Online Sales Terms and Consumer Law Lawyers Adelaide: Refunds, Warranties, Pricing and Reviews
Online sales terms and consumer law in South Australia
An online store’s terms and returns page are where the Australian Consumer Law is most often misstated, and the regulator reads them too. Talon Legal drafts and reviews online sales terms, returns and warranty wording, pricing displays and subscription terms for Adelaide online stores and the platforms they sell through. Book a same-day free 30-minute consultation or call (08) 7094 2021.
Online sales terms key facts
| Issue | Position in South Australia |
|---|---|
| Who is a consumer | A buyer paying $100,000 or less, or buying goods ordinarily acquired for personal, domestic or household use (ACL section 3 and regulation 77A). Not a business buying to resell (section 3(2)). |
| Guarantees for goods | Acceptable quality, fitness for any disclosed purpose, and correspondence with description (sections 54 to 56). Software is goods (section 2). |
| Remedies | Minor failure: the consumer can require a remedy within a reasonable time (section 259(2)). Major failure: reject the goods and choose a refund or replacement (sections 259(3) and 263(4)). |
| No contracting out | A term that excludes, restricts or modifies the guarantees is void (section 64). |
| Misstating rights | A false or misleading representation about any guarantee, right or remedy is prohibited (section 29(1)(m)). Booktopia was penalised $6,000,000 over its returns terms. |
| Warranty wording | Warranties against defects must include the prescribed statement that the goods come with guarantees that cannot be excluded under the Australian Consumer Law (section 102; regulation 90(2)). |
| Pricing | A part price needs the single total price beside it, prominently, for consumer goods and services, and a known minimum delivery charge must be stated (section 48). |
| Receipts | A proof of transaction must be given for purchases of $75 or more, excluding GST (section 100(1)). |
| Reviews | False testimonials are prohibited (section 29(1)(e) and (f)). Filtering review invitations to exclude complainants was likely to mislead (ACCC v Meriton at [213]). |
| Subscriptions from 1 July 2027 | Consumer and small business subscriptions must offer an easy way to end them, online where the customer signed up online (new section 48F). |
| Maximum penalty | Body corporate: the greatest of $100,000,000, three times the benefit, or 30% of adjusted turnover. Anyone else: $2,500,000 (section 224). |
| First step | Same-day free 30-minute consultation. Call (08) 7094 2021. |
Need an online sales terms lawyer in Adelaide?
Our online sales terms lawyers in Adelaide act for online retailers, direct-to-consumer brands, subscription businesses and businesses selling digital products. Online sales terms govern ordering, payment, delivery, returns, refunds and warranties, and they must sit correctly alongside the Australian Consumer Law (ACL) in the Competition and Consumer Act 2010 (Cth) and the Competition and Consumer Regulations 2010. This page states the law current to 24 October 2026.
This guide is part of our online business and e-commerce practice. Related guides cover website terms of use, website content and copyright, software licences and SaaS terms and data protection and privacy.
For customer testimonials and photos in marketing, and for competitions and giveaways, see our guides to testimonial and image consents and trade promotions and competitions.
If you sell subscriptions, apps or online courses, or sell through a marketplace, see our guides to subscription and membership terms, app terms and conditions, online course terms and disclaimers and online marketplace and platform terms. Authors selling their own books can start with our guide to book and e-book publishing agreements.
Free Consultation. Send us your returns page and checkout terms for a compliance review. Book a same-day free 30-minute consultation or call (08) 7094 2021.
On this page
- What should online sales terms cover?
- Which consumer guarantees apply to online sales?
- What must an online store do when goods are faulty?
- Can an online store limit refunds or set reporting deadlines?
- What must a warranty against defects say?
- How must prices and delivery charges be shown?
- Does an online store have to give a receipt?
- What are the rules for reviews and testimonials?
- What changes for subscriptions in 2027?
- Do the unfair contract terms rules apply to store terms?
- How similar matters tend to play out
- How we act on online sales terms
- Case law
- Frequently asked questions
What should online sales terms cover?
Formation of the contract, payment, delivery, risk and title, returns, refunds, warranties, cancellations, and how the consumer law applies. The terms should say when an order becomes a contract, what happens if an item is out of stock or mispriced, how delivery works and who bears loss in transit, and how customers make a claim.
They must also describe the statutory rights accurately, or say nothing that contradicts them. Most of the risk on an online store sits in the returns page, the warranty card and the checkout display rather than in the long-form terms.
An online sales terms lawyer will read the terms with the website: the product pages, the checkout flow, the confirmation emails and any marketplace listing. A compliant document attached to a non-compliant checkout does not help.
Which consumer guarantees apply to online sales?
