By Keri Algar

SYDNEY, NSW: With more than 14 years in the industry and promoting itself as ‘The name you can trust’, MSY Technology has been penalised $203,500 for making false representations about the statutory warranty rights of consumers.

The Australian Competition and Consumer Commission (ACCC) instituted legal proceedings against MSY Technology in November 2010 for the distribution of promotional materials with allegedly false warranty statements. The technology dealer has also been required to publish a corrective notice on the MSY Technology website at www.msy.com.au, and pay the ACCC’s costs.

The company operates in Victoria, New South Wales, Queensland, South Australia and Western Australia and sells computers, computer parts, electronic goods and software to consumers.

During the legal proceedings Justice Perram said: “It is appropriate that it should be made plain to retailers in the position of companies such as the respondents that misrepresenting to consumers what their warranty rights are is an unacceptable form of commercial conduct and illegal. It is appropriate, therefore, to encourage retailers not to give consumers the impression either that their statutory rights are curtailed or non-existent or that warranties can only be obtained through payment.”

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According to the ACCC, it's acting chairman Michael Schaper said retailers and manufacturers must be aware that consumer rights under the consumer guarantee provisions in the Australian Consumer Law cannot be excluded or altered.