Problems with the goods or service

Problems with the goods or service 

If you have a problem with goods or a service you purchased, you may be able to ask the business to repair, replace, refund what you bought. For more information see Repair, replace, refund or cancel on the Australian Competition and Consumer Commission (ACCC) website. 

What you can ask for will depend on how serious the problem is and how the business responds.

You are not automatically entitled to a repair, replacement or refund if you:

• changed your mind

• found the same item cheaper somewhere else

• misused the product and caused the problem

• decided you didn’t like the purchase

• no longer need the product or service.

There are some circumstances where goods are not covered by the Australian Consumer Law (ACL). For more information see When consumer guarantees don’t apply. 

For information about problems with a motor vehicle that you bought see  Problems with a motor vehicle you bought from a dealer.

Faulty goods 

Goods sold by businesses are automatically covered by consumer guarantees under the Australian Consumer Law (ACL). If goods are not of acceptable quality, you may be entitled to a remedy. What you can ask for depends on whether the problem is major or minor.

Major or minor problem

The type of remedy you can ask for depends on how serious the problem is.

A major problem is where:

• you would not have bought the item if you had known about the problem

• the goods are significantly different from a sample, description or demonstration model

• the goods don’t do what they are supposed to do

• the goods are unsafe. 

A minor problem is where the problem can be fixed easily by the business within a reasonable time.

Repair, replacement or refund

If there is a major problem with the product, you can ask for a replacement or a refund. A replacement must be similar to the original item.

If there is a minor problem, the business may choose to:

• repair the goods within a reasonable time, or

• give you a replacement, or

• give you a refund.

You are not entitled to a repair, replacement or refund if:

• the damage was caused by fair wear and tear

• you changed your mind

• you were made aware of the defect at the time of purchase

• you misused the goods. 

For more information, see Repairs, replacements and refunds on the NSW Government website.

If the business agrees to repair, replace or refund you, they must do this within a reasonable time. What is reasonable depends on things like:

• the type of goods that need to be repaired

• the availability of parts.

You should ask the business for an approximate date. If they do not fix the problem within a reasonable time, you can ask for a replacement or refund.

 If the business refuses to provide a remedy

Sometimes a business refuses to repair, replace or refund. If this happens, you still have options. For more information, see Negotiating with the business and making a complaint. 

Cancelling a service

Services must be carried out with due care and skill and provided within a reasonable time. If there is a problem with a service, you may be entitled to a remedy depending on what went wrong. Some contracts include a cooling-off period, which lets you change your mind within a certain number of days. This is usually written into the contract.

If you have a problem with a service, contact the business and explain what the problem is. They may offer to fix the problem or provide a refund. For more information, see Negotiating with the business and making a complaint.

You have a right to cancel a service if there is a major problem.

There may be a major problem if:

• you would not have purchased the service if you knew about the problem

• the service was not carried out with an acceptable level of care and skill

• the problem can’t be easily fixed

• the service was not provided within a reasonable time

• the service creates an unsafe situation.

Depending on the problem, you may still need to pay for part of the services you’ve already received.

For information about rights depending on the type of service, see Services and your consumer rights on the NSW Fair Trading website.

For a sample letter to cancel a service, see Cancelling a service on the NSW Fair Trading website. 

When you can’t cancel a service

You can’t cancel a service or get a refund if:

• the services were provided and work as expected

• the problem was outside the control of the business

• you changed your mind

• you asked for the service to be provided in a particular way against the business’ advice 

• you didn’t clearly explain your requirements to the business. 

If you are still unsure what to do, you should get legal advice about your situation.

Compensation for damage or loss

You can ask a business to pay you compensation if you suffer a loss or damage because of a problem with goods or services. This may include financial costs or lost time.

You will need to show the business should have reasonably foreseen the problem. That means they should have known the problem could happen. You may also be able to ask the business to pay for damage or loss caused by the problem. 

For more information, see Claiming compensation on the ACCC website.

Asking for compensation for damage or loss

Before you ask for compensation, consider:

• if the loss or damage that you suffered was caused by the business failing to meet a consumer guarantee

• what steps you took to minimise the loss or damage.

If you keep using a product after you know it is causing damage, you may not be compensated for damage that could have been avoided.

A business is not responsible to pay compensation if the damage was not caused by them or their product.

Keep a record or proof of any costs

Keep records of anything you have had to pay for because of the problem for example:

• receipts

• invoices

• bank statements.

If you are claiming compensation, you may need evidence showing:

• what you paid, and

• how it connects to the problem.

If the business refuses to provide compensation

If the business refuses to provide compensation, you should contact them directly to explain the problem and ask for compensation. 

If they refuse to negotiate or offer a remedy, you can complain to Fair Trading NSW. For more information, see Negotiating with the business and making a complaint.

Last updated: June 2026