The Issue
1. Overseas Laws are Gaining More Control
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The lack of Australian consumer protection available when purchasing online overseas, has meant consumers are more affected by the consumer laws of other countries than those of their own country. This disadvantages the consumer particularly when purchasing cheap products online from less developed countries, which have less effective ways of protecting consumers from inferior products. This means that overseas retailers can manufacture and supply products to a standard that is acceptable in their country, however may not meet the expectations required from a country like Australia with extensive consumer rights.
With China’s new consumer laws comes an improvement in the quality of products and service received by consumers. These new laws include a number of new rules specific to online shopping such as: ‘requirements for online sellers to provide authentic and complete details relating to their products and/or services to online shoppers’, ‘a seven day return policy for online stores’ and ‘new responsibilities for online trading platforms’. these laws still reflect how Australian consumers will receive a different experience compared to consumers buying within Australia. For example retailers in China prepare goods with the law in mind that a product only has to function effectively for 6 months from the date of receipt, whereas Australian retailers supply goods knowing the product must be of acceptable quality without a time difference.
With China’s new consumer laws comes an improvement in the quality of products and service received by consumers. These new laws include a number of new rules specific to online shopping such as: ‘requirements for online sellers to provide authentic and complete details relating to their products and/or services to online shoppers’, ‘a seven day return policy for online stores’ and ‘new responsibilities for online trading platforms’. these laws still reflect how Australian consumers will receive a different experience compared to consumers buying within Australia. For example retailers in China prepare goods with the law in mind that a product only has to function effectively for 6 months from the date of receipt, whereas Australian retailers supply goods knowing the product must be of acceptable quality without a time difference.
2. Faulty and Unsafe Goods can Easily Enter into Australia
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The lack of enforceable Australian online consumer protection overseas has also meant that goods manufactured to a poor quality, especially electronics, are more likely to enter Australia and cause serious health problems. Recently a woman in Sydney was found dead wearing headphones and holding her laptop, with burns to her ears and chest that suggest she was electrocuted. With further investigation it was revealed that the death was caused by an unbranded phone USB charger the women had bought from an accessories kiosk in Campsie, south-west Sydney. The accessories store had bought the phone chargers in bulk online from Hong Kong and then resold them in Australia. The chargers, power boards and travel adaptors sold there didn’t carry any Australian Safety Standards markings and weren’t certified for sale in the country.
The lack of Australian law protection has made it easier for consumers to buy cheap products unknowingly being exposed to serious safety risks. The difficulty is preventing poor quality products from entering Australia has made it easier for overseas retailers to supply Australian consumers with inferior products at a lower cost.
The lack of Australian law protection has made it easier for consumers to buy cheap products unknowingly being exposed to serious safety risks. The difficulty is preventing poor quality products from entering Australia has made it easier for overseas retailers to supply Australian consumers with inferior products at a lower cost.
3. Australian Consumers Have no Protection when Buying Overseas Via Auction
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Australian Consumer Law does not protect the consumer when purchasing goods on overseas online sites via auction. This is particularly alarming because during January 2011 it was revealed that the most popular overseas online shopping site used by Australians was www.ebay.com, an auction site attracting 5.58 million Australians. Since there continues to be a growing number of Australians using eBay it is worrying that they receive no protection under Australian Consumer Law. Depending on the original place merchandise was supplied from Australian consumers may lack protection returning faulty goods, redeeming warranties, receiving high-quality products and being susceptible to products that endanger their safety.