WA consumers who pay for complaint conciliation services promoted by people via social media pages and advertisements are paying for a service that is available for free.
One of the main functions of Consumer Protection is to offer a free conciliation service for consumers who are in dispute with a trader, with the aim of resolving the complaint mostly by getting a full or partial refund paid.
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. The successful resolutions mostly related to the areas of retail, travel and motor vehicles.
Commissioner for Consumer Protection Gary Newcombe said he is 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.
"It has come to our notice that some people are promoting consumer and tenancy advocacy services via social media and charge a fee when they don't have the experience or track record that we have," Mr Newcombe said.
"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. We also have the power to enforce consumer laws in WA and ensure that consumer guarantees are met.
"As regulators of the Australian Consumer Law and other legislation in WA, 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.
"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.
"So consumers and tenants may 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."
There are also many websites that charge a fee to do an online search for information, often from government agencies, that is publicly available for free or at a much lower cost. For example:
- Vehicle registration status checks and expiry reminders are services that are offered at no cost by the WA Department of Transport via their DoTDirect online services;
- Fuel price information is available to WA motorists at no charge on the FuelWatch website;
- The Personal Property Securities Register (PPSR), formerly known as REVS Checks, provides information on a used car such as whether there is any money owing on it, if it has been written off or stolen. Low fees start from two dollars, but there are many third party sites that charge much more for the same results;
- Finding lost or unclaimed superannuation is free on the Australian Taxation Office website or via a MyGov account.
Consumer and tenant complaints can be lodged online via the Consumer Protection website
