Online retailers have been warned by the Australian Competition and Consumer Commission (ACCC) not to mislead consumers about their warranties and returns rights.
The warning comes after the consumer watchdog took action against Australia’s leading online department store Auction Alliance Pty Ltd, which trades as Deals Direct, for breaching the Trade Practises Act 1974 in relation to its warranties and returns policy.
Action Alliance admitted its warranties and returns policy contained false and misleading statements about consumers’ statutory warranty rights and has agreed to work with the ACCC to resolve the issue.
“The ACCC is concerned that many online sites misrepresent consumers’ rights and is putting these companies on notice that they are in for special attention,” ACCC chairman, Graeme Samuel, said today.
“It appears many sites simply ‘cut and paste’ information from other sites on warranties and refunds without checking that the facts are correct.
“Online traders be warned: the ACCC is reviewing sites and will be considering action if remedial work is not quickly undertaken.”
Information regarding warranty and refunds rights is available on the ACCC website.
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