Innholdsfortegnelse for April 2022 i CHOICE

The Essential Services Commission (ESC) recently hit energy retailer Sumo with a $500,000 penalty for the alleged wrongful disconnection of 143 Victorian customers in the run-up to Christmas 2020. It was a particularly dirty deed, and Melbourne-based organisation Consumer Action thinks the fine isn’t enough. In mid-February, Consumer Action formally requested that the ESC take a hard look at Sumo’s licence to operate in Victoria. “The ESC’s investigation revealed an appalling internal culture at Sumo,” says Patrick Sloyan, senior policy officer at Consumer Action. “We have written to the ESC to go further and investigate whether Sumo are fit to hold energy licences in Victoria. Sumo should also be made to compensate those individuals and families who were caused pain and distress when their power was unfairly cut off.” The…

Scammers operating in WA had a banner year in 2021, bilking more than 1000 victims for a total of $14.8 million and setting a new record for the state. Investment and romance scams topped the list, the great majority of which were perpetrated online. “As more and more consumers do business online, the risk of falling victim to scams increases as professional criminals become experts at hacking email accounts and creating fake websites, social media pages and classified ads,” says WA commissioner for consumer protection Gary Newcombe. “There has been an avalanche of phony text messages and emails being sent to people which contain links to websites that seek to either steal money or gather personal and financial information, known as ‘phishing’, that can be used in identity theft. “This…

In one of the latest cases of financial services providers charging customers for services it never delivered, Aware Financial Services Australia (Aware FS), formerly StatePlus, recently copped a $20 million penalty in Federal Court in a case brought by ASIC. The misdeed? Charging 25,000 customers for providing financial advice about their superannuation accounts, without actually providing the advice. It netted a collective $50 million in fees. “Financial services providers should treat the penalty imposed as an important reminder to maintain robust internal controls and compliance systems,” says ASIC deputy chair Sarah Court. “Firms are responsible for ensuring they only charge consumers for services they provide. If they fail in this obligation, they face significant penalties.” Aware FS’s conduct was the subject of a case study by the Royal Commission into…

Complaints to the Telecommunications Industry Ombudsman (TIO) have been falling in recent years, which ombudsman Judi Jones attributes to a better working relationship between telcos and the regulator. “In my six years as the Telecommunications Industry Ombudsman, we have worked closely with our members to reduce phone and internet problems for residential consumers and small businesses,” Jones says. “After a spike in complaints in 2018, it’s very pleasing to see continual decreases in complaints. Working together has made a real difference to consumers.” Complaints have been fewer, but there have still been plenty of them. Residential consumers and small businesses lodged 18,386 complaints with the TIO from October to December 2021. The most common complaint was about telcos taking too long to address service problems, or taking no action at…

Iron-clad service I was pleasantly surprised at the excellent customer service I recently received from Sunbeam. My iron wouldn’t stop making a ringing noise, no matter what I did. After emailing with my complaint, I received a prompt response with suggestions as to why that might be happening. We emailed back and forth within a few days but nothing suggested seemed to work. Then I was offered a new iron of my choice. Naturally I looked up CHOICE to find a recommended one, and now it and I are happily united in iron action. Thumbs up to Sunbeam and a big thank you to CHOICE – I have been a CHOICE member for close to half a century! Meredith Edwards, Canberra, ACT I got a shock when my Uber account…

Afterpay customer Lisa Findlay says she’d been using the buy now, pay later platform for about two years when she applied for a home loan with Bankwest. She was taken aback when the bank asked her to close both her Zip and Afterpay accounts – then send proof of their closure to obtain the loan. “I didn’t really see it as credit, but I kind of understand that it kind of is now,” Lisa says. She says Afterpay advised her to close the account until the loan had gone through, and then open a new account, which she did. We’ve spoken to several BNPL users who report similar situations when applying for home loans at other banks. Afterpay advised her to close the account until the loan had gone through…

Unpaid superannuation is a major problem. In the 2018/19 financial year, the Australian Taxation Office (ATO) estimated that it cost Australians $2.5 billion. If your employer doesn’t pay you super, you’re not just missing out on lost earnings – the impact of compound interest means you could lose much more than the original amount of super you were entitled to over your working life. Not only does unpaid super mean you have less income in retirement, but it could also mean your disability insurance is ‘turned off’, depriving you of cover if illness or injury forces you out of the workforce. This loss of cover happens because superannuation funds have to turn off insurance if super contributions stop for more than 16 months. Some funds will cancel it even earlier…

