Consumer Protection has issued advice to Toys R Us customers who may be affected by the 44 Australian stores being placed into administration on 21 May 2018 whilst continuing to trade.

Customers affected include those who:

• wish to redeem a gift card;
• have paid either partly or fully for goods yet to be delivered;
• have entered into a lay-by agreement and paid a deposit;
• have a store credit note which has not yet been used; or
• have purchased a product that is faulty.

Commissioner for Consumer Protection David Hillyard said the customers most affected are those who hold gift cards that have yet to be redeemed or paid a deposit but have yet to receive their goods.

“The administrators McGrathNicol advise that gift cards will only be honoured in store, not online, and customers will have to spend an additional equivalent amount of money before the card can be redeemed,” Mr Hillyard said.

“For example, those who have a $100 gift card will need to spend $200 or more in store and pay the balance before they can redeem the full value of the card. Customers who do not wish to spend the extra amount required to redeem the gift card should register as an unsecured creditor with the administrator.

“Customers who paid deposits or paid fully for goods that have yet to be delivered should contact the store about taking delivery of the goods.

“The Administrator has indicated that the stores will continue to trade. They have advised that online orders will be delivered where goods have been paid for in full and the stock is available and that lay-by will be honoured if the outstanding balance is paid and the stock is available.

“Should the goods not be provided, consumers who paid by credit card should contact their bank and seek a charge-back.

“The administrators say VIP discounts will be honoured but the ability to earn and utilise points will be suspended.  The administrator is entitled to vary the terms and conditions in this way.

“As the retailer is continuing to trade under the control of the administrator, consumers who purchase products after the appointment on 21 May 2018 have the rights of a refund, repair or replacement under the Australian Consumer Law if the goods are faulty or don’t perform as expected.

“Whilst the Administrator states that refunds will not be provided on goods purchased prior to the date of administration, it is important for consumers to note that, if they have purchased a faulty item, they can also contact the manufacturer to seek a remedy.”

Customers can contact the store on 1300 869 778 or support@toysrus.com.au. The administrator McGrathNicol can be contacted at toysrus@mcgrathnicol.com and details of a meeting of creditors will be published on their website www.mcgrathnicol.com.

Consumers requiring further assistance and advice can contact Consumer Protection on 1300 30 40 54 or consumer@dmirs.wa.gov.au.

<ENDS>

Media Contact: Alan Hynd, (08) 6552 9248 / 0429 078 791 / alan.hynd@dmirs.wa.gov.au