A consumer buys an expensive cosmetic and was falsely represented in saying that she will get a full refund if the cosmetic was of poor quality. The consumer applies the cosmetic as instructed, however a week later she gets a scratch on her face. On further application of the cosmetic she then gets an infection, and subsequent treatment and loss of income cost her $1500. On return to the store the manager refuses to refund her and says there is a no refund policy, although the consumer would not have returned the cosmetic for a refund if there were no infection. The manager also says that the sales assistant should not have given that advice on refund, and that the warranty only extends if the product was returned unused

Was the consumer misrepresented, was the cosmetic of poor quality?

How do I apply this case according to the Australian Consumer Law?