ACAT Consumer Disputes: Defective Goods and Refund Claims in the ACT

A retailer refusing to honour a refund, an appliance that failed three months after purchase, a tradie who took a deposit and delivered substandard work — these are consumer disputes, and ACAT is where they get resolved in the ACT. The Australian Consumer Law gives you automatic guarantees when you buy goods or services as a consumer from a business, and ACAT can enforce them for claims up to $25,000.

What the Australian Consumer Law Guarantees

The Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010) provides consumer guarantees when you acquire goods or services as a consumer from a business. The guarantees cannot be excluded by "no refund" signs, fine print, or verbal disclaimers. The main ones relevant to ACAT disputes are:

• Acceptable quality — goods must be safe, durable, free from defects, and acceptable in appearance and finish, considering the price and any seller representations
• Fit for purpose — if you told the seller what you needed the product for and they agreed it would work, the product must actually do that
• Match description — goods must match any description the seller provided, including in advertising, packaging, or conversation
• Services with reasonable care — services must be provided with due care and skill, be fit for the stated purpose, and be completed within a reasonable time

When a guarantee is breached, your remedy depends on whether the failure is major or minor. A major failure — the goods are unsafe, substantially unfit for purpose, or so different from the description that you would not have bought them — gives you the right to reject and claim a full refund. A minor failure means the business gets an opportunity to repair or replace within a reasonable time before you can reject.

Filing a Consumer Dispute at ACAT

The process follows the standard ACAT civil dispute sequence, but the legal basis is the ACL guarantee provisions rather than a simple debt or breach of contract:

1. Contact the seller in writing. Describe the defect or failure, state which consumer guarantee has been breached, and specify what you want — a refund, replacement, or repair. Give them a reasonable deadline (14 days is standard). Keep the email or letter; it becomes evidence.

2. Send a formal letter of demand if the seller ignores you or refuses. Include the same details plus copies of the receipt, warranty card, photos of the defect, and any correspondence. State that you intend to apply to ACAT if the matter is not resolved within 14 days.

3. File a Civil Dispute Application. Select the appropriate claim category (Goods & Services or Consumer Law) on the form. Filing fees under DI2026-112:

• Claims up to $3,000: $93 (individual) / $185 (corporation)
• Claims $3,001–$15,000: $195 / $392
• Claims $15,001–$25,000: $707 / $1,415

Corporations with turnover under $200,000 in the preceding financial year or registered not-for-profits can apply for the individual rate by lodging a Statement as to Nature and Turnover of a Corporation with their application.

Fee exemptions are available if you are the primary cardholder named on a Health Care Card, Low Income Health Care Card, or Pensioner Concession Card.

4. Service. ACAT generally serves the application after it is accepted. If you choose to serve it yourself, use the company's registered office address or the individual respondent's service address.

5. Attend the initial Directions Hearing and any conference ACAT directs. At the initial Directions Hearing, the Member or Registrar clarifies the issues, explores settlement, and sets procedural directions. ACAT may later list a conference depending on the value and complexity of the claim; consumer disputes can settle at that stage without a formal hearing.

Contractor Deposits and Incomplete Work

A contractor who took a deposit and never started the job, or who abandoned the work mid-project, is one of the most common consumer disputes at ACAT. The claim basis depends on the situation:

• Deposit not returned after cancellation — breach of contract. Attach the contract, deposit receipt, and correspondence showing the cancellation.
• Defective or incomplete work — breach of the ACL guarantee that services be provided with due care and skill. Get an independent quote for the cost to complete or rectify the work. The gap between what you paid and what the work is actually worth is your claim.
• Goods not delivered — breach of contract. Your evidence is the order confirmation, payment records, and correspondence showing non-delivery.

For contractor claims, the independent repair or completion quote is your most important piece of evidence. It quantifies the loss in a way ACAT can work with. Photographs of the defective work, taken with dates visible in the metadata, add weight.

Debt Recovery Under Consumer Law

If a business owes you money — a refund they agreed to but never processed, a warranty reimbursement, or compensation for defective goods you returned — the claim at ACAT is for a monetary sum and follows the same process as a debt recovery. The distinction is that you are relying on the consumer guarantee provisions rather than a simple loan or invoice. Identify the relevant guarantee and show how the goods or service failed to meet it, with supporting evidence.

You can also claim pre-judgment interest on the amount owed from the date the business should have paid you until ACAT makes its order. The statutory rate is the RBA cash rate plus 4% per annum (8.35% for the second half of 2026). Lodge a Statement of Interest Claimed — Civil Dispute form with your application.

Free Legal Help for Consumer Disputes

Care Consumer Law is the most directly relevant service. They run a duty lawyer at ACAT every Monday (9 am to 4 pm) and specifically handle consumer protection, contract, and debt recovery matters. They offer free advice on these matters, and representation is available in eligible cases; check with the service whether it can assist with your situation.

Legal Aid ACT provides telephone legal advice and, for eligible applicants, representation. Canberra Community Law focuses on social housing and human rights but may assist with consumer matters affecting vulnerable consumers.

If you are represented by Care Consumer Law, Legal Aid ACT, or another approved legal assistance organisation, your ACAT filing fee is waived entirely.

The ACAT Civil Dispute Claim Guide walks through the full filing process with templates for the demand letter, a pre-filing compliance checklist, and an evidence index designed for consumer and contractor disputes.

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