Major retailer The Good Guys facing court over credit scheme
The consumer watchdog alleges popular Aussie chain ran ‘false or misleading’ promotions that promised store credits.
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A major retailer has been taken to court by the country’s consumer watchdog over allegations it misled customers through a series of promotions that promised store credits.
The Australian Competition and Consumer Commission (ACCC) announced on Thursday it has launched proceedings in the Federal Court against The Good Guys Discount Warehouses (Australia) Pty Ltd.
In a press release, the ACCC alleged The Good Guys ran 116 promotions between July 2019 and August 2023 offering consumers store credit or “StoreCash” if they spent a certain amount of money on specific products.
The ACCC alleges The Good Guys made “false or misleading” representations by not telling customers they also had to sign up to marketing communications in order to receive the credits.
It further alleges the credit scheme was advertised as either not expiring or expiring in a “reasonable period”, but the majority of promotions expired within seven to 10 days.
ACCC Chair Gina Cass-Gottlieb said the regulator believed the conditions to receive a store credit as part of The Good Guys’ promotions “were not communicated adequately in The Good Guys’ marketing materials”.
“We also understand that, for the majority of promotions, the store credit being offered expired within a very short period of time of ten days or less, which many consumers were unaware of,” Ms Cass-Gottleib said.
“We are concerned that as a result of the alleged conduct, consumers may have purchased products from The Good Guys which they might not have done otherwise.”
The Good Guys is a popular household appliance chain with physical stores across Australia and also operates online. It is owned by parent company JB Hi-Fi Ltd.
In an ASX announcement to shareholders, JB Hi-Fi confirmed it was faces allegations it had breached “Australian Consumer Law and/or the Australian Securities and Investments Commission Act in relation to these promotions”.
“The Good Guys takes its compliance with the law very seriously and has a comprehensive
compliance program in place,” its statement authorised by chair Stephen Goddard reads.
“The Good Guys has always sought to provide value and benefits to its customers and has worked cooperatively with the ACCC throughout its investigation.
“As this matter is the subject of proceedings in the Federal Court, JB Hi-Fi is unable to make any further comment.”
On its website, The Good Guys explains its StoreCash scheme is based on qualifying purchases and has a 90-day expiry.
The ACCC also alleges the retailer did not provide credits to thousands of eligible customers within the advertised time, or a reasonable time.
“Even where consumers met the conditions, we allege that The Good Guys did not provide a store credit at all to many eligible consumers,” Ms Cass-Gottlieb said.
The ACCC will seek consumer redress, penalties, declarations, compliance orders, publication orders, and costs in its court proceedings.
Originally published as Major retailer The Good Guys facing court over credit scheme
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