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Dick Smith customers should try for a chargeback — Consumer boss

Customers rights with gift vouchers, deposits and extended warranties.

Wed, 06 Jan 2016

NBR asked Consumer chief executive Sue Chetwin to clarify the situation for Dick Smith customers in a number of areas.

NBR: The receivers say they won't honour gift cards. A number of readers have asked if they are legally entitled to take that position. Are they?

Chetwin: Once a business goes into receivership new rules apply (and there is probably something in the terms and conditions of either the company or the vouchers to that effect – so yes it can refuse to honour gift cards and vouchers.

NBR: What about deposits?

Chetwin: With deposits it’s a slightly different story. If people paid the deposits with their credit cards I suggest they contact their bank for a “chargeback”. There’s a non-supply of merchandise rule which means people might be entitled to get their deposits back.

NBR: What about extended warranties? (Like many consumer electronics retailers, Dick Smith sold extended warranties -- dubious territory given the Consumer Guarantees Act means goods must be repaired if they do not last a reasonable period of time, regardless whether the manufacturer or retailer says they have a one year warrant or whatever arbitrary limit they try to put in place on their liability. Note that the CGA only applies to purchases by consumers, not goods bought for a business).

Chetwin: For extended warranties, if the warranties are held by a company other than Dick Smith — and I think the company is an Australasian warranty company* — then the extended warranties should still stand.

* It is. Dick Smith extended warranties are administered by The Warranty Group Australasia Pty Ltd, according to Dick Smith's terms & conditions.

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Dick Smith customers should try for a chargeback — Consumer boss
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