Choice is urging major retailers to sign up to a Fair Warranty Charter to allow consumers fairer access to compensation and replacements should they purchase a faulty product. 

Under the Trade Practices Act, consumers have the right to ask a retailer for a refund, replacement or repair if the product does not last as long as one could reasonably expect it to bearing in mind its cost, however, new research commissioned has found that 50 per cent of shoppers aren't aware they have any rights under the law on warranties, or if they do, what they mean.

The survey also found consumers were out of pocket to the extent of $4.3 billion dollars during the past two years in relation to problems with faulty whitegoods, electronic items and mobile phones.

Almost two-thirds of those who experienced problems reported feeling frustrated and almost half felt angry about the process they went through.

Choice spokesperson Christopher Zinn said there is widespread confusion amongst shoppers and retailers about the situation.

"The law is clear. Consumers have legal protection under a statutory warranty if the product is faulty or not fit for its purpose," he said.

"Choice is encouraging retailers to sign the Fair Warranties Charter so that staff working on the front lines are also better aware of what their employer's obligations are in when a product breaks down.

Statutory warranties differ from a manufacturer's warranty, which typically last 12 months and an extended warranty, which is sold directly by the retailer at the time of purchase.

While there is no set time period in law, the statutory warranty varies according to the price, the age and the quality of the product. For example, you could reasonably expect a refrigerator to continue to work without fault for at least five years and a mobile phone perhaps two years.

The National Baseline Study on Warranties and Refunds, conducted by the National Education and Information Advisory Taskforce (NEIAT), which surveyed consumers, retailers and manufacturers, found that 57 per cent of retailers and 47 per cent of manufacturers had no knowledge at all of consumers' rights other than the common 12-month manufacturer's warranty.

Choice has launched an online campaign at www.choice.com.au/warranties to educate consumers about their rights when it comes to warranties. The site offers a suite of tools, including a template letter to be sent to retailers to ask them to sign up to the Fair Warranty Charter, a script for taking action over the phone and an SMS message to take in to the retailer in order to get a better result.