On paper at least, the nationally binding Australian Consumer Law gives us a fairly robust set of rights. When it comes to products, you can demand a refund, repair or replacement in the case of a major fault. If a service provider engages in misleading or deceptive conduct, they could face legal charges and be forced to pay compensation.
We all have the same entitlements, but in practice your age is one factor that determines how likely you are to actually pursue a fair resolution, as is your socioeconomic status.
Many people across the demographic spectrum never bother to make a complaint, either because it’s too hard and they don’t have time, they don’t think it’ll make any difference, or they don’t know who to complain to. This plays into the hands of the offending businesses, which learn that they can continually dud their customers and get away with it.
A recent report from the Consumer Policy Research Centre (CPRC) offers one data-driven measure of our willingness to take businesses to task for doing us wrong.
Its inaugural Consumer Rights Confidence Index is based on a survey of 2000 Victorians, which, in some respects, the researchers intend as a stand-in for the country as a whole.
More than eight out of 10 reported medium to low levels of familiarity with their rights, and 47% didn’t lodge a complaint after a product or service failure
More than eight out of 10 had had a problem with something they’d purchased in the last five years, and around half had been affected by an unfair or illegal business practice in the previous 12 months.
Clothing, footwear, accessories and electronics topped the product failure list, while telcos, airlines, and utility providers were most often cited for failures in the services sector. Being ill-served by customer service departments was also a common experience.
But the collective knowledge among this representative sample was not deep: more than eight out of 10 reported medium to low levels of familiarity with their rights, and 47% didn’t lodge a complaint after a product or service failure.
The percentage who took a consumer issue all the way to the Victorian Civil and Administrative Tribunal was miniscule (1% for products; 2% for services).
One standout finding in the research is that members of Generation Z (born between 1997 and 2012) were far less likely to stand up for themselves in the consumer arena than Baby Boomers (born between 1946 and 1964), even though Gen Z consumers experience a significantly higher incidence of product and service failures. Confidence in the ability to exercise your consumer rights among the 60-something set was roughly double that of people in their late 20s or younger.
People in our community who most need access to their consumer rights are too often missing out
CPRC CEO Erin Turner
“It’s alarming to see such a major gap between Gen Z and the other generations when it comes to asserting their consumer rights,” says CPRC CEO Erin Turner.
But the lack of awareness and access goes beyond generational divides, Turner adds.
“People in our community who most need access to their consumer rights are too often missing out. Whether it’s young people being unaware of their rights, people with disabilities finding cost and systemic barriers getting in the way, or First Nations communities experiencing more unfair tactics – we need to make sure consumer guarantees are accessible to everyone.”
First Nations consumers in particular are disproportionately affected by product and service failures as well as unfair business practices according to the research, and less likely than other consumers to make a complaint. People with a disability reported systemic barriers to making a complaint, with a confidence score in the report of 55 (compared to the Boomers’ overall score of 82).
The CPRC wants to see Consumer Affairs Victoria receive the resources it needs to conduct consumer rights awareness-raising campaigns. And it wants businesses to be required to tell customers about their rights when they raise a complaint.
While the survey was limited to Victorian consumers, Turner says the results “set a baseline for research in other states and territories in future”.
“We can now see where gaps are emerging and address them holistically. Whether it’s federal laws and enforcement or state regulators and tribunals, we have an opportunity to help people in our community who are falling between the gaps with consumer rights.”
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Andy Kollmorgen is the Investigations Editor at CHOICE. He reports on a wide range of issues in the consumer marketplace, with a focus on financial harm to vulnerable people at the hands of corporations and businesses. Prior to CHOICE, Andy worked at the Australian Securities and Investments Commission (ASIC) and at the Australian Financial Review along with a number of other news organisations. Andy is a former member of the NSW Fair Trading Advisory Council. He has a Bachelor of Arts in English from New York University. LinkedIn
Andy Kollmorgen is the Investigations Editor at CHOICE. He reports on a wide range of issues in the consumer marketplace, with a focus on financial harm to vulnerable people at the hands of corporations and businesses. Prior to CHOICE, Andy worked at the Australian Securities and Investments Commission (ASIC) and at the Australian Financial Review along with a number of other news organisations. Andy is a former member of the NSW Fair Trading Advisory Council. He has a Bachelor of Arts in English from New York University. LinkedIn
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