24 October 2022

Fitbit in court over statements to consumers on faulty devices

The ACCC has instituted Federal Court proceedings against US-based Fitbit LLC for allegedly making false or misleading representations to consumers about their consumer guarantee rights under the Australian Consumer Law after their Fitbit wearable devices malfunctioned.

It is alleged that between around May 2020 and February 2022, Fitbit made false or misleading representations to consumers claiming they would not be entitled to a refund unless they returned a faulty product within 45 days of purchase or shipment.

The ACCC also alleges that Fitbit conveyed to consumers who had been supplied with a faulty device as a replacement for an original faulty device, that they were not entitled to a second replacement device if Fitbit’s two-year ‘limited warranty period’ for the original device had expired.

“Fitbit has again come to the ACCC’s attention for allegedly misleading consumers about their consumer guarantee rights. We are taking this case against Fitbit because we consider the alleged conduct is serious and that manufacturers should have processes in place that ensure compliance with the Australian Consumer Law,” ACCC Chair Gina Cass-Gottlieb said.

“Under the Australian Consumer Law, products must be of acceptable quality, and retailers must provide a remedy for faulty goods which include a repair, replacement or refund, depending on the circumstances.”

04 November 2022

Dell Australia in court for allegedly misleading consumers about the cost of add-on monitors

The ACCC has instituted Federal Court proceedings against Dell Australia Pty Limited (Dell Australia) for allegedly making false or misleading representations regarding the price of monitors that consumers could add on to purchases of Dell computers.

It is alleged that from at least August 2019 to 16 December 2021, Dell Australia made false or misleading representations on its website about the prices of monitors and the potential savings when a monitor was purchased with a computer.

When a consumer selected a Dell desktop, laptop, or notebook for purchase on the Dell website, the consumer was offered the option of adding a monitor during the check-out process. Often, the monitor was shown with a higher price in strikethrough, representing a significant saving.

The ACCC alleges the monitors were not sold for the ‘strikethrough’ price for most of the relevant time and, in some cases, the add-on price shown was more expensive than if the monitor was bought on a stand-alone basis.

“We allege that Dell Australia made false, misleading or deceptive statements on its website to entice consumers to add on monitors to the purchase of a computer by displaying false or misleading discounts,” ACCC Commissioner Liza Carver said.

“Cases involving allegations of misleading ‘was/now’ pricing by large retailers of consumer goods are a priority for the ACCC. Businesses should be well aware of their legal requirements and should have effective compliance programs in place to prevent this type of consumer harm.”

“These proceedings are also significant because the alleged misleading conduct related to the online marketing of computers and monitors at a time when many families were in Covid lockdown. We know that many consumers turned to online purchases to buy equipment for working and schooling from home,” Ms Carver said.

21 November 2022

Scam warning: Be aware that scammers may use this media release about this recall to elicit personal information or money from you. The ACCC would never ask for your details or payment. Never give personal information or money to anyone contacting you out of the blue and never give access to your computer or bank account. If you have given information to a scammer or lost money, contact your bank immediately. Report scams to Scamwatch here.

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The ACCC will be directly contacting almost 5,000 households that are likely to have energy solar systems with dangerous LG solar batteries in the coming weeks, to continue efforts to raise awareness about safety recalls.

The batteries, which may be branded LG, SolaX, Opal, Redback, Red Earth, Eguana, and VARTA, can overheat and catch fire, causing property damage and injuries. The ACCC is reaching out to consumers who are likely to have recalled LG batteries to warn them of the fire risk associated with the faulty batteries.

Consumers are urged to turn affected batteries off, keep them off and contact the manufacturer for a free replacement or a refund. LG will provide financial compensation to consumers who have higher electricity bills as a result of not being able to use their battery as expected.

So far, about 2,900 batteries have been replaced or removed from consumers’ properties. A further 1,400 batteries have been switched off or have had the maximum charge capacity reduced to 75 per cent to reduce the risk overheating while waiting for a replacement or refund.

However, LG and SolaX are trying to trace around 3,000 additional recalled batteries.

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