Major national Australian furniture and homewares retailer, Freedom Furniture, is withdrawing a potentially misleading refund policy after action by the Australian Competition and Consumer Commission.
The ACCC believes Freedom Furniture may have breached the Trade Practices Act 1974 by in-store representations essentially that: there was a time restriction of seven days for refund claims; certain items must remain unopened for a refund claim to be made; and faulty items may only be exchanged.
"Under the Act companies are prohibited from making false or misleading representations," Acting ACCC Chairman, Mr Allan Asher, said today . "The ACCC believes the representations were likely to mislead consumers because under the Act consumers are entitled to a refund, exchange or repair (depending on their choice) if the item: is faulty or defective; Is not fit for the purpose specified prior to purchase; or does not match the sample or description.
After negotiations with the North Queensland office of the ACCC in Townsville, Freedom Furniture has undertaken to introduce a revised refund policy, which clearly accords with the provisions of the Act. The court enforceable undertakings provided by Freedom Furniture are regarded by the ACCC as a positive acknowledgment by the retailer of the statutory refund entitlements of consumers.
"The ACCC views the misrepresentation of a consumer's statutory right to obtain refunds very seriously and has a history of seeking court intervention to prevent potentially misleading conduct from continuing," Mr Asher said.
In addition to agreeing to amend the refund policy, the undertaking includes a commitment from Freedom Furniture to implement a trade practices compliance program throughout its 50 stores across all Australian States and Territories which will include comprehensive staff training.
"This matter carries on from the recent undertakings by another major Australian retailer, Jeans West, which were also initiated after action by the North Queensland office of the ACCC in Townsville. The efforts of our smaller regional offices provide a real presence for consumers and businesses alike in remote and regional Australia," he said.
Further information regarding statutory rights of consumers is set out in the ACCC publication Warranties and Refunds, which is available free of charge from all ACCC offices or alternatively from the ACCC website, http://www.accc.gov.au.
The ACCC believes Freedom Furniture may have breached the Trade Practices Act 1974 by in-store representations essentially that: there was a time restriction of seven days for refund claims; certain items must remain unopened for a refund claim to be made; and faulty items may only be exchanged.
"Under the Act companies are prohibited from making false or misleading representations," Acting ACCC Chairman, Mr Allan Asher, said today . "The ACCC believes the representations were likely to mislead consumers because under the Act consumers are entitled to a refund, exchange or repair (depending on their choice) if the item: is faulty or defective; Is not fit for the purpose specified prior to purchase; or does not match the sample or description.
After negotiations with the North Queensland office of the ACCC in Townsville, Freedom Furniture has undertaken to introduce a revised refund policy, which clearly accords with the provisions of the Act. The court enforceable undertakings provided by Freedom Furniture are regarded by the ACCC as a positive acknowledgment by the retailer of the statutory refund entitlements of consumers.
"The ACCC views the misrepresentation of a consumer's statutory right to obtain refunds very seriously and has a history of seeking court intervention to prevent potentially misleading conduct from continuing," Mr Asher said.
In addition to agreeing to amend the refund policy, the undertaking includes a commitment from Freedom Furniture to implement a trade practices compliance program throughout its 50 stores across all Australian States and Territories which will include comprehensive staff training.
"This matter carries on from the recent undertakings by another major Australian retailer, Jeans West, which were also initiated after action by the North Queensland office of the ACCC in Townsville. The efforts of our smaller regional offices provide a real presence for consumers and businesses alike in remote and regional Australia," he said.
Further information regarding statutory rights of consumers is set out in the ACCC publication Warranties and Refunds, which is available free of charge from all ACCC offices or alternatively from the ACCC website, http://www.accc.gov.au.