Dick Smith customers receive advice

Retailer Dick Smith’s woes have prompted Consumer Protection to update its advice regarding gift cards.

It was announced that Dick Smith gift cards would not be honoured after the company went into voluntary administration earlier this month.

Consumer Protection South West coordinator Debbie Butler said this case, plus another major retailer in Laura Ashley also entering voluntary administration, had prompted them to change what they advised consumers

“Before you buy a gift card, ask yourself if you know for sure that the business is not in financial trouble and will still be around, ” Ms Butler said.

“If you receive a gift card, redeem it as soon as possible.”

Ms Butler said Dick Smith’s voluntary administrators were new owners of the company and were not responsible for previous debt, which is why the gift cards were not accepted.

She urged anyone owed money from before January 5 to contact administrator McGrath Nicol and register themselves as an unsecured creditor.

Dick Smith also released an open letter to customers admitting trust had been “easily lost” in recent times and informed customers of what would happen when shopping at the store now.

“If you purchase products during the receivership of Dick Smith and we are unable to quickly repair or replace it, we will provide you with a full refund, no questions asked, ” the letter said.

“And you can rest easy in the knowledge that all consumer guarantees for products purchased during the receivership will be honoured, no matter what happens to our business.”

Ms Butler urged people to consider using a credit card when buying gift cards, as it would enable them to claim a chargeback from their provider in situations like this.

Consumer Protection has also produced an app called iShopWA, which allows people to record details of gift card expiry dates and purchase receipts.