Issue Date:  -  Monday, 19 April 1999

Computer-buyers told: do your homework

The Ministry of Fair Trading today reminded consumers to be particularly careful when buying second-hand computers without having easy access to the supplier.

Industry sources indicate more than 40,000 second-hand computers are available to be sold each year in Australia, creating a new product line for direct-marketing firms.

Problems associated with this have been highlighted by the recent financial collapse of several retailers, including Perry Tait.

Commissioner for Fair Trading Patrick Walker said it was likely that, in future, other retailers would sell computers the same way.

Typical complaints relate to non-delivery, faulty or missing components and systems that don't operate properly.

Mr Walker said consumers needed to make certain checks before committing themselves to any second-hand computer purchase.

These checks include:

shopping around to compare prices and services with local offers;
paying special attention to after-sales service;
making sure the retailer will provide all necessary components;
and ensuring the products are Year 2000-compliant.

"People shouldn't generally pay a deposit larger than 10% of the full price and they should consider paying by credit card, so they can 'charge back' if they don't receive the goods," Mr Walker said.

Only this week, a Choice Magazine investigation showed personal computers were the household electrical item most prone to needing repairs in the first 12 months after purchase.

"This is particularly relevant to people buying second-hand computers," Mr Walker said.

Choice concluded nearly three out of ten computer systems listed in the survey needed repair in the first year.

"This confirms the Ministry's view that after-sales service should be a critical component of any PC deal, yet too many people either don't consider it or put after-sales service and back-up last on their shopping list," Mr Walker said.

Complaints by consumers about their computers represent the second-biggest product category of formal retail complaints to the Ministry of Fair Trading, after clothing and footwear.

"It is the single biggest advice issue on the retail division's telephone advice line, accounting for thirteen per cent of all incoming phone calls," Mr Walker said.

"Consumers should only buy from computer retailers who are prepared to commit in writing a list of items to be provided, a definite delivery date and the nature of after-sales service," he said.