MSY Technology fined for misleading warranties

Consumer electronics retailer, MSY Technology, has been fined $750,000 for misleading warranties.

The Federal Court has penalised MSY Technology Pty Ltd, MSY Group Pty Ltd, and M.S.Y. Technology (NSW) Pty Ltd (MSY Technology) a total of $750,000 for misrepresenting consumers’ rights to remedies for faulty products.

The Australian Competition and Consumer Commission (ACCC) took the electronics retailer to court late last year claiming MSY breached the Australian Consumer Law by misrepresenting consumers’ rights to repairs, replacements or refunds when they purchased faulty products.

“Businesses much ensure their refund and returns policies, and any representations accurately reflect their obligations under consumer law,” said ACCC deputy chair Delia Rickard.

MSY Technology, which operates 28 retail stores across Australia and online, selling computers, computer parts, accessories and software, admitted that it made false or misleading representations on the MSY website, and in oral and e-mail communications to consumers about their rights.

“These proceedings and the penalties imposed signal to businesses that the ACCC will not hesitate to take appropriate enforcement action where it identifies misleading representations about consumers’ rights,” Rickard said.

“This is the second time the ACCC has taken action against MSY entities. The court imposed penalties in 2011 for misleading consumer warranty representations.”

The Federal Court also made other orders by consent including injunctions, a comprehensive ACL compliance training program, publication orders, and payment of $50,000 towards the ACCC’s costs.

Following the commencement of proceedings, the ACCC announced MSY Technology made admissions and agreed to joint submissions on liability and relief (including penalty) that were filed with the Court.