The Federal Court has ordered The Good Guys to pay $13.5 million in penalties for misleading consumers in relation to its store credit and “StoreCash” promotions, and for failing to provide store credit to over 20,000 eligible customers.

The court case involved 116 promotions run by The Good Guys between July 2019 and August 2023, where customers could earn store credit (sometimes branded as StoreCash) by spending a minimum amount, purchasing specific products or brands, or using certain payment methods. The store credit offered ranged from $10 to $1,000 depending on the promotion.

The Good Guys admitted that its promotions failed to clearly disclose key conditions, including:

The short expiry period for store credit, often just 7 to 10 days.

That customers would only receive the credit if they remained opted in to The Good Guys’ marketing communications.

ACCC Chair Gina Cass-Gottlieb said the court action was necessary because the promotions could have influenced consumers’ buying decisions:

“The chance to earn store credit may have encouraged some consumers to make a purchase they otherwise may not have made, or to choose The Good Guys over another retailer. We were concerned that consumers may not have done so had they been aware of all the conditions.”

The Good Guys also admitted it failed to provide store credit on time to around 21,500 consumers. Cass-Gottlieb stressed that businesses must deliver any promotional gifts or rebates within the promised time frame.

Alongside the $13.5 million penalty, the Court ordered The Good Guys to provide redress to customers affected by promotions that did not properly disclose expiry periods, by issuing store credit with longer validity. The company will contact eligible consumers directly.

The Good Guys has already addressed issues for customers who did not meet marketing opt-in requirements or who did not receive store credit on time. The company cooperated with the ACCC, admitted liability, and made joint submissions regarding court orders and penalties.

The ACCC continues to prioritize consumer and fair trading issues in the supermarket and retail sectors, particularly misleading pricing and promotional practices.