For the second time, the ACCC has fined national consumer electronics retailer, MSY Technology, for misrepresenting consumers’ rights to remedies for faulty items.
The Australian Federal Court has officially penalised MSY Technology Pty Ltd, MSY Group Pty Ltd, and M.S.Y. Technology (NSW) Pty Ltd (MSY Technology) $750,000 for the recent breach of Australian law.
MSY Technology reportedly operates 28 national retail stores, in addition to an online website, selling a range of computers, computer parts, accessories and software.
Whilst the company states it has “more than 20 years experience in the IT industry” and is a “name you can trust”, ACCC Deputy Chair, Delia Rickard, states this is the second time the watchdog has taken action against the retailer:
“This is the second time the ACCC has taken action against MSY entities. The court imposed penalties in 2011 for misleading consumer warranty representations”.
Following the commencement of proceedings, MSY Technology has admitted it made false/misleading representations about consumer’s rights across its website, and in oral and email communication.
Back in 2011, the ACCC fined MSY entities $203,500 for “false and misleading consumer warranty representations”.
Sources state MSY Technology has been investigated by various national authorities more than twice, extending back almost a decade.
Ms Rickard states of the ruling:
“MSY had misrepresented consumers’ rights to a repair, replacement, or a refund where a product developed a fault. Businesses must ensure their refund and returns policies, and any representations accurately reflect their obligations under consumer law”
“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”.
The ACCC’s official stance on consumer guarantees is as below:
“Consumer guarantees cannot be excluded restricted or otherwise modified by a seller’s terms or conditions. Retailers must ensure their practices do not contravene the ACL when consumers try to return a faulty product or ask for a remedy under the ACL”.