Every year, thousands of Australians receive refunds from
companies that have potentially breached their consumer rights.
These refunds often follow intervention by the Australian
Competition and Consumer Commission and during the past three years
more than $2.7 million has been returned to shoppers as part of
undertakings by businesses.
However, a recent study by the commission has found many more
customers may be missing out because they are unaware they are
entitled to make a claim or traders do not have their details.
Research into the legally binding undertakings by companies to
the commission between January 2005 and May 2008 has found more
than 6100 consumers and small businesses received refunds during
that time. These refunds are often bundled as part of a package of
actions the business promises in order to undo the damage it has
caused and deal with concerns raised by the regulator.
Where appropriate, the commission can then accept these
undertakings from the business as an alternative to costly and
lengthy litigation.
For customers who have been misled or had their rights breached,
the benefit is they can receive a refund or other resolution, such
as repair, much more quickly. About half the commission's
investigations are resolved this way. However, even when companies
try to do the right thing, some customers miss out because they
can't be contacted and are unaware they have a right to make a
claim.
So, what steps can consumers take to ensure they don't get left
off the list?
Research shows that customers are most likely to receive a
refund when a business has their contact details. In many cases
businesses try to return money but are unable to because they have
no record of their customers and no way of contacting them.
It is not practical for shoppers to register their details with
every business they deal with but there are ways they can improve
their chances of getting a refund once businesses begin to offer
them.
One of the first is to ensure complaints to a business are made
in writing when something goes wrong. This gives both the customer
and the business a written record of the complaint if it isn't
resolved in the first instance with the business.
Several studies have found that informed consumers are the most
likely to receive a fair deal in disputes with businesses. Those
who know their rights are in the best position to know when those
rights have been breached and to seek compensation. Businesses also
use techniques for trying to reach affected customers when they do
provide a refund.
Seven of the companies in the commission's research that managed
to reach the highest number of customers used direct mail-out,
while others called their customers directly. However, other
traders relied on advertisements in newspapers and journals. One
company tried to inform customers by placing a corrective notice on
its website.
Others have relied on SMS and email to reach customers, so
providing these details to a business may assist them in contacting
customers in the event of a refund being given.
When accepting undertakings from businesses that involve
consumer refunds, the commission negotiates to ensure they use the
most effective methods of contacting customers.
Therefore another important step customers can take in ensuring
they are included in any refund offer is to register their details
with the commission.
Every year the commission enters about 47,000 complaints and
inquiries into its database. Not only do these complaints
contribute to investigations, they can also be used to contact
customers if a business provides the commission with undertakings
that include refunds. The commission can either advise those on its
database to contact the company involved or seek their permission
to pass on those details to the company.
It doesn't legally affect a customer's right to a refund but
simple steps, such as keeping receipts, can also help prove that a
customer is entitled to the refund being provided.
Most of the undertakings involving refunds are listed online at
http://www.accc.gov.au. Organisations such as Choice also regularly
advertise consumer refunds.
No one can be expected to monitor every business they have dealt
with on the off-chance that one has breached their rights. Some
businesses also provide refunds on their own initiative without the
involvement of the commission.
Taking a few basic precautions and ensuring records are
up-to-date can go a long way to ensuring customers are not
forgotten or overlooked when refunds become available.