Koala & Tree has paid penalties after it was found to have misled consumers by making false statements about their rights to remedies for faulty products.
The retailer, which trades as Koala Living, has paid penalties of $56,340 after the ACCC issued it with three infringement notices.
“Under the Australian Consumer Law, consumers can ask for a repair, refund or replacement for faulty goods, even after the warranty has expired,” ACCC commissioner, Liza Carver says.
“If a good has a major problem, consumers have a right to choose either a replacement or a refund and the refund should be the full amount the consumer paid.”
In a court-enforceable undertaking given to the ACCC, Koala Living has admitted that its conduct likely contravened the Australian Consumer Law and has undertaken action to provide consumers that were affected with compensation.
Consumer guarantee rights are automatic rights under the Australian Consumer Law which apply to most consumer goods and services bought from a business, irrespective of the warranty offered by the business.
“We are pleased that Koala Living has undertaken to compensate consumers affected by its false and misleading advice.
“We are continuing to review the returns policies of many businesses for terms that are likely misleading including time limits for consumers wishing to return a faulty good and we will take appropriate action,” she adds.
“Businesses are on notice that they must have appropriate systems in place to ensure they do not mislead consumers about their rights and comply with their consumer guarantee obligations.
“Consumer guarantees apply for a period of time that is considered reasonable having regard to the nature of the goods or services including the price paid. In many cases this will be longer than the period of any warranty provided by a retailer or manufacturer.”
Image: Koala Living
