ACCC chairman Rod Sims has advised appliance manufacturers and suppliers to learn from Fisher & Paykel’s mistake and not to mislead customers, intentionally or unintentionally, in regards to after-sale service, warranty regulations and matters relating to product repair and replacement.
Late last year, Fisher & Paykel and one of its service providers, Domestic & General, were each fined $200,000 for sending letters to customers with incorrect information, inviting them to purchase an extended warranty. Both organisations have agreed to pay the fine.
“The Court’s decision sends a strong warning to businesses that they must not misrepresent or understate consumers’ rights under the Australian Consumer Law (ACL) when marketing extended warranties,” Sims said. “This is especially important for companies like Domestic & General, which specialise in offering warranty services”.
“Under the ACL, consumers may have a right to a repair, replacement or refund regardless of any extended warranty or express manufacturers’ warranty.”
Justice Wigney of the Federal Court also said other manufacturers should take note.
“The conduct here unquestionably involves serious and significant contraventions of the ACL. The misleading representations concerned extended warranties for well-known consumer goods.
“The misrepresentations potentially misled or deceived thousands of consumers in respect of the supposed need for extended warranty plans.”