Complaint handling guidelines for traders

Consumer Protection recognises that proper attention to the concerns of customers is an essential part of a well managed and successful business operation

Any complaints handling policy you adopt needs to acknowledge that:

your customers have the right to complain about goods and/or services
purchased, and to have that complaint dealt with;
complaints can provide you with feedback about goods and/or services being offered; and
receiving a complaint gives you the opportunity to assess the impact on the market of certain goods and/or services.

Essential features of a complaint handling system

The following Five-Point Framework can be used to develop a system for responding to complaints from your customers:

Commitment

There should be a commitment at all levels of your business to a complaint resolution system that is efficient, fair and includes:

acknowledging that your customers have a right to complain;
openly seeking feedback from your customers; and
having a written policy about handling complaints which is readily available
to your customers.

Fairness

Complaint handling should be fair to all parties, and must allow everyone's views to be heard and taken into account in a balanced way.

Effectiveness

Adequate resources should be made available to handle complaints efficiently and effectively. Complaints received should be dealt with quickly and courteously.

Those involved in responding to complaints should have the authority and ability to decide remedies and to put them into effect.

Accessibility

Your complaint handling system should be accessible to all customers, and help them lodge their complaints. Information about how to make a complaint should be readily available and simple to understand. Consider making it available in several different languages.

It should not cost your customer anything to make a complaint.

Accountability

You should record the complaints received and the outcomes achieved.

Recurring and systemic problems which become known through your complaint handling system should be identified and rectified.

Review the operation of your complaint handling system regularly to make sure that effective outcomes are achieved for customers and traders.

Make sure there is appropriate reporting of the findings of reviews into the operations of the complaint handling systems.

Procedures for handling oral and written complaints

Once you have set up a complaint handling system, the following procedure may help you respond to a customer who is making a complaint about goods and/or services received:

identify yourself, listen (or read carefully), take details, find out what the complainant wants;
confirm with the customer the details you have taken;
empathise with the customer and be courteous;
avoid laying blame or being defensive;
assess the responsibility of your business in respect of the customer's complaint;
if a resolution to the complaint is not immediately possible, make a commitment to do something realistic and achievable about resolving it, even if someone else will eventually handle the complaint;
avoid creating false expectations;
ask if the complainant is satisfied with the action taken or proposed in respect of the process and the redress. If the complainant is not satisfied, give advice about available alternatives;
provide an acknowledgment of contacts by letter or phone as appropriate, taking care to record your responses;
identify problems, if necessary, within your business, and address those that require remedy; and
follow up, monitor and provide feedback to each party involved in the complaint.

If the complaint can't be resolved

The suggestions so far focus on a system for handling dissatisfaction expressed to a trader by a customer. It is preferable to try to settle the problem with the complainant early rather than allow it to escalate into a larger and more difficult dispute.

If the complaint can't be resolved within the Five Point Framework described above, it may be necessary to refer the matter to other, sometimes more formal, procedures for dispute resolution.

Dispute resolution aims to deal with problems which cannot be resolved within a complaint handling system. Consumer Protection can provide further information about dispute resolution.

Need more help?

Consumer Protection can provide further information and assistance on complaint handling issues. Contact the manager of the branch you normally deal with, call our advice line on 1300 30 40 54 or send an email.