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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-05-05 Daily Xml
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CONSUMER PROTECTION

The Hon. R.P. WORTLEY (14:46): I seek leave to make a brief explanation before asking the Minister for Consumer Affairs a question about recent scams affecting consumers. I am not talking about the scam of this shabby mob calling themselves an opposition: I am talking about other scams.

Leave granted.

The Hon. R.P. WORTLEY: The Office of Consumer and Business Affairs continues to promote awareness of scams and will explore any initiative that will enhance delivery of the agency's objectives. My question is—

Members interjecting:

The Hon. R.P. WORTLEY: Can you hear me, Mr President?

The PRESIDENT: No.

The Hon. R.P. WORTLEY: You can't hear me. The Office of Consumer and Business Affairs continues—

Members interjecting:

The PRESIDENT: Order!

The Hon. R.P. WORTLEY: Thank you, Mr President. Thanks for your protection, sir.

The PRESIDENT: It seems that the Hon. Mr Wortley has this effect on the opposition every time he gets to his feet. The Hon. Mr Wortley.

The Hon. R.P. WORTLEY: Thank you, Mr President. The Office of Consumer and Business Affairs continues to promote the awareness of scams and will explore any initiative that will enhance delivery of the agency's objectives. My question to the minister is: will the Minister for Consumer Affairs advise the chamber about any concerns raised with the department of consumer affairs in relation to Mother's Day and provide advice as to how consumers can respond?

The Hon. G.E. GAGO (Minister for Regional Development, Minister for Public Sector Management, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for Gambling) (14:47): I thank the honourable member for his most important question and his ongoing interest in this very important policy area. Indeed, I would like to remind you of some of the traps that consumers should be aware of, particularly in the lead-up to Mother's Day, which I am sure we are all aware of in this place. Of course, increased shopping opportunities, unfortunately, attract scammers as well, so shoppers need to beware.

Consumers looking for that perfect gift for Mother's Day may be tempted to buy items that they might come across, particularly online, that seem very cheap and have been significantly reduced. Of particular concern this year are the scammers who use online classifieds and auction sites where, we understand, scam ads can easily be posted. We are concerned that consumers' money could easily be taken, leaving them out of pocket and without their gift.

Scam classified ads that appear can relate to any consumer item from pets through to jewellery or clothing. The scammer will often advertise an item at a very low price, generally much lower than the price of comparable products on that same site. Scammers may pretend to be selling an authentic branded item, so that is another ploy that we have become aware of. Then, when the item is delivered, it is obvious that the item is a very shoddy and shabby imitation of that branded item, or it may not be delivered at all. Of course, it can be extremely difficult to have people's hard-earned money returned to them.

Scammers will often try to deal outside of the site's secure payment facility. I want to make members aware of that. If you do go online, particularly at auction sites, do not be encouraged to go offline to secure your payment, because if you do that you then lose the protection that a lot of those site operators offer if the goods do not meet the expectation of the consumer.

Alternatively, scammers may claim that you are the winner of an auction, that you were in a bidding that has pulled out, and then offer to sell the item to you. Most online stores and auction sites are reputable; I need to qualify that, and most of them put a lot of effort into excluding dodgy operators, but shoppers should watch out for unscrupulous merchants.

So, be cautious. If the advertised price of an item looks too good to be true, the old adage that it probably is is as true today as it always has been. Do not trust the legitimacy of an ad just because it appears on a reputable online classifieds auction website; scammers post fake ads on those as well. Where possible, avoid any arrangement with a stranger who asks for upfront payment via money order, wire transfer or international funds transfer, because it is very rare that we can recover funds if they are paid for in that way and things go wrong.

I urge online shoppers to be aware of potential scams in the lead-up, particularly, to Mother's Day. Remember, do not just look at the amount that you are saving; you need to look at the potential to be ripped off. OCBA continues to use its regular media appearances and websites to promote awareness of scams and, obviously, we urge consumers to report any scam or suspected scam to OCBA or the ACCC, and they can do that either by telephone or online.

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