The ACCC has instituted proceedings in the Federal Court against MSY which has entities operating 28 retail stores across Australia and an online site which sells computers, computer parts, accessories, and electronic goods.
It is not the first time MSY has run afoul of the ACCC. The ACCC took action against MSY in 2011, when a number of MSY Technology entities were penalised $203,500 for false and misleading consumer warranty representations.
In the latest court action, announced on Thursday, the ACCC alleges that MSY Technology breached Australian Consumer Law by misrepresenting consumers’ rights to repair, replacement, or a refund when they have purchased faulty products.
• MSY Technology had discretion over whether a customer was entitled to a remedy for a faulty product;
• It was up to MSY Technology to choose which remedy it would provide customers;
• MSY Technology would only provide a remedy for products returned within seven days;
• MSY Technology may require the customer to pay an administration fee to receive a remedy for a faulty product that is out of warranty; and
• MSY Technology would provide no remedies in relation to faulty software products.
ACCC commissioner Sarah Court said, “Businesses must not mislead consumers about their consumer guarantee rights. Consumers who have purchased a faulty product have a right under the consumer guarantees to remedies which businesses cannot restrict, alter, or remove.
“The ACCC is particularly concerned that this type of conduct by businesses which have a national presence has the potential to cause significant consumer harm.”
The ACCC is seeking declarations, injunctions, a comprehensive compliance programme, penalties, and costs against MSY.