How Should My Business Handle Customer Complaints?

Table of Contents

Share at:

When dealing with a wide variety of people, not all encounters you have with customers will be perfect. Sometimes, your product, service or conduct may underwhelm or even upset your customers. In these instances, it is very important to know how your business should handle customer complaints. This is for two main reasons. Firstly, you ideally want to maintain the positive reputation and good will your business has built. Secondly, you must recognise any legal obligations and adhere to them. In this guide, we’ll give you some tips on dealing with customer complaints .

Important Steps

Firstly, all businesses should have in place an avenue for complaints. This might be an online form, a phone number, a contact in your office, or some form of instructions on your website as to how to lodge a complaint. Once you have this channel in place, there are a number of steps which should be followed. The Better Practice Guide for Complaint Handling outlines these seven steps. The Commonwealth Ombudsmen website lists these as follows:

  • A prompt acknowledgement of the complaint
  • Quick assessment and prioritisation of the complaint
  • Planned investigation of the complaint
  • The investigation should resolve factual issues and consider options for complaint resolution
  • The response to the complainant should be clear and informative
  • If the complainant is not satisfied with the response, internal review of the decision should be offered and information about external review options should be provided
  • A business should act on any systemic issues

Principles of Complaint Handling

Additionally, this seven step process is only as useful as the attitudes and values it is adopted under. Businesses should bear in mind the following principles when dealing with complaints:

  • Fairness
  • Accessibility
  • Responsiveness
  • Efficiency
  • Integration

Legal implications

Without a complaints handling system, a business may be subject to claims in tort under vicarious liability. Accordingly, any misconduct of employees must be dealt with promptly. A failure to comply with complaints handling recommendations may also result in a breach of Australian Consumer Laws. The Australian Government Consumer Laws website contains more information on this. It is wise for all business owners to be aware of this information.

Ultimately, a complaints handling system is key to keeping a fruitful and positive working relationship with customers. It preserves good business. Therefore, you must plan the right business structure from the outset. If you are unsure about how to handle customer complaints, it may be worth consulting a business lawyer to help refine your approach to these problems.

Don’t know where to start? Contact us on 1800 529 728 to learn more about customising legal documents and obtaining a fixed-fee quote from Australia’s largest lawyer marketplace.

Share at:

Simplify creating legal documents today

Browse through Lawpath's AI tools which can be used to draft, review and refine legal documents today!

Related Articles

Personal Liabilities Of Company Directors: Everything You Need to Know

How to prevent yourself as a company director from being personally liable: 101 Guide

Is it Legal to Change an Employee’s Role?

What are the legal implications of changing an employee’s role in Australia? This guide covers your obligations as an employer and employees' rights.

How to Write a Receipt?

Learn how to write a legally compliant receipt to provide proof of transaction for your customers.

How to Set Up a Holding Company in Australia?

It is important to understand how to set up a holding company if you want to diversify your business across different companies. Read more here.

Using An IP Agreement To Protect Your Business (2026 Update)

An IP Agreement assigns intellectual property from one party to another. Find out how to use one for your business here.

How to Create a Privacy Policy (2026 Update)

A privacy policy informs website users how you will handle their information. Find out how to create a Privacy Policy here.