MSY Technology has been fined over $200,000 after the Australian Competition and Consumer Commission (ACCC) declared the online retailer made false and misleading consumer warranty representations to its customers.
The company and its four subsidiary companies were penalised for breaching the Trade Practices Act, with acting ACCC chairman, Michael Schaper, saying that the fine comes as a timely reminder for other technology businesses.
“The ACCC will actively pursue businesses that misrepresent consumers’ rights under the new law,” he said.
Justice Perram of the Federal Court said the fines reflected the severity of the company’s policy on misrepresenting warranty rights.
“It is appropriate that it should be made plain to retailers in the position of companies, such as the respondents that misrepresenting to consumers what their warranty rights are is an unacceptable form of commercial conduct and illegal,” he said in a statement.
“It is appropriate, therefore, to encourage retailers not to give consumers the impression either that their statutory rights are curtailed or non-existent, or that warranties can only be obtained through payment.”
The court also declared that each of the MSY Technology companies implement a trade practices compliance program, publish corrective notices on its website and pay the ACCC’s court costs.
The fines come as the ACCC last month claimed it was concerned about the lack of competition the NBN may produce.
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