For Consumers

I have a problem with something I bought. What should I do?

The first thing you should do is talk to a senior staff member from the business where you bought it. Most businesses are interested in resolving problems because they want to keep customers and not receive bad publicity.

If you are unable to resolve the problem through talking or writing to the business, then you should find out if an industry dispute resolution scheme exists. A listing of schemes has been provided on this site.

If there isn't a dispute resolution scheme or if you feel your problem has not been properly resolved, then you should approach your local consumer protection agency. The consumer protection agency can help you with information about your rights under the law and what other action can be taken.

You should be aware that the consumer protection agency will talk to you and the business before taking any action. They will be looking for evidence that both sides tried to resolve the dispute fairly before proceeding to more formal action.

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

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

• does not match a sample you were shown or

• was 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 (eg. you don't have a receipt).

• you change your mind about it

• you have damaged it or

• you knew or should have known about a fault when you bought it (eg. factory seconds)

It pays to find out the refund policies of a business before you buy. Some businesses offer refunds even when they don't legally have to because they are keen to maintain a good relationship with their customers.

What's the difference between Fair Trading, Consumer Affairs, the Australian Consumers Association, the ACCC and all those other consumer protection bodies?

Starting at the national level, there is the Competition and Consumer Policy Division within Treasury, which develops national policy on a range of consumer matters.

Next, the Australian Competition and Consumer Commission (ACCC) is responsible for administering the two major consumer laws in Australia - the Trade Practices Act and the Prices Surveillance Act.

The Australian Securities and Investments Commission (ASIC) is similar to the ACCC but is responsible for consumer protection in financial products, as well as for the regulation of corporations..

Each State and Territory has its own set of local consumer laws and its own Minister and consumer protection agency to administer them. It can sometimes be confusing as each State and Territory agency has its own name but this is usually a variation on "consumer affairs" or "fair trading".

Separate from government, are independent agencies such as Choice who publish Choice magazine. These agencies usually advise consumers on specific products or recommend certain businesses over others, which government agencies are unable to do.

How can I check whether a toy I've bought is unsafe for my kids?

You can immediately check whether a product has been recalled from sale due to safety problems, by looking at the Product Safety Recalls Database.

This covers products that a manufacturer has withdrawn from sale; it doesn't cover banned products or products that may be unsuitable for your child's age.

All Australian consumer agencies make available information on what parents should look for when buying children's furniture or toys. Two useful publications are Keeping Baby Safe and Safe Toys for Kids both of these publications are available on the ACCC website..

What should I look for when shopping on the Internet?

There are 10 basic things you should check before deciding to buy on the Internet.

When I go to a club or restaurant, I sometimes see a mark on the bottom of a glass or on measuring equipment that says it is certified to meet an Australian standard - what are these standards and who controls them?

In Australia, the National Measurements Institute (NMI) is responsible for setting legal standards for businesses who use measuring equipment to sell things to consumers. This could be the amount of beer in a beer glass or the measurement of petrol at a service station. The NMI administers the National Measurement Act 1960, which aims to ensure that trade measurement instruments comply with relevant national standards before use in Australia.

At a State and Territory level, Fair Trading and Consumer Affairs agencies have their own Trade Measurement legislation which compliment the National Measurement Act but sometimes have additional requirements specific to the State or Territory. These agencies are responsible for local business compliance and regularly inspect businesses to ensure that they meet appropriate standards.

Apart from government measurement standards, there are a number of private companies that aim to set industry-based standards. These standards are usually voluntary but are often supported by government. The key Australian standards company is Standards Australia Limited (SA) which prepares and publishes most of the non-government technical and commercial standards used in Australia. Standards Australia produces more than 6000 standards on a wide range of topics including trade measurement.

For Business

What is the difference between trade practices laws and fair trading laws and what is 'fair trading' all about anyway?

Most consumer protection agencies aim to ensure that the trading that occurs in the marketplace - the buying and selling of goods and services - is fair for both consumers and businesses.

This is usually achieved through laws and industry self-regulation which ensure that consumers are adequately informed and protected and that businesses are competitive and do not abuse their market power.

The main national law governing this is the Trade Practices Act, which is administered by ACCC.

Each State and Territory also has their own "trade practices" law usually referred to as the Fair Trading Act. These mirror the national Act but often have additions that are relevant to that State or Territory.

I have a complaining customer who is threatening to take me to consumer affairs. What should I do?

The first thing to do is to talk to the customer about their complaint and listen properly to their side of the story. Find out what exactly is the problem; it may not be what you first assumed. Acknowledge the problem to confirm that you are both talking about the same thing and, most importantly, be sympathetic and calm.

Once a customer experiences recognition by a business, they often calm down and are willing to talk reasonably about a solution. The customer may be legally entitled to a refund or remedy, but no matter what the law says, you should solve the problem in a reasonable way.

After all, your customer's happiness is important and unhappy customers can generate a lot of bad publicity for your business.

Talk through a solution with the customer and find out what would be acceptable to them. It's a fact of life that some customers can be unreasonable and you will need to decide whether you accept what may seem like an unreasonable solution in the interest of keeping future business with the customer. In these cases, it pays to formally document the solution so that the customer knows that they are getting special treatment and this is not a normal practice by your business.

If you cannot work out an acceptable solution and the customer goes to a local consumer protection agency, the consumer protection agency will want evidence from both sides that there was a reasonable effort to solve the problem.

The consumer protection agency may also suggest ways in which the problem can be solved. This could include mediation, where a neutral person is bought in to work through the problem.

An industry association has written to me wanting me to be a part of their Industry Code of Practice. What's in it for me?

If you have read the last question, then you'll know how useful it can be to have systems for dealing with problems. Industry codes of practice, service charters or best practice models are all systems that can help businesses.

Usually they are organised by groups which include representatives from government, consumer groups and industry who work together to develop acceptable solutions to problems specific to your industry. This is usually translated into guidelines that state what you as a business agree to do when dealing with customers.

Adhering to a Code can bring added responsibilities for your business, but it can also bring added benefits in having systems, and in some cases dedicated bodies, to deal with customer complaints. Importantly though, it is a pledge to your customers that you have agreed to a number of things in their interest which should ensure they think positively about your business and about your industry.

Is there anything that can help me cut through all the rules and regulations that are out there for businesses?

Yes. As a business, there are two vital business services you should know about: business.gov.au and Business Licence Information Service (BLIS). Business.gov.au is an online reference point for all government services and regulations relating to business.

You can browse by topic headings or you can simply enter a word you want to search on and call up relevant information. You can call the Business Licence Information Service or BLIS to find out information about any business licences or permits you may need to run your business.

When do I have to give a refund under the law?

Under the Trade Practices Act, you have to give a refund if something a customer bought has a serious fault that they didn't know about or does not do the job that the customer was led to believe it would do or does not match a sample or description shown to the customer beforehand.

You do not have to refund a customer's money if they do not have proof of purchase (eg. a receipt), they just changed their minds, if they have damaged the goods, or they knew about a fault beforehand (eg. factory seconds).