Consumers have protections when making purchases from a business. This means: no misleading claims, no unfair contracts, and tight rules around sales approaches.

Know your rights and call it out if a business isn’t fair and transparent in its dealings with you.

Misleading Conduct

Businesses must not create a misleading impression about the price, value or quality of their products and services.

For example, businesses must not:

• post fake testimonials on their website
• make false claims about their products or service – eg claiming a watch is waterproof, if that’s not true
• claim the products they sell are ‘made in Australia’ if they import the items and only make a small change to the products in Australia – eg attaching a decorative design
• promote a price if customers can’t really buy the item for that price, because other fees or charges (that aren’t optional) apply
• use false price comparisons – eg stating an item 'was $200, now $150' if the business only sold the item for $200 for a very short time before the sale started.

Price gouging

Businesses are generally free to set their own prices, and factors like supply and demand can influence how much things cost.

Sudden price increases or prices that consumers feel are too high - often described as price gouging - are not illegal on their own.

But it is illegal for a business to mislead customers about the price or the reason for a price rise.

If you believe a business’s price is too high, you could look for another supplier or decide not to buy the product or service, if that’s an option.

Unfair contract terms

A standard form contract is a ready-made contract and there’s no real chance for the customer to negotiate. It’s illegal for a business to use unfair terms in a standard form contract, and heavy penalties may apply.

If you are given a ‘take it or leave it’ contract, the terms must be fair.

A term is unfair when it’s one-sided, would cause you harm, and isn’t something the business genuinely needs. It doesn’t apply to the product or service for sale or how much it costs.

Customers don’t have to follow a contract term that’s unfair.

Unfair contract term examples

• The business can change a major term without your agreement and you can’t change or cancel the contract.
• the business can decide if you have breached the contract and charge a penalty, but you can’t sue the business if the business breaks the contract, acts negligently or causes you harm.
• Once a free trial ends, you are locked into a year‑long subscription and charged right away – with no warning or no way to cancel.

Unsolicited Sales

An unsolicited approach is where a salesperson approaches you without being invited or having an appointment. There are rules around when a salesperson can try and sell by knocking on your front door, calling over the phone or approaching you in a public place.

If you agree to a contract, you have a 10-business day cooling off period to rethink the decision, compare offers with other suppliers, and cancel without penalty. The seller must not take any money or perform work during the cooling off period.

The seller must provide you a written contract, including information about your cooling off rights. The contract must be provided at the time of sale, if made in person, or sent to you straight away if the sale was made over the phone.

You have rights if these or other rules aren’t met, so seek advice or help if you need to.

Unless you’ve agreed to an appointment, sellers cannot:

• knock on your door after 6pm, or call after 8pm, Monday to Friday
• knock or call after 5pm on Saturday
• visit or call at all on Sundays or public holidays.

If you feel unsure or uncomfortable, remember you’re not obliged to make a purchase. It’s best to take time to research the seller yourself and compare deals with other suppliers. And if a deal seems too good to be true, it usually is.

Shopping online

Don’t buy something just because you think the photo, description and price look good.  Research online to compare prices and check reviews about other customer experiences.

Be aware that links in emails or social media messages may direct you to a fake site or download malware to your device to steal your personal information, so take a moment to ‘Stop. Check. Protect’.

• Stop - think carefully before handing over your money or personal details
• Check - make sure you’re visiting a legitimate retailer’s website
• Protect - act quickly if something feels wrong.

Learn more about how to protect yourself from scams at scamwatch.gov.au/stop-check-protect

Before you click to buy, make sure the website is secure. Look for the closed padlock symbol next to the website address, and make sure the website begins with https (not just http).

Save copies, such as screenshots, of your purchase confirmation and other details.

Consumer guarantees and refund rights

Most products and services consumers buy come with automatic consumer guarantees.

If a consumer guarantee isn’t met you may be entitled to a refund, repair or having the goods replaced, depending on the problem.

You have the same rights whether you shop in‑store or online, as long as you're buying from a business - not a private seller.

If you change your mind or pick the wrong size or colour, you're not automatically entitled to a refund. Businesses that offer refunds or exchanges for any reason are offering more than the Australian Consumer Law requires. So if you’re buying an item as a gift, check the store’s refund policy before you buy.

Gift cards

Most gift cards must have at least a three‑year expiry, except for a few limited‑time products or events. The expiry date must be clearly shown.

Businesses can’t charge extra fees after purchase that reduce the card’s value - like activation, account‑keeping or balance‑check fees.

Gift voucher terms can differ from business to business, so check the details before you buy.

Check:

• when the card will expire
• any spending limits
• if and how the store will give change
• stores or specific items that are excluded from shopping centre cards
• if a lost or stolen gift card can be replaced
• how you can find out the remaining balance on the card.
• suggest to the gift card recipient to set a phone/calendar reminder so they don't miss out before the card expires.

If there’s a problem

If you deal with a business that hasn’t done the right thing with their promotions, sales approach or the contract, contact the seller in the first instance. But if the issue remains unresolved, please contact us at CBS for advice.