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The clause in law is "The product is reasonably fit for any purpose specified by the customer and agreed by the seller, at the time of sale."
(This is from the Vic government consumer website, but the rules are now Australia wide)
So the question would come down to "reasonably fit". One could argue that a retailer who recommended something would be joining in the unreasonableness of the expectation of their customer and so would then be liable for a refund.
In any case, I reckon the retailer is on a hiding to nothing!
Malcolm
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