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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-09-09 Daily Xml
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CONSUMER RIGHTS

The Hon. I.K. HUNTER (15:30): I seek leave to make a brief explanation before asking—

The Hon. R.I. Lucas interjecting:

The PRESIDENT: Order! The Hon. Mr Hunter has the call.

The Hon. I.K. HUNTER: Thank you, sir. I seek leave to make a brief explanation before asking the Minister for Consumer Affairs a question about consumer return and refund rights.

Leave granted.

The Hon. I.K. HUNTER: My question follows on from my question yesterday in relation to the role of the Office of Consumer and Business Affairs in regulating the trading environment so that weights and measures used by businesses are accurate. Another role of the office is to ensure that consumers are protected from other unfair trade practices.

To this end, OCBA undertakes regular monitoring and education programs, and the mid-year sales period is an ideal time for such a program, particularly in relation to the return of goods and refund rights. Will the minister advise the council about recent actions taken to ensure that consumers are not overcharged or misled about their refund 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) (15:31): During the busy mid-year sales period, the Office of Consumer and Business Affairs conducted an audit of 25 different retail outlets to check compliance with fair trading laws. OCBA focused on practices relating to refund policies, lay-by sales, warranties, price scanning and advertising big price sales savings.

Eight stores were found to be either overcharging customers at the checkout or displaying incorrect refund signs, with statements such as, 'Please choose carefully. No refunds,' 'No cash refunds or exchange,' 'No refund on sale items,' and 'No exchange on promotional or end of season stock items.'

I can advise the council that incorrect signs were removed, and traders were reminded that signs that misled consumers about refund rights were a potential breach of fair trading laws. It is important that consumers know that they are entitled to a refund, even if the item is on sale, under certain circumstances. OCBA will revisit noncompliant retailers to ensure that breaches have been addressed appropriately, and enforcement action will follow for repeat offenders.

Two metropolitan traders were overcharging, and one trader was found to be overcharging during previous monitoring, and OCBA is now looking to take enforcement action against the retailer for that repeat offence. A formal warning was issued to a second trader, and follow-up checks will be undertaken after five randomly selected items scanned higher than the shelf price.

Unfortunately, it appears that some traders still do not clearly understand their fair trading responsibilities. Stores cannot become lax about providing correct information to customers just because items are on sale. This government will continue to monitor retailers and follow up all instances in which breaches of fair trading laws are detected. It is very important that consumers have trust in this state's retailers, and this government remains committed to ensuring a fair marketplace for South Australians.

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