Consumer Watch with Natasha Pirrottina: Peace of mind or piece of junk. Is shipping insurance worth it?

Have you been online shopping recently and noticed a sneaky little shipping insurance charge at the checkout? Maybe it was pre-selected for you to opt-out or you could have been lucky enough to be using an online retailer who hadn’t yet crossed over to using dark patterns designed to trick you. Either way, this used to be something only the seller paid for, but it’s slowly making its way into consumers’ carts claiming to offer you protection and peace of mind if something goes wrong after the item is posted. Shipping insurance is like the “extended warranty” of the online retail world. That means you’re probably paying extra for protection the Australian Consumer Law (ACL) already gives you. If your item arrives broken, is delivered to the wrong house, is stolen from the doorstep or it never arrives at all, you can rely on your trusty consumer rights. Unfortunately, many people believe or are told by the retailer that they need to take up any delivery issues with Australia Post or the courier service. This is wrong. The online retailer is responsible. They are the ones who hold the contract with the courier service. In other words — they are the customer of the courier service, and you are the customer of the retailer. You have absolutely no consumer relationship with the courier. When there is an issue with the delivery, the retailer is obliged to offer you a remedy such as a repair, refund or replacement and these rights apply regardless of whether shipping insurance was purchased. If an online retailer tells you otherwise, they could be breaking the law. There are some steps you can take to protect yourself, especially with the busy Christmas postage season ahead. When placing an order, confirm the timeframe for delivery or if possible, a set date. Keep a record of your transaction by saving or printing your order confirmation, invoice or receipt. If the item arrives broken, depending on the extent of the damage, you may be entitled to a refund, repair or replacement. The retailer should also cover the return postage costs. Before you return the product to the seller, take a photo of the damage for your own records. As with any consumer issues, contact the retailer and attempt to resolve it with them first. If that gets you nowhere consider seeking a charge back on your credit card via your bank or payment provider. This highlights the importance of only paying through secure methods, our advice is to never pay via bank transfer as you often cannot get your money back. Remember, businesses who supply within or to Australia must send the goods within a reasonable amount of time or within a timeframe they have indicated, and they must supply a product of acceptable quality. These are your consumer rights. However, the law is much harder to enforce internationally, so keep this in mind when doing your online shopping. If you’re still unsure about whether shipping insurance is worth the extra money, read the terms and conditions to find out what protection it offers you above and beyond your automatic consumer rights. For more information or to get help seeking a remedy from a retailer, report it to us at consumerprotection.wa.gov.au or call 1300 304 054. If your complaint involves Australia Post or Star Track you can lodge a formal complaint with the Postal Industry Ombudsman. Natasha Pirrottina is senior regional officer for Consumer Protection in the Mid West