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Why you need to file your receipts

We have all experienced the frustration of buying a product and finding it faulty! However, if you don’t keep your receipts, there may be an even bigger pill to swallow. You can be denied a refund if you cannot provide proof of purchase, irrespective of whether the product is faulty or not. I personally have experienced the sting of faulty products. Most annoying is clothing that soon stretches and loses shape after one wash. When I have sought to return the goods, even though they were clearly branded in the store’s name, they refused to refund because I didn’t have a receipt. Now I methodically keep all my receipts irrespective of the item purchased. The purchase of even a couple of faulty products over the course of a year can be quite expensive, and it is a good idea to know your rights and responsibilities when purchasing goods and services. This article will help.

A spokesperson for Consumer Affairs Victoria warns that shoppers should always keep receipts as stores may not give refunds without proof of purchase. "When buying goods and services it is important to choose carefully. The law does not require traders to provide refunds in every case, so it is helpful to know your rights and responsibilities," said the spokesperson.

What are you entitled to?

According to the Australian Competition and Consumer Commission (www.accc.gov.au), goods and services purchased by a consumer must be of a merchantable quality. They must be reasonably fit for the purpose they were brought for.

As consumers, we have the right to demand a refund if the goods or services purchased:

• Have a fault, unknown at the time of purchase
• Do not provide the benefit or do the job the consumer was led to believe they would do
• Do not match the sample the consumer was shown
• Do not fit their description, or
• There is proof of purchase

The supplier can offer to repair or replace the product. However, the customer is legally entitled to receive a refund if they do not wish to have the item repaired or replaced and can provide a receipt, or proof of purchase.

You may be entitled to a partial refund if the faulty item was not returned to the retailer within a reasonable time frame from when the fault was first discovered. Reasonable time will depend on the circumstances, but generally is influenced by the price paid for the goods concerned. A $10 item will not last forever, however a $1,000 purchase should last a number of years. Similarly, if your Rubik Cube from the 1980s falls apart, you cannot expect the retailer to refund your purchase. If the consumer has gained a reasonable amount of benefit from the product, they may only be entitled to a partial refund.

Some retailers will refund “change of mind” purchases if the product is still in a re-saleable condition. However, legally they are not obliged to do so. You are not legally entitled to a refund if:

• You have a change of mind about your purchase
• You find the same product for less somewhere else.
• The item is an unsuitable gift
• You no longer require the goods
• You were made well aware of the items fault, i.e. factory seconds
• You did not pay cash and wish a cash refund
• If the product’s fault has been caused by mistreatment, not following the instructions, or misuse

Be aware, a retailer is not obliged to provide a refund if there is no proof of purchase. It is a good idea to set up a filing system, and file receipts according to value. Keep the receipts for the more expensive items separately as these should be held on file for longer.

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