Faulty Consumer Protection Law.

A case recently resolved between a major whitegoods and electronics manufacturer and the Australian Competition and Consumer Commission ( ACCC ) has delivered alarming news to those trying to get faulty goods refunded, repaired or replaced under warranty.

It seems that manufacturers are not obliged to make the terms that apply under warranties known to their customers.  At law, the onus is on the customer knowing his or her rights and it is not misleading for the goods manufacturer to withhold that information.

The law in Australia entitles the purchaser of faulty goods to three options.  Having them " repaired, replaced or refunded " with that choice the prerogative of the customer.  The law is also clear where that choicer should be exercised, and it is at the point of sale.  Many items carry information that faulty goods must be returned to the manufacturer - at the buyers expense.  Such goods might be sold on the international market and that advice does apply where no consumer protection laws are in place, but sales in Australia are governed by our consumer protection laws.

Most goods carry a twelve month warranty and most people think their protection ends when that period expires, but that is not so.  The ACCC will consider the reasonable working life of the item concerned and should it fail an unreasonably short time into that period the consumer is still entitled to exercise those " three R's " !

The ACCC reviewed claims for high priced television.  It is common for sales outlets to claim the item is out of warranty and offer a discount on a replacement, or offer repairs at a discounted price. Should a manufacturer refuse a consumers rightful claim that constitutes an offence that can carry a fine of $ 1.1 million for each contravention.

It is abundantly clear that there is a vast difference between low and high priced goods.  Returning a faulty toaster to the point of sale is usually resolved amicably, but a high value item often encounters resistance and a consumer who is not aware of the law is at a disadvantage.  Often they accept a solution that costs them money when legally resolution should have been without that cost.

Consumer protection advocates have long been campaigning to have a listing of consumer rights summarised in the way of a public notice to be displayed at all points of sale.  This would require validation by an act of parliament, and so far this has not happened.

Perhaps the biggest item to be resolved under consumer protection laws is the automobile.  A new car is probably the most expensive purchase the average person makes in a lifetime after buying a home and yet it is less protected than a toaster or a jug.   It can spend endless time in the repair shop and  we have long awaited " lemon "  laws to mandate refund or replacement after a given repair period.

The politicians were reluctant to pass such a law when we had a local car manufacturing industry, but we are now customers to the world car industry and consumer protection should be paramount.  In the interim, the public are advised to make sure they know their rights when it comes to negotiating faulty goods.