ACCC targets Mwave for misleading warranty and refund policy

Online retailer, Mwave, has amended its warranty and refund policy after intervention by the Australian Competition and Consumers Commission (ACCC).

Mwave is currently headed up by ex-Anyware director, Victor Lee, after his departure from the accessories distribution company that he co-founded with Garrison Huang.

The consumer watchdog was approached the retailer after its website stated Mwave was not responsible for warranty claims and customers were to deal with manufacturers directly. The company's return policy also stipulates the cost of returning a faulty item must be covered by the consumer.

The ACCC was concerned Mwave's previous policy breached the Trade Practices Act 1974 as it doesn’t respect consumer rights that would be in place if a customer shopped at a physical retailer.

“Consumers have the same rights online as if they were to walk into a store,” ACCC chairman, Graeme Samuel, said in a statement.

According to the watchdog, Mwave admitted it was at fault and has agreed to consider warranty claims for faulty products purchased since July 1, 2007. It will put a notice up on its website to explain the situation.

The Trade Practices Act gives consumers certain statutory rights when buying goods from a retailer. Customers are entitled to deal with retailers directly and freight cost for faulty items should be covered by the company the item was purchased from.

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