Toilet paper is one of those products that you probably don’t think about too much until it’s hard to find. As an item with few alternatives – wipes and paper towels are a no-go because they can clog pipes – when supplies run low it creates problems. So what makes it so hard to replace? Toilet paper needs to be soft on your skin, but resistant to puncturing, so it needs to be strong too. It also needs to dissolve once you’ve flushed it away. But also important is how environmentally friendly your toilet paper is: is it made of recycled paper, has it been bleached, what’s the packaging made of? Making a more sustainable choice when it comes to choosing your loo paper can have a large impact. Every…

Low flow has become something of a dirty term among consumers as it implies poor performance. But our test results show that if you know what to look for, you’ll find that a well-designed low-flow showerhead can provide an experience comparable to, or even better than, a regular 9L/minute showerhead. The benefits of ‘low flow’ Water-efficient products don’t just help the environment. They can also save you plenty of money over the course of their lifetime and showerheads are no exception. Water-efficient products don’t just help the environment, they can also save you plenty of money If you shower for four minutes a day, every day of the year (and you really should), then a 9L/min showerhead will use about 13,000 litres of water a year. When multiplied by four…

Sports gambling giant Sportsbet has been fined $2.5 million and forced to refund customers a further $1.2 million after breaches to Australia’s spam laws. Between 2020 and 2021 the betting company sent more than 150,000 texts and emails to 37,000 customers who had tried to unsubscribe, and sent a further 3000 marketing texts with no unsubscribe function. Australian Communications and Media Authority chair Nerida O’Loughlin says the offence was particularly concerning because some of the customers were trying to manage gambling harm, and that the company did not act as soon as they became aware of the issue. “We received complaints from people stating they were experiencing gambling-related problems and were trying to manage the issue by unsubscribing from Sportsbet’s promotions,” O’Loughlin says. “Sportsbet’s failures in this matter had the…

In the past two years, there’s been a rise in online shopping. Australians spent $4.1 billion in online sales in October 2021 alone. While some Australians are returning to physical store shopping, the ease and convenience of online shopping means it will still be a popular option for many. There are risks to be aware of – scam websites, dodgy reviews, unsecured payment options and more – but we’re here to help. CHOICE’s shopping, consumer rights and IT experts share their top tips to stay safe and shop smart. When shopping online, you can sometimes be hit by unexpected fees Tips from professional shoppers Here at CHOICE, we buy all the products we test at retail price so that we have the same buying experience as everyday Australians. We test…

After the mass cancellation of flights and other travel bookings that followed the onset of the COVID-19 pandemic in early 2020, few customers got full refunds. Instead of getting their money back, many got a travel credit or voucher, or a partial refund plus a voucher, while others got nothing at all. And many jilted customers rightly wondered – how can these businesses get away with holding on to my money? Refunds refused We heard from one Virgin Australia customer who has $5000 in travel credits, but really just wants their money back. Another has $16,000 in credits and has been refused a refund. “I would prefer a refund after two years [of not being able to travel], but Jetstar refuses,” another credit holder told us. Some credits or vouchers…

Just as your fridge can disgorge a smorgasbord of goodies, it can also offer a smorgasbord of dangers: fire, electrocution, crush injuries or, even worse, spoiled milk, are all possible. While there’s no need to panic (modern fridges are actually very safe), there are still some risks. Here are the main ones, and some steps you can take to guard against them. Fire & explosion Most fridges now use R600a refrigerant, or isobutane, which has good refrigerant properties and lower environmental impacts than refrigerants of old. But it is flammable, even explosive under certain conditions. Current thinking suggests you need 1 cubic metre of room space for every 8 grams of refrigerant to keep the refrigerant-to-air ratio safe. A domestic fridge typically contains between 40 and 65 grams of refrigerant,…

Consumer demand for larger TVs quickly moved past the old CRT (cathode ray tube) TV size of 32-inches (81cm) to 42-inches (107cm) 10 years ago, and 55-inch (140cm) models a few years later. Retailers now claim consumer demand is highest for TVs at 65-inches and larger. These large TVs are surprisingly light for their size, which doesn’t mean they can’t injure a small child if toppled. Their thin edges are also easy for small hands to grab. CHOICE has been investigating the potential risk of toppling TVs in Australian homes and the safety issues, particularly for young children and toddlers. These issues can be complicated by factors such as lack of awareness or competence around how to properly secure or anchor a TV, the unsuitability of the furniture sometimes used…

