ACCC Rule on Retailer Warranty

[kangarooflyer88]

Hello,

It is my understanding that Australian consumer law obligates retailers to service items they sell even if the product is not made by them. In other words they cannot tell you to simply go to the manufacturer to deal with the problem. Last week the screen protector on my iPhone purchased at the Apple Store developed a tiny hairline crack from one end of the screen protector to the other. I popped into my nearest Apple Store (Perth City) and was told that no they wouldn't replace my screen protector and that I must follow up with the manufacturer (Belkin) when I pushed back saying Australian Consumer law says you cannot do that they replied, "well that only applies if there was a clear defect like it was bubbling". I decided to try again today, this time heading to the Apple Store near my house (Apple Hornsby). This time was told the same thing about contacting Belkin, I told them, we're in Australia and Australian Consumer law says you cannot push me off to the manufacturer like that. They got their manager, the manager told me, technically we are right, since there is a loophole to that consumer right (that's a new one!) but we'll replace it for you as a gesture of goodwill. At that point I didn't want to look a gift horse in the mouth, and got the protector replaced.

My question for the learned community are the following:

• Are there circumstances (aside from them not holding stock of the replacement part) where the retailer can fob the customer off to the manufacturer?
• If, in the future, I get fobbed off like this what should I do? Contact the ACCC? Buy the product/service then take them tribunal to get money back?

-RooFlyer88

 

[oz_mark]

If it is a manufacturing defect they have to. But if it's wear and tear or got accidentally damaged they don't really have to get involved.

 

[kangarooflyer88]

If it is a manufacturing defect they have to. But if it's wear and tear or got accidentally damaged they don't really have to get involved.

How could they make that judgement? Even if we assume that it was wear and tear or got accidentally damaged as you say, if the company warrants that the product can take a beating (including getting scratched by keys and even dropped) then does that not get incorporated into the consumer guarantee?

 

[elanshin]

How could they make that judgement? Even if we assume that it was wear and tear or got accidentally damaged as you say, if the company warrants that the product can take a beating (including getting scratched by keys and even dropped) then does that not get incorporated into the consumer guarantee?

Not necessarily. Wear and tear can be argued in courts as to what is reasonable expectations (not marketing claims).
Thats up to the courts to determine if you really want to push it that far.

For small scale items you will find that more often than not, despite not needing to, larger companies will fix it or replace it out of good will. Managers whos been around enough know the cost of customer acquisition and retention is generally fairly high and losing a customer for say a $10-20 consumable isn't really worthwhile. Usually, with cases like this, it's what is the path of least resistance for the retailer.

In your specific case, if I was acting as a manager's capacity, theres no way for me to know what you did with your device after you purchased the product. It could be a legitimate defect or you could have decided to drop it a bunch and cause the defect. However as it's a relatively cheap item, the hassle of dealing with a customer (usually unhappy) isn't worth a few dollars. Both in terms of time, morale as well as customer satisfaction.

As for your original question, we often give customers the option of dealing with the manufacturer themselves (and the how to do so) or we do it on their behalf. We also however do state that if we take up the case, it can potentially take longer as we need to go through our full supply chain trace back to the manufacturer, sometimes it's direct, other times we have other distributors that need to get involved. It could sometimes take more than double the time to get the same result with a serious manufacturer defect.

 

[kyle]

Not necessarily. Wear and tear can be argued in courts as to what is reasonable expectations (not marketing claims).
Thats up to the courts to determine if you really want to push it that far.

For small scale items you will find that more often than not, despite not needing to, larger companies will fix it or replace it out of good will. Managers whos been around enough know the cost of customer acquisition and retention is generally fairly high and losing a customer for say a $10-20 consumable isn't really worthwhile. Usually, with cases like this, it's what is the path of least resistance for the retailer.

In your specific case, if I was acting as a manager's capacity, theres no way for me to know what you did with your device after you purchased the product. It could be a legitimate defect or you could have decided to drop it a bunch and cause the defect. However as it's a relatively cheap item, the hassle of dealing with a customer (usually unhappy) isn't worth a few dollars. Both in terms of time, morale as well as customer satisfaction.

As for your original question, we often give customers the option of dealing with the manufacturer themselves (and the how to do so) or we do it on their behalf. We also however do state that if we take up the case, it can potentially take longer as we need to go through our full supply chain trace back to the manufacturer, sometimes it's direct, other times we have other distributors that need to get involved. It could sometimes take more than double the time to get the same result with a serious manufacturer defect.

