Smart Business Bulletin December 2021

Welcome to the December 2021 edition of the Office of Fair Trading’s (OFT) Smart Business Bulletin, linking Queensland businesses with fair trading information and tips.

Features

Christmas toy compliance operation
Product safety pledge
Check your refund policy
Check Christmas staff know procedures
Gift card requirements
COVID-19 business requirements
Training student visa holders
New funeral regulation

Operation Safe Christmas 2021

As the rush begins for parents and carers to fill their children’s Santa sacks the Office of Fair Trading (OFT) are urging them to be on alert for unsafe toys when shopping for that special gift.

As part of OFT’s Operation Safe Christmas campaign officers have been out and about across Queensland checking thousands of toys follow mandatory safety standards as part of the annual proactive compliance program.

Operation Safe Christmas 2021 had officers visit 119 Queensland stores and pop-up shops, checking more than 7,330 products. Officers removed a squishy spider yo yo water ball and toy drum set from sale due to small parts, strangulation and choking hazards. A further four plush toys and two foam puzzles were also taken off shelves by officers for testing.

If you’re a supplier, you must comply with mandatory standards to sell products in Australia. You are also required to comply with other product safety rules such as product bans and recalls.

Suppliers can include retailers, wholesalers, distributors, importers or manufacturers.

Mandatory standards, product safety, bans and recalls are law. There are penalties and consequences if you sell products that do not comply.

For more information about the OFT’s role in product safety visit: https://www.qld.gov.au/law/your-rights/consumer-rights-complaints-and-scams/product-safety-for-consumers

To learn more about your legal requirements visit: https://business.gov.au/products-and-services/product-labelling/product-safety-rules-and-standards

Product safety pledge improves consumer safety online

The Australian Product Safety Pledge (the pledge) is a voluntary initiative that obligates its participants to certain product safety related responsibilities that go beyond what is legally required of them.

Over 90 per cent of identified unsafe product listings were removed within two business days by online businesses signed up to the Australian Product Safety Pledge.

The voluntary initiative commits signatories to 12 product safety actions, that go beyond ordinary legal requirements, and which aim to prevent the sale of unsafe goods online.

While unsafe products present a risk of injury or death year-round, the ACCC is reminding consumers to shop safely during the pre-Christmas sales. It is estimated that at least two people die and 145 people a day are injured and require medical attention as a result of unsafe products.

Online businesses facilitating marketplace services that are interested in strengthening their product safety policies are encouraged to visit the Australian Product Safety Pledge website for more information.

Check your refund policy is legal this Christmas

Did you know that businesses cannot display signs, online terms and receipts stating ‘no refunds’ to consumers? With many sales currently circulating around Queensland, it is important to check your advertising and sales to make sure they clearly outline refund rights.

You cannot give the impression that your customers don’t have rights to redress under the Australian Consumer Law (ACL) if something is wrong with their purchase.

It is important to qualify the difference between your customers’ rights under the law versus your customer service policies. You don’t have to provide refunds or exchanges if someone simply changes their mind (or doesn’t like their gift), but you do have to honour the ACL’s consumer guarantees.

If you’re unsure about what wording to use, simply download one of our compliant refunds and returns signs for products (PDF) and services (PDF).

Ensure staff covering the holiday period know your policies and procedures

If you’re hiring temporary staff to cover the busy Christmas and holiday period, you should familiarise them with your policies and procedures so they can manage customer complaints.

You should also ensure they understand the basics on consumer rights or provide a go-to point for that information. Even though they may be temporary staff, they still represent your business.

If you have temporary staff or staff from a different part of the business performing administration tasks, ensure you have a training process that covers off your purchasing and invoice payment procedures to avoid being caught by scammers.

Reminder for gift card expiry period

The Christmas shopping rush brings many customers looking for gift cards for their loved ones. It’s important to remember that gift cards sold in Australia have a minimum three-year expiry period. The expiry date must be clearly displayed on the card or voucher. With the exception of a few limited-use gift cards and vouchers, all gift cards bought from 1 November 2019 automatically come with a minimum three-year validity period.

Exceptions to these rules include cards or vouchers that are:

for a good or service only available for a limited time, where the card or voucher expires at the end of that period (e.g. entry to a concert or museum exhibition)
supplied to a purchaser of goods or services as part of a temporary marketing promotion (e.g. a $50 wine voucher valid for one month that is mailed to a consumer as a bonus with a purchased item and which was not part of the purchase offer)
given free of charge for promotional purposes (e.g. a local shopping centre has a one-day marketing promotion where each visitor to the centre that day is handed a $20 gift card that is valid for use at any store in the centre on that day only)
sold for a particular good or service that is below the market value of that good or service (a genuine discount—e.g. a $50 card for salon service valued at $100)
supplied as part of an employee rewards program
given as a bonus in connection with a purchase of a good or service for use in the same business (e.g. customer loyalty programs).

COVID-19 vaccination requirements for businesses

The Queensland Government has announced some restrictions that will apply to certain business types and for unvaccinated people on 17 December. In short, only vaccinated staff and customers will be permitted at businesses offering non-essential leisure activities. In return, these businesses will be able to resume operating at full capacity.

The updated Check In Qld app allows people including staff and customers to check in and display their COVID-19 digital certificate at the same time to meet these new requirements.

Training student visa holders

For OFT regulated industries it is an offence under the Education Services for Overseas Students Act 2000 for a registered training organisation to provide training to an international student on a student visa, unless the training organisation holds registration on the Commonwealth Register of Institutions for Overseas Students (CRICOS).

Therefore, if you are in Australia on a student visa, you must make sure that the training organisation where you complete your training holds CRICOS registration.

Please note, training for each specified unit of competency must be completed through the CRICOS registered training provider. We will not accept a training certificate issued by a CRICOS registered training provider as a result of a credit transfer.

New funeral regulation means better price transparency

Families and friends planning a funeral for their loved ones can expect improved price transparency as regulations change to ensure funeral homes promote their pricing structure both in-house and online.

Funeral directors will be subject to the new rules from mid-2022. Funeral directors will have to display an itemised price list on their website and in-store. They will also need to display the price of their least expensive package for consumers wanting a simple funeral.

Additionally, consumers can request a cost-itemised quote before entering an agreement to carry out the funeral. A funeral director will have to provide the quote within 48 hours or before the agreement is signed, whichever happens first.

The decision to introduce these new rules follows a consultation process undertaken to seek community and business views on the issue of price transparency in Queensland.

The next step is the drafting of a new regulation in early 2022. The regulation will commence six months after it is made, to allow Queensland funeral businesses time to get ready for the changes and transition their business practices so they are providing price information for consumers. The Office of Fair Trading will administer the new regulation.

Funeral providers can find out more about the changes on the Office of Fair Trading website.

Christmas Closure

The Office of Fair Trading will be closed from 5pm Friday 24 December 2021 and will reopen on Tuesday 4 January 2021. For information on industry and licensing matters during this period, you can visit our website at www.qld.gov.au/fairtrading or call 13 QGOV (13 74 68) during business hours.

We will respond to any emails, online enquiries and complaints on our return.

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