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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-06-03 Daily Xml
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RETAIL SHOPPING

The Hon. R.P. WORTLEY (15:00): I seek leave to make a brief explanation before asking the Minister for Consumer Affairs a question about retail shopping.

Leave granted.

The Hon. R.P. WORTLEY: Midyear sales provide consumers with the opportunity to grab a bargain. My question is: can the minister advise the council how we can ensure that consumers are actually getting what they pay for?

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) (15:00): I thank the honourable member for his most important question and for his ongoing interest in this very important policy area. Shopping is an issue that is very dear to many of our hearts; we all like a good bargain. Midyear sales are a very special time of the year for bargain hunters, and consumers looking for a bargain at the midyear sales can be assured that the state's consumer watchdog is closely monitoring the activities of retailers at this time.

The Office of Consumer and Business Affairs is stepping up its focus on advertising claims, refund policies and price scanning accuracy during this very busy retail sales time. Stores can be so busy promoting their midyear sales that it is easy for mistakes to creep into their dealings with customers, and we want to make sure that the stores are trading fairly and that consumers are not being misled about the bargains being offered.

OCBA is monitoring advertising and in-store promotions, particularly where traders are claiming significant price savings expressed either as a large percentage or as a large dollar saving. Retailers know that many consumers are more concerned with the amount saved rather than the actual amount spent (although I know that some of us struggle with that concept from time to time); however, any claims about price reductions must be genuine. If an advertisement or price tag suggests that an item has previously been offered for sale at a higher price, OCBA may require the trader to prove that.

OCBA will also be scrutinising stores that use electronic price scanners to make sure that consumers are being charged the correct price at the checkout. If consumers are buying one or two items they will usually notice if the scanned price is different to the shelf price; however, when buying multiple items a consumer may not realise that there has been an error in the price scanning until they get home, if at all. Price scanning errors tend to increase during sale periods because stores may not readily update their shelf tags or computer programs. However, errors are avoidable, and as long as stores have good processes in place to deal with price reductions during sales our officers will be satisfied.

Refund policies are also under the microscope as some consumers, and even some traders, mistakenly believe that refund rights do not apply to sale items. That is not correct, and OCBA will be reminding traders that consumers' rights to a refund do not change because the price has been reduced. Consumers are entitled to a refund or a replacement if the item does not match the description, if it does not do what it is supposed to, or if it is faulty. Alternatively, consumers may prefer to have the item repaired or replaced, as long as there is appropriate redress for them. Purchasers are not legally entitled to a refund in cases where they have simply changed their mind, although some retailers show a lot of consumer goodwill and do allow that on occasions. However, it is not a legal obligation.

Stores caught breaching fair trading laws will be issued with a formal warning, and any repeat offenders may be prosecuted. The maximum penalty for making misrepresentation to consumers is $100,000. Clearly, therefore, traders need to watch that they are operating within the law. We encourage any consumer who has concerns about unfair trading to contact OCBA.

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