Consumer Protection

The Hon. P. MALINAUSKAS (14:36): I seek leave to make a brief explanation before asking the Minister for Business Services and Consumers a question about making the right choices when selecting gifts this Christmas.

Leave granted.

The Hon. P. MALINAUSKAS: There are many choices when it comes to selecting gifts for loved ones this Christmas, and it is important for consumers to know what they are buying and also what rights are afforded to them if the intended gift is not suitable. Can the minister inform the chamber of the most important things for consumers to be aware of when purchasing gifts this Christmas?

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (14:36): I thank the honourable member for his most important question. Not that many of us in this place have had time to go out and start our Christmas shopping; nevertheless, with Christmas in mind, and with so many new products on the market and simply endless choices for Christmas gifts, it is a great delight to see the reaction of loved ones—friends and family—opening their Christmas pressies. However, it's important to ensure that the gift selection is age appropriate, that it's safe and that people are aware of their refund rights under Australian Consumer Law so that they don't end up disappointed.

The safety of consumer goods is provided for in the Australian Consumer Law (ACL), and is enforced by the ACCC nationally and by each state and territory's fair trading agencies. In South Australia, it's the CBS. Consumer and Business Services is currently conducting its annual monitoring of product safety issues in the lead-up to Christmas, and I am pleased to report that I have been advised that, to date, product safety officers have performed 55 inspections and looked at 504 products throughout South Australia in October and November.

Products inspected include aquatic toys—toys particularly for children—flotation aids, portable pools, cosmetics, yo-yo water balls and particularly projectile toys. CBS have purchased 38 products which are marked as play items for children up to 36 months of age for more extensive testing. Examples of products purchased are things like rattles, stacking toys and pool toys—wooden and plastic.

The products are being tested to ensure that they pass the drop test component of the mandatory safety standard for toys suitable for children up to 36 months of age. Products are dropped from a specific height, depending on the age range that they are intended for, and any parts that dislodge are then tested to determine whether they might constitute a choking hazard. CBS aims to have all current testing completed this week and will continue monitoring products throughout December.

Prior to consumers selecting their gifts of choice, it is also important for them to be aware of refund rights. Before purchasing a product, consumers should check the retailer's own return policies, as they often vary from retail outlet to outlet, and it is ultimately what determines whether a customer can receive a refund or exchange, except for the statutory exchange responsibility, of course.

Obviously, all services and products have to be suitable for the purpose for which they were intended and, if they are not, people are entitled to a refund or exchange or to return. For example, over the Christmas period many retail stores voluntarily extend their time frame for returns. However, if a store does not provide rights above the ACL, the store does not have to offer an exchange for a change of mind. So, generally, it is a matter for retail outlets to determine whether they are prepared to refund because a person simply changes their mind, rather than there being perhaps a fault with the product.

If there is a major failure, a consumer is entitled to either a repair, a replacement or a refund. A major failure with goods is when the goods are unsafe or are substantially unfit for their intended purpose, or the goods are significantly different from the description, sample or demonstration model shown to the consumer. If the failure of goods is not major and can be repaired within a reasonable time frame, you might not get a refund but might end up with a replacement. When a replacement item is received, the guarantee applied to the original goods also applies to the replacement, so don't forget that. A consumer cannot reject goods if the goods have been thrown away, destroyed, damaged or misused, or if too much time has passed.

Perhaps the most important point to remember is that, in order to return any item, you must have some form of proof of purchase, even if you received the item as a gift. If you happen to be the recipient of a gift card or voucher, take note of when it expires, as businesses are not obliged to honour the card after this time. Some are pretty cheeky, and they have very short redemption times, so do pay attention to that detail. I hope that this information emphasises the importance of choosing wisely at Christmas time to avoid disappointment, and to ensure that the festive season is enjoyed by everybody.