Koala & Tree Pty Ltd (trading as Koala Living)

The ACCC has accepted a court enforceable undertaking from Koala & Tree Pty Ltd, trading as Koala Living (Koala Living), in relation to concerns about Koala Living’s dealings with consumers’ claims regarding faulty products and, in particular, representations Koala Living made on its website concerning the effect of the consumer guarantees provisions of the Australian Consumer Law (ACL) that likely contravened sections 18 and 29(1)(m) of the ACL.

Koala Living is an Australian homewares and furniture retailer, which supplies goods and services to consumers across Australia through physical storefronts and an online store.

The ACCC identified that Koala Living’s complaints handling practices were insufficient to ensure compliance with the consumer guarantee provisions in the ACL and contributed to Koala Living placing restrictions on consumers’ rights to remedies under the consumer guarantees.

Koala Living also made three statements on its website that contained false or misleading representations about the effect of the statutory consumer guarantees.

To address the ACCC’s concerns, Koala Living provided the ACCC with a section 87B undertaking, in which it admits that its conduct likely contravened sections 18 and 29(1)(m) of the ACL, and that its internal training for staff and consumer complaints handling processes were inadequate in respect of its obligations under the ACL.

In the section 87B undertaking, Koala Living agrees that it will:

• cease making the false or misleading representations on its website, as well as in invoices, communications and other materials,
• review and update its internal policies, procedures, complaints handling practices and training to ensure its staff have sufficient information to comply with the Australian Consumer Law,
• publish a corrective notice to inform customers that representations made on the Koala Living website were misleading or deceptive, or likely to mislead or deceive, in contravention of the Australian Consumer Law,
• establish a competition and consumer law compliance program, and
• establish and implement a program to provide compensation to certain consumers identified as having been affected by its false or misleading representation that consumers’ statutory right to a remedy for a failure to comply with a consumer guarantee was confined to a 72-hour time period imposed by Koala Living.

Koala Living is required to report to the ACCC at the completion of the compensation program to specify the compensation provided to each identified affected consumer. The ACCC is also to be notified of any disputes in relation to the compensation program following a determination by an independent auditor approved by the ACCC.