Can I get my money back if a shop forced me into a contract I couldn't understand?
Quick Summary
It depends on whether a court finds the salesperson's behavior was unconscionable. You may have grounds to cancel the $450 maintenance fee if the pressure and lack of clarity violated consumer protection laws.
The situation
I am writing to seek some advice regarding a situation that happened here in Victoria last month. On the 14th of October, I went into a local electronics store to purchase a basic laptop for my studies, which I expected would cost around $800. However, the salesperson was extremely pushy and kept insisting that I sign a long, complicated service agreement to 'protect my investment.' I felt a lot of pressure to hurry up because there was a queue forming behind me, and the salesperson wouldn't let me take the paperwork home to read properly. They told me it was a standard requirement for the sale to go through. I ended up signing a contract that included an additional $450 annual maintenance fee, which I didn't realise was a recurring cost until I saw the charge on my bank statement a week later. I went back to the store on the 20th of October to complain, but the manager said the contract is binding and they won't refund the extra amount because I signed it. I felt like they took advantage of my lack of experience with these types of agreements and used their position to force terms on me that weren't necessary. I am unsure if I have any rights to cancel this specific part of the deal due to the way they pressured me.
Detailed Analysis
Whether you can get your money back depends on whether the electronics store engaged in unconscionable conduct. Unconscionable conduct refers to behavior that is so harsh or oppressive that it goes against good conscience[1].
Under the law, a court looking at whether the store's conduct was unconscionable may consider several factors regarding your purchase on 14 October. Specifically, the court may look at "whether, as a result of conduct engaged in by the supplier, the customer was required to comply with conditions that were not reasonably necessary for the protection of the legitimate interests of the supplier"[2]. This means if the $450 annual fee wasn't actually necessary for the store to protect their interests, it might be an unfair condition.
The court also considers "whether the customer was able to understand any documents relating to the supply or possible supply of the goods or services"[2]. Since you were prevented from taking the paperwork home and felt rushed by the queue, this is a relevant factor. Additionally, the court may consider "whether any undue influence or pressure was exerted on... the customer"[2]. The pushy behavior of the salesperson and the refusal to let you read the terms could be seen as undue pressure.
While the manager claims the contract is binding because you signed it, the law allows a court to look at the "manner in which and the extent to which the contract is carried out" and the circumstances of how it was formed[1].
It is currently uncertain if a court would officially rule that this specific $450 fee is part of an unconscionable pattern or if the pressure used was high enough to void that specific part of the agreement.
Statutory Citations
Legal Citation: Competition and Consumer Act 2010 (Schedule 2 ACL) § Schedule 2, Section 21 — Unconscionable conduct in connection with goods or services
"A person must not, in trade or commerce, in connection with: (a) the supply or possible supply of goods or services to a person; or (b) the acquisition or possible acquisition of goods or services from a person; engage in conduct that is, in all the circumstances, unconscionable."View Official Legislation →
Legal Citation: Competition and Consumer Act 2010 (Schedule 2 ACL) § Schedule 2, Section 22 — Matters the court may have regard to for the purposes of section 21
"the court may have regard to: ... (c) whether the customer was able to understand any documents relating to the supply or possible supply of the goods or services; and (d) whether any undue influence or pressure was exerted on... the customer"View Official Legislation →
Important Legal Disclaimer
General legal information, not formal legal advice. The information provided on LawAsked does not constitute formal legal advice and creates no attorney-client relationship. If you require legal assistance, please consult a licensed attorney in your jurisdiction.
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