When it comes to after-sales services of household electrical products, and in particular repair and maintenance of such durable appliances as washing machines and the like, consumers are very much at the mercy of the traders.
A recent survey of the Consumer Council has uncovered a wide open field of trade practices in the provision (or non-provision) of after-sales services, and the levy of fees and charges ranging from free to thousands of dollars.
The survey focused on household washers and washer-dryers which because of their long life span of 10 years and beyond, are obvious candidates in need of repair and maintenance service.
Sound policies and practices on the part of the trade in after-sales services on consumer durables are desirable, and a good balance should be found between the enhancement of the consumer interest and that of sustainable consumption - a global objective to protect the environment.
The findings of the survey, based on a questionnaire with agents of 42 brands of washing machines, are quite an eye-opener. In the absence of any regulatory oversight, traders can freely dictate their own terms and consumers have little or no choice but to accept the services on offer.
A common feature in after-sales services is the offer of warranty. The warranty cover varied from one to three years for the brands surveyed. During this warranty period, two-thirds (28 out of 42) would undertake to provide repairs even after repeated failures but there would be no exchange of a new machine.
Nonetheless, in the event of the unlucky consumers whose washers broke down soon after purchase, and provided you report the defect early generally within a period of 7 or 10 days after purchase or delivery, and subject to the satisfactory inspection of the agent, most indicated that they would be prepared to exchange a new machine to the user.
If you happen to live in "remote areas" - which usually attracts higher inspection fees and/or transportation fees in bringing the machine to the repair service centre - check out with the agent as it may vary from one brand to another.
After expiration of the warranty period, all but 8 brands would offer extended warranty plans varying in price from $300 to a high of $3,000 for a one-year plan. The coverage and extra charges also varied considerably from brand to brand.
In short, not all extended warranties cover everything, some may charge extra for replacement of parts, inspection charges, and transportation fees.
Therefore, compare the price between an extended warranty plan and a one-off repair service option to determine which offers better value for money. But this may not be feasible due to lack of transparency of information on the charge schedule.
The survey also looked into an issue of consumer dissatisfaction concerning the refusal of some brand agents to sell spare parts to users who wish to shop around for price comparison and arrange repairs themselves.
Such practice, however, is not as common as thought to be. According to the survey, 29 out of 42 brands (69%) did in fact sell spare parts to users for repair purposes. The remaining 13 brands (31%) declined on grounds of safety.
The Council is of the view that the trade should balance between the need for safety considerations and the freedom of choice of consumers, and instead of a complete ban, consider allowing the sale of spare parts based on the nature of the parts involved.
Consumers, on the other hand, should be wary of the risk in engaging a third-party service provider who may not possess adequate knowledge of the product. More importantly, repairing by a third party may void the warranty of the machine.
Concerns have been raised about the availability of spare parts after a model has ceased to be produced by the manufacturer. 12 brands were found to have no time limit in keeping stocks of spare parts; those with specified time limit generally keep stocks for 2 to 10 years, and after which the machine may not be reparable without the necessary spare parts.
As part of the survey, the Council also looked briefly at the legislative protection afforded to consumers in after-sales services of household electrical appliances in the Mainland, Taiwan, Singapore and the European Union. It shows that clearly Hong Kong is lagging behind in this area of consumer legal protection, apart from some civil law remedies.
A feature of the protection which is worth consideration is the certainty of burden of proof concerning product failure resting on the trader who has the responsibility to prove that any product defect found after purchase did not exist before sale. Otherwise, the trader is obligated by the law to deal with the defects, including exchange of a new appliance or free repairs.
Furthermore, the relevant time frame stipulates that consumers must report such product defects to traders concerned within a specified period of time after purchase for entitlement of exchange or repairs.
Consumer complaints brought to the notice of the Council in relation to repair and maintenance services of electrical appliances were the highest in 5 years, apart from 2010, since 2009, reaching 531 cases in 2013.
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- 2014.02.17