ACCC takes The Good Guys to court over misleading and deceptive conduct claims

Discount warehouse The Good Guys is facing allegations of deceptive and misleading conduct over alleged problems with its ‘StoreCash’ promotion.

The Good Guys has been taken to court by the ACCC over alleged false or misleading promotions to customers. Picture: AAP

Alleged false or misleading promotions to customers have landed consumer goods retailer The Good Guys in court.

The Australian Competition and Consumer Commission has claimed the JB Hi-Fi-owned discount goods warehouse incorrectly told customers the only hurdle to qualify for a store credit, called StoreCash, was spending a certain amount of money on specific products online or in store

They were also required to sign up to receive marketing communications in order to obtain the store credit, the ACCC alleged.

As well, the ACCC claimed The Good Guys told customers StoreCash would not expire or would expire after a reasonable period, when in reality it expired within seven to 10 days.

The Good Guys ran 116 promotions between July 2019 and August 2023.

Some examples of the promotions show colourful posters telling customers they could earn a bonus $30 store credit if they spent between $300 and $399, or they could receive a $40 store credit if they spent more than $400.

One example says consumers can “earn StoreCash to pay less”.

“We allege that the conditions for consumers to receive a store credit as part of The Good Guys’ promotions were not communicated adequately in The Good Guys’ marketing materials,” ACCC Chair Gina Cass-Gottlieb 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.

“Businesses should be on notice that promotional conditions must be prominently disclosed to consumers, rather than buried in hard-to-find locations, or they risk enforcement action under the Australian Consumer Law,” she said.

The ACCC has also claimed The Good Guys failed to provide store credits to thousands of eligible consumers within the time specified in the offers, or within a reasonable time, in breach of the Australian Consumer Law.

“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 is seeking consumer redress, penalties, declarations, compliance orders, publication orders, and costs.

The Good Guys is a popular discount appliance chain, operating online and physical retail stores.

In response to the court case being lodged by the ACCC, JB Hi-Fi chairman Stephen Goddard issued a statement recognising the proceedings.

“The Good Guys takes its compliance with the law very seriously and has a comprehensive compliance program (is) in place,” he said.

“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.”