Broken Airconditioner under warranty - and a wierd compensation offer - what are my rights?

Hi all!! I was hoping the community could offer me some advice….

I bought a Hisense split system air-conditioner less than 2 years ago (it has a 5 year warranty) which is no longer working

To my amazement Hisense sent a technician to come look at it within 24 hours (amazing service) but it turns out it has a faulty compressor. Hisense which no longer sell air-conditioners told me they do not stock the part and therefore it can't be repaired (and as they no longer sell air-conditioners the unit can't be replaced)

I received a phonecall in which Hisense offered me $250 as compensation (which they would put straight into my bank account). Given I paid $399 (great ozbargain referral RRP $799) plus $700 installation. I figure it will cost at least $900 to replace and install a new air-conditioner (i.e. $499 Kogan split system pre-order and $400 for install given all wiring is complete)

I don't believe the $250 offer is fair or maybe even legal (unfortunately the ACCC website does not make mention to installation compensation - that I can find)

1) the $250 doesn't even cover the cost of the purchase price let alone installation / replacement cost
2) Do I have a right to ask for the total cost of replacement
3) doesn't Australian Consumer law require companies to stock spare parts for 10 years?
4) when I asked these questions the phone operator said "all I have is an email authorising me to offer you $250" - I am awaiting a return phone call from a CS manager

appreciate your advice / feedback

Related Stores

Hisense
Hisense

Comments

  • Don't know where they're pulling $250 from. You should push for the $399 back and it shouldn't be hard to get as much (a full refund for a faulty product).
    The installation is probably gone though as it was an elective service (I doubt Hisense installed?) and was done properly.

    Good luck.

  • $250 figure comes from the left over warranty period. There are still 3 years left on warranty so they will try to offer you 60% refund on purchase price (which is around $250).if you push it, you might get the full $399 which was what you paid for. The installation fee isn't part of the deal.

  • Excerpts from this page: https://www.accc.gov.au/business/treating-customers-fairly/c…

    Manufacturers and importers guarantee that their goods:
    have spare parts and repair facilities reasonably available for a reasonable period of time, unless the consumer is advised otherwise.

    If you sell a customer a product that fails to meet one or more of the consumer guarantees, they are entitled to a remedy – either a repair, replacement or refund and compensation for any consequential loss – depending on the circumstances.

    If the problem is major or cannot be fixed, the consumer can choose to:

    reject the goods and obtain a full refund or replacement, or keep the goods and seek compensation for the reduction in value of the goods.

    So it sounds like they are playing the you keep the goods and they pay compensation side of this.

    If you can return the entire unit to them you can get a full refund.

    This might be a reason to source and get installer from the one place, ie an air conditioning retailer who does installation work, then repairs/replacement are at their cost.

  • Just speaking from experience in terms of a different item. We bought a washing machine that broke one of it's stabilizer feet 1yr 8 months into a 2 yr warranty.

    They offered to bolt it to the floor so it wont move but we refused. We asked for it to be returned to the original working condition, not with those limitations.

    Things escalated and we went to court in front of the CTTT. We managed to get a full refund on the washing machine.

    So I'm guessing if we were entitled to a refund or something of equal value, so should you.

    In saying that, things like delivery etc. were not covered under warranty as we expected, so I doubt you are entitled to installation fees I'm afraid.

    • what brand was that , seems strange for a known brand not to be able to fix their machines

      • Panasonic. They said it would cost too much to fix it

        • That surprises me, both that they didn't just replace it if it was going to be too expensive to fix, and that Panasonic made you go to court to get it remedied. And then there's the bolting to the floor suggestion. There are a few companies I'd have expected that sort of cr*p from, but Panasonic wouldn't have been amongst them.

  • +2

    I'd be pushing for $399 + half the installation (assuming they did it), and then i'd settle on just the $399

  • +1

    From the ACCC/ACL

    Repairs and spare parts
    Manufacturers or importers guarantee they will take reasonable steps to provide spare parts and repair facilities (a place that can fix the consumer’s goods), for a reasonable time after purchase.

    For example: > A consumer drops his digital camera, which he bought new a year ago for $2000. He contacts the importer and asks where he can get it repaired. The importer advises they no longer supply parts for that model of camera. A reasonable consumer would expect a oneyear-old camera to be repairable. The manufacturer has not taken reasonable steps to provide spare parts or facilities, so the importer must provide a remedy.

    How much time is ‘reasonable’? This will depend on the type of goods. For instance: > it would be reasonable to expect that tyres for a new car will be available for many years after its purchase > it may not be reasonable to expect that spare parts for an inexpensive children’s toy are available at all. When the guarantee on repairs and spare parts does not apply A manufacturer or importer does not have to meet the guarantee on repairs and spare parts if they advised the consumer in writing, at the time of purchase, that repair facilities and spare parts would not be available after a specified time.

    MEANING - The manufacturer must repair your system. If they don't - fair trading.

    If they don't fix it -

    Reasonable costs
    If the consumer has no option but to take goods elsewhere for repair, they do not have to get the original supplier’s agreement or provide quotes. However, the supplier only has to pay the ‘reasonable costs’ of repair. A reasonable cost would be within the normal range charged by repairers of such goods, and include: > the cost of the repair > any other associated costs incurred by having the goods fixed elsewhere, such as transport costs.

    Or another option. This means you could claim full refund for the the aircon AND the loss of installation costs.

    A consumer can claim compensation for consequential loss from a supplier who failed to meet one or more of the consumer guarantees. Consequential loss is the cost to a consumer of a problem with goods or services. Compensation should put the consumer in the position they would have been in if the goods or services had met the consumer guarantees.

    What is consequential loss?

    Consequential loss is the cost to a consumer of a problem with goods or services. It is usually financial but can include other costs, such as lost time or productivity. A consumer can claim compensation for consequential loss from a supplier who failed to meet one or more of the consumer guarantees. The consumer can apply directly to the supplier for compensation. If the supplier declines or an agreement cannot be negotiated, the consumer can take the matter to formal dispute resolution services or pursue legal action. For more information about dispute resolution, contact the relevant consumer protection agency (these are listed on page 38). Is the supplier required to pay for all losses? A supplier will have to pay for losses that: > could have been expected to result from a failure to meet a consumer guarantee; and > are reasonably foreseeable. In other words, a consumer can recover losses that would probably result from the supplier’s failure to meet the guarantee. Suppliers do not have to pay for: > problems unrelated to their conduct or the goods they supplied; and > losses caused by something completely independent of the supplier, after the goods left their control.

    • +2

      Let me know if you need any more help BillyBobb. I love the ACL ;)

      Benjamin

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