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Category: Consumer Electronics / Regulation / Business, Economics and Finance

Consumers name bond battles, whitegoods and airlines in top complaints

Thursday, 25 Aug 2016 10:40:19 | Emily Clark

Harvey Norman was second on the list of most complained about companies. (AAP: Joel Carrett)

If you have ever fought a real estate agent for a bond refund or been denied a claim on an appliance's extended warranty, you're not alone.

New South Wales Fair Trading reported consumer complaints were up 9 per cent and there were some clear standouts on the worst offenders list.

You might relate to a few of these consumer gripes.

Problems with rental properties

When NSW Fair Trading published its list of most complained about companies, there were four real estate agents listed — all of them in the top 10.

Tom Godfrey from consumer group CHOICE said the register highlighted systemic problems in the sector:

"For example, with 59 complaints in the top 20 regarding tenancy and bonds, it looks like NSW renters may be getting a raw deal from real estate agents.

To break it down:

Ranking on registerAgency brandComplaints about tenancy and bond
1LJ Hooker28
4Ray White16
7Raine & Horne17
9First National8

Chris Mourd from LJ Hooker said he supported a complaints register but that the system chosen was unfair and could mislead consumers.

"By putting complaints under a master brand, they're just not identifying the businesses that are not doing well," Mr Mourd said.

Whitegoods and extended warranties

Harvey Norman and The Good Guys feature on the NSW Fair Trading register at spots two and 10 respectively.

CHOICE reminds us to think about faults and post-purchase problems but also the up-selling tactics we might encounter at the point of sale.

"It's unsurprising to see electronics retailers such as Harvey Norman and The Good Guys topping the rogues gallery," Mr Godfrey said.

Our research has found 48 per cent of the retailers contacted failed to offer our shoppers their basic consumer rights.

"Whether it is fobbing them off to the manufacturer when something goes wrong or selling them an extended warranty they don't really need, these companies need to lift their game."

Remember, if a commission is involved, the advice is to question the sales process.

Jonathan Brown from the Victorian Consumer Action Law Centre had a word of warning about extended warranties.

"We know that the people selling extended warranties are usually getting commissions, and where there are commissions offered it's not about getting the best product for your needs, it's about them getting a payment.

That's why these companies get complaints, because they're encouraging you to pay for something you're already entitled to under the law.

Harvey Norman and The Good Guys have been contacted for comment.

Wouldn't compensation take the sting out of a delayed flight?

Yes. Yes, it would.

A delayed flight can have a very frustrating knock-on effect and consumer groups say it's no surprise people are compelled to put pen to paper when something goes wrong.

Number three on the NSW complaints register is budget airline Air Asia. The travel and tourism sector overall sits at number nine on the list of most complained about industries across the state.

"Airlines such as AirAsia are a constant source of frustration for consumers and they clearly deserve a place in the top five most complained about businesses," Mr Godfrey said.

"CHOICE research has found 23 per cent of passengers experienced a problem with a flight delay or cancellation in the last 12 months."

Alarmingly, 63 per cent of all consumers who experienced a flight delay or cancellation reported no assistance was provided by the airline.

Air Asia released a statement saying it was "implementing additional measures to improve productivity and to add convenience and comfort to guests' travel experience".

Save yourself the hassle and avoid these consumer pitfalls

Ideally, consumers wouldn't have an experience so negative that they are compelled to lodge a formal complaint.

Mr Brown had some tips for avoiding some common consumer pitfalls.

Remember:

  • Don't be persuaded into buying add-on products like insurances or warranties
  • Only buy or opt into contracts that suit your circumstances
  • Don't make purchasing decisions based on emotions
  • If in doubt, always wait

"We would always suggest, particularly with sales, if anyone is trying to sell you something extra than what you are there to buy, always wait," Mr Brown said.

"They will always say it's a special deal, 'buy it now for peace of mind', but always wait. Never be pressured into buying something in the moment.

If the salesperson is pressuring you into buying it, that's a red flag.

Mr Brown said sometimes we all make purchasing decisions based on emotions but we need to remember "consumer protections are based on rational factors".

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