Super A-Mart Pty Ltd has paid two infringement notices totalling $13,200 and changed the labelling of its “floor stock” or “shop soiled” furniture. This occurred following Australian Competition and Consumer Commission allegations that Super A-Mart was making misleading representations regarding the application of the consumer guarantee provisions in the Australian Consumer Law (ACL) in relation to floor stock furniture offered for sale.
The ACCC alleges that in August 2012, Super A-Mart falsely represented that the consumer guarantee provisions of the ACL did not apply to certain furniture items offered for sale at its Gepps Cross store in South Australia.
“The consumer guarantee provisions of the ACL provide consumers with certain rights to remedies from retailers and manufacturers that cannot be excluded, restricted or otherwise modified,” ACCC Chairman Rod Sims said.
“Consumer guarantees ensure that goods are of an acceptable quality and are fit for the purpose for which they are sold. These rights apply unless the remedy sought relates to a defect that has been specifically drawn to the consumer’s attention.”
“Guarantees include the right to a refund or replacement depending upon the circumstance, and apply regardless of whether an item is sold as a sale, clearance, floor stock or display item or otherwise on an ‘As Is’ basis. It is important that retailers ensure that their staff, at all levels, understand what rights a consumer has in relation to products they purchase.”
In early 2012, the ACCC launched a national consumer guarantees awareness raising campaign which involved the ACCC engaging extensively with industry to educate retailers and manufacturers about their obligations under the ACL.
“The consumer guarantees provisions of the ACL are a concern for state and territory consumer protection agencies and are a matter of priority for the ACCC,” Mr Sims said.
“Concerns regarding guarantees and warranties are one of the most common reasons that consumers contact the ACCC and state and territory consumer protection authorities.”
On 20 November 2012 the ACCC instituted proceedings in the Federal Court against eleven Harvey Norman franchisees for alleged contraventions of the ACL relating to consumer guarantees. This followed earlier proceedings commenced against Hewlett-Packard Australia Pty Ltd on 16 October 2012 for alleged contraventions of the ACL relating to consumer guarantees.
The payment of infringement notice penalties is not an admission of a contravention of the Competition and Consumer Act 2010. The ACCC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.