Lesson 4:Common Consumer

Problems

Overview of Lesson

• "Caveat Emptor" - "Let the Buyer Beware"• Complaints• Third parties• Small Claims Court• Deposits, gift vouchers and receipts• Quizzes

Caveat Emptor

• Caveat Emptor is a Latin phrase which means “Let the Buyer Beware”

• In practice, this means that consumers should act reasonably and sensibly when making purchasing decisions and examine goods carefully before they buy

• If you don’t take reasonable steps to ensure goods are free from damage, your entitlements may be affected later on

What is a valid complaint?

• Faulty or damaged goods• Goods that are not as

described• Goods that do not perform

the task they are designed to do

What is a non-valid complaint?

• Shop-soiled goods where the defect was pointed out at the point of sale

• Consumer changing their mind about a product

• Consumer causing the damage to a product• Consumer buys a product without checking its

suitability, e.g. buying a black instead of navy jacket, item too small or not matching existing products - jacket and trousers

Making an Effective Complaint

• Do not attempt to repair the item yourself – this may affect your rights

• Contact the seller as soon as possible when you notice the fault

• Ask to speak to someone in authority who can deal with your complaint

• Explain the problem and how you would like it resolved

Making an Effective Complaint

• Consider any resolution put forward by the seller reasonably

• Make sure that you have proof of purchase, e.g. receipt, invoice, cheque stub, credit card receipt

• Keep a record of all contact with the seller in case you have to go to the Small Claims Court

Third Parties

• If you don’t get a satisfactory resolution when you complain to the retailer, you can contact a third party - someone who will try to act on your behalf or give you information to reach a settlement with the shop•Examples of third parties include:o Industry regulators, e.g. ComReg for telecoms issues, Aviation

Regulator (CAR) for airline problemso Ombudsman, e.g. in disputes for goods or services in relation to

local authoritieso Trade associations, e.g. ITAA for travel agents, SIMI for motor

dealers

Small Claims Court

• If you still haven’t reached a satisfactory resolution to your complaint, you can go to the Small Claims Court

• This provides an inexpensive and easy way for consumers to resolve disputes without the need for a solicitor

• Small Claims service is provided in your local District Court office, or you can apply through Courts.ie

• The charge is €15 and the claim cannot exceed €2,000

Stages involved in making a complaint

Paying Deposits

• A deposit is a payment made to a supplier of a product or service by a consumer indicating an intention to buy it

• Paying a deposit creates a contract. If you then change your mind about buying the product you forfeit your rights and lose the deposit

• If the seller goes out of business (liquidation, receivership etc) you can make a claim to the liquidator/receiver for a refund of your deposit.

• However, you will be considered an unsecured creditor and are unlikely to get you money back

Gift Vouchers

• Gift vouchers should be treated as cash, i.e. if you lose the gift voucher, the retailer has no obligation to reimburse you

• Some gift vouchers have an expiry date• Consumers have very few rights if the

company goes out of business, as they become creditors of the business and will only receive a fraction of what the voucher was worth, if anything

Receipts• Retailers have no legal obligation to

provide a receipt• However, receipts are considered

proof of purchase, so consumers should always ask for one

• Handwritten receipts can be accepted if a till receipt is unavailable

• Proof of purchase doesn't have to be the shop receipt (e.g. shopper could show a credit card statement)

Summary of Lesson

• Caveat Emptor “Let the Buyer Beware”• Examples of valid complaints• Examples of non-valid complaints• Making an effective complaint• Third Parties• Small Claims Court• Paying deposits and where you stand• Gift vouchers• Receipts

Test your knowledge

• Go to www.ConsumerConnect.ie and click on quizzes in “Multimedia” to test your knowledge by completing the “Clever Consumer” and “Great Complainer” quizzes