

Consider also the order of events. Take payment after the proof is approved, not before, if your process allows it. A customer who approved the proof has less room to say the item is not what they ordered, and you have a cleaner record if they do.

What if the customer cancels a custom order before you start?

Cancellation before work begins is a commercial decision. The ACCC page we read does not address cancellations of custom orders, and we could not verify a rule, so state your approach in the policy: for example, full refund before production begins, no change of mind refund once production has started. Whatever you write, honour it.

How should you word a sale policy?

Keep it short and put the fault sentence first.

Sale and clearance items. Sale items are not eligible for change of mind returns. If your item is faulty, unsafe or not as we described it, you are entitled to a repair, replacement or refund under the Australian Consumer Law. Contact us with your order number and a photo and we will sort it out.

And for custom goods:

Custom and made to order items. Because these are made for you, we cannot accept change of mind returns. We will show you a proof before we make your item. If your item arrives faulty, or does not match the proof you approved, we will fix it by reprinting, replacing or refunding.

Notice the structure. The limit is narrow, the fault promise is explicit, and the proof is mentioned. Our guides on writing a refund policy and saying no refunds give more templates, and the post on store terms and conditions covers the rest of your terms.

Where should these lines appear?

On the product page near the price, in the cart or checkout, and in your policy page. A line a customer never saw is weak evidence. Shopify's guidance for credit not processed suggests proof the customer was informed. We could not verify Shopify's current admin steps for adding checkout notices, so check your own settings.

What if you cannot resell a returned sale item?

This is a commercial problem, not a legal defence. If you accept a return of a faulty item, you bear the cost, and you may recover from your supplier. The ACCC page mentions that manufacturers can reimburse businesses. If you decide to accept a change of mind return on sale goods as a goodwill gesture, say it is a one-off, because anything you offer as policy must be honoured.

For custom goods, resale is often impossible. That is why the limit on change of mind is reasonable, and why the proof and approval step matters. Spend your effort on getting the order right the first time.

What's different for Australian merchants?

The guarantees are national and cannot be contracted out of. The ACCC says "no refund" signs and terms do not override consumer rights, and relying on them for faulty goods is illegal.

The ACCC is actively looking. Its 2025 sweep covered more than 2,000 retail websites and ended with warning letters to several businesses. We cannot say whether a given store will be contacted, but the wording is on the public record.

No fixed expiry. The ACCC commissioner has said, in connection with a case against a retailer, that consumer guarantees "don't have a specific expiry date". That matters for sale goods that fail late. We cover the case in our post on terms and conditions, and note that it is an allegation, not a finding.

Long bank windows. NAB gives cardholders up to 120 days for Visa and Mastercard disputes, varying by reason, and 210 days for eftpos. CHOICE reports the Visa window can run from the expected delivery date, with a 540 day outer limit.

Escalation. Consumer Affairs Victoria says customers can go to AFCA if their bank rejects a chargeback request.

Fees in A$. The dispute fee is A$25, and Shopify's international fees page says card and conversion fees are not returned on refunds. We could not verify how that applies to domestic cards.

Common mistakes

Putting "final sale" on everything

It reads as a ban on all returns. Limit it to change of mind, and add a fault sentence.

Treating custom as exempt

Made-to-order goods still carry the guarantees. A wrong name is not change of mind.

Hiding the limit

A restriction the customer never saw is weak evidence. Show it before payment.

Charging restocking or processing fees on faults

The ACCC flagged restocking and processing fees on faulty returns.

Making customers pay return postage for faults

The ACCC page says you must reimburse reasonable return costs if a fault is confirmed.

Setting a short window for fault claims

The ACCC flagged time limits for returning faulty products.

Not keeping the proof

For custom orders, the approved proof is your best evidence. Save it.

What we could not verify

Any ACCC rule specific to personalised or custom goods. The release we read mentions made-to-order products only.
How far an honest disclosure of defects on seconds or ex-display goods reduces your obligations.
How a card issuer weighs a sale or custom policy against a customer's account.
Penalty amounts for "no refund" wording beyond the infringement notice reported for a 72 hour limit.
Shopify's current steps for adding policy notices at checkout.
State or territory differences, and anything beyond the ACCC page of 21 July 2026 and the February 2025 sweep.

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

Frequently asked questions

Can I refuse returns on sale items in Australia?

You can generally refuse change of mind returns on sale items if you say so clearly before purchase. You cannot refuse a remedy for a fault, because the consumer guarantees still apply. The ACCC flagged "Sale items cannot be returned, exchanged or refunded" as wording of concern, so add a fault sentence.

Do the consumer guarantees apply to discounted goods?

Yes. The price does not switch off the guarantees. A sale item that is unsafe, seriously faulty, significantly different from its description or unusable is a major problem, and the customer can choose a refund or replacement. Describe known defects honestly, with photos, if you sell seconds.

Can I say "no refunds on custom orders"?

Not as written. The ACCC flagged "Made to order products cannot be returned" as a concern. You can say you do not accept change of mind returns on custom orders, and add that faulty items, or items that do not match the approved order, will be fixed. That covers you and the customer.

What if a custom item does not match the order?

It is not a change of mind. An item significantly different from what was ordered is a major problem, and the customer can choose a refund or replacement. Compare the item with the specification and the approved proof, then offer a reprint or refund promptly.

Does "final sale" protect me from chargebacks?

Only against change of mind complaints, and even then it needs to be visible before purchase. The ACCC says "no refund" signs and terms do not override consumer rights, so for faulty goods it offers no protection and may increase your risk in a dispute.

What evidence helps in a custom order dispute?

Keep the customer's specification, your proof and their approval, photos of the finished item, your dated policy and where it appeared, and the fulfilment record. Files must be PDF, JPEG or PNG, 2 MB each and 4 MB in total, one per evidence type, with no links.

Can I charge a restocking fee on a faulty sale item?

The ACCC flagged restocking and processing fees on faulty returns as a concern, and says you must reimburse reasonable return costs if a fault is confirmed. For change of mind returns the rules are different, and we could not verify a limit on restocking fees there.

How long do customers have to claim a fault on a sale item?

The ACCC commissioner has said consumer guarantees do not have a specific expiry date, and the ACCC flagged fixed time limits for faulty returns as a concern. What is reasonable depends on the product. Do not write a fixed cutoff for fault claims into your policy.

Can a customer dispute months after buying a sale item?

Yes. NAB gives cardholders up to 120 days for Visa and Mastercard disputes, depending on the reason, and 210 days for eftpos. CHOICE reports the Visa window can run from the expected delivery date, with a 540 day outer limit. Keep your records and proofs that long.

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