Australia Post to Dish Out $2.9M in Compensation Pay Out

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By Published On: December 22, 20230 Comments

Australia Post will be paying millions in compensation to businesses for lost or damaged parcels following a consumer law breach.

Australia Post is to provide an estimated $2.9 million in compensation for lost or damaged parcels to about 10,500 affected business contract customers. 

Earlier this year, Australia Post self reported a breach in Consumer Law to ACCC, admitting they engaged in misleading or deceptive conduct when they failed to accept compensation requests and incorrectly advised some business customers that no compensation was payable to them for lost or damaged articles for a four year period from October 2018 up to October 2022.

In October 2018, an Australian Consumer Law was amended with an exemption with the effect that from that time, consumer guarantee rights applied to the transport of goods to a recipient who is not carrying on a business in relation to the goods. Under this law,  consumers can request a remedy if a product is not of acceptable quality or a service is not performed with due care and skill, fit for purpose or supplied within a reasonable time.

Australia Post Group failed to apply the amended exemption correctly, and on that basis did not accept claims from businesses which had articles lost or damaged in transit.

“The failure by Australia Post Group to provide business customers with the remedies they were entitled to is extremely concerning, but we acknowledge that Australia Post self-reported this conduct to the ACCC,” ACCC Commissioner Liza Carver said.

“We are pleased that Australia Post Group has undertaken to provide compensation for this error and to put systems in place to ensure similar errors are not made in the future.”

“Business contract customers who sent goods to customers without a business purpose which were lost or damaged in transit with the Australia Post Group have been entitled, and continue to be entitled, to consumer guarantee rights,” Ms Carver said.

Following the release of this news, scammers have been using the media frenzy to contact businesses, falsely claiming to help them get a refund. The ACCC warns Australia Post Group will not provide clickable links or phone numbers and will not ask for email or text message responses, and advises if you receive a call from anyone offering to help you with a refund, hang up immediately. 

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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