MSY Technology, which operates close to 30 stores across Australia selling computers, accessories and software, has been found guilty in the Federal Court for misrepresenting consumers’ rights to a repair, replacement or refund of faulty goods.
“Businesses must ensure their refund and returns policies, and any representations accurately reflect their obligations under consumer law,” said Delia Rickard, deputy chair of the ACCC who instigated the legal proceedings.
“These proceedings and the penalties imposed signal to businesses that the ACCC will not hesitate to take appropriate enforcement action where it identifies misleading representations about consumers’ rights.”
Ms Rickard said it was the second time the competition watchdog had launched action against MSY entities, having done so in 2011 for making misleading claims about consumer warranties.
As well as the six-figure penalty, MSY Technology was also ordered to pay a further $50,000 towards the ACCC’s legal costs and submit to a comprehensive training program on compliance with Australian Consumer Law.