The Australian Competition and Consumer Commission has obtained orders in the Federal Court Melbourne, after Westco Jeans (Aust) Pty Ltd prominently placed signs stating "No Cash Refunds" and "No Returns on Sale Items" in two of its stores.

This is the second time the ACCC has taken action following complaints from consumers that Westco was misrepresenting the right of consumers to obtain refunds.

The Court ordered that Westco:

  • publish corrective notices in a series of local newspapers;
  • display clearly and prominently near each cash register counter in a number of its stores, the same corrective notice;
  • not display, at any place from which it carries on business, signs that state without any qualification or exception that there are no returns on sale items.

"The corrective notice alerts customers that these signs had been wrongly displayed and provides customers with a contact name and telephone number at Westco if they believe that they are entitled to a refund or exchange," said Professor Allan Fels, Chairman of the Australian Competition and Consumer Commission, today.

Professor Fels added that "Consumers are entitled to a refund, exchange or repair if goods they purchase: have a significant fault a consumer could not have known about when the item was purchased; do not match the description; do not do the job a consumer was led to believe the item would do; or do not match the samples shown.

"If there is one of these problems with the goods, it is the consumer's choice whether they accept a refund exchange or repair.

"If consumers and businesses want to know more about refund rights the ACCC has a brochure Warranties and Refunds, which provides examples of where and when a refund is due.

"Copies are available from all ACCC offices and on the ACCC's website in the publications section," concluded Professor Fels.

Further information

Professor Allan Fels, Chairman, ACCC (03) 9290 1812 or (016) 373 536 Richard Fitzpatrick, a/g Director, Public Relations, (02) 6243 1108 or (0413) 019 432.