You may have recently seen that during Shanghai’s lockdown, essential goods were hard to come by, prices skyrocketed, and some unscrupulous merchants even seized the opportunity to price-gouge. This reminds us of what happened in Australia during its own lockdowns, when shortages of items like toilet paper and face masks also led to price gouging by certain merchants. Earlier this year, when Australia first began supplying RAT (rapid antigen test) kits, there was even a case of “two RAT kits being sold for 500 AUD”. So, as a consumer in Australia, how can you properly defend your rights?

ACCC

The Power Behind Australian Consumers — The Australian Competition and Consumer Commission (ACCC)

The Australian Competition & Consumer Commission (ACCC) aims to promote fair trading and competition in Australia and to work for the welfare of people across the country. The ACCC is similar to a consumer protection association in China; it operates at the federal level and is independent of government agencies.

Take the surge in RAT kit prices earlier this year as an example. The Australian Competition and Consumer Commission (ACCC) said it had received a large number of consumer complaints about the pricing of rapid antigen test (RAT) kits. The ACCC stated it was “extremely concerned” about the pricing of the kits, and announced that major retailers selling the kits at “excessive” prices could face fines of more than 10 million AUD.

ACCC Chair Rod Sims said that if major stores and chain retailers were found to be selling test products at “excessive prices”, they could face fines of up to 10 million AUD or 10% of turnover per breach, whichever is the higher.

Under the Australian Consumer Law, businesses and suppliers are largely free to set their own prices, but they must not make false or misleading representations about the reasons for the prices they charge.

In certain circumstances, charging excessive prices for products considered essential may constitute “unconscionable conduct” as defined by law.

Grin and Bear It?

How Should Consumers in Australia Protect Their Rights?

Under the Australian Consumer Law, consumers are entitled to certain rights and protections when a product they have purchased develops problems. When asserting their rights, consumers can contact the merchant directly and write a letter of complaint. Whenever there is any issue during a purchase that causes dissatisfaction, it is essential to keep evidence so that the complaint is well-supported. For example:

Supermarket Receipts;

Bank Statements;

Product Warranties

Once you have the evidence, combined with a Complaint Letter, the merchant will generally provide a reasonably satisfactory response. If direct communication with the merchant does not produce a result, consumers can also contact the ACCC directly for assistance.

However, for many new immigrants, limited English communication skills can be a barrier. In that case, the best option is to consult a lawyer directly and have the lawyer handle the matter. A lawyer can help the consumer by making phone calls or sending a letter of demand to negotiate. First, a lawyer’s status carries weight — once a merchant receives a lawyer’s letter, they are unlikely to ignore it, and they are less likely to offer an unfair resolution. Second, a lawyer will preserve helpful evidence and documentation during negotiations, so if the dispute escalates, they are prepared to go to court.

Case Study

A Common Trap: Hidden Issues When Buying a Used Car

Buying a used car is very common in Australia, but it comes with many hidden pitfalls. A man in Brisbane purchased a 2013 Holden HSV GTS in 2016. When he later resold it online, he deliberately reduced the car’s odometer reading by about 2.4 kilometres. To avoid being caught, he did not list the vehicle’s identification number. He subsequently s\ucceeded in selling the car. In 2018, when the buyer attempted to resell the car online, the listing was taken down by the website because the dashboard figures did not match. The buyer then lodged a complaint against the previous seller. It was ultimately proven that the seller had indeed tampered with the odometer, and he pleaded guilty to two charges — one for tampering with a motor vehicle’s odometer, and another for making a false or misleading representation about the total distance the vehicle had travelled. The man was ultimately ordered by the court to pay 6,000 AUD in fines and legal costs.

Of the consumer complaints the ACCC receives each year, more than half relate to vehicles, home appliances, and other electronic products.

ACCC Chair Dr Schaper said that under Australia’s federal consumer protection laws, consumers automatically receive a range of statutory protective rights (“Consumer Guarantee Rights”) when they purchase products and services, and merchants cannot under any circumstances disregard these legally protected consumer rights. He gave the example that many consumers believe the manufacturer’s “Warranties” are the only protection they can rely on when buying products and services. This belief is incorrect, because the legal protections under consumer law are different from manufacturer Warranties. A manufacturer’s warranty cannot replace statutory protection; on the contrary, statutory protection has greater force than a manufacturer’s warranty.

For example, consumer protection law requires manufacturers to guarantee that their products will be reliable and durable for a certain period after sale. The specific period varies depending on the quality and price of the product, but the legally required warranty period is generally much longer than the warranty period voluntarily offered by the manufacturer.

So, if a merchant tells you, “the product’s warranty has expired, there’s nothing we can do,” don’t immediately accept defeat. Dr Schaper advises consumers to remember three words: Australian Consumer Law. Tell the merchant that you know the warranty provisions under consumer law, that the length of a product’s statutory warranty period is not something manufacturers and merchants can decide unilaterally, and consider what you believe to be a reasonable warranty period commensurate with the price you paid. Then negotiate with the merchant over whether they can offer you a free repair, replacement, or refund. If the matter still cannot be resolved, you can seek help from your local Fair Trading Office or the ACCC.

In Summary

If you encounter a dispute as a consumer in Australia, remember: do not simply grin and bear it. Instead, take up the legal tools available to you and protect the rights you are entitled to. If the situation is more serious, or involves a larger-value dispute, negotiation and complaints may not yield significant results. At that point, a lawyer is the best choice. Once matters enter the judicial process, a lawyer can provide more professional assistance and guidance on the relevant forms, legal documents, and litigation procedures.