ACCC cracks down on misleading consumer guarantees and return rights for faulty goods

The Australian Competition & Consumer Commission (ACCC) has recently taken enforcement action against brands such as A&S Labels Pty Ltd (trading as Tiger Mist), Fitbit LLC (Fitbit) and Mazda Australia Pty Ltd (Mazda) for misrepresenting consumer guarantee rights under the Australian Consumer Law (ACL) and misleading consumers in relation to their rights for a refund or replacement where a product is faulty or defective.

Under the ACL, when buying goods, the seller guarantees (amongst other things) that the goods will be of acceptable quality, be fit for a particular purpose and match their description. Consumers have a right to a refund, replacement or repair (depending on whether the fault is major or minor in nature) where a product does not meet these consumer guarantees. As demonstrated in the cases below, it is unlawful for businesses to seek to override or exclude these consumer guarantee rights.