26 September 2023

Consumer Protection questions service fees

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Consumer Protection has stepped in to inform members of the public who might be paying for complaint conciliation services promoted online and in advertisements that they can have the same service at no cost at all.

Commissioner for Consumer Protection, Gary Newcombe said one of the main functions of Consumer Protection was to offer a free conciliation service for consumers who were in dispute with a trader.

“In 2021-2022, about 2,000 WA consumers received redress totalling more than $5 million and, in the previous financial year, about 2,800 consumers were returned almost $7.5 million,” Mr Newcombe said.

“I am concerned that consumers who are not aware of this free service may end up paying for a private advocate who doesn’t have the necessary knowledge or experience.”

He said Consumer Protection had identified that some people were promoting consumer and tenancy advocacy services via social media and charging a fee when they did not have the experience or track record of his office.

“While this is not illegal, consumers need to be aware that these same services are offered by Consumer Protection at no cost to the complainant and we have a high success rate in achieving a resolution, usually in the form of a refund,” Mr Newcombe said.

Consumer Protection also had the power to enforce Consumer Laws in WA and ensure that consumer guarantees were met.

“As regulators of the Australian Consumer Law and other legislation, it’s important that we are aware of any bad behaviour by traders and can take legal action if the situation warrants it. This is not something a private advocate can do,” Mr Newcombe said.

“There are also tenant advocates on social media who may not have full knowledge of tenancy laws in WA, or the necessary skills to delicately and amicably resolve disputes with landlords or agents, particularly in the current tight rental market.”

He said consumers and tenants might be putting themselves at risk by dealing with possibly inexperienced and unqualified private advocates — “it also doesn’t make sense to pay for a service that is already offered for free”.

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