I don't quite understand the last bit. Under ACL, if you're the seller, then you should be remedying the issue for the buyer and how you deal with the manufacturer is a separate issue?

My recent experience was a faulty garage door barely a year old. Contacted the installer who, after inspection, said it's a manufacturer warranty issue. I could have pushed ACL and not wait for the manufacturer to deal with the warranty process, but fortunately it was dealt with within two weeks.

 

[elanshin]

I don't quite understand the last bit. Under ACL, if you're the seller, then you should be remedying the issue for the buyer and how you deal with the manufacturer is a separate issue?

My recent experience was a faulty garage door barely a year old. Contacted the installer who, after inspection, said it's a manufacturer warranty issue. I could have pushed ACL and not wait for the manufacturer to deal with the warranty process, but fortunately it was dealt with within two weeks.

Yes - but heres the thing, if it will takes us 1-2 months for us to do but you a few weeks if you go direct, what is the actually more practical option? It can often happen if there is a whole bunch of supply chain and distributor to go through as each one needs to fill out paperwork etc before it reaches the manufacturer vs consumer direct to manufacturer. This is under the assumption there isn't a replacement available immediately that is.

 

[kangarooflyer88]

Yes - but heres the thing, if it will takes us 1-2 months for us to do but you a few weeks if you go direct, what is the actually more practical option? It can often happen if there is a whole bunch of supply chain and distributor to go through as each one needs to fill out paperwork etc before it reaches the manufacturer vs consumer direct to manufacturer.

In my case I wanted to deal direct with Apple because they could remedy the situation on the spot. Not only that they have the special machine to correctly install the screen protector whereas if I was fobbed off to the manufacturer I'd be waiting weeks for the part to arrive and then have to install the damn thing myself!

 

[elanshin]

In my case I wanted to deal direct with Apple because they could remedy the situation on the spot. Not only that they have the special machine to correctly install the screen protector whereas if I was fobbed off to the manufacturer I'd be waiting weeks for the part to arrive and then have to install the damn thing myself!

I get that - and hence why in your case most managers with their head switched on would do what the one in Sydney did. But i'm just giving you a situation where it would make more sense not to go through the retailer but directly with the manufacturer.

 

[oz_mark]

I don't quite understand the last bit. Under ACL, if you're the seller, then you should be remedying the issue for the buyer and how you deal with the manufacturer is a separate issue?

My recent experience was a faulty garage door barely a year old. Contacted the installer who, after inspection, said it's a manufacturer warranty issue. I could have pushed ACL and not wait for the manufacturer to deal with the warranty process, but fortunately it was dealt with within two weeks.

The issue is that while the suppliers can do it, they have to go back through the supply chain if they need to get some spare part or other. It can just be quicker to deal with the manufacturer directly (which is an option you have under the ACL)
Or if the shop you bought it off has gone belly up, then the manufacturer is a good path to go..

 

[Quickstatus]

tiny hairline crack

I dont believe Belkin is liable for repair or replacement. Most people would say the crack is due to impact.

bubbling

Bubbling or the screen lifting off or bubbles forming under the screen are covered by Apple as they installed it - unless it is due to cracking as per above.

if the company warrants that the product can take a beating (including getting scratched by keys and even dropped)

This is the Marketing. It says protects against.
My reading is that the SP protects the Phone screen. In other words the screen protector is sacrificial - the screen protector breaks before the phone screen. It does not say the screen protector will not or is harder to crack than the phone screen crack. I believe the SP worked as intended - it protected the Phone screen by absorbing the impact.



This is the Belkin Warranty. It does not warrant that the product can take a beating etc etc.

 

[p--and--t]

Not sure how legal it is and whether there is a legal argument but some retailers have specific clauses printed in their receipts regarding repairs on certain items.

E.g. Officeworks : if you buy a Samsung phone, receipt says purchaser must go back to a Samsung store and if not repairable Samsung will issue a notice you take back to Officeworks and they will replace or refund.

E.g. Similarly with Appliances Online, must report a defect on some items within 7 days or deal with the manufacturer. If cant be rectified then a code will be issued for a replacement to be sent.

 

[hsct]

I bought an Apple iPhone from Myer (before they stopped selling Apple products). 6 months down the track it displayed a vertical bright green line. I brought it back to Myer and they exchanged a new one for me, no questions asked.