Discuss About The George Can For Refund And Compensation?
As per section 3 of the ACL a consumer is the person who deals with goods worth goods less than $ 40,000 or more than $40,000 provided the same are for consumption/household/domestic/personal purposes.
Any violation of the consumer guarantees will gave rise to certain right to the consumer. The basic rights are: (Teacher, 2017)
- As per section 18 every manufacturer must not indulge in any action which is deceptive and misleading;
- As per section 29 any act no retailer must make any kind of misleading or financial misrepresentation.
- As per section 33, any misrepresentation relating to nature of product is prohibited;
- As per section 54, the goods must be of acceptable quality which includes that they must be safe with no faults and be as per the expectations of the buyer (Grant v Australian Knitting Mills,, 1935);
- As per section 55, the goods must be fit for the purpose they are purchased for (David Jones v Willis, 1934)
- As per section 56, the goods sold must be as per the description submitted by the salesman (Beale v Taylor, 1967)
If these guarantees are not comply with by the retailer then the remedies are: (ACCC, 2017)
- Repair – if the fault is minor then repair can be sought within reasonable time. If re[air is not done then the consumer can seek replacement or refund.
- Replacement or Refund – if fault is major, that is, the goods does not match the description or sample or does not match the purpose for which the goods are purchased, then the goods can be replaced.
- Compensation for damages and loss
Now, the goods that are purchased by George is worth $ 550 which is less than $ 40,000 thus he is the consumer and Hair Help Pty Ltd Studio must comply with the guarantees under the ACL
However, there are volition of ACL that is undertaken by Hair Help Pty Ltd, that is:
- Hair Help Pty Ltd had issues an advertisement for promotion wherein representation are made that are false and misleading, that is,
- complete hair growth in two months which was false;
- that the product is Australian whereas the product is of Taiwan;
Thus, there is breach of section 29 of ACL:
- The sales man of Hair Help Pty Ltd has made several representation which such as, that the packet contain 6 bottles which will last 2 months which was false as the packet contain only 3 bottles. Also, that there is complete money back guarantee. These are false representation there by resulting in breach of section 29 of ACL
- The sales knew that George is relying on his judgment and still he made misleading information, thus, there is violation of section 18 of ACL.
- That the product is not of acceptable quality and not fit for the purpose supplied. George used the bottle for one month but there is no hair growth. Thus, there breaching section 33, 54, 55 and section 56 of the business law.
Thus, since the fault is major thus George can return the goods and seek refund of money. He can also seek compensation for the loss suffered by him.
Hair Help Pty Ltd is in breach of consumer guarantees and thus George can sue them for refund and compensation
ACCC. (2017). Consumer Gurantee. Retrieved September 16, 2017, from
Nursing v Taylor (1967).
David Jones v Willis (1934).
Grant v Australian Knitting Mills, (1935).
Teacher, T. L. (2017). The Law Teacher. Retrieved September Management, 2017, from