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lost or damaged parcels

 1 year ago
source link: https://itwire.com/government-tech-news/technology-regulation/australia-post-to-pay-about-$2-9-million-in-compensation-to-businesses-for-lost-or-damaged-parcels.html
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Tuesday, 19 December 2023 12:48

Australia Post to pay about $2.9 million in compensation to businesses for lost or damaged parcels Featured

By Gordon Peters

Australia Post is paying about $2.9 milliion in compensation to businesses for lost or damaged parcels after the competition watchdog the ACCC took leagal action against the postal service.

The Australian Competition and Consumer Commission said today that Australia Post and its subsidiary StarTrack have admitted they likely engaged in misleading or deceptive conduct when they failed to accept compensation requests and incorrectly advised some business customers that no compensation was payable to them for lost or damaged articles for four years until October 2022.

In a court-enforceable undertaking accepted by the ACCC, Australia Post and StarTrack (together, Australia Post Group) have undertaken to provide compensation for lost or damaged parcels to about 10,500 affected business contract customers and fewer than 1,000 recipients of StarTrack deliveries.

Under the consumer guarantee rights in the Australian Consumer Law, consumers can request a remedy if a product is not of acceptable quality or a service is not performed with due care and skill, fit for purpose or supplied within a reasonable time.

The law exempts certain transport services for the purpose of a business. In October 2018, that exemption was amended with the effect that from that time, consumer guarantee rights applied to the transport of goods to a recipient who is not carrying on a business in relation to the goods.

The ACCC said Australia Post Group failed to apply the amended exemption correctly, and on that basis did not accept claims from businesses which had articles lost or damaged in transit.

“The failure by Australia Post Group to provide business customers with the remedies they were entitled to is extremely concerning, but we acknowledge that Australia Post self-reported this conduct to the ACCC,” ACCC Commissioner Liza Carver said.

“We are pleased that Australia Post Group has undertaken to provide compensation for this error and to put systems in place to ensure similar errors are not made in the future.”

The ACCC notes that between 26 October 2018 and 31 October 2022, Australia Post Group failed to accept some compensation requests from business contract customers for lost and damaged articles - and it also incorrectly advised some business contract customers that no compensation was payable to them.

“Business contract customers who sent goods to customers without a business purpose which were lost or damaged in transit with the Australia Post Group have been entitled, and continue to be entitled, to consumer guarantee rights,” Commissioner Carver said.

Australia Post Group reported this breach to the ACCC in May 2023.

In the Court enforceable undertaking, Australia Post Group has also committed to implementing a compliance program, including staff training and informing the ACCC about the progress of the compensation program.

A copy of the undertaking is available at Australian Postal Corporation and Star Track Express Pty Limited (Australia Post Group).

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