In a pre-Christmas crack-down on misleading NO REFUND signs, the Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Sydney against childrens toy retailer Toys R Us (Australia) Pty Ltd for allegedly misrepresenting consumers warranty rights relating to refunds for video games and computer software.
The misrepresentations were made on signs in Toys R Us stores and on stickers attached to video games and computer software packaging.
The ACCC alleges the signs and stickers told customers they would not be given a refund on video games and computer software unless the goods were returned in sealed, unopened packaging. The ACCC alleges that this policy effectively led consumers to believe that they had no right to a full cash refund where goods are faulty, do not match description, or are not fit for the purpose made known.
The ACCC is seeking orders that Toys R Us will:
- remove misleading signage and incorrectly labelled packaging in all retail outlets;
- apologise to its customers through in-store signage displayed over the next three months, leading up to and through Christmas, for engaging in misleading and deceptive conduct in respect of warranty claims;
- provide refunds to customers who claim to have been misled by the signage and incorrectly labelled packaging and who can provide proof of purchase; and
- implement an ACCC approved corporate compliance program for Toys R Us staff and management.
A directions hearing is set for 9.30am 31 October in the Federal Court, Sydney.
For further information on this media release Professor Allan Fels, Chairman, pager (016) 373 536 Ms Lin Enright, Director, Public Relations (02) 6264 2808 (w)