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ACCC urges consumers to know their rights as complaints soar

The ACCC wants consumers to be armed with the facts the next time they get a dud appliance.

The ACCC wants consumers to be armed with the facts the next time they get a dud appliance. Photo: Getty

Australians are being urged to take better advantage of their consumer rights as the regulator looks to address huge numbers of complaints about dodgy cars, electronics and appliances.

The Australian Competition and Consumer Commission (ACCC) stated it fielded a whopping 28,000 reports last year about consumer guarantees and warranties, about 30 per cent of total enquiries.

And 73 per cent were about automotive issues, while 68 per cent of consumer guarantee enquiries were from consumers angry about their electronics and white goods, the ACCC said.

ACCC deputy chair Catrina Lowe said businesses needed to remember that giving shoppers false or misleading information about their rights is unlawful.

The ACCC has taken repeated action in recent years against businesses caught shirking their responsibilities, including allegations against Fitbit, Startrak and Stellantis (which imports jeeps).

But while the ACCC can take action in cases where businesses mislead shoppers, many people remain unaware of their rights as a consumer.

Lowe said many shoppers don’t feel “sufficiently knowledgeable or confident” to challenge a business when they might think something they’ve purchased is broken or inoperable.

The ACCC issued guidance for consumers about how to deal with businesses, suggesting that if a product does develop a “major problem” they need to be upfront with the retailer about it.

“Consumers should let the business know that they think there is a major problem with it under the consumer guarantees in the Australian Consumer Law,” the regulator said.

“They can tell the business they are rejecting the product, state what remedy they would like, and explain why they think there is a major problem.”

Consumer rights 

It can get a bit tricky though, because as consumer groups have previously exposed, businesses are adept at trying to stonewall people with carefully worded excuses.

So you need to know the basics, including how long a consumer guarantee applies for; what constitutes “acceptable quality”, and what weasel words to watch out for as you complain.

How long does a consumer guarantee apply? Well, under current laws there isn’t a defined number, something that has drawn criticism from consumer advocates in recent months.

Instead, there is a “reasonable” test that takes into account the nature of the product or service, and the price that was paid.

“This might be longer than the period of any warranty provided by a retailer or manufacturer,” Lowe said.

“Broadly speaking, you are guaranteed that the product you have purchased will be of acceptable quality, match its description and do what a business tells you it can do. If it doesn’t, you are entitled to a free repair for a minor problem, or a replacement or refund for anything major.”

A minor problem might be the radio in a car not working, Lowe said, while a major problem would be the brakes not working.

What constitutes reasonable depends on the type of product, how much you paid for it and how it is likely to be used.

The reasonability test rears its head again in regards to quality. Under consumer law “acceptable” quality is a product being as durable as a “reasonable consumer” would regard as acceptable for that product.

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