Fitbit breaches Australian Consumer Law and gives enforceable undertaking to the regulator

A recent ACCC enforcement action shows that both local and international businesses need to strictly comply with Australian consumer law, and ensure they clearly let consumers know their rights.

From at least 1 January 2017, Fitbit made various representations on its website and product packaging that had the effect of limiting its liability and consumer warranties for defective products. The ACCC took action against Fitbit for its misconduct under the Australian Consumer Law, and obtained an enforceable undertaking (EU) from Fitbit in May this year.

How the Australian Consumer Law applies

Schedule 2 of the Competition and Consumer Act 2010 (Cth) contains the Australian Consumer Law (ACL). The ACL provides a number of protections to consumers when purchasing goods and services, which are known as consumer guarantees. These guarantees are automatically incorporated into any consumer purchase and are not able to be excluded, modified or limited.