Clothing Retailer Sportscraft Penalised for Misleading Consumers
Friday 10 June 2016 @ 10.05 a.m. | Legal Research | Trade & Commerce
An ACCC Media Release has reported that upmarket clothing retailer APG & Co Pty Ltd, trading as Sportscraft, has paid penalties totalling $21,600 after being issued with two infringement notices by the Australian Competition and Consumer Commission (ACCC) following an investigation into the recognition of consumer guarantee rights in the clothing retail industry.
Background
The ACCC issued the infringement notices because it had reasonable grounds to believe that Sportcraft had made false or misleading representations about consumer guarantees to its customers, in breach of the Australian Consumer Law (ACL) [Sch 2 to the Competition and Consumer Act 2010 (Cth)].
From at least 29 January 2016, Sportscraft stated on tax invoice receipts that consumers would not be entitled to return or exchange for faulty goods purchased from a clearance store. From at least 29 March 2016, Sportscraft also stated on its website that it would not refund, exchange or credit note the item more than 21 days after purchase.
Under the ACL, customers can seek a remedy from the retailer, such as a replacement or refund, if the product purchased is not of acceptable quality or not fit for any specified purpose.
Response from the ACCC
Commenting on this issue, ACCC Commissioner Sarah Court said:
“Consumer guarantee rights apply for all purchases a consumer makes, and these rights cannot be removed or reduced by a business’s terms and conditions. Clothing retailers cannot exclude or refuse a consumer’s right to a remedy simply because the faulty goods are bought at a discount clearance store. This is a timely reminder for all retail stores, particularly for clothing retailers, to review their refund or returns policies to ensure that they do not contravene the ACL.”
Protection for Consumers
The consumer guarantee provisions of the ACL set out the rights that all consumers are entitled to whenever they purchase goods or services in Australia. For example, goods must be of acceptable quality, fit for any specified purpose and must match any description given or sample shown.
The Commissioner said:
“Consumer guarantees remain a priority area for the ACCC. It is concerning that we’ve seen a number of similar complaints in the fashion industry of late. The ACCC is continuing investigations regarding at least one other clothing retailer, and expects further action in this area.”
Sportscraft takes corrective action
Sportcraft has made amendments to its refund and returns policy, which can be found in store or on the website.
The payment of an infringement notice penalty is not an admission of a contravention of the ACL. The ACCC can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.
TimeBase is an independent, privately owned Australian legal publisher specialising in the online delivery of accurate, comprehensive and innovative legislation research tools including LawOne and unique Point-in-Time Products.
Sources:
Sportscraft fined by ACCC for misleading customers about their rights – smh.com.au
Clothing retailer Sportscraft pays penalties of $21,600 for alleged misleading consumer guarantee representations - ACCC Release MR 100/16
