Many of us are keeping a close eye on our household budgets, but still need essentials such as petrol, replacing old appliances, or worn-out shoes.
You can be assured that the Australian Consumer Law protects you when you buy from a business – there should be no misleading information, no unfair contracts, and clear rules for salespeople.
It’s good to know your rights so you can shop with confidence, and it’s okay to speak up if a business isn’t being fair or open with you.
Misleading Conduct
Promotions that trick or mislead people aren’t just frustrating - they’re illegal. Sometimes a business does this on purpose to boost sales, and sometimes it happens because they don’t fully understand the rules. You also may have heard about customer service chatbots giving incorrect or confusing information. But it doesn’t matter whether the business meant to mislead anyone or not. You have the right to expect clear, honest information every time.
For example, a business would be misleading if it:
- puts fake customer reviews on its website
- says its product meets a certain standard when it really doesn’t
- advertises a “special” sale price that isn’t a genuine discount
- claims its products are “made in Australia” when they’re not
- suddenly puts prices up and gives an untrue reason for the increase.
These kinds of tactics are unfair, and you have every right to question them.
Unfair contract terms
Many businesses use standard contracts that are offered on a “take it or leave it” basis. This means there’s usually no chance to negotiate the terms - like with gym memberships or streaming subscriptions.
The good news is that the Australian Consumer Law protects you from unfair contract terms. Businesses that use unfair terms can face serious penalties.
A contract term may be unfair if, for example:
- the business can change important parts of the contract without asking you, but you can’t change or cancel it
- the business can decide you’ve broken the contract and charge you a penalty, but you can’t take action if they do the wrong thing
- a free trial turns into a 12‑month subscription without warning and you’re charged straight away and can’t cancel the contract.
You don’t have to go along with an unfair contract term. If something doesn’t seem right, raise it with the business.
Read more about what to do if you find an unfair term.
When a salesperson approaches you
An unsolicited approach is when a salesperson contacts you unexpectedly — by phone, at your door, or even in a public place. There are rules about how salespeople can do this.
If you agree to buy, you’re not locked in straight away. You have 10 business days to change your mind and cancel without being penalised. The seller must give you a written contract explaining these rights. If the sale happens in person, you should get this contract on the spot. If it’s over the phone, the contract must be sent to you straight away. The seller shouldn’t take any money or perform work before the cooling off period finishes.
If the rules haven’t been followed, get advice about your rights and options.
Remember, you don’t have to say yes, especially if you feel unsure or uncomfortable. Take your time, do your own research, and compare other offers. If a deal sounds too good to be true, it usually is.
Read about your rights if you receive an unrequested product or service.
Know your rights
If you’re concerned a business hasn’t done the right thing, and you’ve already tried to sort it out with them but aren’t satisfied, contact Consumer and Business Services (CBS) for advice about your rights and next steps.