Your refund rights when buying via Grays Online or eBay

YOUR refund rights in online auctions are anything but black and white, as demonstrated by this case involving Grays customer James Spinelli.

YOUR refund rights in online auctions are anything but black and white, as demonstrated by this case involving Grays.

Newcastle's James Spinelli was a happy customer of Sydney-based graysonline.com until it refused to give him his money back when fine wine he'd purchased was ruined during delivery.

Mr Spinelli bought six bottles of bonza Burgundy and one of top-tier Seppelt red.

The wine was dispatched on a 35C day in December and pressure build-up made four bottles leak.

Initially Grays - which sells every second bottle bought at auction in Australia - looked set to do the right thing.

When Mr Spinelli complained, part of the email response was: "I am sorry to hear you have had issues with your delivery. As per our discussion could I please get photos of the damaged items so I can investigate and process a refund for the items?"

He provided the photos but Grays then gave him the run-around before denying responsibility.

"I felt betrayed," said Mr Spinelli, frustrated but also determined to stand up for himself.

After Public Defender became involved Grays changed its mind and agreed to a full refund.

Generally speaking, if you buy an item in an online auction you are not protected by the Australian Consumer Law. However, there are exceptions. "Buy it now" sales are covered by the ACL. And if the seller is a business, you have the ability to seek a refund.

Mark Kehoe, director at Grays - which sold 70,000 cases of wine in each of November and December - said it now offers some of the same protections provided under the ACL because it wants its buyers to feel as comfortable as they would at a traditional retailer.

That means refunds, including transport costs, are offered if items are damaged in transit, sold as "new" but don't work or have been incorrectly described. Sometimes Grays will refund where the buyer has simply changed their mind.

"I am surprised that we didn't accept that refund immediately," Mr Kehoe said. "That would be a damage-in-transit issue."

Grays needs to work on ensuring its policies are applied in practice. Mr Spinelli said he was concerned that he might not be the only person denied justice. I have the same concern.

Grays is the second-largest auction site after eBay. Unlike Grays, most of its auction items are offered by the general public so the ACL doesn't apply. However, eBay spokeswoman Megan English said: "If a sellers fails to meet their obligations they will find that they won't last long on eBay."

Also, if you pay via eBay subsidiary PayPal "you will find yourself covered for damaged goods, items not received or items that arrive that are different from their photo or description," Ms English said.

If you have think you've been ripped off by a seller or auction site you can turn to NSW Fair Trading - or Public Defender.

Contact John Rolfe: [e-mail]