For misleading customers.
The ACCC has received over 100 complaints about information Fitbit has provided to customers about their consumer guarantee rights under the Australian Consumer Law (ACL).
From November 2016 to March 2017, Fitbit told customers that its warranty against faulty products was only available for one year. Fitbit also represented that faulty products would be only replaced for the remainder of the calendar year or 30 days, whichever was longer.
“Fitbit has acknowledged that it may have breached the law by misrepresenting what customers were entitled to for faulty products,” ACCC Commissioner Sarah Court said.
“If a business offers its own limited express warranty, they must make it clear that the warranty is in addition to the remedies available under the Australian Consumer Law consumer guarantees, not instead of them.
“The Australian Consumer Law provides automatic rights that cannot be excluded, restricted or modified. If goods you purchase fail to meet a consumer guarantee, you are entitled to remedies which include repair, replacement or refund depending on the circumstances.”
In response to the ACCC’s investigation, Fitbit cooperated with the ACCC and has extended its express manufacturer’s warranty from one year to two years for Australian consumers.
Fitbit will also amend the information on its website and in product packaging to make it clear its express warranties are in addition to the ACL consumer guarantees.
Fitbit has also undertaken to provide contact details on its website for consumers to seek remedies if they are experiencing issues with their products, and to train its customer service staff about consumers’ rights and remedies under the ACL.
The undertaking also requires Fitbit to amend the terms of “Fitbit Premium” to ensure notice is given to consumers before premium service fees are automatically renewed.