Pandora asked to fix refund policies

Jewellery retailer Pandora has been told by the consumer watchdog to amend its refund and warranty policies in Australia following complaints from some of their customers.

The Australian Competition and Consumer Commission said they have received complaints from customers who were told by Pandora sales staff that they do not offer refunds to faulty products and that its own warranty policy applies instead of the protections afforded to consumers under Australian Consumer Law (ACL).

According to ACCC Commissioner Sarah Court, the jewellery retailer acknowledged they may have misled customers about their legal rights.

“Pandora has acknowledged that it may have misled customers about their consumer guarantee rights to refunds when there was a major fault with their product,” Court said. “They also have admitted that by doing so they likely breached the Australian Consumer Law.”

Court said consumer rights to a repair, replacement or refund cannot be excluded, restricted or modified by a business’ warranty policy.

“If consumers have purchased a product that has a major fault, they can request a full refund from their place of purchase,” she said.

The ACCC has accepted a court-enforceable undertaking from Pandora to review its consumer rights policies and staff training after Pandora acknowledged it is likely to have contravened the ACL by making misleading representations to consumers about their consumer guarantee rights.

The ACCC’s investigation showed that Pandora’s website contained confusing or inaccurate information on consumer guarantee rights under the ACL.

It also noted that information on Pandora’s website about its product warranty failed to include mandatory text that states that consumers are entitled to a replacement or repair, and in some cases a refund, if their goods are faulty.

The ACCC said Pandora has undertaken to arrange for an external review of its policies and procedures relating to exchanges, repairs and refunds, to ensure customer claims for refunds and other remedies are dealt with appropriately and in accordance with the ACL.

“Pandora will also conduct a review of its ACL compliance program and improve its staff training and complaints handling systems,” Court said.