Lululemon fined for violating guarantee rights

Sportswear retailer, Lululemon Athletica Australia, has paid penalties totalling $32,400 following the ACCC issuing three infringement notices for violating consumer guarantee rights.

In May earlier this year, Lululemon listed sale items on its website under the heading “We Made Too Much”. The web page read “We made a little extra – don’t be shy, help yourself. It’s yours for keeps so no returns and no exchanges”.

The ACCC said that, by this statement, Lululemon represented that consumers were not entitled to return and obtain a refund for, or exchange, these products under any circumstances.

Lululemon has also posted this return policy on its website stating: “Final sale items like underwear, water bottles + We Made Too Much gear are yours for keeps”.

The statements, according to the consumer watchdog, represented that consumers were not entitled to a remedy for these products under any circumstances.

The ACCC also mentioned in November last year, a customer has contacted Lululemon requesting a refund for products she considered were faulty but received an e-mail from a Lululemon representative that said “We do not offer refunds for quality affected garments”.

“The ACCC alleges that Lululemon made representations to customers that they were not entitled to a refund or replacement for products under any circumstances, when that was not the case,” ACCC deputy chair Delia Rickard said.

Rickard said if a product or service fails to meet a consumer guarantee, people are automatically entitled to a remedy under the Australian Consumer Law.

“If products develop a fault which constitutes a major failure, customers are entitled to a refund, even if the product was purchased on sale,” she said.

“Businesses must ensure their refund and returns policy do not breach consumer law, and that representations they make about consumers’ rights to return goods or obtain a refund accurately reflect the consumer guarantee rights under the Australia Consumer Law,” Rickard said.