The Federal Court has ordered MSY Technology (together with related entities) to pay penalties totalling $750,000 for misrepresenting consumers' rights to remedies for faulty products. MSY Technology admitted to the false or misleading representations that it made on its website and via oral and electronic communications.
MSY Technology sells computers, accessories and software in 28 retail stores across Australia as well as online. The retailer represented that it reserved the right to decide whether to offer consumers repairs, replacements or refunds for faulty products, including whether it would offer any such remedy at all. Such representations were contrary to guarantees under the Australian Consumer Law (ACL). In addition, the ACCC alleged that MSY Technology would charge an administration fee for warranty work carried out.
This is not the first time the ACCC has taken action against MSY Technology entities. The Federal Court imposed penalties in 2011 following misleading consumer warranty representations.
The current proceedings also resulted in orders by consent including participation in a comprehensive ACL compliance training program, injunctions, publication of orders and a $50,000 payment towards the ACCC's costs.