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Distributor Forced To Offer Refunds On Dodgy Dick Smith JVC TV’s

Distributor Forced To Offer Refunds On Dodgy Dick Smith JVC TV’s

TV distributor Yale Prima who told ChannelNews that they had lost over $10M following the collapse of Dick Smith, has been forced to offer full refunds on “unrepairable” JVC TV’s sold to the mass retailer who went broke with debts of over $400M.

Earlier this year the Company stopped shipment of JVC branded TV’s to Dick Smith. They then moved to sell the Chinese made but JVC branded TV’s direct to the administrator. 

A recent ACCC statement reveals that Yale Prima has committed to the Australian Competition and Consumer Commission that it will comply with its Australian Consumer Law (ACL) consumer guarantee obligations as a manufacturer in relation to providing remedies to consumers who purchased faulty JVC-branded televisions from Dick Smith prior to 5 January 2016.

As required by the ACL, Yale Prima will offer full refunds to consumers under its own 12 month manufacturer’s warranty for unrepairable televisions purchased from Dick Smith prior to 5 January 2016.

Yale Prima provided this commitment following an ACCC investigation into consumer complaints after Dick Smith went into external administration.

“Under the ACL consumer guarantee provisions, a consumer has rights against both the retailer and the manufacturer of faulty goods,” ACCC Chairman Rod Sims said.

“When a retail business ceases trading, it is important that consumers are able to turn to the manufacturer for remedies, and it is equally important that manufacturers recognise their ongoing ACL obligations.”

“The ACCC’s investigation commenced after it and other ACL regulators received reports that consumers were unable to obtain repairs, replacements or refunds for faulty goods in the period immediately following Dick Smith Electronics entering external administration,” Mr Sims said.

For several weeks, Yale Prima referred all customer enquiries back to Ferrier Hodgson as the receiver for Dick Smith, despite its own ongoing ACL obligations. From 1 April 2016, Yale Prima offered a partial refund in place of the full refund promised in the manufacturer’s warranty.

Any consumer who purchased a faulty JVC branded television from Dick Smith and has not been able to resolve the issue should contact at first instance:

Yale Prima on (02) 9577 1700 if the television was purchased before 5 January 2016; or
Ferrier Hodgson on 1300 660 054 if the television was purchased on or after 5 January 2016.
Background
Since 1 January 2011, the ACL has provided for consumer guarantees in relation to the supply of goods or services to consumers. These guarantees apply regardless of any other express warranties that a business provides, and cannot be excluded.

Consumer guarantees apply for goods or services that cost under $40,000 or over $40,000 if they are normally bought for personal or household use.

When a consumer should claim a remedy from the manufacturer

One important guarantee is that products supplied by businesses to consumers must be of acceptable quality.

If a product is not of acceptable quality, consumers can seek a repair, replacement or refund from the retailer.

If a product is not of acceptable quality, and the retailer that the consumer purchased the item from has ceased trading or otherwise does not comply with the guarantee, consumers can seek damages from the manufacturer.

Acceptable quality guarantee

The goods must:
be safe, lasting and with no faults;
look acceptable; and
do all things someone would normally expect it to do.
Acceptable quality takes into account what would normally be expected for the type of product and how much it cost.

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