MSY Technology, a national chain of 28 electronics stores selling computers, computer parts, accessories and software, has been fined $750,000 in a Federal Court case brought against it by the Australian Competition and Consumer Commission (ACCC).
The Federal Court ruled the computer company misled customers over their rights to a repair, replacement or refund for faulty products, and
that it did so on its website, over email and in person.
This is the second court action over warranty claims the ACCC has brought
against MSY. The computer company was fined $203,500 for similar conduct in
2011, and was ordered by the court to refrain for "five years from making
false or misleading representations about a consumer's statutory warranty
But the ACCC came across evidence suggesting MSY was still breaching
Australian Consumer Law (ACL) from January 2013 to February 2016, and filed
the follow-up court case in December later that year.
Delia Rickard, the deputy chair of the ACCC, says "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.
"Businesses must ensure their refund and returns policies, and any
representations accurately reflect their obligations under consumer law,"
MSY will have to pay an additional $50,000 towards the ACCC's legal costs,
as ordered by the Federal Court, and institute a comprehensive ACL
compliance training program, among other orders.