Returning Christmas gifts in Australia: gift receipts, change of mind and faulty presents

Every January the same question comes back to the service desk: can I bring this back? In Australia the answer turns on one thing. Is the present unwanted, or is it faulty?

An unwanted gift, whether wrong size, wrong colour or a double-up, has no legal protection at all. A faulty one carries the full weight of the Australian Consumer Law, and it does not matter that you were given it rather than paid for it.

Unwanted gifts: it's the store's policy that counts#

Australian Consumer Law does not require a business to give a refund, exchange or credit when someone simply changes their mind. The ACCC is plain about it: the law protects you when something is wrong with a product, not when you decide you don't want it.

What the law does say is that a store that has a change-of-mind policy must follow it. So if a retailer advertises exchanges within 30 days, or runs an extended Christmas returns period, those promises hold.

Buying online doesn't change this. Unlike in the UK and the EU, there is no automatic cooling-off period in Australia when you buy from a store or a website. The 10-business-day cooling-off period people sometimes mention applies only to unsolicited sales, such as door-to-door and telemarketing.

To give yourself the best chance with an unwanted gift:

• Check the policy first. It is often printed on the receipt, on a sign at the counter, or on the retailer's website.
• Keep the tags and packaging. Many policies require the item to be unused and in its original condition.
• Don't wait. Change-of-mind periods are short, and the clock often starts on the day the gift was bought, not the day you unwrapped it.
• Expect an exchange or store credit. A refund for change of mind is up to the store, and many offer credit instead.

What a gift receipt actually does#

A gift receipt is a copy of the receipt without the price. It identifies the store, the item and the purchase date, which is exactly what a service desk needs to process an exchange under its policy.

It is also proof of purchase, which matters if the gift turns out to be faulty. A business is entitled to ask for proof of purchase, but a receipt is only one way to give it. A bank or card statement, an order confirmation email or a lay-by record can all show where and when something was bought. See what counts as proof of purchase in Australia for the full list.

No gift receipt and no idea where it came from? Ask the giver. They may have the original receipt, an order email or a card transaction you can use.

Faulty gifts: you have the same rights as the buyer#

The ACCC says consumers who receive a product as a gift are entitled to the same basic rights as if they had bought it themselves. If a present doesn't work, doesn't match its description or isn't of acceptable quality, the consumer guarantees apply.

What you're entitled to depends on how serious the problem is:

• Minor problem: one that can be fixed in a reasonable time. The store can choose to repair, replace or refund.
• Major problem: the product doesn't work and can't be fixed, is significantly different from its description, doesn't do what it was bought for, or is unsafe. You choose a replacement or a refund.

Take it back to the store that sold it. The retailer must help with a remedy and can't tell you it is the manufacturer's problem instead. A sign saying "no refunds" does not take these rights away either.

For how these rights compare with a manufacturer's warranty, see consumer guarantees vs warranties.

Gift cards: at least three years#

Christmas is peak season for gift cards, and the rules here are firmer than for returns. A gift card bought on or after 1 November 2019 must be redeemable for at least 3 years from the day it was bought, and the expiry date must be shown clearly on the card.

The card also can't carry fees charged after purchase, such as activation, account-keeping, balance-enquiry or inactivity fees.

A few kinds of card are exempt from the three-year rule, including reloadable cards, second-hand cards, cards sold at a genuine discount and cards handed out as part of a temporary promotion.

If you're the one buying#

A few seconds at the counter saves the recipient a trip back with nothing to show:

1. Ask for a gift receipt and put it in the card or the box.
2. Keep your own receipt or order confirmation. If there is a fault later, the recipient may need it, and any refund may come back to your card.
3. Note the return window. If it closes before Christmas, ask whether the store extends it for gifts.
4. Keep warranty paperwork with the receipt for anything electrical.