Push to punish dodgy businesses when customers left with lemons

Consumer groups want businesses who refuse to give customers a fair refund, replacement or repair hauled over the coals, saying many aren’t doing what they should.

Sue Meadows hasn't been able to get a refund or repairs on her dodgy Ford. Picture: Nicki Connolly

Businesses should be punished when they fail their customers by refusing a fair refund, replacement or repair, consumer groups say.

They say many businesses shun their obligations while, for customers, any legal redress is costly and time-consuming.

“Right now, businesses don’t have to pay a penalty when they fail to meet the most basic part of the Australian consumer law – the obligation to fix something that’s gone wrong,’’ Choice campaigner Dean Price said.

The groups are backing a recent Treasury proposal to penalise businesses that do not provide a repair, replacement or refund when one is due.

In car sales, campaigners say a motor industry ombudsman would give consumers, especially vulnerable people, certainty that their rights were protected.

Consumer Action Law Centre chief executive Gerard Brody said some car dealers had slipped into a culture of repeated – often unsatisfactory – repair of lemons.

“Consumers don’t have enough time or deep enough pockets to pursue legal action,’’ he said.

Sue Meadows’s Ford Fiesta blew up within hours of her buying it and she is still fighting for something to be done. Picture: Nicki Connolly

For Sue Meadows, after three battles with cancer, her 2008 Ford Fiesta was to be the perfect runabout for appointments and trips to the shops.

She took a $4000 loan to buy the $6500 car from Automax in Dandenong last month. But problems started within hours of driving it to her Endeavour Hills home.

“We parked it that night and the next morning my son and I took it down to the shops two minutes away. We were on our way back when the coolant started pouring out,” she said.

“I went back on Monday morning to ask for my money back and they kept saying ‘you’ve taken it, it’s yours’.’’

More attempts at repairs have left Ms Meadows dissatisfied, to say the least, and not confident to drive the car.

Hours after being contacted by the Herald Sun on Monday, Automax refunded Ms Meadows’ money and reclaimed the car, six weeks after the original complaint.

The Herald Sun believes Consumer Affairs Victoria is investigating other sales involving Automax customers.

During 2020-21, CAV received 2581 calls – about 10 every working day – related to used car sales.

WEstjustice chief executive Melissa Hardham said her organisation dealt with many cases where a dealer refused to repair a used car.

“(It’s) a stressful and unfair experience,’’ she said. “The introduction of penalties will bring dodgy dealers into line, resulting in a much fairer deal for consumers.”