Chapter 10: Making a Complaint

What is a consumer complaint? Where a consumer expresses their dissatisfaction with the goods or services received and seeks compensation. Where a consumer expresses their dissatisfaction with the goods or services received and seeks compensation.

Why do Consumers Complain? False claims about products and services Misleading information about products and services Faulty goods & services Goods delivered not as ordered Overcharging & incorrect weights

Consumer Complaints 1. Soles fall off a new pair of shoes after only 2 weeks What rights does the consumer have? What rights does the consumer have? Shoes are not of merchantable quality- entitled to a replacement or refund Shoes are not of merchantable quality- entitled to a replacement or refund

Consumer Complaints 2. Glue purchased for repairing a china teapot fails to stick on the handle What rights does the consumer have? What rights does the consumer have? Glue is not fit for its purpose- replacement or refund Glue is not fit for its purpose- replacement or refund

Consumer Complaints 3. A box states that the shirt colour is white but has a black shirt in it. What rights does the consumer have? What rights does the consumer have? Shirt is not as described- replacement shirt Shirt is not as described- replacement shirt

Consumer Complaints 4. a car breaks down after being serviced What rights does the consumer have? What rights does the consumer have? Mechanic acted as if she/he was unqualified- full & proper service as well as possible compensation for inconvenience. Mechanic acted as if she/he was unqualified- full & proper service as well as possible compensation for inconvenience.

Consumer Complaints 5. An ad for a holiday states that the hotel is 5mins from the beach but it is actually 30mins away from the beach What rights does the consumer have? What rights does the consumer have? Information is misleading- maybe entitled to compensation as determined by ITAA.

What is a contract? An agreement between the seller and the consumer which promises that in return for payment by the consumer, the seller will provide services or goods of merchantable quality which are fit for their purpose. An agreement between the seller and the consumer which promises that in return for payment by the consumer, the seller will provide services or goods of merchantable quality which are fit for their purpose. Contract

What are the stages in seeking Redress? 1. Identify the problem and gather all proof of purchase 2. Contact seller indicating action required and see manager. 3. Put complaint in writing and enclose copies of receipts

What are the stages in seeking Redress? 4.Contact sellers trade association and give full details 5. Contact ombudsman/media 6. Bring seller to small claims court or district court 7. Possible compensation

 It is important that the consumer can prove that an attempt was made to settle the dispute before contacting the ombudsman or small claims court registrar.

Letter of complaint 9- point plan 1. Address and telephone number 2. Date 3. The name & recipient's address 4. Greeting 5. introduction Letter of Complaint 9- Point Plan

Letter of complaint 9- point plan 6. Main Body 1. Item purchased 2. problem 3. Action required 4. Proof of purchase 7. Follow up 8. Close 9. Signature and title Letter of Complaint 9- Point Plan

What is a credit note? It is given by the seller to the buyer to show the amount owing or paid has been reduced It is given by the seller to the buyer to show the amount owing or paid has been reduced

Does a credit note have to be accepted? It doesn’t have to be accepted if the goods were faulty as in this case the consumer is entitled to a full refund. Credit Note

When is a credit note acceptable? If goods are returned sometime after purchase because they were the wrong colour or size, a credit note is acceptable when the seller is obliging the customer but doesn’t have to do so as the product or service is not flawed. Seller is not obliged by law Good for business as it keeps the customer happy