Most major electronics retailers have generous returns policies, but feedback from customers and staff suggests that returns are often not marked as such and the goods are re-sold as new. It is illegal to sell used goods without informing customers and retailers face fines of up to $1.1 million for each offence. Numerous customers have reported buying ''new'' goods only to find the previous owners' account details, photos, pirated movies, porn and other content still loaded on to the device. Others have seen noticeable marks on the product or customer details filled out on the warranty card.



One former Harvey Norman staff member who claims to have worked at four Harvey Norman stores in Sydney over 10 years claims to have put returned items on the shelf on a daily basis. ''Software was the most common, we didn't have a shrink wrapping machine out the back for nothing,'' the former staffer said. ''If a laptop was returned and I knew it wasn't faulty, a factory restore and quick wipe down of the screen and it was back ready for sale in an hour. Dealing with suppliers for RA's [return authorisations] was such such a pain in the ass that this was an accepted practise from more than 10 franchisees I worked for over this period.'' The source said staff were given shrink wrapping machines, air compressors, isopropyl alcohol wipes and heat guns to enable them to ensure returned goods looked new.

''When was the last time you walked into a HN store and saw a table of goods marked 'returned and discounted'?,'' the source, who claims to have left the company on good terms, said. ''The franchisee just puts it straight back on the shelf at full price because he knows he can get away with it.'' On the Whirlpool discussion forum, a hotbed of Australian technology enthusiasts, a different ex-Harvey Norman employee confirmed that ''throwing used goods back on the shelf was common practice''. ''If it looked in good condition and could be passed off as new, no problem! some shrink wrap and you would never know,'' they wrote. Several customers have reported buying goods from Harvey Norman only to find they had been used.

One said they bought a router and found it ''had the default admin password changed, and had someone else's settings stored''. Another said they bought an Ariston washing machine from Harvey Norman but when they unpacked the box ''soapy water and a large cockroach emerged''. The customer said that during the five year warranty period the product had to be repaired six times. Laptop computers regularly appear in customer reports of being sold used goods. One customer said they bought a $4000 laptop from Harvey Norman that had obviously been used, while the same person bought a digital camera from Dick Smith only to found someone else's photos on it. Yesterday, Harvey Norman's general manager for computers, Ben McIntosh, said there were ''strict procedures'' in place to ensure that franchisees did not sell used products as new. Told of the comments from former staff, he said it sounded like ''a very unhappy ex-staff member'' but he would ''absolutely follow this up''. ''In light of this story coming to air I have already and will continue to remind our franchise network that they must adhere to the strict rules, which is law,'' said McIntosh.



A former JB Hi-Fi manager, who spoke on condition of anonymity, said it was ''standard practice'' to pass off returned goods as new if they were in a saleable condition.

''Not a lot of packaging is actually sealed. If it is, you send it back. Otherwise you just put it back in the box and back on the shelf,'' he said. Commenting on this website yesterday, a JB Hi-Fi customer said: ''My mother purchased a Sony MP3 player from JB Hi-Fi two years ago. When I connected it to the computer, I realised that it was filled with pornographic imagery, hip-hop music and videos of cars performing burn-outs.'' Many more reports from customers who have been duped by the big electronics retailers appear on yesterday's news articles and on the Whirlpool forum. The practice seems to have been going on for quite some time, according to one former Dick Smith staffer who left in 2001. ''I suffered probably the worst thing i've ever seen. a manager demanded I illegally copy a software driver disk so that a refurb product could be given to a customer as new,'' he said. ''I refused to do so (he did not have the skills to complete it) and he actually slapped me across the face; this went to head office and he got a slap on the wrists but nothing more.''

Gary Dooley, who bought a Nokia mobile phone for his 13-year-old son from Dick Smith that appeared to be in its original wrapping, took it home to find its memory card was filled with hardcore pornography. ''They said it was nothing to do with them. Totally washed their hands with me and I had to deal with Nokia," he said.



JB Hi-Fi has been approached for comment, while Bing Lee and The Good Guys both declined to comment. Dick Smith has not commented since saying yesterday that selling old gear as new was a ''one-off occurrence''. Retravision's incoming CEO Paul Holt said: ''If a product is returned, it goes back not just to us but the manufacturer.''



Fair Trading is encouraging people who feel they've been duped to call it on 13 32 20. Its investigation, sparked by reports on this website, is looking into whether the practice is ''widespread and systemic''.



''Retailers who sell used goods as new and do not disclose this to consumers face fines of up to $1.1 million for each offence,'' a Fair Trading spokesman said. ''So that we can address this issue thoroughly, NSW Fair Trading will work with other states and territories as part of a national approach to ensuring the ongoing compliance and effectiveness of the Australian Consumer laws as it applies to reconditioned or returned goods being sold by electronics retailers.'' Fair Trading said it had already addressed the related issue of consumers being offered repaired or refurbished goods as replacements when they return defective products. Consumer laws now require traders to disclose this and consumers have the option to only accept new goods or parts.



Consumer group Choice said retailers selling seconds must mark them as such and those who get home to find a product they bought has been used should take it back to the retailer as soon as possible. ''Demand a new one and specifiy that you don't want a refurbished product. Also contact the Office of Fair Trading - the more evidence they have on this type of activity, the greater their ability to investigate dodgy retailers who are knowingly undertaking this kind of practice,'' Choice spokeswoman Ingrid Just said.

Loading - with James Robertson This reporter is on Twitter: @ashermoses