Auction Alliance Pty Ltd - s.87B undertaking

The Australian Competition and Consumer Commission has accepted court enforceable undertakings from one of Australia’s largest online department stores, Auction Alliance Pty Ltd trading as Deals Direct (www.DealsDirect.com.au).

Auction Alliance sells a wide variety of goods including kitchen items, furniture, computers, electronics, jewellery, tools, fitness equipment, alcohol, manchester, musical instruments and toys.

The ACCC raised concerns with Auction Alliance that its warranties and returns policy breached the Trade Practices Act 1974 because it contained misleading and false information about consumers’ warranty and refund rights.

The ACCC was concerned about statements to the effect that:

• where a good is damaged or faulty the consumer is only entitled to a remedy if they make a claim within 30 days from the date of dispatch by Auction Alliance and no further warranty is available;
• the consumer is required to pay any shipping costs incurred in returning the faulty good to Auction Alliance if it is returned after 30 days from the date of original dispatch by Auction Alliance;
• the consumer will only be entitled to a refund if a replacement product cannot be provided by Auction Alliance; and
• in the case of some products Auction Alliance does not provide any warranty and consumers must deal directly with the supplier or manufacturer.

The ACCC was also concerned about materials, including warranty information, supplied with the ‘Ultimate Pilates Workout Chair’ purchased by consumers from Auction Alliance.

The materials suggested the UPW Chair was manufactured and warranted by Guthy-Renker Australia Pty Ltd when this was not the case.

Auction Alliance has admitted its warranties and returns policy contained false and misleading statements about consumers’ statutory warranty rights.

It has also admitted to misleading consumers about the manufacturer of the UPW Chair.

Auction Alliance has undertaken to amend its warranties and returns policy and place notices on its website and in its daily e-newsletters explaining its conduct.

It has also agreed to consider warranty claims for faulty products purchased since 1 September 2008 where consumers may not have pursued a remedy because of Auction Alliance’s admitted false and misleading statements.

Auction Alliance has also agreed to write to consumers who purchased the UPW Chair offering to either provide a warranty on the same terms as the Guthy-Renker warranty or provide a full refund of the purchase price (including postage).