Complaints about your business
Find out what happens if a consumer makes a complaint about your business and the steps that you and a consumer can take to resolve a matter.
Your customers are the most important part of your business. By building good relationships, you’re more likely to encourage customers to keep coming back and recommend your business.
The Australian Consumer Law (ACL) sets out the legal rights and responsibilities you have to your customers as a business owner. Fulfilling your obligations under the ACL and delivering good customer service will help ensure the success of your business.
Being upfront and honest with your customers also builds trust. For example, if a customer is about to place an order with you, make sure you set the expectations. Tell them the expected delivery date, explain they’ll be kept informed if you become aware of delays, explain options if delays occur and any costs involved.
It’s important to listen to your customers
Listening to your customers is vital. When you hear a customer is unhappy, you have a chance to fix a problem within your business. Customers will share their dissatisfaction in many ways including:
- making a complaint
- social media, or
- customer feedback.
Whichever way dissatisfaction is shared, this is your opportunity to:
- understand how your business is performing
- gain insight to your customers’ needs
- identify where change is needed or to improve your service offering.
Customer complaints process
Be respectful when dealing with your customers and ask them to do the same.
Ensure you have a documented complaints process which includes:
- recording all complaints received
- actions you took to remedy the situation
- customers responses to your actions.
Not only does this provide you with business insights but also provides a record you can refer to if NSW Fair Trading is involved or you are taken to court.
Customers should be made aware of how they can make a complaint to you and all interactions will be documented on receipt of the complaint.
Ensure staff know and apply your complaints process, what remedy they can offer, and know when and who to escalate complaints to.
Support your employees
Regular communication with your staff on business processes builds competency and confidence when dealing with complaints. Take the time to listen to concerns and ideas your employees may have. Often your employees are the frontline of your business and can also provide you with valuable insights.
Complaints to NSW Fair Trading
If a complaint about a business is lodged with NSW Fair Trading, the customer will be asked if they have tried to resolve the problem with the business. If not, they will be asked to do so. In most cases, the customer will be asked to demonstrate they’ve tried to resolve the problem.
If the customer and the business resolve the matter, there is no need for further action.
If a customer is still unhappy, they can get help from NSW Fair Trading:
- who will provide information and assistance in negotiating a resolution
- may ask the customer to lodge a formal complaint in writing with supporting information.
NSW Fair Trading will usually contact the business, review the information provided on both sides and attempt to sort out the problem.
If the customer is not happy with the outcome of the complaint, the customer can take the matter to the NSW Civil and Administrative Tribunal (NCAT). During an informal hearing, NCAT will help negotiate a settlement through conciliation, and if that fails, they will decide the case. NCAT’s decision is legally binding and must be followed by both parties.
Alternatively, the customer can take the matter to court.