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The ACCC and Online Warranties

Do you own an online store or are you an ecommerce retailer? Many online retailers may not realise that they are subject to the same terms and conditions outlined by the Australian Competition and Consumer Commission (ACCC) as retailers who have a ‘shop front’ presence in, for example, a shopping centre.

Do you own an online store or are you an ecommerce retailer? Many online retailers may not realise that they are subject to the same terms and conditions outlined by the Australian Competition and Consumer Commission (ACCC) as retailers who have a 'shop front' presence in, for example, a shopping centre.

Recently the ACCC was forced to intervene in a situation pertaining to Deals Direct. Concerns were raised regarding breaches of the Trade Practices Act 1974, specifically in relation to their warranties and returns policy.

As a result of this the ACCC has released amendments that online store owners should be acutely aware of, the ACCC emphasised for online stores that, "ensuring compliance with the law may involve some costs but in the long run it will reduce the risk of action by the ACCC and will benefit the business by fostering goodwill among their customers".

"The ACCC is concerned that many online sites misrepresent consumers' rights and is putting these companies on notice that they are in for special attention," ACCC chairman, Graeme Samuel, said last month.

In summary what this means is:

  • Many ecommerce businesses don’t provide information on warranties and refunds specific to their site
  • People are cutting and pasting these terms and conditions from other sites
  • It is important that online businesses take note of their warranties and refunds information and make sure it is correct for their business.

What should you do if you are not sure?

  • The ACCC provides guidelines for retailers, at no expense, to ensure that all retailers are aware of the practices they are bound by. These documents are all available on the ACCC website, a good place to start is the 'Start Up Checklist'.
  • A guide for consumers and businesses that addresses warranty and refund issues can also be found online.

Interested in learning more?

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