We stopped testing projectors back in 2017 due to lack of consumer interest. But it seems that various lockdowns over the last few years have left our members with cinematic cravings and a willingness to pay for them, as we’ve had numerous requests to start testing these products again. It’s been a while, so technology has changed, prices have largely decreased and low-cost ‘pocket projectors’ have come to the fore. What this means is that while a proper home cinema is still quite expensive, you won’t need to go all Robert De Niro in Heat and rob banks to afford a solid, simple set-up. The perfect projector While you may dream of bringing a fully-fledged cinema into your lounge room, budgets and building restrictions are unfortunately always looming overhead. But…

HOME & LIVING Air conditioners May, Nov Best Brand Sep under $200 Oct Air purifiers May, Mar Breville FoodCycler Jul Casserole pots Jun Ceiling fans Dec/Jan Cleaning mistakes Sep Cling wrap Oct Coffee grinders Dec/Jan Cooktops gas May portable induction Nov Cookware Nov Dehumidifiers Aug Dishwasher detergent Nov Dishwashers May, Mar Best Brand Oct common mistakes May Dryers Jun Best Brand Oct common mistakes Jun washer dryers Oct Electric blankets Jul Electric heaters Jun Fabric softener Feb Fans, portable Feb Fridges Aug, Apr Best Brand Oct myths of buying a fridge Jul Gas appliances, dangers of Aug Home heating mistakes Jun Home organisation tips Sep Ice-cream makers Dec/Jan Irons Jun Kitchen appliances cleaning Oct for small kitchens May recalls May when to upgrade May Kitchen safety May Kitchen scales Nov…

From 500 CHOICE subscribers in 1960 to more than 200,000 members today, people power has been at the heart of how we fight for stronger consumer rights. CHOICE was set up by consumers, for consumers, for the purpose of holding industry and government accountable through independent analysis, campaigning and testing. For more than 60 years, supporters like you have fought tirelessly for stronger consumer rights, easier shopping, safe products and fair services. Every time you sign a petition, participate in a survey, donate or share your feedback, you become a leader in the consumer movement. Together, we’ve won some of the strongest consumer protections in the world – enshrined in the Australian Consumer Law – which guarantee your rights when you’re buying a product or service. In spite of that,…

Super Consumers Australia has been undertaking a major project to give a better answer to the question: “How much will I need to retire?”. Our research shows this is one of the most important questions for people planning their retirement, but existing standards aren’t independent or based on the actual spending of retired Australians. The industry consultation phase has finished, and now the team is working through the feedback to refine the targets for a full release later in the year. Super Consumers Australia director Xavier O’Halloran says the new targets will challenge what people thought they needed to have a comfortable retirement. “Our research shows that a middle-income, home-owning Australian couple who are currently aged 57 only needs approximately $400,000 between them by the time they’re 65,” says O’Halloran.…

Recently we asked CHOICE supporters to share their experiences of trying to use credits they’d been given for COVID-related travel cancellations. More than 1800 people responded to our survey, and gave us a wealth of insight into the difficulties people are still facing. Expired credits, complicated redemption systems and being forced to pay extra costs are just some of the challenges people have faced trying to redeem their credits. For the full story, see page 40. Last year, we released our travel report which laid out how federal, state and territory governments could improve travel rights. The report recommended that credits should have a minimum term of three years, and that people should have the ability to transfer their credits to another person or split the credit over multiple bookings.…

Environmental non-government organisation Greenpeace has released an update of its Green Electricity Guide to help environmentally conscious customers navigate the energy market. Enova Energy and Diamond Energy were ranked joint first place with five-star green credentials, according to Greenpeace. Powershop, which took the top spot in the previous guide released in 2018, has fallen to 10th place due to the takeover by Shell. AGL was ranked last. “Australians can play a crucial role in transforming the country’s electricity system by switching to a greener electricity provider, forcing dirty polluting coal out, and bringing more renewable energy in,” says Greenpeace Australia Pacific senior campaigner Glenn Walker. “The Guide also helps cut through the increasingly common practice of greenwashing. Many companies continue using dirty coal, while spruiking the use of carbon offsets,…