The same guarantees as in a shop. Goods supplied to a consumer, other than at auction, must be of acceptable quality (ACL section 54). Acceptable quality means fit for all the purposes goods of that kind are commonly supplied for, acceptable in appearance and finish, free from defects, safe and durable, as a reasonable consumer fully acquainted with the goods’ state and condition would regard as acceptable (section 54(2)). Price, packaging statements and the supplier’s representations are taken into account (section 54(3)).
Goods must also be reasonably fit for any purpose the consumer disclosed or the supplier represented (section 55), and correspond with any description, which on a website includes the product page (section 56).
A buyer is a consumer if the price was $100,000 or less, or the goods are of a kind ordinarily acquired for personal, domestic or household use (section 3 and regulation 77A). A business that buys goods to resell, or to use up or transform in production, is not a consumer of them (section 3(2)).
Digital goods are covered. Goods include computer software (section 2). In ACCC v Valve Corporation (No 3) [2016] FCA 196, Edelman J held that a supplier of downloaded games supplied goods to consumers ([137]).
What must an online store do when goods are faulty?
Provide the remedy the ACL requires, which depends on whether the failure is major. Where a failure can be remedied and is not major, the consumer can require the supplier to remedy it within a reasonable time, and if the supplier does not, have it fixed elsewhere and recover the cost or reject the goods (ACL section 259(2)).
Where the failure is major or cannot be remedied, the consumer can reject the goods or claim compensation for the drop in value (section 259(3)). A failure is major where, among other things, a reasonable consumer fully acquainted with it would not have bought the goods (section 260(1)(a)), or the goods depart significantly from their description (section 260(1)(b)).
On rejection, the supplier must refund or replace, as the consumer elects (section 263(4)). Offering a credit note does not satisfy the refund obligation (section 263(5)). The consumer must return the goods unless they cannot be returned without significant cost, in which case the supplier must collect them at its own expense (section 263(2) and (3)). The consumer can also recover damages for reasonably foreseeable loss caused by the failure (section 259(4)).
Can an online store limit refunds or set reporting deadlines?
Not in a way that cuts down the statutory rights. A term that purports to exclude, restrict or modify the guarantees is void (ACL section 64). Representing that they do not apply, or apply only on conditions the law does not impose, is a false or misleading representation about the existence, exclusion or effect of a guarantee, right or remedy (section 29(1)(m)).
The leading online example is ACCC v Booktopia Pty Ltd [2023] FCA 194. The online bookseller’s Terms of Business stated that it required notification within two business days of delivery if an item was incorrect, damaged or faulty, and that returns and refunds were not possible for listed product types ([15]). Booktopia accepted that the two business days term represented that customers had no remedy without such notice, whether or not the policy also said it included ACL rights ([18]). Burley J declared contraventions of sections 18 and 29(1)(m) and ordered a penalty of $6,000,000 (orders).
The guarantees deal with goods that fail them. A store can choose whether to offer change-of-mind returns and on what conditions, but those conditions must be expressed so they cannot be read as applying to faulty goods.
What must a warranty against defects say?
The prescribed text, among other things. A warranty against defects is a representation made at or about the time of supply that a person will repair or replace goods, provide again or rectify services, or recompense the consumer, if they are defective (ACL section 102(3)). The regulations prescribe its form and content (section 102(1)), and giving a consumer a non-complying warranty document is prohibited (section 102(2)).
For goods, the warranty must include the text set out in regulation 90(2) of the Competition and Consumer Regulations 2010, a fixed statement telling the consumer that the goods come with guarantees that cannot be excluded under the Australian Consumer Law, and what those guarantees entitle them to. It must also state, among other things, that the benefits it gives are in addition to the consumer’s other rights and remedies under law (regulation 90(1)(h)). Warranty cards copied from overseas suppliers often miss both.
How must prices and delivery charges be shown?
As a single total figure wherever part of the price is shown, for goods and services of a kind ordinarily acquired for personal, domestic or household use. A business that represents an amount forming part of the price must also specify, in a prominent way and as a single figure, the single price (ACL section 48(1)).
Delivery is treated separately. The single price need not include the charge for sending the goods (section 48(2)). But if the business knows the minimum delivery charge the customer must pay, it must state that minimum (section 48(3)). The rule does not apply to representations made only to companies (section 48(4)).
False or misleading representations about price are prohibited (section 29(1)(i)). From 1 July 2027 further drip pricing rules commence (new section 48A, inserted by the Unfair Trading Practices Act 2026), so checkout fees revealed late in the process deserve a review now.
Does an online store have to give a receipt?
Yes, for purchases of $75 or more. A supplier of goods or services to a consumer must give a proof of transaction as soon as practicable after supply where the total price, excluding GST, is $75 or more (ACL section 100(1)). For smaller purchases, the consumer can request one, and it must be given within 7 days of the request (section 100(2) and (3)). An order confirmation email with the required details usually does the job.
What are the rules for reviews and testimonials?
