AusPost to pay $2.9 million in compensation over lost parcels

Australia Post has admitted it was wrong to reject thousands of applications for compensation over lost or damaged parcels.

Australia Post will pay $2.9m in compensation to businesses who had their parcels lost or damaged over a four-year period.

The Australian Competition and Consumer Commission (ACCC) has accepted a court-enforceable undertaking by AusPost and its subsidiary StarTrack to provide compensation for the lost or damaged parcels to about 10,500 business contract customers. Up to 1000 StarTrack deliveries were also affected.

The parcels and packages were lost or damaged between October 2018 and October 2022. Picture: NCA NewsWire / Kelly Barnes

The consumer watchdog said that AusPost “admitted they likely engaged in misleading or deceptive conduct” when they didn’t accept requests for compensation from the businesses in the four years leading up to October 2022.

In some cases the customers were told that they were not eligible for any compensation over the lost or damaged goods.

Under Australian consumer protection law, customers may be eligible for compensation “if a product is not of acceptable quality or a service is not performed with due care and skill, fit for purpose or supplied within a reasonable time.”

The postal service self reported the issue in May this year, which has been acknowledged by ACCC Commissioner Liza Carver.

“The failure by Australia Post Group to provide business customers with the remedies they were entitled to is extremely concerning, but we acknowledge that Australia Post self-reported this conduct to the ACCC,” she said.

Australia Post will contact affected customers but anyone wanting to submit a claim can do so on their website. Picture: NCA NewsWire / Dylan Coker

“We are pleased that Australia Post Group has undertaken to provide compensation for this error and to put systems in place to ensure similar errors are not made in the future.”

AusPost has launched a remediation program to compensate affected customers and the ACCC has said that those eligible will be contacted within two weeks or will receive compensation automatically.

“Eligible customers may receive a credit to their account with Australia Post Group, a credit to their nominated bank account, or be sent a cheque,” an ACCC spokesperson said.

Those who want more information are urged to go to the AusPost claims portal.

While it’s good news for those affected, the ACCC is warning that scammers may attempt to con business owners and consumers into handing over their details using the compensation scheme.

“The ACCC is aware that scammers have been calling people, falsely claiming to help them get a refund,” the watchdog warns.

“Australia Post Group will not provide clickable links or phone numbers and will not ask for email or text message responses. “If you receive a call from anyone offering to help you with a refund, hang up immediately.

“Never give personal information to anyone calling you out of the blue and never give access to your computer or bank account.”

Originally published as AusPost to pay $2.9 million in compensation over lost parcels