Faulty gift? Know your rights

What are your rights as a consumer, if something you received or bought this Christmas turns out to be faulty?

In 2018, the Australian Competition and Consumer Commission (ACCC) received nearly 34,000 contacts about consumer guarantee related issues. This is an increase of more than 17 per cent compared to 2017.

The issues most commonly raised were with faulty cars, electronics, whitegoods, and clothing.

“This is one of the busiest shopping periods of the year, so it’s important people remember they have rights if they’ve received a Christmas present or purchased an item during the Boxing Day sales that later fails”, ACCC Acting Chair Roger Featherston says.

“These consumer guarantee rights mean you’re entitled to a remedy, either a repair, replacement or refund. If the problem is minor, the retailer who sold the item can choose the remedy. If the problem is major, you get to choose your remedy.”

A minor failure is where a problem with a product can be fixed in a reasonable time.

A major problem is where the fault is more serious. For example, if the product doesn’t work anymore and can’t be fixed, if it’s significantly different from its description, if it doesn’t do what you asked for, or if it’s unsafe.

“Consumer guarantees are set in stone in the Australian Consumer Law, meaning businesses cannot alter or change them in any way”, Featherston says.

“A key trick we always tell people is to use the words ‘Australian Consumer Law’ when returning a faulty product so the retailer knows you’re aware of your rights.”

People should be wary about potentially misleading claims when returning faulty items. For example, a business may claim they can’t help as the product is out of warranty, that you have to take it to the manufacturer, or that because it was a sale item you can’t return it.

These statements are all not true because:

- A manufacturer’s warranty is separate to your Australian Consumer Law (ACL) rights so even if a product is out of warranty, you still may be entitled to a remedy.

- The retailer who sells you the product must help with a remedy if it turns out to be faulty. They can’t claim it’s the manufacturer’s responsibility to help you and not theirs.

- Sale items are covered by consumer guarantees. If the sale item later breaks, you have the same rights—it makes no difference if you pay a discounted price.

Another misconception is that people who buy products online from overseas are not covered.

“This also isn’t true. Any overseas business that sells products to people in Australia is bound by our consumer law and must help you”, Featherston says, adding that consumer guarantees, however, do not apply for a ‘change of mind’.

“If you received a gift that you don’t like, or changed your mind about something you bought at the Boxing Day sales, consumer guarantee rights don’t apply, although some retailers may let you exchange gifts for another item.”

People having difficulties obtaining a remedy for a faulty product can use the ACCC’s complaint letter tool to try to resolve the issue with the trader. If this is unsuccessful, they can contact their local consumer protection agency or report the issue to the ACCC.

More information about consumer guarantee rights is also available at the ACCC’s website.