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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2008-10-14 Daily Xml
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CONSUMER RIGHTS

The Hon. I.K. HUNTER (15:25): I seek leave to make a brief explanation before asking the Minister for Consumer Affairs a question about consumer rights.

Leave granted.

The Hon. I.K. HUNTER: If a product or service develops a problem, consumers often rely on the warranty for a refund or repair. But what happens if consumers do not know exactly what their warranty covers? Will the minister advise the chamber what is being done to ensure that customers are being kept informed of their rights?

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 Assisting the Minister for Transport, Infrastructure and Energy) (15:25): I thank the honourable member for his interest in these matters. A phone-in, conducted by the Office of Consumer and Business Affairs in August, has highlighted some problems that consumers are experiencing with warranties. I am advised that the calls received by OCBA indicated that, in many cases, traders were not honouring their warranty obligations to customers, and some traders are giving customers wrong information about warranties, either through their own misunderstanding of the law or their lack of concern for their customers.

The phone-in provided consumers with the opportunity to report cases where a product has not lasted for a reasonable period of time and the trader has been reluctant to address that problem. In determining what is a reasonable time, the price you paid, the type of product or service and its intended use all need to be considered, but consumers should be able to purchase goods knowing what their warranty entitles them to and for what period of time.

This phone-in emphasised that mobile phone warranties have topped the list of consumer complaints. I am advised that approximately 20 per cent of the calls related to mobile phones while other products that consumers reported having difficulties with warranties included motor vehicles, lounges, televisions, fridges and airconditioners. Specifically, in relation to mobile phone warranties, the issues raised during the phone-in included faulty screens and batteries, consumers being asked to pay for repairs, and signing up for a bundled two-year contract including a handset and phone service when the handset came with only a one-year manufacturer's warranty.

I am also advised that other concerns raised during the phone-in included the following:

41 per cent of callers had been fobbed off by the trader and referred to the manufacturer;

24 per cent had been told that the manufacturer's warranty had expired so the trader could not help them;

48 per cent felt that they had waited too long for an item to be repaired or replaced with waiting times ranging from nine days to two years; and

only 20 per cent had been offered a loan item while waiting for repairs.

Many people assume that the manufacturer's warranty is the only warranty that applies but, by law, consumers are also entitled to a statutory warranty which basically means that products or services should last for a reasonable period of time. The survey confirmed what we expected: for some time, too many traders are often not honouring their warranty obligations. I am advised that OCBA has sought redress for consumers and has written to the traders involved, reminding them of their warranty obligations.

A series of education messages will also be conveyed to various retail sectors, including mobile phone traders, to promote fair trade practices, and traders will be reminded that the maximum penalty for misleading consumers about their warranty rights is $20,000 for an individual or up to $100,000 for a body corporate. To report any concerns about warranties, consumers can contact the Office of Consumer and Business Affairs.

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