Computer retailer, MSY Technology has been ordered by the Federal Court to pay $750,000 in penalties for misrepresenting consumer rights to remedy faulty products.
The Australian Competition and Consumer Commission (ACCC) began taking action against the retailer back in November.
MSY Technology currently operates 28 retail stores across Australia and online, selling computers, computer parts, accessories and software.
The retailer openly admitted that it made false or misleading representations on the MSY website, and in oral and email communication to consumers about their rights.
“MSY had misrepresented consumer rights to a repair, replacement, or a refund where a product developed a fault," ACCC Deputy Chair, Delia Rickard, said.
"Businesses must ensure their refund and returns policies, and any representations accurately reflect their obligations under consumer law.
"These proceedings and the penalties imposed signal to businesses that the ACCC will not hesitate to take appropriate enforcement action where it identifies misleading representations about consumers’ rights."
The Federal Court also made other orders by consent including injunctions, a comprehensive Australian Consumer Law (ACL) compliance training program, publication orders, and payment of $50,000 towards the ACCC’s costs.
This is not the first time that MSY has been in trouble with the ACCC. In 2011, MSY were penalised $203,500 for misleading consumer warranty representations.