INFORMATION AND COMPLAINTS –CONSUMERS



INFORMATION AND COMPLAINTS –CONSUMERS

1. BEFORE YOU BUY

We consumers sometimes tend to take our buying decisions a bit too lightly. Should we buy at a shopping mall or over the internet? Should we buy with cash or put it on a credit card? Whether we buy one brand instead of another. These are all choices we make on the spur of the moment and are often simply a matter of convenience.

The questions below can help you decide what is right for you. The more research and shopping around you do, the more likely you are to get exactly what you need at the right price.

The same applies to how you buy. If you are buying on credit or taking out a loan, make sure you work out the total price of the sale, including interest, before you make a decision. You may be surprised at how much extra you are paying for the convenience of an instant purchase.

Also, don't be afraid to ask questions. Ask the salesperson what happens if the product doesn't work when you take it home (is there a warranty?). Find out if the product features are suitable for you (will it be safe to use in the way I want to use it?). Be confident that you know what you are buying and of any conditions attached.

The consumer checklist below is a useful tool to use for more expensive purchases. It is an easy way to compare different products before making a decision.

TEN QUESTIONS TO ASK YOURSELF BEFORE YOU BUY

1. Do I really need this or am I just buying on impulse?

2. Can I afford it?

3. Is this my decision or am I being pressured by someone else?

4. Have I researched the product?

5. Have I checked prices for the same thing at other stores?

6. Does it have the same features as similar makes and models?

7. Is the product safe and suitable for what I want?

8. What if something goes wrong?

9. Can I get a refund if I return it?

10. What is the total price (if I am paying on credit)?

Comparing products

If you really want to get serious about your product research, make a list of the features you want. Then make up a checklist comparing other similar products from a number of outlets.

Compare price

Compare prices and be sure you include all fees, charges and taxes as well as postage, handling, freight or delivery costs. If you're buying a product from overseas, be sure the price includes any Customs duties or other costs associated with landing the product in Australia. (Also remember to include the cost of any extras, such as batteries, that you might need to use the product.)

Warranty (guarantee)

Does the product have a warranty? Compare the warranties offered with a number of other products/brands and see what they cover (not all warranties are the same). Does the warranty cover full replacement or just repair (and any costs involved in getting the faulty product to and from the repairer)?

Complaints

Does the company (manufacturer) handle any complaints or do they refer you back to the retailer? What will the retailer offer to do if you are unhappy?

Safety

Does the product comply with Australian safety standards? (You can check for compliance tags or symbols on the packaging.)

It is very rare for any product sold in Australia to not comply with Australian standards, but if you can check - do so. It's better to be safe than sorry.

Registration

Particularly with big-ticket purchases (cars, white goods, and similar commitments) it's a good idea to make sure the retailer is a registered Australian business. Most businesses display an 'ACN' Australian Company Number, or an 'ABN' Australian Business Number. This shows that the company is a 'legal', registered company with legally binding requirements that set out their obligations to consumers.

Payment and "Real-Cost" Calculations

Think about how you intend to pay for the purchase.

• with available cash;

• with money from my bank account;

• with a credit card;

• with a loan;

• on lay by; or

• cheque or money order.

Also think about how much it will leave you to spend on the other things you need to buy

And, if you don't pay cash, how much it will cost each month (or week) in repayments

2. IF YOU HAVE A COMPLAINT

Five steps to resolving a consumer dispute

STEP 1 - Contact the business

Contact the business that sold you the goods or services. Keep a record of your contact, including the time, date and details of the conversation. It's a good idea to be able to suggest a proposed solution to the problem. Always be clear and calm with the person you are dealing with and try to be polite and not lose your temper.

If this doesn't solve the problem, you may prefer to put your complaint in writing to someone senior in the business. Often a written complaint will be more successful. Give the business time to look into the problem and get back to you. The person you write to may need to contact 'head office' or get a second opinion.

( See also How to complain )

STEP 2 - Contact the relevant industry association

An industry association is a privately run body whose members come from the particular industry. The association is set up to promote the industry and also to ensure members maintain acceptable standards. Many industry associations have codes of practice that set down business procedures for dealing with the public. These often include complaint-handling procedures.

The Australian Consumer Handbook lists some of the peak industry bodies you can contact. Generally, you would contact the peak industry body when you feel your complaint hasn't been resolved by the business you have dealt with.

( See also How to complain )

STEP 3 - Contact your consumer protection agency

Australian consumer protection laws cover most industries and commercial practices. Your State or Territory consumer protection agency (better known as Department of Consumer Affairs or Fair Trading) can give you information about your legal rights, as well as suggest any further action you might take. These agencies can investigate and, if necessary, prosecute businesses that break consumer laws.

There are other government agencies that can assist consumers with complaints. For example, the Government Ombudsman deals with complaints against government agencies and services.

STEP 4 - Contact a mediation/conflict resolution service

Many government agencies offer mediation services to resolve disputes. These are usually independent people or organisations, such as tribunals, that are able to hear both sides of the dispute and work out a solution that is fair to both parties.

Check with your nearest consumer protection agency for more information about these services in your State or Territory and whether the services they offer could help you settle your dispute.

