At the Motor Hospital we are always finding new ways to add value and create awesome specials for you so that we can make services more affordable for you. So sometimes we may refuse to refund your pre-purchased service if it was on "sale" or "discounted". However, if we have in some way breached the law in relation to our products or services we will refund in full any or all amounts in relation to your pre-purchases.
We also follow the Australian Consumer Laws when dealing with our full paying customers when a refund is due or required. Of course, we would always like the opportunity to address any issues to resolve your concerns before you feel the need to seek a refund however, we appreciate not all problems can be resolved. We truly love what we do and feel that through our amazing priced service costs you enjoy the luxury of low-cost servicing. Let's face it some mechanic's workshops charge hundreds of dollars JUST for servicing alone!
For your ease we have attached the consumer law ACT 2010 (Cth) for your convenience.
We look forward to continuing to provide high quality, low-cost servicing for you and your family!
Consumer Law and Refunds
The Australian Consumer Law (ACL) governs refunds. It is located in Schedule 2 of the Competition and Consumer Act 2010 (Cth). The ACL prescribes when a supplier must give a refund. In this context, whether the consumer purchased the item in a sale is not in issue. The issue is whether the product has a problem described in, and recognised by, the ACL. If so, a business has likely breached a Consumer Guarantee. They are then legally required to offer a refund at different points in time, depending on whether the problem is ‘major’ or ‘minor’.
If an item has a ‘major failure’, a customer can request a refund at the outset. Alternatively, they can ask for an exchange.
For the ACL, a major failure occurs when an item:
Has a problem that would have prevented the consumer purchasing the item if they were aware of it;
Significantly differs from the sample or description; or
Doesn’t do what the supplier said it would, or what the consumer asked for and the problem is not fixable.
If a product has a major failure, a customer can also choose to keep the item. In that instance, the supplier is required to compensate the consumer for any drop in value.
In these cases, customers should keep their receipt.
If a product has a ‘minor’ problem, a business might have to provide a refund. A problem is minor if the supplier has breached the Consumer Guarantees but the failure is not major. In other words, it is not one of the faults listed above.
In these circumstances, the supplier can select to repair the item, provided repair is possible. A consumer is not entitled to reject the product and request a refund. If a business chooses to repair, they must do so within a reasonable amount of time. ‘Reasonable’ depends on the circumstances. For example, an appropriate length of time for the repair of an essential household item like a water heater differs from that to repair an antique clock.
However, if repair is impossible or if a supplier has taken an unreasonable amount of time to complete the repairs, the consumer is entitled to reject the product and request a refund or a replacement.
A consumer may also have the good fixed elsewhere and claim reasonable costs from the supplier.
When a Supplier can Refuse a Refund on a Sale Item
There are circumstances when a supplier has the right to deny a refund on a sale item. These are divisible into:
When a supplier has not breached a Consumer Guarantee; and
When a Consumer Guarantee is at issue but the ACL denies consumers any remedy, including a refund.
Non-Breach of a Consumer Guarantee
If a consumer has changed their mind about a product, a business need not provide a refund. However, a supplier must abide by any particular store policy for such cases (for example, offer a credit note).
ACL denies any Remedy
In certain circumstances, a consumer has no remedy even though the supplier has breached their Consumer Guarantee. A consumer has no remedy if a supplier has failed to meet a guarantee due to:
Something someone else did or said (excluding the business’ agents and employees); or
An event beyond human control. This must occur after supply.
Evidently, these situations happen less frequently.