The commissioner reminded NSW jewellers to abide by the Australian Consumer Law (ACL) on refunds, replacements and repairs. He said jewellers should not inflate specials prices and they should be able to substantiate that a sale price is genuine.
The recent Federal Court finding against Zamel’s, resulting in a fine of $250,000, should act as a warning to all jewellers, regardless of which state they reside.
As consumers around the country are reminded of their rights when purchasing jewellery, retailers – and their sales staff – should equally be aware of their responsibilities, including store policies on purchases made by consumers who have experienced unrequited love.
Stowe has advised consumers: “You don’t need to know every facet of the law but you should know you are entitled to get what you paid for and not be misled about the real value of jewels and settings.
“The national consumer law gives consumers good protection against unfair and misleading practices, but people should always choose carefully,” he said.
“Some stores will offer refunds or exchanges if the gift recipient doesn’t like or doesn’t fit what you buy them, but traders are not obliged to do so.”
Other States
The same applies in south of the border. Consumer Affairs Victoria has on its website a warning to shoppers: “Traders do not have to give a refund if you simply change your mind about a product.” The website has an example of a retailer not accepting a return without breaching any consumer laws.
But it also warns that if retailers have a store policy to offer a refund, replacement or credit note when this happens, then they must abide by this policy.
Queensland Office of Fair Trading states: “Businesses do not have to display signs detailing their refund policy. However, if they do, the signs must not be misleading.” Other states echo these sentiments.
The South Australia Office of Consumer and Business Affairs notes that sellers have rights against manufacturers or importers of goods if the seller provides a remedy to a consumer for a problem which was caused by the manufacturer or importer.
On the other side of the coin, co-founder of Jewellery Marketing Solutions and regular Jeweller columnist, Tony Argyle, said, “Jewellers have to think about the long-term negativity if they refuse a refund on a returned item.
“Personally, I don’t think it’s worth the hassle of arguing with a customer.”
He recommends jewellers should, “bite their lip, even if they’re within their rights.”
“If the consumer thought you were the place to buy jewellery in the first place, they will again if you treat them well.”
Warnings issued
Jewellers should note that not keeping up with consumer law is a dangerous practice. As highlighted above, consumers have greater access to the law and many are fully aware of their rights.
In 2012, NSW Fair Trading received 26 enquiries and 52 complaints about jewellery. Fair Trading inspected 39 jewellery stores in Sydney’s northern and western suburbs in Operation Sparkle last year, Stowe said.
One in four stores had non-compliant signage or wording on store receipts. Nine warnings were issued for contraventions of the ACL in relation to signage or conditions printed on tax invoices falsely representing consumers’ rights to refunds, he said.
Invoices stated that refunds or exchanges were not given on items including those discounted and on sale. Under the ACL, people automatically receive guarantees from businesses providing goods or services, Stowe reiterated.
Guarantees replace statutory implied warranties and more clearly set out consumer rights and responsibilities when something goes wrong.
The commissioner said consumers were entitled to have their purchases repaired, replaced or their money back if jewellery was not of acceptable quality, using ACL guarantees, whether products were bought from a retailer or manufacturer.
“A trader must not falsely state goods are of a particular standard, quality, value or grade,” he said. “Ask for care instructions for jewellery, verbal or written, if that information is not provided.”
JAA members have adopted nationally a voluntary JAA Jewellery Industry Code of Conduct. It might be timely to revisit the code if you or your staff are unfamiliar with it.
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