ACCC calls out online retailers with problematic product return, warranty terms
Several retailers have been warned by Australia’s consumer watchdog over potentially misleading and problematic terms and conditions for product returns and warranties.
The Australian Competition and Consumer Commission (ACCC) conducted a sweep of more than 2000 retail websites and subsequently raised concerns over businesses imposing time limits for returning defective products.
The ACCC also called out retailers with blanket ‘no refund’ conditions on sales or specialised items and those who refer to manufacturer warranties as the only way for consumers to claim remedies for faulty items.
The government agency said that businesses must not restrict consumers’ right to remedy, including imposing non-refundable delivery fees paid for faulty items and charging restocking fees if customers returned defective items.
“Our action led to the majority of businesses changing or removing concerning statements from their websites and improving consumer guarantee messages to consumers,” said Catriona Lowe, ACCC deputy chair.
“The ACCC is committed to improving business compliance with consumer guarantees and will continue to actively monitor this area and, where appropriate, take enforcement action.”
Last year, the ACCC flagged concerning practices of businesses such as claiming sitewide sales (when not everything on the site was on sale), fine print or disclaimers that limit headline claims – including member-only deals – and misleading before-and-after pricing.
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