Reading the law, it does not say that the consumer is entitled to a refund.
Simple. They operate within the law and provide the customer with a refund, or they get fined. From the consumer's point of view, this is irrelevant. Business can fix this B2B issue between themselves however they wish, so long as it doesn't affect the consumer. If you don't like it, then don't do business here.
Here's a case where a consumer complained directly to the manufacturer,[1] and the Consumer Disputes Commission ruled in favour of the consumer.[2] It's not even the core of the issue, but just mentioned, since it's settled law.
> Reading the law, it does not say that the consumer is entitled to a refund.
Refunding is one possible remediation, see section 32 (cancellation) and section 26 (The consumer's rights in the event of defects). That option cancels the purchase contract, meaning you as the consumer give the item back, while the seller gives you the money you paid for the item.
[1] https://www.forbrukertilsynet.no/wp-content/uploads/2025/12/...
'Innklagde er klaget inn i kraft av å være produsent av syklene. De er følgelig ansvarlige for kjøpsrettslige mangler etter direktekravsreglene i fkjl. § 35.'
Rough translation: 'A claim is lodged against the defendant due to it being the manufacturer of the bicycles. The defendant therefore liable for for defects accordance with the rules on direct claims set out in section 35 of the Act relating to consumer purchases.'
[2] They didn't rule in favour of the consumer's demand to have the manufacturer pay for their jacket that got damaged following them falling of their broken bike. They did rule in favour of the cost of repairing the bike (a new handle bar that the consumer bought themselves to fix the issue), so the manufacturer is on the hook for that.