AusPost to pay $2.9m to businesses for lost, damaged parcels

The news: Australia Post will pay $2.9 million in compensation to businesses for lost or damaged parcels, as part of a court-enforceable undertaking approved by the competition regulator. Australia Post and its subsidiary StarTrack have admitted to misleading or deceptive conduct in their advice to businesses regarding lost or damaged items.

The numbers: AusPost and StarTrack have agreed to pay $2.9 million in compensation for lost or damaged parcels to roughly 10,500 affected businesses and fewer than 1,000 StarTrack delivery recipients. The breaches took place between 26 October 2018 and 31 October 2022.

The context: The ACCC said Australia Post had misapplied an exemption to consumer guarantee rights that applied to certain transport services but had been amended in 2018. AusPost failed to apply the amended exemption correctly and told affected businesses they were ineligible for compensation for lost or damaged items.

What they said: "The failure by Australia Post Group to provide business customers with the remedies they were entitled to is extremely concerning, but we acknowledge that Australia Post self-reported this conduct to the ACCC," ACCC Commissioner Liza Carver said.