No Refunds – No Way
Issue Date: - Wednesday, 17 September 2008
National survey of consumer redress in shops
Consumer Protection WA along with its counterparts in all other Australian States and Territories has completed a compliance survey of “no refund” signs in fashion and clothing retail outlets with only 72% of stores checked getting it right.
Officers checked a sample of 349 small to medium size fashion outlets across the country to ascertain how often traders display ‘no refund’ signs or otherwise promote policies that are less than the minimum statutory rights consumers have when returning goods.
In WA out of 40 shops checked, only 27 were fully compliant while 13 outlets returned results indicating various areas of non-compliance.
“It is very important for traders to understand that their customers have specific legal rights when they find themselves with products that are faulty, wrongly described, different from samples or do not do what they are supposed to,” WA Consumer Protection Commissioner Anne Driscoll said.
“I was disappointed to learn that some stores were indicating by signs, messages on their sales dockets and by other means, that customers were either not entitled to refunds at all, or were restricted to credit notes and other remedies of the store’s choosing.
“This is in conflict with consumer protection laws concerning refunds and the stores who had it wrong on this occasion will receive education material and be advised formally to revise their practices.
“Subsequent checks and call-backs will not be so lenient and traders who mislead their customers into believing they do not have any rights to refunds, or advise of restricted circumstances that are not supported by law can face fines of up to $100,000 for companies,” Commissioner Driscoll said.
All consumer protection agencies across Australia have committed to a strategy of trader education and compliance and retailers of all types of goods can expect to come under the scrutiny of future surveys.
The national survey results were:
| State/Territory | Sites | Compliant | No Refund | No Refund Sale Items | Exchange Only | Credit Note Only | No Refund (Hygiene) | Other Policy | |
|---|---|---|---|---|---|---|---|---|---|
| Yes | No | ||||||||
| SA (62.5%) | 40 | 25 | 15 | 6 | 3 | 1 | 1 | 1 | 3 |
| ACT (65%) | 40 | 26 | 14 | 3 | 5 | 1 | 0 | 0 | 5 |
| NSW (85%) | 40 | 34 | 6 | 4 | 0 | 0 | 0 | 2 | 0 |
| VIC (58%) | 36 | 21 | 15 | 3 | 1 | 2 | 0 | 1 | 8 |
| TAS (75%) | 40 | 30 | 10 | 1 | 2 | 2 | 1 | 2 | 2 |
| WA (67%) | 40 | 27 | 13 | 2 | 6 | 0 | 0 | 1 | 4 |
| QLD (82%) | 40 | 33 | 75 | 5 | 0 | 0 | 0 | 0 | 2 |
| NT (75%) | 73 | 55 | 18 | 5 | 4 | 2 | 0 | 1 | 6 |
| TOTALS | 349 | 251 | 98 | 29 | 21 | 8 | 2 | 8 | 30 |
“We will be working with traders as well as undertaking various education activities to ensure retailers and consumers, have access to information about their rights and obligations, so everyone gets a fair go,” the Commissioner said.
ENDS
Contact Consumer Protection media officers for further information.