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Online Tech Reseller Slammed By ACCC

ACCC has announced it will take action against discount tech reseller MSY for alleged misrepresentation of consumer guarantees.

“The ACCC alleges that MSY Technology breached the Australian Consumer Law by misrepresenting consumers’ rights to a repair, replacement, or a refund when they have purchased faulty products,” ACCC Commissioner Sarah Court said.

The regulator says that statements made by the company both within its retail stores and website claim that the company had discretion over whether a customer was entitled to a remedy for a faulty product, within what period they could request a refund, the nature of that refund and whether or not customers could be charged an administration fee to replace a faulty product.

“Businesses must not mislead consumers about their consumer guarantee rights. Consumers who have purchased a faulty product have a right under the consumer guarantees to remedies which businesses cannot restrict, alter, or remove,” Court says.

MSY Technology operates 28 retail stores across Australia and an online site which sells computers, computer parts, accessories, and electronic goods. In 2011, a number of these stores were penalised $203,500 for false and misleading consumer warranty representations, following action by the ACCC.

“The ACCC is particularly concerned that this type of conduct by businesses which have a national presence has the potential to cause significant consumer harm,” Ms Court said.

The regulator is seeking declarations, injunctions, a comprehensive compliance program, penalties, and costs.