Popular furniture company fined over refund policy
Freedom Furniture has been forced to pay $25,200 in fines after the Australian Competition and Consumer Commission (ACCC) issued it with two infringement notices for alleged false or misleading representations to customers about their rights to refunds.
Infringement notices were issued after Freedom Furniture last year published a statement on its website that proclaimed: “Furniture items cannot be returned or exchanged, except at Freedom’s absolute discretion”.
The ACCC had reasonable grounds to believe Freedom Furniture contravened the Australian Consumer Law (ACL) by making this alleged false or misleading representation.
The ACCC was concerned that the representation was likely to have given the impression that consumers could not return or exchange faulty furniture items unless Freedom Furniture allowed them to do so, when that is not the case under the ACL consumer guarantees.
“Retailers must not misrepresent consumer guarantee rights to their customers,” ACCC commissioner Sarah Court said.
“Under the Australian Consumer Law consumers have the right to ask for their choice of a repair, replacement or refund when they have purchased a product that has a fault which amounts to a major failure.”
Are you aware of your rights when seeking a refund?