Choice, a not-for-profit consumer organization, conducted a ‘shadow shopper’ investigation and allege at 48 per cent of staff at a number of popular electronics retail stores have been misleading consumers on their rights regarding refunds for faulty products.
Undercover shoppers were told that repairs would only be covered if they purchased extended warranty, which is untrue under Australian Consumer Law, which protects consumers’ rights to obtain a return, refund or repair if a product breaks for a “reasonable” period after the warranty expires.
It’s easy for staff to feel the pressure of hitting those sales targets, however it is important to train your staff on the consumer law to avoid hefty penalties from the ACCC for misleading and deceptive conduct. You are liable for your employees representations!
Extended warranties can be a great way to add value to your product offerings, but make sure you are not telling consumers the wrong thing as a sales tactic. Otherwise they may end up costing you more than you will make from selling them.
If you need assistance regarding the representations you have made or if you would like to chat about drafting up a company policy, give me a call on 1300 033 934 or contact me at for a no obligation quote.