They must be genuine and not curated in a misleading way. Making a false or misleading representation that purports to be a testimonial, or concerning a testimonial, is prohibited (ACL section 29(1)(e) and (f)). Fake reviews, reviews written by staff or family, and incentivised reviews presented as independent all raise the issue.
Selective collection can mislead too. In ACCC v Meriton Property Services Pty Ltd [2017] FCA 1305, a serviced apartment business that used a system to invite guests to review it on a travel site masked the email addresses of guests who had complained and withheld addresses after major service disruptions (catchwords). Moshinsky J held that the conduct was likely to mislead or deceive (section 18) and liable to mislead the public as to the characteristics and suitability of its services (section 34) ([213], [216]).
What changes for subscriptions in 2027?
From 1 July 2027, subscription contracts with consumers and small businesses must be easy to end. A supplier under such a subscription contract must provide a way for the subscriber to end it, make each way easy to find and straightforward, require only the steps reasonably necessary, and offer an online way where the subscriber signed up online (new ACL section 48F).
The rule covers individuals buying for personal, domestic or household use, and small businesses on standard form contracts with fewer than 100 employees or turnover under $10,000,000 (new section 48G). The same Act introduces a general prohibition on unfair trading practices: conduct towards consumers that manipulates them or unreasonably distorts the environment in which they decide, and causes or is likely to cause them detriment (new section 28B).
Automatic renewal terms already carry risk. In ACCC v JJ Richards & Sons Pty Ltd [2017] FCA 1224, an automatic renewal clause that bound small business customers to a further term unless they cancelled within a window, with no notice of expiry, created a significant imbalance ([56]).
Do the unfair contract terms rules apply to store terms?
Yes. Online store terms are standard form contracts, and a term in a standard form consumer or small business contract is void if it is unfair (ACL section 23(1)). A term is unfair if it causes a significant imbalance, is not reasonably necessary to protect the store’s legitimate interests, and would cause detriment if relied on (section 24(1)). The store must prove a term is reasonably necessary (section 24(4)).
Terms that commonly cause trouble include a right for the store alone to cancel orders or change terms (section 25(b) and (d)), a right to decide unilaterally whether the customer is in breach (section 25(h)), and limits on the customer’s right to sue (section 25(k)). A term that sets the upfront price is not reviewable for unfairness (section 26(1)(b)), but price variation terms are.
Since 9 November 2023, making a standard form contract that contains an unfair term the store proposed, or relying on one, is a contravention (section 23(2A) and (2C)). The maximum penalty for a body corporate is the greatest of $100,000,000, three times the benefit, or 30% of adjusted turnover (section 224).
How similar matters tend to play out
Three illustrations of how the law on this page combines on ordinary facts. They are not predictions. Outcome depends on the terms, the evidence and the court.
Lower range. An Adelaide clothing store’s returns page says faulty items must be reported within seven days and offers store credit only. A customer’s jacket zip fails after three weeks. The deadline and the credit-only rule misstate the customer’s rights (sections 29(1)(m) and 263(5)). Rewriting the page to separate change of mind from faulty goods fixes it.
Middle range. A supplements store imports products with a warranty card written for another market. The card does not contain the prescribed text and says the warranty is the customer’s only remedy. That breaches the warranty rules (section 102 and regulation 90) and misstates the customer’s rights (section 29(1)(m)). Replacing the card is cheap; defending it is not.
Upper range. A meal kit subscription business advertises a weekly price without the delivery charge every customer pays, and allows cancellation only by phone. The known minimum delivery charge must be stated alongside the price (section 48(3)), and from 1 July 2027 an online cancellation method will be required (new section 48F).
How we act on online sales terms
We act for online stores, brands and subscription businesses. The aim is terms and pages that state the statutory rights correctly, warranty wording that complies, pricing that displays properly, and review practices the store can defend.
| Stage | What happens | What we do |
|---|---|---|
| Review | The terms, returns page, warranty card and checkout are sent. | Check each against the guarantees, section 29(1)(m), section 48, section 100 and regulation 90. |
| Drafting | New terms and pages are prepared. | Draft returns, warranty, delivery, cancellation and subscription wording. |
| Launch | The store or a new product line goes live. | Check pricing displays, review practices and marketing consent. |
| Complaint | A customer or the regulator complains. | Advise on the remedy, the representation and the response. |
| Dispute | A claim or investigation proceeds. | Advise on exposure and resolution. |
We cannot promise an outcome, and no lawyer can. We can make sure the store’s terms say what the law says before a regulator reads them.
Every hour matters. Book a same-day free 30-minute consultation, or call (08) 7094 2021 now.
