7 hours Ago By Peter Holmes
Furniture and homewares retailer Koala Living has been fined more than $50,000 by the ACCC for making “false and misleading statements about consumer guarantee rights”. Koala & Tree Pty Ltd, trading as Koala Living, has paid penalties of $56,340 after it was issued with three infringement notices for making false or misleading statements about consumers’ rights to remedies for faulty products. The ACCC said it was “concerned, after being alerted by numerous consumers, that Koala Living had wrongly stated that consumer rights to remedies for faulty products were limited to a 72-hour period or the period of the manufacturer’s warranty, and that Koala Living could choose the type of remedy for minor and major faults”.
It said that Koala Living also wrongly informed consumers that delivery charges were not refundable, “when in fact consumers have a legal right to compensation for any foreseeable loss or damage they suffer because of the failure to comply with a consumer guarantee. This could include reimbursing delivery charges”. In a court-enforceable undertaking given to the ACCC, Koala Living has admitted that its conduct likely contravened the Australian Consumer Law.
Koala Living. “Consumer guarantee rights are automatic rights under the Australian Consumer Law which apply to most consumer goods and services bought from a business, irrespective of the warranty offered by the business,” the ACC said. “The guarantees include that goods will be of acceptable quality, match their description and be fit for any disclosed purpose.
Under the Australian Consumer Law, consumers can ask for a repair, refund or replacement for faulty goods, even after the warranty has expired,” ACCC Commissioner Liza Carver said. “If a good has a major problem, consumers have a right to choose either a replacement or a refund, and the refund should be the full amount the consumer paid.” Koala Living has undertaken to provide compensation to consumers to whom Koala Living represented that a consumer’s right to seek remedies for faulty products was limited to 72 hours, and who have not yet received a full refund, repair or replacement from the company.
Compensation will amount to 20 per cent of the purchase price, and is separate and in addition to any remedies consumers may be entitled to under the consumer guarantees in relation to faulty products. Koala Living store. “We are pleased that Koala Living has undertaken to compensate consumers affected by its false and misleading advice,” Carver said.
The ACC said that as part of the court-enforceable undertaking, “Koala Living has committed to reviewing its policies and procedures, including its complaints handling procedures, to ensure staff understand the business’s consumer law obligations. It will also inform customers that its previous representations on its website were misleading and deceptive through corrective notices published on its website and social media channels.” For further information on the compensation program, the ACCC said “consumers should refer to the corrective notice published on Koala Living’s website”.
At the time of publishing ChannelNews had not been able to find the notice on the company’s main website..
