Advice to Dick Smith customers following receivership

Consumer Protection has issued advice to Dick Smith customers who may be affected by the company’s recent placement into voluntary administration and receivership.

Customers affected include those:

• who wish to redeem a gift card;
• have paid either partly or fully for goods yet to be delivered;
• have entered into a lay-by agreement and paid a deposit;
• have a store credit note which has not yet been used;
• purchased an extended warranty issued by Dick Smith; or
• bought a product that is faulty.

Acting Commissioner for Consumer Protection David Hillyard said the Dick Smith stores will not be honouring gift cards and deposits will not be refunded.

“Customers who hold gift cards should contact the Voluntary Administrator as soon as possible to register their claim as an unsecured creditor of Dick Smith,” Mr Hillyard said.

“Customers who paid for gift cards on their credit or debit card should contact their credit card provider and request a chargeback as soon as possible. This option will not be available if the ‘cheque’ or ‘savings’ options were selected at the time of purchase.

“Customers who paid deposits or paid fully for goods that have yet to be delivered should contact the store about the possibility of receiving the goods. If the goods are not likely to be supplied, customers should make a chargeback claim if paid by credit card or register as an unsecured creditor if paid by cash or EFTPOS.

“Customers who purchased an extended warranty issued by Dick Smith should contact the Voluntary Administrators. Extended warranty contracts issued by a third party may still be honoured.

“Those who have faulty products may have difficulty in getting a repair or refund by dealing with the store direct, so they should also contact the Voluntary Administrators for further advice. Alternatively, customers can contact the manufacturer direct.

“Under the Australian Consumer Law, consumers have a right to a refund, replacement or repair if the product is faulty and this should be provided by either the retailer or manufacturer.

“As the retailer is continuing to trade under the control of the receiver and this is considered a new entity, consumers who purchase products after the appointment yesterday are legally entitled to their full rights under the Australian Consumer Law. Customers should contact us if they have any issues about getting a remedy if goods are faulty or don’t perform as expected.”

Affected customers should immediately register as an unsecured creditor with the Voluntary Administrators, McGrath Nicol, who have set up a hotline with Link Market Services – 1300 853 481 – or email dicksmith@linkmarketservices.com.au. More information can be found on the McGrath Nicol website: www.mcgrathnicol.com.

The receiver is Ferrier Hodgson – www.ferrierhodgson.com.

Consumer information has been posted by the ACL regulators on the ASIC website. Consumers requiring further assistance and advice can contact Consumer Protection on 1300 30 40 54 or consumer@commerce.wa.gov.au.