The Australian Competition and Consumer Commission has filed proceedings in the Federal Court against Karmy Pty Limited Pty Ltd, trading as Schots Restoration Emporium.
The ACCC alleges that Schots has engaged in misleading and deceptive conduct by making a range of misrepresentations in various media about consumers' rights to refunds.
The ACCC alleges that Schots falsely stated in an advertisement published in the Sunday Age TV Magazine on 6 April 2003 that consumers are not entitled to refunds on sale items. It alleges Schots also displayed in-store signs and misrepresented on its website that consumers are not entitled to a refund if goods they purchase are faulty and/or that such refunds would be at the company's discretion. In doing so, the ACCC alleges that Schots has contravened sections 52 and 53(g) of the Trade Practices Act 1974.
The ACCC is seeking declarations, injunctions, corrective advertising, the implementation of a trade practices compliance program and costs.