Revealed: Clever tricks businesses use that shoppers fall for every time
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When it comes to shopping, nothing compares to the thrill of a good find and the satisfaction of an excellent deal.
However, a less savoury aspect of commerce has seeped into the buyer's journey—misleading tactics employed by businesses that hoodwink even the savviest of shoppers.
Last year, the Australian Competition and Consumer Commission (ACCC) received over 28,000 inquiries about consumer guarantees or warranties, with a staggering 70 per cent relating to vehicle issues and two-thirds concerning faulty electronics.
The ACCC has identified several misleading statements businesses often use to confuse consumers.
One of the most common is telling customers that a product is out of warranty and can only be repaired for a fee.
However, the ACCC emphasised that consumer guarantees are automatic and separate from any voluntary warranty, manufacturer’s warranty, or extended warranty.
'Consumer rights can last longer than warranty rights, and you can ask for a repair, refund or replacement after the warranty has expired,' the regulator said.
This means that even if your warranty has expired, you may still be entitled to a repair, refund, or replacement if the product is faulty.
Another common trick is telling customers that there will be no refunds 'under any circumstances' or that a product with a major problem must be returned within a specific timeframe. Under the Australian Consumer Law (ACL), businesses cannot apply a time limit on a person's rights to return a faulty product.
Furthermore, shoppers are not required to contact a manufacturer to have an issue with a defective purchase resolved.
'As a first step, you should contact the business that sold you the product to explain the problem. The business can't refuse to help you by telling you to contact the manufacturer,' the ACCC said.
Additionally, customers are not legally required to return a damaged item in its original packaging to receive a refund.
However, a business is entitled to ask them to provide proof of purchase.
If a business refuses to meet a consumer guarantee, the regulator advises people to try contacting the store directly or issue a complaint in writing.
If this doesn't resolve the issue, shoppers can contact their local or state consumer protection agency to negotiate a resolution.
For instance, a lawsuit was filed against retail giant JB Hi-Fi for selling extended warranties that offer little to no value to consumers, as these are the same protections already provided by the guarantees under the ACL.
The lawsuit also claimed that some of JB Hi-Fi’s brochures failed to include important information about how basic consumer law protections compare to those offered by extended warranties. You can read more about the class action here.
'Businesses are reminded that it is unlawful to give customers false or misleading information about their consumer guarantee rights. Where consumer guarantee rights apply, consumers are entitled to the remedies provided by the Australian Consumer Law,' ACCC Deputy Chair Catriona Lowe said.
Have you ever been tricked by a business? Share your experiences and tips for dealing with such situations in the comments below.
However, a less savoury aspect of commerce has seeped into the buyer's journey—misleading tactics employed by businesses that hoodwink even the savviest of shoppers.
Last year, the Australian Competition and Consumer Commission (ACCC) received over 28,000 inquiries about consumer guarantees or warranties, with a staggering 70 per cent relating to vehicle issues and two-thirds concerning faulty electronics.
The ACCC has identified several misleading statements businesses often use to confuse consumers.
Businesses use several ways to mislead their customers about guarantees or warranties. Credit: Unsplash
One of the most common is telling customers that a product is out of warranty and can only be repaired for a fee.
However, the ACCC emphasised that consumer guarantees are automatic and separate from any voluntary warranty, manufacturer’s warranty, or extended warranty.
'Consumer rights can last longer than warranty rights, and you can ask for a repair, refund or replacement after the warranty has expired,' the regulator said.
This means that even if your warranty has expired, you may still be entitled to a repair, refund, or replacement if the product is faulty.
Another common trick is telling customers that there will be no refunds 'under any circumstances' or that a product with a major problem must be returned within a specific timeframe. Under the Australian Consumer Law (ACL), businesses cannot apply a time limit on a person's rights to return a faulty product.
Furthermore, shoppers are not required to contact a manufacturer to have an issue with a defective purchase resolved.
'As a first step, you should contact the business that sold you the product to explain the problem. The business can't refuse to help you by telling you to contact the manufacturer,' the ACCC said.
Additionally, customers are not legally required to return a damaged item in its original packaging to receive a refund.
However, a business is entitled to ask them to provide proof of purchase.
If a business refuses to meet a consumer guarantee, the regulator advises people to try contacting the store directly or issue a complaint in writing.
If this doesn't resolve the issue, shoppers can contact their local or state consumer protection agency to negotiate a resolution.
For instance, a lawsuit was filed against retail giant JB Hi-Fi for selling extended warranties that offer little to no value to consumers, as these are the same protections already provided by the guarantees under the ACL.
The lawsuit also claimed that some of JB Hi-Fi’s brochures failed to include important information about how basic consumer law protections compare to those offered by extended warranties. You can read more about the class action here.
'Businesses are reminded that it is unlawful to give customers false or misleading information about their consumer guarantee rights. Where consumer guarantee rights apply, consumers are entitled to the remedies provided by the Australian Consumer Law,' ACCC Deputy Chair Catriona Lowe said.
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