STEP 5 - Contact a court or tribunal

If all the above steps don't resolve your complaint, you may wish to take your matter to a court for formal resolution. Courts can make legally binding decisions which will be legally binding. You should remember that going to court usually requires legal representation and can prove costly.

3. WRITING A COMPLAINT LETTER

If you decide to write a letter to a business or complaint-handling organisation, your letter should include the following:

• your name and contact details;

• the date and place where the problem occurred;

• an outline the main points of your problem. (don't go into too much depth about any unnecessary minor details);

• what action you have already taken to fix the problem;

• a closing remark, such as 'I look forward to your response', that will let the business know that you expect a reply;

• your signature and the date; and

• copies of any other letters you have written about the problem, as well as copies of other relevant documents (for example, warranties, receipts and any previous correspondence) - do not send the originals of other documents. Keep a copy of this letter and make a note of the date you post it.

4. FREQUENTLY ASKED QUESTIONS (FAQ)

Q.      When am I entitled to a refund?

Under the law, you are entitled to a refund, exchange or repair if something you bought:

• is faulty or defective and you were not aware of it when you bought it;

• does not do the job you were led to believe it would do;

• does not match a sample you were shown; or

• is not as described on the box or in an advertisement.

Businesses do not have to give you a refund if you:

• can't prove that you bought it (for example, you don't have a receipt);

• just change your mind about it;

• have damaged it; or

• knew, or would be expected to have known, about a fault when you bought it (for example if you knowingly buy factory seconds).

It's important to find out about the refund policies of a business before you buy. Better businesses give refunds even though they may not be legally required to do so because they prefer to maintain good relationships with their customers.

Q.      What's the difference between Fair Trading, Consumer Affairs, the Australian Consumers Association, the Australian Competition and Consumer Commission and industry associations?

Each State and Territory has its own consumer protection laws and its own consumer protection agency to look after them. It may seem confusing because each State and Territory agency has a slightly different name, but usually it's a variation on 'consumer affairs' or 'fair trading'.

Nationally, the Treasury is responsible for national competition and consumer policy and other consumer matters, including responsibility for the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC).

The ACCC is responsible for administering the two major consumer laws in Australia — the Trade Practices Act 1974 and the Prices Surveillance Act 1983.

ASIC is similar to the ACCC, but is responsible for consumer protection in financial products and for the regulation of corporations.

Both of these national agencies come under the portfolio responsibility of the Treasurer.

Separate from government are independent agencies such as the Australian Consumers' Association. These agencies often advise consumers on specific products and may recommend certain businesses to deal with. Government departments and agencies wouldn't normally make commercial judgements or comment on particular products or businesses.

There are also industry bodies and professional associations that represent particular industry sectors. These organisations usually act as advocates on behalf of their member businesses and set professional standards for their industry.

If a business belongs to an industry body or a professional association, they are usually bound by a set of standards or a code of practice which governs how they deal with consumers. Businesses may be liable to disciplinary action by their association if they do not comply.

Sometimes these standards are made into laws by governments, and legal action can be taken against a trader who breaches them.

Q.      I'm concerned about my privacy. What should a business tell me about personal information they collect?

When you give a business or organisation your personal information, the business must let you know how they will use it, who they will give it to and how you can check to make sure it is correct. These are consumer rights under the Commonwealth Privacy Act 1988.

Q.      How should prices be displayed?

All displayed and advertised prices should also include all taxes and charges, including goods and services tax (GST). Where a displayed or advertised price does not show the final cost to you, it may be considered as misleading or deceptive conduct and in breach of the Trade Practices Act.

Q.      I received something in the mail I didn't ask for and now they want me to pay to keep it. What should I do?

Unsolicited goods

If you receive unsolicited goods (that is, goods you did not ask for) in the mail, from another person in trade or commerce, you are not required to pay for them. The sender can also not do anything to get payment from you. They cannot threaten legal action, send debt collectors or place your name on any list of defaulters.

If you do receive unordered goods, you can do one of two things:

1. Notify the sender of the goods that you do not want them. You must give the sender written notification, which includes:

• your name and address;

• the address where the sender can collect the goods; and

• a statement saying that the goods are unsolicited.

The sender has one month to claim the goods. If he/she does not claim the goods within a month, you may keep the goods at no charge, or

2. Do nothing.

The sender has three months to claim the goods. If they do not claim the goods, you may keep the goods at no charge.

Sample letters

1.Sample Letter 1 – Refund request

Your Name

Your Street

Your-town   State   Postcode

(Phone number and e-mail if required)

Today’s Date

Contact Person (Manager)

Business Concerned

Business Address

Dear Mr/Ms Manager

BRIEF DESCRIPTION OF PROBLEM – REASON FOR WRITING

Firstly, write a detailed description of the problem noting when and where you bought the product and how much it cost you. List all important information but try not to get bogged down in any irrelevant or trivial details. Then explain why you are unhappy with what you have bought - if it’s broken or unfit for its purpose or some other reason.

Next, outline the steps you have taken to get the problem fixed, who you spoke to and the results, if any, of your efforts.

