Esel Pty Ltd - s.87B undertaking

The Australian Competition and Consumer Commission has accepted court enforceable undertakings from Esel Pty Ltd trading as Mwave.   Mwave sells a wide variety of computers, software and electronic goods through its online website www.mwave.com.au.

The ACCC raised concerns with Mwave 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:

• Mwave does not provide any warranty and consumers must deal directly with the manufacturer;
• warranties arising from statute do not apply; and
• the consumer is required to pay any shipping costs incurred in returning the faulty good to Mwave;

Mwave has admitted its warranties and returns policy contained false and misleading statements about consumers’ statutory warranty rights. Mwave has undertaken to amend its warranties and returns policy and place notices on its website and in its e-newsletters explaining its conduct. It has also agreed to consider warranty claims for faulty products purchased since 1 July 2007 where consumers were denied a remedy or may not gave pursued a remedy because of Mwave’s admitted false and misleading statements.