MSY Technology ordered to pay penalties of $750,000 for consumer guarantee misrepresentations

25 October 2017

The Federal Court has ordered penalties totalling $750,000 against MSY Technology Pty Ltd, MSY Group Pty Ltd, and M.S.Y. Technology (NSW) Pty Ltd (MSY Technology) for misrepresenting consumers’ rights to remedies for faulty products.

MSY Technology operates 28 retail stores across Australia and online, selling computers, computer parts, accessories and software. MSY Technology admitted that it made false or misleading representations on the MSY website, and in oral and email communications to consumers about their rights.

“MSY had misrepresented consumers’ rights to a repair, replacement, or a refund where a product developed a fault. Businesses must ensure their refund and returns policies, and any representations accurately reflect their obligations under consumer law,” ACCC Deputy Chair Delia Rickard said.

“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.”

“This is the second time the ACCC has taken action against MSY entities. The court imposed penalties in 2011 for misleading consumer warranty representations,” Ms Rickard said.

The Federal Court also made other orders by consent including injunctions, a comprehensive ACL compliance training program, publication orders, and payment of $50,000 towards the ACCC’s costs.

Following the commencement of proceedings, MSY Technology made admissions and agreed to joint submissions on liability and relief (including penalty) that were filed with the Court.

Background

MSY Technology operates nationally, with 28 retail stores and an online site that sells computers, computer parts, accessories and software to consumers.

In 2011, a number of MSY entities were penalised $203,500 for false and misleading consumer warranty representations, following action by the ACCC.

Consumer guarantees cannot be excluded restricted or otherwise modified by a seller’s terms or conditions. Retailers must ensure their practices do not contravene the ACL when consumers try to return a faulty product or ask for a remedy under the ACL.

To find out more about consumer guarantee rights, visit the ACCC's page on consumer rights & guarantees.

 

Release number: 
MR 182/17
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