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$750,000 fine For Bad Consumer Advice on Refund/Return/Replace

31st Oct 2017

 

As pet business are increasingly targeted by lawsuits, ACCC is weighing in on small businesses who don’t follow Consumer Law

Computer sales business MSY Technology has just been fined $750,000 after misleading customers about whether they were entitled to a repair, refund or replacement after purchasing a faulty product.

ACCC deputy chair Delia Rickard said that businesses must ensure their refund and returns policies, and any representations (written or verbal) reflect their consumer law obligation to provide refund, repair or replacement in cases where there is a major fault with the product. This can include owners alleging problems with pets they have bought (the pet being “the product”), or claims against policies for boarding, grooming, sitting, walking, training and minding (the service being “the product”.

Pets Australia suggests pet business owners designate a single contact person for dealing with all complaints, and make sure staff are trained in what to do if a customer requests an exchange or refund. There is a clear association between well trained staff and good outcomes.

And a warning for retail members: if a product is under warranty and has a fault, the store that sold it is responsible for sending it away for repair or replacement, but many businesses do not do this. If you’ve sold the product, it’s your responsibility to send it back to the supplier. That may include livestock.

Pets Australia can help members in these cases. In the last 12 months Pets Australia staff have helped with 14 cases where a client has commenced legal action after alleging a pet was “unfit for purpose” or where a client has alleged that a policy was misleading. If you have concerns, contact the office!

FOR MORE INFORMATION CLICK HERE

[thanks to Smartcompany for the theme behind this note]

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