CONSUMER REDRESS

HOW CAN CONSUMERS USE LEGAL AVENUES TO SOLVE THEIR PROBLEMS?

CHAPTER 1.13
 Add these notes to your workbooks.
CONSUMER
Consumers have some basic rights
REDRESS
Under certain circumstances a seller cannot refuse a refund or exchange
• If the goods are different from how they are labelled
• If they were faulty when manufactured
• Do not do what you were told they would do

CONSUMERS CAN REDRESS THE THINGS THAT ARE WRONG 

ACTIVITY
https://www.news.com.au/finance/business/retail/shopping-dont-believe-this-sign/news-story/58c3c29d831b29faa5ec3f405a23012b

Read the article and answer the following questions

1. What does the term ‘acceptable quality’ mean?

Acceptable quality is what’s normally expected for the type of product and its cost.

2. What should happen when there is a minor problem with a product? How does this differ from a major problem?

When then is a minor problem with a product the business can choose to give you a free repair instead of a replacement or refund. But when there is a major
problem, you have the right to ask for your choice of a replacement or refund (you’re not required to return the product in its original packaging).

3. What are consumers rights when items are on sale?

When items are on sale consumers are still entitled to their choice of a repair, replacement or refund if the product is broken or doesn’t work as promised.

4. Why do you think businesses are not obligated to offer refunds or returns for change of mind?

Businesses are not obligated to offer refunds or returns for change of mind as businesses will lose profits.

5. What role does the media play in raising awareness for consumers?

The role the media plays in raising awareness for consumers is that it informs consumers of their rights.
 REMEDIES AND THEIR OUTCOMES

There are a number of procedures you can follow to

redress the problem
Contact the
Trader should Contact local
Establish trader either redress the Office of Fair
Problem by phone or problem, if not… Trading
in person

You may be required

to put complaint in
writing
IMPORTANT POINTS TO REMEMBER WHEN MAKING A
COMPLAINT

• If using the phone, always get the name of the person

• Keep a written record of all conversations and copies of letters
• File any receipts, dockets or credit accounts to show proof of purchase
• Return the faulty good promptly
• If you leave the good with the trader, request a receipt
• If your complaint is about a product, contact the manufacturer
• Check your warranty to determine whether it covers the problem being experienced
NSW FAIR TRADING

• NSW Fair Trading can assist consumers in a number of ways from providing information
about consumer rights to helping resolve complaints using more formal, legal processes
such as mediation between a consumer and business to resolve the dispute
• Consumers are always encouraged to attempt to resolve their issues with businesses first
• If consumers feel that they are unable to resolve the dispute, they can contact NSW Fair
Trading to lodge a formal complaint. They will contact the trader and attempt to reach a
solution and will contact the consumer to inform them of the outcome
• https://www.cas.fairtrading.nsw.gov.au/icmspublicweb/forms/GeneralForm.html
 NSW CIVIL AND ADMINISTRATIVE TRIBUNAL (NCAT)
• If consumers are still unsatisfied with the outcome, they can them lodge a complaint with NCAT.
• This tribunal was formed in 2014 and is responsible for many matters, including consumer complaints. It can hear
matters up to the value of $40,000
• Arbitration hearings are conducted by tribunal members who hear and determine cases in accordance with the law
• The tribunal can make legally binding decisions (a legal penalty applies if the order is not followed) to resolve a
dispute in the following ways:
• Order that money owed does not have to be paid
• Order for goods and services to be provided
• Order faulty goods be fixed or replaced
• Order a refund and goods to be returned
 So, the OFFICE of FAIR TRADING negotiates or mediates – not
enforceable by law, parties choose to comply

The CONSUMER, TRADER AND TENANCY TRIBUNAL arbitrates

(enforceable by the law)
 PROCESS OF REDRESS

Informal
Attempt to conversation,
Contact local lodge formal
resolve dispute Lodge claim with
Office of Fair complaint, the NCAT
by contacting
Trading office negotiate If not
the trader
for you satisfied
directly with
complaint
ACTIVITIES

• Use the following weblink to answer the following questions

https://www.accc.gov.au/consumers/consumer-rights-guarantees/repair-replace-refund
1. List the circumstances where consumers may not be entitled to refund, free
replacement or repair
2. When can consumers ask for a replacement or refund?
3. Create a table that summarises the differences between major problems with goods and
services