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Common Consumer Problems

This page is a guide for both consumers and business to understand their rights and obligations in common consumer situations. Many of these situations were commonly experienced due to COVID-19 restrictions.

Ongoing services

Subscription services such as a gym membership, dance studio or other in-person activities may face temporary restriction or closure in the event of an outbreak. If a business cannot provide a service, it cannot continue to charge its patrons.

Change of Mind

A supplier is not required to provide a refund if the consumer pays for a service but wishes to cancel before receiving it, unless by prior agreement. For example, a consumer books a winery tour but wants to cancel the day before due to a possible health risk. If the terms of booking are clear that no refunds will be given for cancellations at short notice, the business can refuse the refund.

However, if there is no provision for refunds, a business should take care not to keep more than a reasonable estimate of its loss. If the business cannot fill the spot with another person at late notice, the loss may be the full amount paid.

Travel and Accommodation

Consumers should check with the provider before booking travel to confirm the effect of a sudden health issue (such as a positive COVID-19 result) on the service provided. Booking terms and conditions should be clear and easy to find.

Cancelling travel plans as a precautionary measure may result in loss of a deposit or payment for travel. If the provider cancels the service, all money paid should be refunded or a credit offered for a future date. Insurance companies are now selling travel insurance with limited cover for COVID-19 related events. Be careful and check the limits of the cover because not all policies cover all situations or countries. For more information visit the Law Handbook Insurance section on Making a claim - Travel Insurance.

The Australian Consumer Law prohibits unfair contract terms in standard form contracts, although only a court can declare a contract term to be unfair. If a contract cancellation term appears to be excessive or unfair, visit the Law Handbook section on Unfair Contract Terms.

Events

COVID-19 restrictions placed rules on patrons attending live events, including theatre performances, live music and private gatherings. They included the requirement to wear a mask or show proof of vaccination for public events, or restrictions on the number of people permitted to gather in once place. In the event such restrictions or requirements are reintroduced, visit the SA Health COVID-19 website for more information.

Promoters should be clear about refund rights if an event is cancelled due to an outbreak. When booking, it is important to check the terms and conditions to ensure that either a ticket can be transferred to a future event or refunded on request. For more information about contract terms and consumer rights, please visit the ACCC website.

Scams

Please visit the Australian Government Scamwatch website for current information about some of the latest scams being reported. See also the Law Handbook section on Scams.

Consumer guarantees

For information about consumer guarantees for goods, see Statutory Guarantees and Guarantees in relation to goods.

Statutory guarantees also apply to the provision of services, which must be supplied with due care and skill, and be fit for a purpose made known to the supplier. If the supplier cannot provide the service, the guarantees are unlikely to apply. For more information about consumer guarantees for services, visit Guarantees as to the supply of services.

More detailed information about particular situations for both consumer and business is available on the ACCC website and the Consumer and Business Services website.

Common Consumer Problems  :  Last Revised: Mon Apr 24th 2023
The content of the Law Handbook is made available as a public service for information purposes only and should not be relied upon as a substitute for legal advice. See Disclaimer for details. For free and confidential legal advice in South Australia call 1300 366 424.