ACCC launches court proceedings against MSY

ACCC seeking injunctions, penalties, costs and corrective notices from major tech reseller

The Australian Competition and Consumer Commission (ACCC) has launched court proceedings against major tech reseller, MSY Technology for allegedly engaging in false or misleading warranty representations.

According to an ACCC statement, the organisation made false statements about warranties in its pamphlets, notices, price lists and promotional materials as well as in customer receipts.

“The ACCC alleges that by making the representations, MSY and each of its related companies breached sections 52 and 53(g) of the Act,” it said.

The body is throwing the book at the company and is seeking court orders, injuctions, civil penalties, corrective notices, costs and a trade practices compliance program throughout the company.

The company is still operating and opened its latest store in the Fyshwick, ACT, on October 27.

The matter has been filed in the Federal Court Fast Track list in Sydney and will go before an interlocutory hearing on November 16 with Justice Perram.

ARN attempted to contact MSY Technology, but it did not respond to calls for comment at the time of publication.

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More about: ACCC, ACT, ARN, Australian Competition and Consumer Commission
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Comments

Bob bingle

1

Nothin new, good prices and crappy service, they don't make enough to handle warranty service!!!

Greg

2

About time.

I can think of a few others in this game that could use the same ACCC treatment as well.
The playing field really does need levelling out.

-------

Reseller since 1999

skythra

3

I really don't understand how consumers can't be aware of .... "Buyer beware" was once in law, now its "buyer beware except in every fathomable case".

People who didn't know what they were doing (ie can't RMA their own broken products) lost out because they have no customer service. Cry more. Go back to harvey norman. The only thing this does is increase the prices for those of us who are competent.

Actually it's well timed, we're all importing our stuff from america anyway, who cares about local retailers.

John

4

Well done.. ACCC.... they NEVER ever offer warranty to customer.... if anyone get some lose from MSY , please tell your story to others.

I speed more than $1000 purchase the Memory and motherboard from MSY last year. and the RAM is not working now... bring it back to MSY , they reject my warranty request! told me they only offer 1 year warranty. ( Kingston RAM should be life time warranty ) it cost me $400 to buy this poor experience...

Ian

5

I agree, about time too.

Stopped trying to compete with these guys a long time ago. What you dont know is they took the majority of stock that would come in leaving the smaller operators struggling to get stock in.

Unfortunately most people are looking for a bargain these days and dont value the cost of good service, until its too late.

...it has nothing to do with a customer knowing what RMA is, that's a reseller's job, not the customer. Customers have an RMA already completed, its called a receipt along with good customer service.

your mate

6

accc 2 tha
act 4 tha
arn 2 tha
msy.... so much confusion

Paul

7

Good on MSY for going budget and crappy customer service. I'm a student and my budget is very limited. Maybe other retailers should drop their mark up prices. If they can do it, why can't you? Plus, they seem to be expanding, meaning that lower profit margins isn't the problem... its you greedy small businesses!!

Annoyed

8

Greedy small businesses? Paul, get a clue. Is it being greedy to want to put food on the table?

Fuji

9

There is a different between low price with no service and ripping consumer off. If you can't see the different then you deserve to be con.

JB-HiFi is low price and budget service, but you don't see them don't honour factory's' warranty.

Is about time dodgy resellers who ripping consumer off and pretend to be the "budget good guys" on the surface get their bu*ll sh*t exposed.

MZ

10

If they only make $10 per CPU then certainly you won't get good service, if you want good service then should goto Harvey and pay extra $$ for it. The more $$ you pay the better service you get - hm... OK, except for Telstra. In this case, I vote 1 for MSY, at least they're better than Telstra.

ajd

11

What the ACCC is alleging here is that MSY lied in its published material. No matter what standard of customer service a discount store is meant to provide, deceptive conduct is always inexcusable.

your mum

12

ive returned ram 3 times to msy, all three times they did memtest and replaced on the spot.

The Abominable Snowman

13

I have spent around 10k at MSY over the time they've had stores in brisbanes south and not once have I had to wait more than 10mins in total process waiting for the guy to duck out the back and get me a replacement item.