Online sales case law
Booktopia, Meriton and Valve concerned online selling and marketing. JJ Richards concerned automatic renewal and price variation terms of the kind subscription businesses use.
| Case | Court | Principle | Pinpoint |
|---|---|---|---|
| ACCC v Booktopia Pty Ltd [2023] FCA 194 | Federal Court | Online returns terms misrepresented consumer rights; $6,000,000 penalty | [15], [18] |
| ACCC v Meriton Property Services Pty Ltd [2017] FCA 1305 | Federal Court | Filtering review invitations likely to mislead | [213], [216] |
| ACCC v Valve Corporation (No 3) [2016] FCA 196 | Federal Court | Downloaded software is goods | [137] |
| Valve Corporation v ACCC [2017] FCAFC 224 | Full Federal Court | No contracting out of the consumer guarantees | [107] |
| ACCC v JJ Richards & Sons Pty Ltd [2017] FCA 1224 | Federal Court | Automatic renewal and price variation terms unfair | [56] to [58] |
Case notes
ACCC v Booktopia Pty Ltd [2023] FCA 194
The online bookseller’s Terms of Business required notice of incorrect, damaged or faulty items within two business days and excluded returns for listed product types ([15]). Booktopia accepted that the notice term represented that customers had no remedy without such notice, with or without the policy’s ACL statement ([18]). Burley J declared contraventions of sections 18 and 29(1)(m) and ordered a $6,000,000 penalty (orders).
ACCC v Meriton Property Services Pty Ltd [2017] FCA 1305
A serviced apartment business masked the email addresses of guests who had complained, so they did not receive review invitations, and withheld addresses after service disruptions (catchwords). Moshinsky J held this was likely to mislead under section 18 ([213]) and liable to mislead the public about its services under section 34 ([216]).
ACCC v Valve Corporation (No 3) [2016] FCA 196
Edelman J held that a supplier of downloaded games supplied goods to consumers, the definition having been extended in 2011 to include computer software ([137]).
Valve Corporation v ACCC [2017] FCAFC 224
The Full Court said the evident purpose of section 64 is that parties cannot contract out of the consumer guarantees, so a term purporting to disapply them is void ([107]).
ACCC v JJ Richards & Sons Pty Ltd [2017] FCA 1224
An automatic renewal clause requiring cancellation within a window, with no notice of expiry, and a unilateral price variation clause created a significant imbalance in small business standard form contracts ([56]). The supplier did not show they were reasonably necessary ([57] to [58]).
Frequently asked questions
Do online stores have to give refunds?
For goods with a major failure, yes, if the customer rejects them and elects a refund (ACL sections 259(3) and 263(4)). For minor failures the store can first remedy the problem (section 259(2)). Change-of-mind refunds are a store policy.
Can an online store offer store credit instead of a refund?
Not where a refund is required. A credit note does not satisfy the refund obligation after a consumer rejects faulty goods (ACL section 263(5)).
Can a store require faults to be reported within a few days?
Not as a condition of the statutory remedies. In ACCC v Booktopia, a term requiring notice within two business days of delivery was accepted to misrepresent customers’ rights, and a $6,000,000 penalty followed ([15], [18]).
Does a "no refunds on sale items" sign break the law?
If it suggests faulty sale items cannot be refunded or repaired, yes. A false or misleading representation about a guarantee, right or remedy is prohibited (ACL section 29(1)(m)).
What wording must a warranty against defects include?
The prescribed text in regulation 90(2), a fixed statement that the goods come with guarantees that cannot be excluded under the Australian Consumer Law, and a statement that the warranty adds to the consumer’s other rights (regulation 90(1)(h); ACL section 102).
Do delivery charges have to be included in the price?
Not in the single price, but if the store knows the minimum delivery charge it must state it (ACL section 48(2) and (3)). Any part price shown needs the single total price beside it (section 48(1)).
Does an online store have to email a receipt?
For purchases of $75 or more, excluding GST, a proof of transaction must be given as soon as practicable (ACL section 100(1)). An order confirmation with the right details usually suffices.
Can a store ask only happy customers for reviews?
Not in a way that hides complaints. In ACCC v Meriton, excluding guests who had complained from review invitations was likely to mislead ([213], [216]).
What are the new subscription cancellation rules?
From 1 July 2027, consumer and small business subscriptions must have an easy, straightforward way to end them, and an online way where the customer signed up online (new ACL section 48F).
Do the consumer guarantees apply to digital downloads?
Yes, where the buyer is a consumer. Goods include computer software (ACL section 2), and downloaded games were held to be goods in ACCC v Valve (No 3) ([137]).
Are online store terms subject to unfair contract terms laws?
Yes. They are standard form contracts, and unfair terms in consumer and small business contracts are void (ACL section 23(1)). Making contracts that contain them, or relying on them, can attract penalties (sections 23(2A), 23(2C) and 224).
Do I need an online sales terms lawyer?
For a store selling to consumers, yes. An online sales terms lawyer can align the returns page, warranty wording and checkout with the ACL before a customer or regulator tests them. A free 30-minute consultation will tell you where you stand.