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Buying things
We all buy things. Sometimes it’s a small thing like a piece of clothing, sometimes it is a bigger thing like a car or CD player. Regardless of what you are buying, there are laws about exchanging things you have bought and about contracts between the buyer and the seller.
Spending more than you can afford is an easy trap to fall into. This page includes contacts for organisations that can help you manage your money.
Contracts
A contract is an agreement between two people which the law says must be carried out. Most contracts don’t have to be in writing. When you buy something you and the seller have a contract, whether you sign anything or not. However, if you are buying a car you do have to sign a written agreement.
If you are under 18 you have to stick to a contract if:
- you have bought things you need to live on, like food, housing, clothing or medicine
- it helps you with employment or education
- what was agreed to under the contract has already happened – for example, if you bought something you will not be able to get a refund just because you are under 18.
If you have completed the contract, for instance if you have paid all the money, you may not be able to undo it unless:
- the goods are faulty
- the sales assistant told you the goods were for a particular purpose but they are not – for instance, if you were told that a plate was microwave safe but when you used it in the microwave it broke.
Because under-18-year-olds don’t have to stick to contracts except for the reasons above, shops and companies that lend money may not let you use a credit card or borrow money without a guarantor.
Guarantors
A guarantor is someone aged 18 or over who promises that you will stick to your side of the contract and that they will pay if you don’t. If you don’t pay, the seller or moneylender can take the guarantor to court as well as taking legal action against you. Usually you can’t buy a car without a guarantor.
Exchange and refund
Choose carefully when you buy something. You are not legally entitled to get a refund or exchange goods just because you change your mind. If you are not sure about buying something, talk to the sales assistant. Tell them what you want the goods for and find out if it is what you need.
Some stores will give you a refund or exchange goods if you change your mind, but it is up to the store. You are only legally entitled to a refund if the goods are faulty or if the sales assistant told you the goods were suitable for a particular purpose but they are not.
However, when you buy something it is always worth asking the sales assistant if you can bring it back and get a refund or exchange if the goods are not right or if you change you mind. If the sales assistant says ‘yes’, then you are entitled to get a refund or exchange. Keep the receipt as proof of your purchase.
Many shops display their policy on exchanges and refunds near the cash register. A sign that says ‘No refunds’ is illegal. Even a policy saying ‘No refunds on sale items’ is breaking the law. A shop must give you a refund for goods that are faulty, regardless of whether they were bought on sale or not.
If you think you should get a refund but the shop refuses to give it to you, you can complain to Consumer Affairs Victoria or to the Australian Competition and Consumer Commission (links below).
Private sales
The laws about exchanging goods and getting a refund don’t apply to sales between private individuals, like friends or family. Make sure you buy what you want and that it works. You have no automatic right of refund or exchange.
Buying 'dodgy' goods
If you are buying things from friends or privately, like at a market or second-hand stall, check that the person selling the goods is entitled to sell them. This means that the goods are not stolen. It is worth asking for proof of ownership, or evidence that the seller has authority to sell. If the goods are stolen the original owner can claim them back.
Mobile phones
You have to be 18 to sign a mobile phone contract. Often young people ask their parents to sign the contract. This means your parents have to pay if you can’t.
Technically the contract can be transferred into your name once you are 18. In reality, this can be difficult as you need to have a credit check, more than one form of ID and a credit card.
You can get a prepaid phone at any age.
See the youthcentral website (link below) for information about choosing phones and phone plans.
More information
Complaints about goods & services (general information)
Related publications
Related websites
youthcentral – managing money (new window)
youthcentral – phones and phone plans (new window)
How VLA can help
Call Victoria Legal Aid’s (VLA) Legal Information Service for free information over the phone about the law and how we can help you with your legal problem. You can speak to a legal information officer in English or ask for an interpreter. Phone (03) 9269 0120 or 1800 677 402 (country callers), Monday to Friday from 8.45 am to 5.15 pm.
To find out more about any of our legal services see What we do.
Who else can help?
The Consumer Action Law Centre (new window) gives free legal advice and representation to vulnerable and disadvantaged consumers across Victoria. The centre can give you free advice about your rights and obligations.
Consumer Affairs Victoria (new window) (CAV) deals with complaints about the supply of goods and services. CAV can give advice about how your complaint should be handled and information about your consumer rights, and can refer you to a free financial counsellor in your area. CAV also offers a dispute resolution service.
The Australian Competition and Consumer Commission (new window) (ACCC) deals with consumer complaints about misleading or deceptive conduct in the provision of goods and services. A complaint form is available on the ACCC website (link below).
The Telecommunications Industry Ombudsman (new window) offers free help to anyone who can’t resolve a complaint directly with their telephone company or internet provider complaints about bills, contracts, coverage and network faults.