You must provide goods of the same type and similar value. If such a replacement is not reasonably available, the consumer may choose a repair or a refund.
The consumer must return goods to you. If this involves significant cost to the consumer, you must collect the goods at your own expense – see ‘Who is responsible for returned goods’ in the returned goods page .
The consumer guarantees that applied to the original goods will apply to the replacements.
A consumer buys a new mobile phone. Due to a problem, the supplier replaces it. Consumer guarantees apply to the replacement phone as if it were a new mobile phone.
Services connected to returned goods (linked service contracts)
Consumers often buy goods linked to certain services. An example is a mobile telephone, often linked to a contract for network services.
A consumer who has returned goods within a reasonable time and is entitled to a refund, may also cancel the linked service contract. They can do this when returning the goods, or within a reasonable time.
Such contracts do not terminate automatically.
A consumer signs up for a package that includes a modem and internet access. She rejects the modem because it turns out to be faulty but chooses to keep her internet connection. Alternatively, she could reject the faulty modem and cancel the connection.
A consumer who cancels a linked service contract is entitled to a refund or can refuse to pay for any services not yet received.
You do not have to give a refund for any services the consumer has received up to the time they reject the related goods.
A consumer subscribes to 12 editions of a cooking magazine for $200, including $80 for delivery. She receives only three editions in six months, so cancels the subscription and delivery. The supplier must refund $150 for nine magazines not received – $90 for the magazines and $60 for delivery.
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