Australian Consumer Law for Online Stores: Refunds, Pricing and What to Show

Australia has some of the strongest consumer protections in the world, and they apply to online stores just as much as physical shops. If you sell to Australian customers, whether you're based in Sydney or selling from overseas, the Australian Consumer Law (ACL) affects your refund policy, your pricing and your product pages.

Penalties are serious. For companies, the maximum is the greater of $50 million, three times the benefit gained, or 30% of turnover during the breach period. The ACCC actively enforces online pricing and refund issues.

1. Consumer Guarantees Can't Be Removed

Under the ACL, products come with automatic guarantees: they must be of acceptable quality, match their description, and be fit for their purpose. If a product has a major problem, the customer can choose a refund or replacement. For minor problems, you can choose to repair, replace or refund.

The key point for your store: you cannot remove or limit these rights. Policies like these are risky or misleading:

• "No refunds" or "No refunds on sale items".
• "Store credit only" for faulty products.
• "Returns only within 7 days" for faulty goods.
• "Customer pays return shipping" on faulty items, where the cost is significant.

You can have a change-of-mind policy with your own rules, but it must be clearly separate from guarantee rights.

2. Show the Total Price

Australia's single pricing rule means that if you show a price, you must also prominently show the total minimum price, including GST and any unavoidable fees. Shipping can be shown separately, but other compulsory charges can't be hidden until checkout.

On Shopify, this mostly means:

• Displaying prices including GST for Australian customers (Shopify Markets can handle this per country).
• Avoiding mandatory "handling fees" or "processing fees" that only appear at checkout.
• Making any card surcharge clear and no higher than your actual cost.

3. Don't Mislead With Discounts or Claims

"Was/now" pricing must be genuine: the "was" price should be a price you actually charged for a reasonable period. Fake urgency ("only 2 left!" when that's not true), countdown timers that reset, and fake reviews are all things the ACCC has taken action on.

Product claims must also be accurate. "Australian made", "organic", "eco-friendly" or "lasts a lifetime" all need to be true and backed up.

4. Changes Coming: Unfair Trading Practices and Drip Pricing

The Australian Government has proposed new rules targeting unfair trading practices, including manipulative website design ("dark patterns"), drip pricing (mandatory fees revealed late), and subscription traps (hard-to-cancel subscriptions). Draft legislation was consulted on in early 2026, with a proposed start date of 1 July 2027.

If you run subscriptions, use pre-ticked add-ons, or add fees at checkout, now is a good time to review how your store works, rather than rushing later.

A Practical Checklist for Your Store

1. Rewrite your refund policy so it clearly explains consumer guarantees and separately explains change-of-mind returns.
2. Show GST-inclusive prices to Australian visitors.
3. Remove hidden mandatory fees, or show them next to the price.
4. Check that every "was" price is a real previous price.
5. Remove fake scarcity, resetting timers and any pre-ticked paid add-ons.
6. Make subscription cancellation easy to find and simple to complete online.
7. Make sure product descriptions and claims are accurate.

Frequently Asked Questions

Does the ACL apply to overseas businesses?

Generally yes, if you sell to consumers in Australia. The ACCC has taken action against overseas companies selling to Australians.

Do I have to offer change-of-mind refunds?

No. Change-of-mind refunds are optional. But you must not suggest customers have no rights when products are faulty.

Can I charge a card surcharge?

You can, but it must not be more than what it costs you to accept that payment method, and it should be disclosed clearly.

This article is general information, not legal advice. For your specific situation, speak to an Australian consumer law professional.

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