Major ways Aussie shoppers are being tricked by businesses

More than 28,000 reports and inquiries were made to the ACCC last year about consumer guarantees or warranties.

The nation’s competition watchdog has urged Australians to become more aware of their consumer rights after tens of thousands of queries were made to the regulator over junk warranties and dodgy products last year.

The Australian Competition and Consumer Commission (ACCC) received more than 28,000 inquiries about consumer guarantees or warranties in 2023 with more than 70 per cent relating to vehicle issues.

Meanwhile, more than two-thirds of the reports related to faulty electronics.

The ACCC said most people don’t possess strong knowledge to challenge a business when they aren’t happy with the quality of a product, flagging the top misleading statements for people to keep an eye out for.

Here’s what you need to know:

The nation’s competition watchdog has urged Australians to become more aware of their consumer rights. Photo by: NCA Newswire/ Gaye Gerard

One of the most deceptive phrases used by businesses is telling customers a product is out of warranty and can only be repaired with a fee.

According to the ACCC, consumer guarantees are automatic and separate from any voluntary warranty, manufacturer’s warranty, or extended warranty.

“Consumer rights can last longer than warranty rights, and you can ask for a repair, refund or replacement after the warranty has expired,” the regulator said.

Another common phrase is when customers are told their will be no refunds “under any circumstances” or that a product with major problem must be returned inside of a specific time frame. Under consumer law, businesses can’t apply a time limit on a person’s rights to return a faulty product.

Shoppers are also are not required to contact a manufacturer to have an issue with a defective purchase resolved.

The Australian Competition and Consumer Commission received more than 28,000 inquiries about consumer guarantees in 2023. Picture: David Crosling

“As a first step, you should contact the business that sold you the product to explain the problem. The business can’t refuse to help you by telling you to contact the manufacturer,” the ACCC said.

Customers are also not legally required to return a damaged item in its original packaging to receive a refund, however, a business is entitled to ask them to provide some form of proof of purchase.

If a business refuses to meet a consumer guarantee the regulator said people should try contacting the store directly or issue a complaint in writing. If this doesn’t resolve the issue, shoppers are urged to contact their local or state consumer protection agency to negotiate a resolution.

“Businesses are reminded that it is unlawful to give customers false or misleading information about their consumer guarantee rights. Where consumer guarantee rights apply, consumers are entitled to the remedies provided by the Australian Consumer Law,” ACCC Deputy Chair Catriona Lowe said.