I think of the money and time that MSY HAS saved me and its pretty much sitting here under my desk as a watercooled kickass system. Thanks MSY :)

Rob

14

Had bad experiences with MSY and also with Aldi. When dealing with Aldi I had enough of those crooks ripping me off and advised the ACCC, that eventually got my warranty claim handled but with no excuse.
Now I buy my PC stuff only at Scorptec, better service and lower prices than Harvey Norman, not bargain basement, but good price for good service.

MrGrumpy

15

Went in to buy a ASUS G51 notebook specific model, paid money and they came back with a different model to what they advertised and what I wanted. They said that that's all they had, did not accept because was a crappy model. Eventually they bought the one I paid for out, WITH OUT all the accessories that come with it, they stripped out the BAG, MOUSE and HEADSET.
They weren't even that much cheaper (about $20) than a competitor round the corner which DID supply the Bag , Mouse and Headset. NEVER AGAIN. Take note they take items out of boxes and sell separately to appear cheap.

Will

16

I have been going to the ipswich stor since it opened and i have never had a single problem with there service or anything else for that matter.
keep up the CHEEP service boys, see you next week an the week after and the week after that

Greg

17

Well I've had nothing but good experiences with MSY. Cheapest price. If you are too thick to handle your own RMA process then no its not the shop for you, but you pay less because you're not paying for service you don't need. I've found them more helpful than the pricks at Umart usually. Only handling product warranties for a year and then expecting you to do it yourself after that is pretty standard across computer stores.

Whatever

18

I don't get why people are arguing about price vs service, the article is about MSY misleading consumer and ACCC took action against them, its got nothing to do with how cheap they are or how crap their service is.

They are dodgy FULL STOP.

Ling Ming

19

why people unkind to msy ? they chop chop price but no chop chop service. why u so like that?

Mark

20

Nothing surprising. MSY offer statuatory warranty of about a year. They will also RMA for you, which means it could be a few weeks until you get the replacement part.

This is because they offer pretty much the lowest priced parts around targetted at people who know what they are doing - not whiney little entitled geeks who need their hand held making purchase decisions and aren't able to accept the risk that sometimes parts break and have to be returned to the manufacturer.

Daniel

21

That's unfortunately what happens to companies that do not follow strict policies as most do.

This company has a bad habit of making their prices cheaper when they do not have items in stock so that competing companies are pressured into marking their items down as they do not have stock levels on their websites

Adrian

22

The issue here is that MSY is alleged to have breached the Trade Practices Act.

Reputable businesses don't need their hand forced by the court system to comply with their legal obligations in regard to consumer rights - one of which is the right to a warranty.

I would encourage everyone to go to the ACCC website and become familiar with your rights as a consumer, at least then there can be some informed and intelligent debate.

At the very least, it is clear that MSY has a marginal reputation. I once considered shopping at MSY, when I was a poor student - until I read some of the reviews. Since money was scarce, I concluded it wasn't worth the risk.

Our rights are much more precious than a few dollars - and it really is only a few dollars, their prices aren't really that good - check staticice.

Siko

23

Interesting read.

I remember visiting a retailer and enquired about Life-Time warranty and warranty over 1 Year.

They made a very clear and simple statement.

For the 1st year of the warranty, you can bring it to us or contact the manufacturer your self.

After the 1st year, we won't handle your warranty, you must contact the manufacturer your self.

I also find it misleading. I believe MSY was trading under this idea as well.

As a consumer, if a product comes with x years amount of warranty, I expect to return the product to place of purchase as long as it's under warranty. Thats it. Otherwise... ACCC is the only way to go.

DB

24

Can I get my tax dollars back ?

If the best the ACCC can do is make some trouble for a decent business like MSY then it reflects very poorly on their usefulness to Australian consumers.

If you want David Jones service, go to David Jones.

Will

25

The issue with this is that most customers of MSY who are attracted by its low prices just had no idea they've been taken for a ride. For a long time people have been buying from them thinking they're getting the same product as the next business that maybe selling it at a higher price and little did they know that some products actually offer more than 1 year warranty and imagine who lost the most in the end? Customers who spent thousands of dollars with MSY just had no idea what lies ahead, just be prepared to loose your hard earned money for anything over 1 year, you're pretty much on your own. Try and deal with manufacturers or distributors direct and see how far you can go. The responsibility of handling of returns lies with the people who sold it and misrepresentation of only giving 1 year instead of what the manufacturer actually gives should be made illegal because no body would know the warranty term until its time to claim it.. by then, too late!!

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