Australians spend more than $14 billion a year to deal with consumer-related problems according to a new survey, said Parliamentary Secretary to the Treasurer, David Bradbury.
The Australian Consumer Survey was commissioned by the Commonwealth, State and Territory Governments and undertaken by Sweeney Research, with more than 5,000 consumers and 1,200 businesses involved.
"This is the first national snapshot of consumer and business understanding of consumer rights and business obligations and it's encouraging that most consumers not only know that consumer protection laws exist, but that they are confident that most businesses act fairly," said Mr Bradbury.
"Many consumers have issues with the goods and services they buy and this costs them time and money. The Survey estimates that these costs total around $14.2 billion a year for consumers, while businesses spend about $6.6 billion a year resolving those problems, not including repair and replacement costs.
"While the Survey found that a relatively small proportion of consumers and businesses could recall the specific names of consumer protection laws, 90 per cent of consumer respondents and 98 per cent of business respondents were aware that consumer protection regulations existed.
"The Survey also shows that 74 per cent of consumer respondents who had experienced a consumer problem took some action, usually directly with the business, with just over half saying they were satisfied with the response.
"The survey found that while most consumers are confident that businesses do the right thing, there are some vulnerable consumers in our society who encounter more difficulties in dealing with consumer issues, particularly those from non-English-speaking backgrounds.
"Following the commencement of Australia's first national consumer law, the Australian Consumer Law, on 1 January 2011, this Survey gives us a great tool to target our efforts to build consumer awareness and business compliance.
"The Australian Consumer Law represents the most significant overhaul of consumer law since 1974. This single law replaces 900 provisions in more than 20 Commonwealth, State and Territory consumer laws, updates and simplifies the law and introduces robust new investigation and enforcement powers."
The Australian Consumer Survey is available from www.consumerlaw.gov.au.
8 June 2011