CONSUMER PROTECTION

The Hon. CARMEL ZOLLO (15:12): I seek leave to make a brief explanation before asking the Minister for Consumer Affairs a question about shoppers' rights.

Leave granted.

The Hon. CARMEL ZOLLO: As we are rapidly approaching a very busy retail period, with Christmas not too far away, consumers need to be aware of their rights. Will the minister advise the chamber of the work that the Office of Consumer and Business Affairs is undertaking to protect consumers in the lead-up to Christmas?

The Hon. G.E. GAGO (Minister for State/Local Government Relations, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for the City of Adelaide) (15:13): I am sure that members are well aware of the approaching time of Christmas, as shoppers are looking out for gifts. During this hectic time, it is important that traders are not misleading shoppers about their rights and that they do not get caught up in the spur of the moment and end up being taken advantage of.

It is most reassuring to be told that officers from the Office of Consumer and Business Affairs (OCBA) are out and about this week. They are monitoring traders' warranties and refund practices. As I have said in this place before, consumers may be entitled to a refund if an item is faulty, does not match the description as advertised or does not do what it is supposed to do. Alternatively, consumers may be entitled to have the item repaired or replaced.

OCBA is most concerned when a trader appears to indicate that a refund is not a consumer right in any circumstance. The most common misleading statements that OCBA tends to come across are things like signs that say, 'No refunds on sale items' or simply, 'No refunds'. These signs are, in fact, illegal.

Given the nature of many of the goods purchased at this time of year, it is important to note that, in cases where shoppers have simply changed their minds about a purchase, they are not entitled to a refund or a replacement. Nor, if they get it home and decide it is a bit too tight or if their partner takes one look at it and says, 'You look terrible in that; get a refund' (I have, unfortunately, been the victim of a few dud decisions myself), the shopper has to wear that. They are not entitled to a refund or replacement simply because they do not like it, they changed their mind, the colour does not match or, as I said, it is a wee bit too tight or too loose.

Nevertheless, it is always interesting to note that there are many retailers who do provide refunds or, more commonly, exchanges when the shopper changes their mind. They do that out of their own store policy and they often do that to create goodwill with their shoppers. I commend those retailers who do offer that extra bit of a buffer zone for poor decisions.

One interesting area that OCBA officers are looking at is traders' refund policies with respect to sale items. Some consumers and traders mistakenly believe that refund rights do not apply to sale items. As part of the monitoring process, OCBA will be reminding traders that the consumer's right to a refund does not change just because the price of the goods has been reduced. If the goods are faulty, do not comply with the description advertised or do not do what they are supposed to do—irrespective of whether it is on sale or not—one is still entitled to either a refund or replacement or repair.

Stores caught breaching the fair trading laws will be issued with a formal warning. Any repeat offenders will be prosecuted. The maximum penalty for making misrepresentations to consumers is $20,000 or $100,000 for a body corporate. Under the new Australian Consumer Law, which commences on 1 January 2011, the maximum penalty for making a false or misleading representation will be significantly increased to $220,000 or $1.1 million for corporations. You can see that the penalties will be quite stiff.

Shoppers who spot a refund sign that they believe may be incorrect should raise the issue with the store, and we also encourage them to report it to OCBA. To report concerns or simply to obtain information and advice about consumers' rights, I encourage consumers to contact OCBA. Of course, consumers can always obtain a wealth of information and advice about their rights on OCBA's website. I wish all honourable members happy Christmas shopping, and I hope that they do not come across any improper signs and, if they do, they are encouraged to report them.