Legal & Compliance18 April 2026

Australian Consumer Law: What Small Businesses Must Know

Your obligations under Australian Consumer Law (ACL). Consumer guarantees, refund rules, misleading conduct, and what the ACCC enforces.

The Australian Consumer Law (ACL), administered by the ACCC and state fair trading bodies, applies to every business that sells goods or services to consumers in Australia — regardless of size. Breaching the ACL can result in penalties of up to $50 million for companies.

Consumer guarantees are automatic and cannot be excluded by contract. Goods must be of acceptable quality, fit for purpose, match their description, and match any sample or demonstration model. Services must be provided with due care and skill, be fit for purpose, and be delivered within a reasonable time. If a product or service fails to meet a guarantee, the consumer is entitled to a remedy — repair, replacement, or refund depending on whether the failure is major or minor.

"No refund" signs are illegal in Australia. You cannot tell customers that you don't give refunds — consumer guarantees apply regardless of any store policy, terms and conditions, or signs. You can set reasonable policies for change-of-mind returns (these are not required by law), but you must be clear about the distinction.

Misleading or deceptive conduct is one of the most commonly enforced provisions. This covers: false claims about products or services, hidden fees or charges, bait advertising (advertising a product you don't have sufficient stock of), and testimonials or reviews that are fabricated or incentivised without disclosure. The ACCC actively monitors online advertising, social media, and Google reviews.

Frequently Asked Questions

Need personalised advice?

Get a professional AI-generated report tailored to your specific business situation — with Australian legal sources and actionable steps.

Get Legal Advice

Related Topics