Then continue with what you would like the business to do about the problem - a refund, a replacement or a similar product to the same value from a different manufacturer. Offer to deliver the item to the suppliers address and follow with something like 'I look forward to your prompt response' or similar request indicating that you expect to hear from them.

Be sure to enclose copies of any relevant documentation such as receipts or warranty certificates. Finish your letter with a full list of possible contact addresses or phone numbers where you can be contacted, particularly during business hours, and reinforce that you expect to hear from the business.

Yours sincerely

Your name

Enclosed

2.Sample Letter 2 – Repair request

Your Name

Your Street

Your town   State  Postcode

(Phone number and e-mail if required)

Today’s Date

Contact Person (Manager)

Business Concerned

Business Address

Dear Mr/Ms Manager

BRIEF DESCRIPTION OF PROBLEM – REASON FOR WRITING

Firstly, write a thorough description of the problem noting when and where you bought the product and how much it cost you. Then detail why you are unhappy with what you have bought. Explain if it’s broken or unfit for its purpose for some other reason.

Next, outline the steps you have taken to get the problem fixed, who you spoke to and the results, if any, of your efforts.

Then continue with what you would like the business to do about the problem - repair the problem, give you a refund, a replacement unit or a similar product to the same value from a different manufacturer. Offer to deliver the item to the suppliers address and follow with something like 'I look forward to your prompt response' or similar request indicating that you expect to hear from them.

Be sure to enclose copies of any relevant documentation such as receipts or warranty certificates. Finish your letter with a full list of possible contact addresses or phone numbers where you can be contacted, particularly during business hours, and reinforce that you expect to hear from the business.

Yours sincerely

Your name

Enclosed

3.Sample Letter 3  – Request for peak body assistance

Your Name

Your Street

Your town   State   Postcode

(Phone number and e-mail if required)

Today’s Date

Contact Person (Manager)

Peak Body Concerned

Address

Dear Mr/Ms Manager

BRIEF DESCRIPTION OF PROBLEM – REASON FOR WRITING

Firstly, write a detailed description of the problem noting when and where you bought the product and how much it cost you. Then explain why you are unhappy with what you have bought and why the steps taken by the supplier have not solved the problem to your satisfaction.

Next, detail what steps you have taken to get the problem fixed, who you spoke to and the results, if any, of your efforts. Outline what you expected the supplier to do about the problem - repair the problem, give you a refund, a replacement unit or a similar product of equivalent or better quality.

Then explain what the supplier did to help you solve the problem and why you think they should have done more. Give details of any conversations and copies of correspondence you have had with the supplier.

Be sure to enclose copies of any relevant documentation such as receipts or warranty certificates. Finish your letter with a full list of possible contact addresses or phone numbers where you can be contacted, particularly during business hours, and reinforce that you expect to hear from the peak body.

Yours sincerely

Your name

Enclosed

4.Sample Letter 4  – Request for Consumer Protection Agency assistance

Your Name

Your Street

Your-town   State   Postcode

(Phone number and e-mail if required)

Today’s Date

Consumer Affairs Agency

Nearest Office

Address

Dear Sir/Madam

BRIEF DESCRIPTION OF PROBLEM – REASON FOR WRITING

Firstly, explain why you are writing to the consumer protection agency giving a brief description of the problem. Note when and where you bought the product and explain why you are unhappy with it. Also explain what steps you have taken and why the response of the supplier has not solved the problem to your satisfaction.

Next, detail what you have done to get the problem fixed, who you spoke to and the results, if any, of your efforts. Outline what you expected as a solution to your problem - repair the fault, give you a refund, a replacement unit or a similar product of equivalent or better quality.

Then explain what the supplier did to help you solve the problem and why you think they should have done more. Tell the agency that you went to the industry peak body and what information they gave you. Give details of any conversations and copies correspondence you have had.

Be sure to enclose copies of any relevant documentation such as receipts or warranty certificates as well as copies of the letters you have sent to the supplier and industry body. Finish your letter with a full list of your possible contact details - addresses, phone numbers and mention whether it is a 'business hours' or 'home' contact. Make it clear that you would like the agency to contact you soon.

Yours faithfully

Your name

Enclosed – List any enclosures

5.Sample Letter 5  – Terminating a Contract

Your Name

Your Street

Your town   State   Postcode

(Phone number and e-mail if required)

Today’s Date

Contact Person (Manager)

Business Concerned

Business Address

Dear Mr/Ms Manager

NAME AND TYPE OF CONTRACT – Explain your intention to terminate the contract.

Name or describe the contract that you are committed to and what it is for, note the starting and finishing dates and what you pay for the contract.

Explain that you wish to terminate the contract and state why.

Nominate a date to terminate the contract (usually the end of a payment cycle) and when and where you will be returning any goods covered by the contract. Tell the business that as you are terminating the contract, you expect any direct-debit payments or credit card charges to cease at the time of termination.

Be sure to enclose copies of any relevant documentation such as the contract itself, receipts or warranty certificates. Finish your letter with a full list of possible contact addresses or phone numbers where you can be contacted, particularly during business hours, and make it known if you expect to hear from the business.

Yours sincerely

Your name

Enclosed

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