MSY Technology hit by $200K ACCC fine

MSY Technology and its four state-based subsidiary companies have been slapped with fines totalling $203,500 by the Australian Competition and Consumer Commission (ACCC), after the company was found guilty by the Federal Court of making false and misleading claims to customers regarding product warranties.

The case kicked off in November 2010, and saw MSY Technology and its New South Wales, Queensland, South Australian and Western Australian subsidiaries accused of misleading customers about the availability of statutory warranties for products that it sold through its stores.

The court found that MSY Technology had made misleading statements in relation to the warranty rights of consumers. Statements included telling customers that MSY didn’t provide warranties for its products, that warranties only applied in certain circumstances and that customers needed to pay a fee to obtain a warranty.

Justice Nye Perram said in his judgment this week that the MSY verdict ought to serve as a warning to any other retailer charging or withholding a customer’s right to a warranty.

“It is appropriate that it should be made plain to retailers in the position of companies such as the respondents that misrepresenting to consumers what their warranty rights are is an unacceptable form of commercial conduct, and is illegal.

“It is appropriate, therefore, to encourage retailers not to give consumers the impression either that their statutory rights are curtailed or non-existent, or that warranties can only be obtained through payment,” Justice Perram said.

The full bench of the Federal Court found MSY guilty of breaching the Trade Practices Act 1974, and fined the parent MSY Technology $55,000, while the subsidiaries were fined $37,000 (NSW), $18,500 (Qld), $37,000 (SA) and $55,500 (WA), while under instruction to also pay the legal costs of the ACCC.

MSY Technology must also implement a new internal trade practices compliance program, and display corrective advertising in stores and online.

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