Like many others you will have saved some
money for the annual January sales, your
opportunity to stock up on clothes, furniture
and appliances at discounted prices.
However, you should be aware that while most
retailers are honest and value your custom there are
some who will take the opportunity to profit at your
expense.
Sales do not weaken the force of the statutory
warranty that comes with every purchase of new, or
second-hand, goods, except goods bought at auction.
The fact that the Australian Competition and
Consumer Commission (ACCC) receives many
complaints about warranties reflects misunderstanding
by many consumers and retailers.
You have the right to a refund, compensation, repair
or replacement if the goods are faulty, fail to do the job
intended, don't match the description or have hidden
defects. Goods do not have to be returned in the original
packaging. Don't be put off by store signs implying
otherwise.
You are not entitled to a refund if you discover the
product is cheaper elsewhere or you don't want it any
more.
Some traders provide voluntary warranties such as
those covering a period of free repairs. Once given, a
voluntary warranty must be adhered to and it cannot
overrule a statutory warranty.
Many purchases at sales are less exciting when you
unwrap them at home. However, whether you can return
a fault-free gift and exchange it or obtain a refund
depends on store policy. If it is advertised policy the store
must stick by it.
Keep your guard up during the January sales frenzy.
As far as possible check if the sales are really genuine.
There have been instances of "sales" signs in store
windows for long periods implying that the signs could
be little more than a ploy to lure people inside. A
permanent sale is not really a sale.
And when it comes to discounted prices the question
is discounted from what. The "was" price and the "now"
price may not be genuine.
The ACCC instituted court proceedings against a
clothing manufacturer and retailer which sold clothes
containing swing tags with one price crossed out and a
lower one substituted. The problem was that the goods
had never been on sale before and the discounts were not
genuine. Media advertisements may promise a great
day's shopping but read the fine print, although it may
be hard to find. It is disappointing to arrive at the checkout
to discover that some of the items purchased are not
discounted. At first glance the advertisements indicated
that all goods in the store were being sold at a discount
but you overlooked the tiny asterisk that directed your
attention to the exceptions listed at the bottom in fine
print.
Take a cautious approach to enticements such as "buy
one and get one free". The price of the first item may be
inflated to account for the "free" second one. Free
should mean absolutely free.
Traders are obliged to advertise the full price of their
goods and this includes the GST. Although 21/2 years
have passed since the introduction of the GST, the ACCC
still gets complaints about businesses advertising GSTexclusive
prices.
Some people find the internet a convenient way to
shop for gifts but high technology does not guarantee
honesty. Before buying on the net ensure you know the
trader's physical address, phone and mail contact details,
the total cost, refund and exchange policies, privacy
provisions and ways to address complaints.
Professor Allan Fels is chairman of the Australian
Competition and Consumer Commission.
