Cut-rate computer parts retailer MSY has been slapped with a $750,000 fine from the Federal Court for misleading customers on their rights around warranties. What's worse than a $750,000 fine? The fact that this isn't even the first time this has happened.
The ACCC case against MSY is the second time the retailer, which operates 28 stores around the country, has been in the crosshairs — in 2012, MSY was fined $203,500 for is deceptive warranty practices.
In both email responses to customers and in person, MSY admitted to the Court it had misled customers on their rights under Australian Consumer Law for products that developed faults. ACCC deputy chair Delia Rickard is appropriately blunt in her statement on the matter: ""MSY has misrepresented consumers' rights to a repair, replacement, or a refund where a product developed a fault. Businesses must ensure their refund and returns policies, and any representations accurately reflect their obligations under consumer law."
As well as the $750,000 fine, MSY has agreed to be put through a comprehensive training program on the ACL, to publicise its failings, and to pay $50,000 of the ACCC's court costs.
MSY, which bills itself as "the name you can trust" when it comes to buying PC components, laptops and other computing accessories, is well known for its ultra-budget website, its PDF price lists of stock and the abruptness of its counter staff. [ACCC]