Ensuring Compliance with Refund Policies: A Guide for Market Stallholders

Operating a market stall in Victoria requires adherence to the Australian Consumer Law (ACL), which mandates specific obligations regarding refunds, repairs, and returns. Consumer Affairs Victoria provides clear guidelines to help stallholders understand and implement these requirements effectively.

Consumer Guarantees: Your Obligations

As a market stallholder, you must ensure that the products you sell:

• Are of acceptable quality and performance relative to their price
• Match any descriptions or samples provided
• Are fit for any specified purpose
• Are legally yours to sell and free from undisclosed encumbrances

These guarantees apply regardless of whether the items are new, discounted, or second-hand.

View more on Consumer Affairs Victoria

Handling Faulty Products: Major vs. Minor Issues

When a product fails to meet consumer guarantees, the remedy depends on the nature of the fault:

• Major Faults: If a product has a significant problem that cannot be fixed, takes too long, or is too difficult to repair, the customer is entitled to choose between a refund, replacement, or compensation for any drop in value.
• Minor Faults: For less serious issues, you must repair the product within a reasonable time. If repairs are not made promptly, the customer can then request a refund or replacement.

Read: "Is the Customer Always Right?" (PDF)

Proactive Best Practices for Stallholders

To ensure compliance and foster customer trust, consider the following best practices:

• Display Clear Refund Policies: Prominently display signs outlining your refund policy at your stall. These signs must reflect customers' rights under the ACL. Avoid using unlawful statements such as "No refunds," "No refunds after seven days," or "No refunds on sale items."
• Provide Receipts: Always provide a receipt or proof of purchase to customers. This not only aids in processing returns but also demonstrates professionalism.
• Educate Your Staff: Ensure that anyone assisting at your stall understands the refund policies and can communicate them effectively to customers.
• Use Available Resources: Utilize resources provided by Consumer Affairs Victoria, such as the "Refund policy point-of-sale poster," to ensure your signage complies with legal standards.

Access business tools and resources here

By adhering to these guidelines and proactively communicating your refund policies, you can enhance customer satisfaction and ensure your market stall operates within the legal framework set by the Australian Consumer Law.