Key Points
- Amid Boxing Day sales, Australians are being reminded of their rights under the Australian Consumer Law.
- Whether a product is on sale or not, it still imposes a set of entitlements onto buyers.
- In most cases, the law requires sellers to repair, replace or refund consumers for faulty products.
As thousands of people flock to the shops on the hunt for a post-Christmas bargain, consumers are being advised to brush up on their customer rights so they’re not left short-changed or with a dodgy product.
The Australian Retailers Association estimates Australians will splurge $1.25 billion on "unprecedented" deals, with shoppers hoping to stretch their dollar further during Boxing Day discounts and sales.
Australia's biggest bank expects almost one in two people to participate in the sales, spending an estimated $4.6 billion in total.
While more people are planning to shop at Boxing Day sales than in previous years, customers are planning to spend less, Commonwealth Bank personal finance expert Jess Irvine said.
The average planned spend this year is $475.70 compared to a planned average spend of $483.20 in 2022 and $557.05 in 2021.
Retail experts say it's not in spite of cost-of-living pressure that people are planning to spend big on Boxing Day, but because of it. Source: AAP / aap
Stores that claim there are no refunds on sale items or for gifts may be engaging in misleading and deceptive conduct under the , according to the Victorian government.
Here’s what you need to know when it comes to your consumer rights.
What you can and can't do on refund policies
A product on sale carries the same set of consumer rights that it would if sold at full price.
If it ends up being faulty, buyers are entitled to have it repaired, replaced or refunded.
However, if they have been told of a fault in the product before the sale, a customer can’t later claim a refund for that flaw.
Stores can also refuse refunds, exchanges or repairs if a customer changes their mind, or if the product was misused in a way that led to the fault.
"Retailers have a responsibility to ensure their products meet required standards, but consumers also need to do their own homework before they buy or they might get caught out," Acting NSW Fair Trading Commissioner John Tansey said.
Businesses are also potentially misleading consumers if they insist that a refund be issued as store credit.
And, if you got the product as a gift for Christmas, you have the same rights as the purchaser.
Gift cards last for three years
Though gift cards often have an expiry date, there’s no rush to use them straight away.
Even if they expire within a year, you have at least three years to use them under Australian Consumer Law guarantees.
In addition, businesses can’t charge post-purchase or administration fees like activation fees, account-keeping fees or balance enquiry fees. They can still charge for things like overseas transaction fees, booking fees or payment surcharge fees though.
Be wary of extended warranties
You may not need to buy an extended warranty if you’re offered one at the checkout.
Customers should check if they’re already entitled to benefits provided by extended warranties before they agree to buy them.
Customers should also be wary when suppliers or manufacturers advise consumers that an extended warranty provides extra protection, which the consumer would not have unless they buy it.
One example, as cited by Consumer Affairs Victoria, is a customer being told a $6,000 new TV needs the purchase of an extended warranty to cover the period after the manufacturer’s one-year warranty expires. That’s because a reasonable customer would expect a new TV to last more than one year.
Why it pays to shop smart
Victorian Minister for Consumer Affairs Gabrielle Williams urged consumers to brush up on their rights, adding the holidays were for relaxation, not "rip-offs".
"While there is no excuse for a retailer not to know their obligations, we’re urging consumers to know their rights and speak up if something doesn’t ring true."
Tansey said that, if a purchase was faulty, customers have a right to repairs, replacement or a refund under the Australian Consumer Law.
"It still pays to shop smart," Tansey said.
"You can avoid disappointment during the festive season by checking a store's return policy and reading the terms and conditions of online sellers before you click add to cart and keeping a receipt handy if a product isn't up to scratch."
- With AAP
