With the New Year's sales in full action, the Australian Competition and Consumer Commission has a timely warning for consumers and traders.

Everyone looks for bargains at this time of year, but it's important that consumers and traders realise that, just because items are 'on sale', it doesn't mean that consumers lose their right to a refund or exchange in certain circumstances.

Consumers are entitled to a refund, exchange or repair (depending on his or her choice) if the item: is faulty or defective; is not fit for the purpose specified prior to purchase; or does not match the sample or description.

Traders who misrepresent the right of consumers to obtain refunds, with signs such as 'No refunds on sale items' should be warned.

'The ACCC views misrepresentations as to consumers' rights to obtain refunds very seriously, especially at this time of year when consumers are particularly vulnerable with the lure of bargains and sale prices all around us,' Acting ACCC Chairman, Mr Allan Asher, said today.

'Indeed, just before Christmas the ACCC obtained orders in the Federal Court Melbourne, after Westco Jeans (Aust) Pty Ltd prominently placed signs stating 'No Cash Refunds' and 'No Returns on Sale Items' in two of its stores'.

For consumers and businesses wanting to know more about refund rights the ACCC has a free brochure, Warranties & Refunds, which provides examples of where and when a refund is due. It makes timely reading. Copies are available from all ACCC offices in each capital city, Townsville and Tamworth.