The seventh National Elder Abuse Conference was held in mid-February, hosted by Elder Abuse Action Australia and Council on the Ageing (COTA) Tasmania. Age Discrimination Commissioner, Dr Kay Patterson AO, says the conference continues to highlight a major issue in Australia. “According to the National Elder Abuse Prevalence Study published by the Australian Institute of Family Studies in December 2021, almost one in six older Australians reported experiencing some form of elder abuse in the past 12 months,” Patterson says. “Worryingly, almost two-thirds of older people don’t seek help when they are abused. “In light of these statistics, this conference is absolutely vital in drawing attention to this serious issue and in bringing people together to shine a light on hidden abuse and drive positive change towards ending elder abuse.”…

Of the hundreds of consumer products recalled every year in Australia, on average only about half will be returned to the company. This means there are a lot of faulty, and potentially dangerous, products that continue to live on in people’s kitchens, laundries, garages and children’s toy boxes. Nor are companies legally required to make sure all faulty products are returned. Now a new voluntary initiative aims to limit unsafe products being sold online. But is it enough? Clear and present danger Defective products aren’t just an inconvenience – they have the potential to kill. But can consumers rely on recalls to avoid them? In recent years, one of the most high profile and widespread recalls has been that of Takata airbags (see p21). At CHOICE, we’ve reported on this…

In Australia, car accidents are the leading cause of the death of children aged under 14 years and there’s a raft of legal obligations when it comes to littlies in the car. The range of child car seat options on the market can get quite confusing, but we’ll help you get it right. Visit choice.com.au/carseats for more on car seat laws in Australia, or read on to learn about the different types of car seats, find the safest car seats from the past few years, and get tips on what to look for when buying. Different kinds of child restraint 0 TO 6 MONTHS CAPSULE A baby/infant capsule is rearward-facing with an inbuilt harness, which is the legal requirement for babies under six months. Capsules can be used for babies…

When the Modern Slavery Act came into effect at the start of 2019, it aimed to force companies operating in Australia to address serious issues of forced labour and slavery-like conditions in both their operations and supply chains. But three years into the implementation of the Act, experts say it is failing to live up to its promise. They’re now urging the government to strengthen the legislation when it comes up for review later this year. What is the Modern Slavery Act? The Modern Slavery Act stipulates that every business based or operating in Australia with an annual revenue of more than $100 million must prepare a statement outlining the risks of forced labour and modern slavery in its operations and supply chains, both domestically and overseas. These statements are…

Travel insurers have endured a tough couple of years, as have Aussie travellers. The international travel insurance market all but shut up shop in March 2020, and although travel insurers have now returned, the number of them is significantly lower than before. In early 2020, CHOICE was monitoring 100 travel insurance brands for our comparisons, but as we go to print today in 2022, only 44 of those brands now sell international travel insurance policies. Will travel insurance cover COVID-19? This is the perennial question we’ve revisited several times since 2020. The answer, finally, is yes, many travel insurers will cover COVID-19, probably because a lot destinations now require travellers to have a minimum level of COVID-19 cover to enter. For example, Singapore requires a minimum level of cover of…

When it comes to risks in your home, the humble washing machine rarely springs to mind. But don’t let its meek exterior fool you – washing machines are one of the few appliances in your home that combine water, electricity and heat, all in one box. As such, they have the potential for catastrophic failure. What causes washing machine fires? You may assume appliances designed to heat, such as ovens or electric heaters, are the biggest fire risk in your home. But according to our British sister organisation, Which?, washing machines are the ones most likely to self-immolate, and were responsible for almost one in five (18%) of all appliance fires according to their 2014–16 study. So what causes a washing machine to catch fire? MOTOR FAILURE The heart of…

Our long-serving rogues’ gallery of dodgy ads, toe-curling typos and misadventures in marketing, as sent in by you – our tickled, angered and bewildered readers. And thanks to the timeless shonkiness of so much advertising, you’re always spoilt for choice – so keep ‘em coming. Email high-quality unedited photos to hardword@choice.com.au. This month, thanks go to Simon Kean (Bullet proof), Bob Selinger (Basket case), Margaret Smythe (Not-so-quiet dinner) and Roy Snook (Material issue). BASKET CASE Perfect for carrying all manner of, erm… molecules? MATERIAL ISSUE We have no idea what these socks are really made of. BULLET PROOF This packaging blooper sent shivers up our editorial spines (though at least the full stops have gone). NOT-SO-SILENT DINNER Maybe diners could put breadsticks in their ears to muffle the sound of…