Naughty list alert: Retailers warned over Christmas sales tactics

The ACCC are putting retailers on notice this festive season, warning that dodgy tactics, fake sales and unsafe products won’t fly. If you don’t want to end up on the naughty list, it’s time to check that you’re abiding by the rules.

As Aussies start stuffing stockings and hunting down Christmas bargains, the Albanese Government has a message for retailers: play fair or pay up. The ACCC is stepping up surveillance online and in-store to make sure shoppers aren’t copping misleading deals or unsafe products in the mad festive rush.

Assistant Minister for Treasury Andrew Leigh said retailers have been put on notice. The Government strengthened consumer laws earlier this year, meaning serious breaches now come with serious financial consequences.

“Retailers who make false or misleading representations or fail to meet their obligations now face penalties of up to $50 million per breach,” Leigh warned.

Watch out for dodgy sales tactics

The consumer watchdog says it’ll be keeping its own list (and checking it twice) to identify dodgy discount claims, fake urgency tactics and retailers who ignore mandatory safety rules.

Shoppers are being encouraged to be alert when browsing online or in-store. That includes watching for false urgency tactics like countdown timers or limited time claims designed purely to pressure people into quick purchases. They should also take a second look at big sale promises, particularly those claiming store-wide or site-wide discounts when, in reality, only a small handful of items are actually reduced.

The ACCC also wants people to pay close attention to product safety compliance. Especially for children’s toys and anything containing button batteries, which must meet mandatory standards. If a retailer looks like they’re playing fast and loose with the rules, the watchdog wants Australians to report it.

Consumer guarantees are the law

Leigh reminded Australians that consumer guarantees are built into the law and can’t be waved away with tricky fine print or signs stuck to a counter.

He said that when Australians buy goods or services that break easily, don’t work or don’t perform as expected, they’re protected under consumer law. Goods must be safe, function properly and do what they’re supposed to do, while services must be delivered with proper care, be fit for purpose and be completed within a reasonable time.

If businesses fail to meet those basic guarantees, customers may be entitled to a repair, replacement, refund or another remedy. Leigh emphasised that nothing a retailer says or does can override those rights, meaning they can’t put up “no refunds” signs, dodge responsibility for faulty products, or claim customers need to buy an extended warranty to access protections they already have.

Government’s enforcement fund

To help the ACCC tighten oversight, the Government has tipped in $30 million to bolster investigations and enforcement across the retail and supermarket sectors.

It’s also pushing through several reforms aimed at keeping the playing field fair. That includes making supermarket price gouging illegal, strengthening unit pricing rules to tackle shrinkflation and banning unfair trading practices such as subscription traps and sneaky drip pricing.

Leigh said the goal is simple: “Australians deserve a fair go at the checkout.”

More information on consumer rights is available at the ACCC.

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