Retailers JB Hi-Fi, The Good Guys and Harvey Norman are misleading shoppers about their consumer rights ahead of Black Friday, an investigation by consumer group Choice has found.
With the biggest weekend on the retail calendar just around the corner, Choice mystery shoppers went to Australia’s largest appliance and electronics retailers, and uncovered dodgy behaviour at their stores.
An investigation of 80 JB Hi-Fi, The Good Guys and Harvey Norman stores found 71 per cent are misleading shoppers about their rights if one of their products breaks after a manufacturer’s warranty period.
And 91 per cent of stores surveyed were offering “poor value” extended warranties that often didn’t build on legal protections, Choice claimed.
‘Shocked by results’
“We were shocked by the results of our mystery shop,” Choice editorial director Marg Rafferty said.
“Consumer guarantees mean retailers must help customers if a product breaks within a reasonable period of time, even if the manufacturer’s warranty has expired.”
Ms Rafferty said that when Choice pressed retail staff they attempted to sell mystery shoppers extended warranties that are “not much more than a sneaky sales tactic designed to squeeze money” from shoppers.
“Consumer rights provide all the protection you need against faulty products,” Ms Rafferty said.
“It’s incredibly disappointing to see these big retailers pushing poor value extended warranties onto consumers during a cost-of-living crisis.”
Choice has told the Australian Consumer and Competition Commission (ACCC) about the results of their investigation.
Mystery shoppers were reportedly fed misleading lines about consumer rights by retail staff, including that “if it’s [a product] over two years [old] you have to pay for the repairs yourself”, and “after the manufacturer’s warranty there’s nothing we can do, it’s out of our hands”.
Choice said these statements were inconsistent with consumer laws, which guarantee consumers access to repairs or refunds, regardless of what warranty periods manufacturers have.
It’s not the first time major appliance and electronics retailers have been pulled up for feeding customers the wrong information about their rights.
The ACCC secured a fine against a Harvey Norman franchisee in 2016 after a court ruled they said misleading things about warranties.
But Ms Rafferty said that while it’s illegal for retailers to break consumer guarantees, there are currently no fines due for breaking these laws.
“Without fines for doing the wrong thing, too many businesses are getting away with telling consumers they’ll be denied their right to a repair, replacement or refund when something goes wrong with a product or service,” she said.
In a statement, an ACCC spokesperson acknowledged CHOICE had contacted them about the investigation, but stopped short of saying whether a formal investigation was underway.
They did repeat ACCC concerns that current laws are not strong enough to prevent businesses from shirking consumer guarantee rules.
“The ACCC is concerned that the current consumer guarantees framework under the Australian Consumer Law does not provide sufficient incentives for businesses to comply with their statutory obligations and so continues to advocate for law reform that makes illegal,” the spokesperson said in a statement on Tuesday night.
Buyer beware
Choice said consumers should be on the lookout for dodgy claims over the upcoming Black Friday and Cyber Monday weekend, which is slated to be the busiest three days on the Australian retail calendar.
Their advice to customers is three-fold:
- Consumer guarantees mean products should last for a reasonable period. If it doesn’t, you’re entitled to a refund, repair or replacement.
- Retailers must help you if a product you bought within a reasonable amount of time is faulty. They can’t fob you off to a manufacturer.
- Most extended warranties are poor value, you’re better off using your existing consumer rights to their fullest this Black Friday.
Harvey Norman declined to comment on the findings of Choice’s investigation, saying it would wait to see the group’s full report.
JB Hi-Fi Group (which owns also The Good Guys) did not respond to a request for comment.
