Consumer Redress

MOHIJIT SINGH
August 2021

1 Consumer Redress
As consumers we have the right to complain and seek compensation when we experience harm or loss. This
could be caused by goods and services that do not fulfill certain quality standards or expectations. For example,
some goods and services may not match their description or are otherwise not satisfactory in quality. Here the
neighbour principle applies which outlines the necessity of duty of care in the tort of negligence on behalf
of the manufacturer or provider of goods or services respectively, which would suggest, in this case, that the
offeree of the contract is at fault. During such occurrings, consumers can get redress by filing a complaint and
asking for a refund, or some other form of compensation from the business. This can be done by contacting the
business through their customer services or a help desk which deals with complaints. If the complaint cannot
be resolved, the consumer can consult with consumer protection agencies or associations for guidance on whom
to approach. There are different institutions that help settle consumer complaints, which can be reached both
offline and online. These include sectoral authorities or regulators, and alternative dispute resolution bodies.
These institutions serve to assist in mediating the dispute or discipline businesses if consumer protection laws
have been breached. As a last resort, consumers may bring their case to court. For this they may need support
from a legal professional or legal entity.[1]

1.1 Basic Consumer Rights

Consumers have four basic rights. These are:
1. Safe products. Directions for proper use are provided and products are texted by the manufacturer to
ensure product quality.
2. Accurate product information and descriptions. For example, ingredients are clearly labelled on food
containers.
3. Full disclosure of the terms of sale. The full price is always displayed, especially on any credit contracts.

4. Consumer guarantees and warranties are honoured. Customers can expect a refund or exchange if the
product is faulty.[2]

2 Seeking Redress: False and Misleading Advertising

Two of the most common false and misleading advertising techniques are:
• Bait and switch advertising . This involves advertising a few products at reduced and, therefore,
enticing prices to attract customers. When the advertised products quickly run out, customers are directed
to higher priced items.

• Misleading advertising . Some advertisements use words that are deceptive or claim that a product
has some specific quality when it does not. Such actions convey a false impression of the exact nature of
the product.[2]

2.1 Customer Services/Help Desk

This service should be provided by the good/service provider. Customer Service/ Help Desk involve teams of
people which are primarily meant to deal with complaints from consumers. These services allow consumers to
get redress by filing a complaint and asking for a refund, or some other form of compensation from the business,
for their loss, provided consumers have a valid substantive.

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2.2 Consumer Protection Agencies
If the complaint cannot be resolved, the consumer can consult with consumer protection agencies or associations
for guidance on whom to approach. There are different institutions that help settle consumer complaints, which
can be reached both offline and online. These include sectoral authorities or regulators, and alternative dispute
resolution bodies. These institutions serve to assist in mediating the dispute or discipline businesses if consumer
protection laws have been breached.

An example of a consumer protection agency is New South Wales Fair Trading. It provides information and
assistance to all consumers on areas such as consumer issues, shopping on the internet, home building and motor
vehicle sales. The department has the responsibility for:
• assisting consumers to resolve their complaints
• checking that products meet Australian safety standards
• ensuring that scales, scanners and petrol pumps used to weigh and price products are correct
• warning the community about dubious business practices such as scams and rip-offs.[2]

2.3 Ombudsman
The Ombudsman is someone who has the task of investigating and reporting on complaints. In the last few years,
industry ombudsmen have been established to deal with disputes between consumers and specific businesses
including finance, telecommunications and insurance.[2]

2.4 Federal Government

The two federal government commissions largely responsible for assisting consumers are:
1. Australian Securities and Investments Commission (ASIC). This commission protects consumers in the
areas of consumer credit, investment, life and general insurance, superannuation, and banking (except
lending) in Australia. The aim of ASIC is to assist in reducing fraud (scams and rip-offs) in financial
markets and financial products.
2. The Australian Competition and Consumer Commission (ACCC). This commission operates nationally
for the enforcement and administration of the Competition and Consumer Act, and acts as a watchdog
on the pricing of goods and services. The ACCC is obligated to inform the public so that they are aware
of their rights and responsibilities under the law.[2]

2.5 Court
Consumers may bring their case to court. For this they may need support from a legal professional or le-
gal entity. Often in court, if the argument of the consumer is valid, the neighbour principle would find the
provider/manufacturer of the service/good at fault for being unable to carry out duty of care in the tort of
negligence. This is due to the common law established in the case Donoghue v Stevenson (1932).[3] [4]

3 Competition and Consumer Act (2010)(Cwlth)

The object of this Act is to enhance the welfare of Australians through the promotion of competition and fair
trading and provision for consumer protection.

Part IVB, Division 5, Heading 51ADG: ”A corporation must not give to the Commission false or mislead-
ing information; or produce to the Commission documents that contain false or misleading information,”[5] is
an instance in the act which prohibits the presentation of misleading and false information to any audience(which
includes consumers).

Part IVB, Division 4, Heading 51ADB(1)(b): ”Orders to redress loss or damage suffered by non-parties etc
... || If ... the contravening conduct caused, or is likely to cause, a class of persons to suffer loss or damage” [5]
indicates that redress can be sought if one has experienced false and misleading advertising, which is a potential
penalty imposed on the manufacturer/provider of the good/service.

Part IVB, Divsion 4, Heading 51ADC, (d) and (e): ”Without limiting subsection 51ADB(1), the orders that
a court may make under that subsection against a person (the respondent) include all or any of the following:
... (d) an order directing the respondent to refund money or return property to a non-party referred to in that
subsection; (e) an order directing the respondent, at his or her own expense, to repair, or provide parts for, goods

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that have been supplied under the contract or arrangement to a non-party referred to in that subsection;”.[5]

The above lines indicate that the responsibility of compensation for consumer losses or damages through their
goods/services or their scams, such as false and misleading advertising, is placed on the manufacturer/producer
of the good/service. Part (d) and (e) are orders enforceable by court.

4 References
[1] Competition and Consumer Commision of Singapore. (2020). Consumer Redress [Video]. Retrieved 13
August 2021, from https://www.youtube.com/watch?v=l3aFM7MGHLk.

[2] Chapman, S., Freak, M., and Stahl, S. Jacaranda new concepts in commerce. Page 28 - 40.
https://www.wiley.com/legacy/Australia/PageProofs/2020/NSW-NCIC/c01ConsumerandFinancialDecisions.pdf.

[3] The Open University. (2017). Donoghue v Stevenson: Concept of Duty of Care in the Tort of Negligence
[Video]. Retrieved 13 August 2021, from https://es-la.facebook.com/theopenuniversity/videos/donoghue-v-
stevenson-concept-of-duty-of-care-in-the-tort-of-n/1510922862337994/.

[4] Sir Harry Gibbs Legal Heritage Centre — Supreme Court Library Queensland. Legalheritage.sclqld.org.au.
(2021). Retrieved 13 August 2021, from https://legalheritage.sclqld.org.au/donoghue-v-stevenson-1932-ac-562.

[5] Competition and Consumer Act 2010. Legislation.gov.au. (2021). Retrieved 13 August 2021, from
https://www.legislation.gov.au/Details/C2011C00003.