CHOICE May 2022

CHOICE’s evolution has been heavily influenced by changes in technology. The first subscriptions to CHOICE were sent by ‘snail mail’ and manually processed by volunteers. Today, a new member can join online in a few minutes. Technology has generally been a force for good, transforming how we buy goods and services and how CHOICE helps you to decide what to buy. But as technology becomes more powerful and more opaque, it also poses risks. One of the biggest risks comes from the new types of mega-businesses that use technology to build power – the large tech platforms like Google, Apple and Facebook. They are, in effect, large global marketplaces that provide services to businesses trying to sell things, and to consumers who may wish to buy them. Their global role gives them a…

ACCC welcomes new chair The Australian Competition and Consumer Commission has welcomed competition lawyer Gina Cass-Gottlieb as new chair of the consumer watchdog. The lawyer of more than 25 years’ experience began her term in March taking over from Rod Sims. “The ACCC is a world-leading regulator with a high-performing, capable and diverse team that is committed to the safety, interests and welfare of consumers and the maintenance of effective competition across the Australian economy,” Cass-Gottlieb says. “This work provides important benefits to Australians. I start the role … fully aware of and ready for the responsibility that comes with leading the ACCC.” The first woman to hold the job of ACCC chair, Cass-Gottlieb promises to target petrol and food retailers who exploit current events to price gouge consumers. In her first interview with the…

People looking to buy a used car from a private seller in NSW have been warned by the government about a four-fold increase in odometer tampering fines during the COVID-19 pandemic, “with hundreds of thousands of kilometres being knocked off vehicle odometers and sold to unsuspecting buyers”. Minister for Fair Trading Eleni Petinos says there’s been a “huge jump” in penalty notices and resulting fines, from 22 in 2020, to 76 in 2021 and up to March this year, during which time fair trading handed out $112,200 in fines. “In one case a seller shaved more than 400,000km off a 2012 Subaru XV, reducing the odometer from 470,000km down to 52,709km,” Petinos says. “The vehicle was then sold for $32,000, an $11,000 increase on the original sale price. In another example, a…

Australians lost over $2.5 million to pet scams in 2021, many of them involving adorable puppies advertised online by people who didn’t actually have any puppies to sell. Pet lovers are tricked into paying sight unseen, and then left puppyless and out of pocket. “Scammers use a broad range of digital platforms to target victims, including fake websites, social networks, online sale sites and instant-messaging apps,” says Tasmania’s Minister for Consumer Affairs Elise Archer. “Typically, scammers will advertise sought-after breeds of puppies or other pets, and fabricate reasons you cannot meet the pet in person, including that it is located in another state.” Scammers will often ask for a holding deposit or money for transport costs, and can be very good at appearing legitimate. Archer’s advice is to adopt only from someone…

Natural disasters seem to bring out an opportunistic streak in some people, and the devastating floods in Queensland earlier this year were no exception. With many people desperate to recover their losses through insurance claims, a breed of dodgy middlemen known as ‘claims farmers’ began showing up as the flood waters receded. The firms, also known as ‘claims management services’, offer to act as an intermediary between a claimant and their insurance company and do the leg work – for a fee of course. “Many of these claims farmers entice customers to use their services by offering a free inspection, promising your claim will go to the front of the queue or promising a guaranteed cash settlement,” says Queensland Attorney-General Shannon Fentiman. “Sadly, we have also heard of cases where Queenslanders have been…

The Australian Securities and Investment Commission (ASIC) has warned social media financial influencers they risk harsh action and even jail time of up to five years if they don’t comply with financial services laws. There’s been an enormous rise in recent years of financial influencers on Instagram, TikTok and other social media platforms. Also known as ‘finfluencers’, they offer stockmarket and other financial tips to a generally young audience. ASIC’s 2021 survey ‘Young people and their money’ found that 28% of 18–21 year olds follow at least one financial influencer on social media, and of those, almost two thirds (64%) reported having changed at least one of their financial behaviours as a result of their suggestions. Social media influencers have been caught up in multiple schemes that have attracted warnings from authorities. ‘Pump…