Can I sue my local small business if they won't honour a refund?

Under the Australian Consumer Law, the rules regarding consumer protections are broad. However, the law allows for certain exceptions. Specifically, the law states that "This Division... does not apply, or provisions of this Division... do not apply, to or in relation to: (a) circumstances of a kind specified in those regulations..." [cite:au-competition-consumer-2010-sch2-sec186]. This means that if the government has made specific regulations that exempt certain types of businesses or circumstances, the standard consumer protections might not apply to your purchase of the $280 woollen jumper. In your case, the boutique owner claims their internal shop policy overrides the law because they are a small business. Based on the provided text, the law allows for the possibility that certain "conduct of businesses of a kind specified in those regulations" [cite:au-competition-consumer-2010-sch2-sec186] could be exempt from these divisions. This means the law does not automatically grant a small business the right to ignore consumer rights just because they are small; rather, it depends on whether the specific type of business or the specific circumstances of the sale are officially exempted by government regulations. Furthermore, the law addresses situations where a supplier fails to refund money under specific types of agreements. For example, a supplier commits an offence if "the agreement is terminated by a party to the agreement; and (b) the supplier fails to refund to the consumer all the amounts paid" [cite:au-competition-consumer-2010-sch2-sec191]. This particular section refers to 'lay-by agreements' (a system where you pay for goods in installments before taking them home), which does not appear to match your immediate purchase on 14 October. Because the provided statutes do not explicitly list which businesses are exempt under the regulations mentioned in Section 186, it is unsettled whether this specific boutique is legally allowed to opt out of refund requirements for faulty goods.